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Performance Highlights 2019 Company ProfileManagement Report Management Discussion & Analysis

172 2019 Annual Report PT Bank Negara Indonesia (Persero) Tbk 1732019 Annual Report

PT Bank Negara Indonesia (Persero) TbkDigitalization for Excellent Services Digitalization for Excellent Services

Management Discussion& Analysis

The Economy and Banking Industry 174

The Global Economy 175

Indonesia’s Economy 175

Business Prospects 176

Banking Industry Overview 176

BNI’s Position in the Banking Industry 176

Operational Review 180

Business Development Strategy 2020 181

Operational Review Per Business and Geographical Segments 181

Digital Banking 215

Subsidiaries 222

Marketing Aspects 236

Marketing Strategy 237

Monitoring Intensity to Improve Sales Productivity 240

2020 Business Plan 241

Market Share 242

Achievement 243

Financial Review 244

Statement of Financial Position 245

Other Material Financial Information 280

Business Prospect 310

BNI Business Prospects 310

Long-Term Strategy 2019-2023 310

Business Development Strategy 2020 311

Management Credit Risk 312

Human Capital 318

Information Technology 328

Digitization of Services 338

Data Management 348

Network and Services 352

BNI Contact Center 355

Service Quality Unit 362

Corporate Social ResponsibilityGood Corporate GovernanceRisk Management Capital & Practice






The Economy and Banking Industry

In the midst of a global economic slowdown, Indonesia’s GDP was able to grow positively at 5% while inflation was kept below 3.5%.




The GloBal ecoNomy

The Trade War tensions has recently subsided. The United States and China have, in the process of negotiating an agreement to resolve the trade war, agreed to not impose additional import tariff increases that initially was supposed to be applied on December 15, 2019. This compromise was achieved following China’s commitment to increase purchases of US agricultural products amounting to US$200 billion. Geopolitical tensions shifted between the US and Iran following the shooting of the supreme commander of Iran’s Revolutionary Guard by a US drone at Baghdad Airport, Iraq. President Trump recently stated that he will withdraw from Iran. However, in view of the tense geopolitical climate between the US and China (brought about by the US’ “attention” towards the demonstrations in Hong Kong) and US-Iran as well as the close relations between Russia with Iran has led Iran to constantly seek to pursue a response.

Global economic growth for 2019 and 2020, as revealed by the World Bank in October 2019, is projected to be lower than initially projected in June 2019 (January 2020: 2.4% & 2.5% compared to June 2019: 2.6% & 2.7%). The downward correction in the world’s GDP projection is based on weak global trade volume brought about by the Trade War. The World Bank projects 2020 global GDP will be higher than in 2019 (2019: 2.4% vs 2020: 2.5%). This increase is based on the World Bank’s assumption of improved international investment and trade.

The World Bank is aware that the low benchmark rate conditions in 2019 will lead corporations and countries to issue bonds. The high accumulated level of bond issuances in 2020 can trigger a future financial crisis.

INDoNesIa’s ecoNomy

Indonesia’s economic growth (GDP) in the third quarter of 2019 grew by 5.02%. This Q3 2019 GDP level was increasingly questioned by economic observers, particularly those from abroad, given the absence of a catalyst for Indonesia’s economic growth in the third quarter of 2019. However, the government clarified that the low import levels had a positive impact on Indonesia’s Q3 2019 GDP. High imports can reduce GDP while at the same time low imports can positively contribute to GDP.

In the fourth quarter of 2019, Indonesia’s economy was, as usual, more active compared to the previous quarter due to public consumption that increased as a result of the holiday season and Christmas as well as new year. Nevertheless, consumption seemed relatively stable. The holiday and shopping appetites in December 2019 were not as large as in the previous year. MoM inflation in December 2019 (0.35%) was lower compared to the December inflation of previous years. In terms of exports and imports, Indonesia’s accumulated trade deficit up to November 2019 registered a US$1.3 billion deficit. Indonesia’s imports increased beyond economist’s expectations in November 2019.

With projected conditions such as relatively stagnant household consumption and high imports, projected fourth quarter 2019 consensus as compiled by Bloomberg is expected to reach 5% (YoY) or the lowest in 2019 (Q1 2019: 5.07%, Q2 2019: 5.05%, Q3 2019: 5.02%). Inflation throughout 2019 was registered to be the lowest since 2000 (2.72%). The government’s decision not to increase electricity and subsidized fuel prices successfully stemmed price increases in 2019. Bank Indonesia targets inflation of 3%±1 for 2020 or lower compared with the target in 2019 of 3.5%±1. The government highlights the importance of maintaining public consumption by maintaining inflation to conducive levels.

In the meantime, the economic survey conducted by Bloomberg projects Indonesia’s inflation to reach 3.5% in 2020 or higher than in 2019 as it is driven by the increase in administered prices. There are no official announcements to date from the government to increase the basic electricity rates and subsidized fuel prices. For non-subsidized fuel alone, the government has decided not to increase prices.

If there is no increase in administered prices in 2020, therefore, it is highly likely that the actual 2020 inflation will be substantially lower than in 2019 as food and foodstuffs (the largest component of inflation) is projected to be low due to favorable rainfall at the end of 2019 and early 2020. Adequate rainfall will lead to improved harvests and maintain food and foodstuff inflation in 2020.




The Rupiah currency has recently strengthened or moved below Rp14,000 to the US$ and in its 2020 State Budget, the Ministry of Finance projects the Rupiah to be at a level of Rp14,400, which is lower than in 2019 and will most likely serve as the basic assumption for the Rupiah’s higher exchange rate in 2020. Moreover, foreign investment to Indonesia, such as through bank acquisitions and investments in digital-based businesses in Indonesia, can potentially increase in 2020.

Projected prices for Indonesia’s mainstay commodities (CPO and Coal) in 2020 is projected to remain unfavorable or lower than in 2019. With lower prices and limited demand for its mainstay commodities, Indonesia may likely experience a current account deficit in 2020.

Furthermore, tax reduction policies to attract foreign investors, can potentially reduce tax income. Indonesia can potentially obtain lower tax income in 2020 compared to 2019 (fiscal deficit). The potential for a double deficit may likely occur again in 2020.

BusINess ProsPecTs

Historically, the largest GDP contribution based on business fields for the 2015-Q3 2019 period is the manufacturing business amounting to 20.29%, followed by agriculture of 13.24% and trading of 13.12%. The manufacturing, agricultural, and trading businesses are expected to continue to be the prospective industries in 2020.

Manufacturing grew 4.22% in the 2015-Q3 2019 period. In 2020, manufacturing is expected to grow by 5.0-5.4%. The prospective manufacturing sub-businesses include: textile, food and beverage industries, basic metals industry, and metal, electronic, optic industries.

Agriculture booked growth of 3.68% for the 2015-Q3 2019 period and is expected to grow by 3.7-3.9% in 2020 wherein the prospective sub-businesses include: Fisheries, Food and Crop Plantations.

Trading registered a 4.14% growth for the 2015-Q3 2019 period and is expected to grow 5.3-5.7% in 2020. Trading sub-businesses that remains to be prospective in 2020 are the vehicle and non-vehicle trading industries.

The highest GDP growth based on business fields for the 2015-Q3 2019 period is the information and communication business sector amounting to 8.89% and is expected to grow by 7.1%-7.5% in 2020.

BaNkING INDusTry overvIew

Bank Indonesia projects credit growth (10%-12%) and third party growth (8%-10%) will be higher than in 2019. Meanwhile, media reports indicated that Third Party Funds (TPF) as of November 2019 grew 6.4% and credit growth amounted to 7%. Nevertheless, with low benchmark rates and high foreign investment appetite in debt instruments, banks may be forced to compete with the bond markets to obtain TPF. Foreign funds will be attracted to Indonesia due to: stable economic growth (5%), low inflation and political stability that is relatively maintained.

As stated above, the government will experience a fiscal deficit in 2020 and will issue bonds to address this deficit. The government may potentially issue more bonds in 2020 compared to 2019 with an attractive (higher) coupon. If this occurs, the banking sector’s liquidity may likely be limited in 2020 whereby the potential for growth will be at a single digit level.

BNI’s PosITIoN IN The BaNkING INDusTry

BNI is able to maintain its position in the banking industry by remaining the fourth largest bank, this is in line with the achievement of BNI CAGR during 2015-2019 both in terms of Assets, Lending, and DPK which is the highest compared to 3 other book IV banks. CAGR (Compound Annual Growth Rate) is the average growth rate over a period of more than 1 year. The position is illustrated in the following table.





BNI Positions based on Total assets (Rp trillion)

• Source: - ForBCAdatauseBankIndonesiaMonthlyBankReport(LBU)dataasofNovember2019 - Industry data using Indonesian Banking Statistics as of October 2019• BankOnly

BNIBCAMandiriBRI

2015 2019 2015 2019 2015 2019 2015 2019

808

12.2% 8.7%

11.0%

13.0%

1,129 1,343

885

780

CAGR 2015 - 2019 Banking Industry

8.0%

582 479

846

CAGR

BNI Positions based on lending(Rp trillion)


BNIBCAMandiriBRI

2015 2019 2015 2019 2015 2019 2015 2019

536

11.4% 10.3%

10.1% 14.1%

792860

570 523


7.9%

388 308

558

CAGR

BNI Positions based on Third Party Deposits(Rp trillion)


BNIBCAMandiriBRI

2015 2019 2015 2019 2015 2019 2015 2019

613

10.8% 7.4%

9.6% 12.9%

815970

684 571


7.5%

474 351

643

CAGR





BNI’s position is based on Nominal casa(Rp trillion)

BNIBCAMandiriBRI

2015 2019 2015 2019 2015 2019 2015 2019

413

10.7% 7.6%

9.7% 15.1%

552572

522 382


8.0%

360 217

381

CAGR

BRIMANDIRIBCABNIOthers

market share based on Total assets(%)

13.2%

9.5%

7.8%

55.7%

13.8%

2015

10.6%

9.3%

13.5%

50.4%

16.1%

2019


market share based on lending (%)

13.2%

9.6%

7.6%

55.9%

13.8%

2015

10.3%

9.5%

14.4%

50.2%

15.6%

2019

• Source: - Peers2015datausesBankIndonesiaMonthlyCommercialReport(LBU)dataasofDecember31,2015 - Data peers 2019 uses data as of December 31, 2019, for BCA uses data as of November 30, 2019 - Industry data using Indonesian Banking Statistics as of October 2019• BankOnly




NPl Gross

Bank 2015 2016 2017 2018 2019 TreND

BRI 2.0 2.0 2.1 2.2 2.6

Mandiri 2.3 4.0 3.5 2.8 2.4

BCA 0.7 1.3 1.5 1.4 1.6

BNI 2.7 3.0 2.3 1.9 2.3

Banking Industry 2.5 2.9 2.6 2.4 2.7

• Source: - Peers2015datausesBankIndonesiaMonthlyCommercialReport(LBU)dataasofDecember31,2015 - Data peers 2019 uses data as of December 31, 2019, for BCA uses data as of November 30, 2019 - Industry data using Indonesian Banking Statistics as of October 2019• BankOnly


market share based on Third Party Fund(%)

13.9%

10.7%

8.0%

52.8%

14.6%

2015

11.6%

9.7%

13.8%

48.5%

16.4%

2019


market share based on casa Nominal (%)

17.3%

15.1%

9.1%

42.5%

16.0%

2015

16.1%

11.8%

17.0%

37.5%

17.6%

2019




Operational review

amid the challenges of slowing economic growth, BNI was able to book 4.6% asset growth to rp845.6 trillion. This was supported by a 8.6% increase in loans supported by a strong capital structure with car reaching 19.7% and DPk growth of 6.1% to rp614.3 trillion. BNI’s profitability also strengthened with an increase in net interest income by 3.3%, supported by an increase in non-interest income by 18.1% and current year profit of rp15.4 trillion with 2.5% growth in 2019.




BusINess DeveloPmeNT sTraTeGy 2020

In accordance with the 2019-2023 BNI Corporate Plan, 2020 is the year of “Business expansion through the digital corporate and retail ecosystem”, with the strategies to be implemented as stipulated in the 2020 Board of Directors’ General Policy are as follows:1. Improving Corporate Business that focuses on priority

sectors and optimization of business ecosystems.2. Strengthening Medium Business management to

improve credit quality and productivity.3. Improving the quality of Small Business that focus on

regional potential to support national economic equality.4. Improving Consumer Business with a focus on potential

customers by optimizing data analytics.5. Increasing Current Accounts Savings Accounts (CASA)

and fee-based income (FBI) through increasing digital transactions, strategic partnerships, and developing new business models.

6. Strengthening risk management capabilities to support business expansion and the growth of quality digital business.

7. Enhancing Human Capital capabilities.

oPeraTIoNal revIew Per BusINess aND GeoGraPhIcal seGmeNTs

BNI conducts its business and activities in the banking sector in accordance with the Articles of Association as set forth in Deed No. 52, dated May 22, 2018. Its main activities are:

1. Raising funds from the public in the form of deposits such as demand deposits, time deposits, certificate of deposits, savings deposits, and/or other equivalent;

2. Granting loans;3. Issuing debt instruments;4. Buying, selling, or guaranteeing, at its own risk, as

well as for the interest and the order of clients (money orders including bills accredited by the Company as a Bank whose validity period does not take longer than is customary in the trading of such documents);

5. Debt instruments and other trade paper whose validity period does not take longer than is customary in the trading of such documents;

6. State treasury paper and Government Guarantee Letters;7. Bank Indonesia Certificates (SBI);8. Bonds;9. Futures Trading in accordance with the laws and

regulations;10. Other securities instruments with a maturity in

accordance with the laws and regulations);11. Transferring money, both for its own interest, or the

interest of the customer;12. Placing funds on, borrowing funds from, or lending funds

to other banks, either by using mail, telecommunications facilities as well as with performance notes, checks, or other means;

13. Receiving payment for securities and performing calculations with or among third parties;

14. Providing a place to store goods and securities;15. Conducting care for the interests of other parties

pursuant to a contract;16. Placing funds from customer to other customers in

the form of securities that are not listed on a stock exchange;

17. Providing financing and/or performing other activities, including activities based on sharia principles, in accordance with the provisions stipulated by competent authorities;

18. Conducting factoring, credit card business and trusteeship;

19. Conducting foreign currency activities by complying with the provisions stipulated by the authorities;

20. Conducting equity participation in banks or other companies in the financial sector;

21. Conducting temporary capital investments to address the consequences of credit failure, including financing failure based on Islamic principles, subject to retracting ownership interests in accordance with the provisions stipulated by competent authorities;




22. Acting as a founder of the pension fund and pension fund manager in accordance with the provisions of the laws and regulations;

23. Conducting financial services, commercial banking, and other investment banking;

24. And performing other activities commonly conducted by the bank that are not contrary to legislation.

In addition to those key activities, BNI also performs business support activities in optimizing available resources in support of the core business activities, that are not contrary to legislation.

overview of operations per Business segmentsBNI’s operating segments comprises: Corporate; Medium and Small; Consumer and Retail; Treasury and International; Head Office; Subsidiaries.

corporate Discussions on Corporate Segment activities include corporate customer loans, deposits and other transactions.

loans BNI 2018 Corporate segment loans strategy, productivity, business prospects and achievement strategies are described as follows:

Description of corporate segment - loans BNI Corporate segment handles loans of over Rp300 billion for individual and group customers in State-Owned Enterprises, and large National and Multi-National Enterprises in Indonesia.

corporate segment loans 2019 strategiesBNI’s short-term plans follow the long-term plans after taking into account the latest internal and external factors. During 2019, BNI carried out its plans as follows:1. Loan expansion focusing on financing upstream to

downstream government infrastructure projects for corporations and SOEs.a. Increasing new borrowers and optimizing the

existing borrowers focusing on infrastructure projects and manufacture sector.

b. Increasing new borrowers and optimizing the existing borrowers focusing on other priority sectors.

Operational review

2. Increasing corporate loans selectively focusing on prospective industries.a. Selectively taking over new debtors from BUKU III

and BUKU IV banks in line with the priority sectors.b. Selectively taking over new debtors from BUKU III

and BUKU IV banks in line with the priority sectors.c. Optimizing existing borrowers facilities based on

merit. d. Expansion to the business group of existing BNI

customers.

corporate segment-loan Productivity in 2019BNI loan portfolio is well diversified in sectors that are the priority of BNI. The list of economy and business sectors of the 10 (ten) largest individual and group debtors as of the end of 2019 are as follow:

Table: list of economy sectors of 10 (Ten) largest Individual Debtors

economy sector Total (rp million)

Trading, Restaurant and Hotel 8,394,412

Social Services 4,815,018

Business Services 4,626,136

Trade, Restaurants and Hotels 2,334,290

Electricity, Gas and Water 1,896,927

Manufacture 1,639,682

Mining 1,637,669


Business Services 1,457,751





Table: list of Industry sectors of 10 (Ten) largest Group Debtors

Group Debtor amount (rp million)

Wood Pulp Industry, Paper and Cardboard/Paper Board; Multifinance; Edible Oils from Vegetable and Animal 12,148,385

Palm Oil Plantations; Electricity; Electric Accumulator and Battery Industry; Leasing, Other Non-Bank Financial Intermediary; Real Estate; Cement, Lime and Gypsum, and Products made from Cement and Lime

10,422,820

Electricity 10,160,935

Cement, Lime and Gypsum, and Products made from Cement and Lime 9,556,211

Domestic Trading 8,736,998

Tollroad Construction 8,484,339

Tollroad Construction; Civil Construction 8,364,415

Telecommunication Services 7,702,365

Palm Oil Plantation; Tea Plantation; Tobacco Plantation; Sugar Cane Plantation; Rubber Plantation; Sugar Industry 6,489,425

Palm Oil Plantation; Edible Oil from Crude Palm Oil Industry 5,655,006

Total corporate segment loans reached Rp288.4 trillion in 2019, an increase of 9.8% or Rp25.7 trillion compared to 2018 of Rp262.7 trillion. Based on the types of loans, the majority of corporate loans disbursed in 2019 are in the form of Working Capital Loans, which account for 54.9% of total corporate loans, or Rp158.5 trillion, while the remaining 45.1% or Rp129.9 trillion are Investment Loans. Corporate segment loan growth is presented in the following table:

Table Growth of corporate segment loans

Product2019 2018 Growth 2018-2019

(rp billion) (%) (rp billion) (%) (rp billion) (%)

Investment Loan 129,942 45.1 109,903 41.8 20,039 18.2

Working Capital Loan 158,488 54.9 152,796 58.2 5,692 3.7

Total 288,430 100.0 262,699 100.0 25,731 9.8

corporate loan Business Prospects and strategiesThe growth of corporate loans will be focused on the manufacturing, infrastructure, plantations and other business services sectors. Based on these prospects in 2020, the corporate segment undertakes the following strategies:1. Optimizing value chains and transactional banking from customers so as to increase fee-based income.2. Maintaining loan quality through prudent loan financing processes and monitoring borrowers, especially those that included

on the watchlist.3. Speeding up the business processes.

Deposits/Third Party FundsDiscussions related to strategy, productivity, business prospects and strategies for achieving it for Deposits/Third Party Funds of BNI Corporate Segment in 2019 are as follows:

Description of corporate segment - Third Party Funds -DPkThird Party Funds (DPK) at Corporate Segment (Business Banking) are funds derived from institutional (non-individual) customers handled by the Corporate Segment. Corporate segment DPK are divided into 5 (five) segments, namely SOEs, Non-Bank Financial Institution (NBFI), Government Ministries/Institutions, Universities, and Area segment.




There are 2 (two) major aspects of the management of Third Party Funds (DPK) at the Corporate Segment, namely:1. Managing and expanding BNI’s business in the Business Banking sector at the Corporate and Area (region and branch)

segments.2. The DPK business of Corporate segment focuses on the entire needs of business banking customers as B2B or B2C.

corporate segment-DPk strategy in 2019In line with BNI’s strategy to achieve quality asset growth and a good level of profitability through an optimal funding structure, in 2019 BNI strive to improve customer experience by offering improved business solutions through the following initiatives:1. Capturing the business potential of state budget (APBN) and regional budget (APBD) fund flows for 2019 (20 customers in

Government ministries/institutions, Hospitals, Educational Institutions, and Regional Government). 2. Enhancing the derivative businesses of Corporate customers (SOE, Non-Banking Financial Institution/NBFI, Universities,

and Private Corporations).3. Optimizing Debtor Funds by encouraging more financial transactions by the Central and Corporate debtors/through the use

of Cash Management Services.4. Develop system-based solutions and transactions according to customer needs.5. Acquisition of new customers.

corporate segment-DPk Productivity in 2019 Productivity of Corporate Segment-DPK is presented in the following table:

Table Third Party Funds at corporate segment

Description2019 2018 Growth 2018-2019

(rp trillion) (%) (rp trillion) (%) (rp trillion) (%)

Current Accounts 195 63.3 161 57.5 34 21.1

Time Deposits 113 38.7 119 42.5 (6) (5.1)

Total 308 100.0 280 100.0 28 10.0

Third Party Funds at Corporate Segment in 2019 amounted to Rp308 trillion, increasing by Rp28 trillion compared with the previous year at Rp280 trillion.

Table Number of account at corporate segment


(account unit) (%) (account unit) (%) (account unit) (%)

Current Accounts 384,624 90.2 323,834 93.9 60,790 18.8

Time Deposits 38,532 9.0 21,061 6.1 17,471 83.0

Total 426,156 100.0 344,895 100.0 81,261 23.6

The number of accounts at BNI Corporate Segment in 2019 reached 426,156 account units, increasing by 23.6% or 81,262 account units, compared with 2018.

corporate segment - DPk Prospects and strategies For the year 2020, with expectations of increased competition, BNI has mapped out prospective business potentials in the Corporate - DPK segment, as well as the relevant strategies, as follow:

Operational review




Potential Demand deposits from

increased transactions for corporate and

area fund debtors and debtors.

Increased Transactions

Potential Giro acquisition of corporate and area customers in

2020.

acquisitioncustomer

Potential Demand Deposits from managing business derivatives for SCF, GB and SmartCity

in 2020 are targeted.

uPsellING

Total Potential current accounts of 3 hlB Division

magnitude strategies

BNI strategic policy to increase CASA is through the creation of business ecosystems with improved digital capabilities and new business models.

Thus, in support of the strategic policy, BNI has formulated the strategies for the achievement of business targets in 2020. These are essentially a continuation of the 2019 strategies, with a number of adjustments especially those related to the targeted market potentials, as follow:

1. Increasing customer transactions (depositor and debtor) through cms transactions

BNI Cash Management Systems (CMS) offers convenient financial transactions as a solution for the needs of customers in the Corporate segment. Greater utilization of convenient transaction features in the CMS are expected to encourage higher balances in customers’ current accounts with BNI.

2. acquisition of corporate customers and derivative To expand its market share, BNI continues to map

out the business ecosystem of existing corporate customers, in order to target new customer acquisition identified within the business ecosystem of those customers during 2019.

3. upselling Optimizing the existing corporate customers at BNI

through exploring the relevant derivative customers in order to offer loan facilities in the form of Supply Chain Financing or transaction guarantee facility in the form of Bank Guarantee. The upselling strategy of corporate customers is expected to increase the product holding ratio of customers in terms of transactional, deposit or loan products.

The performance of Business Banking DPK from 2015 until the current year have shown significant growth, both in terms of ending balance as in average balance, as in the following graph:

2019

199

2018

164

2017

140

2016

116

2015

88

ENDACG

As shown in the graph, the ending balances of current accounts increased by Rp111 trillion or 126%, from initially Rp88 trillion in 2015 to Rp199 trillion in 2019.

Likewise, the average current account balances also grew by Rp71 trillion or 80%, from Rp87 trillion in 2015 to Rp157 trillion in 2019.

other Transactions Discussions related to strategies, productivity, business prospects and strategies for BNI Corporate Segment - Other Transactions in 2019 are as follow:




Operational review

Description of corporate segment - other Transactions in 2019 For Corporate Segment customers, BNI offers its flagship products such as BNI Cash Management, which allows customers to independently manage their corporate cash flow more regularly and are monitored online. Features in the BNI Cash Management product include overbooking transfers, domestic and international inter-bank transfers, online tax payment, virtual account for collections, payment of bills through bill payment, and supply chain financing.

With cash management transactions, DPK will grow continuously and indirectly also maintaining liquidity at BNI. The primary application provided by BNI that can be used by customers to conduct Cash Management transactions is known as BNIDirect. BNIDirect is a web-based application that has been securely tested and can be accessed via the internet from anywhere, anytime, and using any media. The BNIDirect website could be accessed at https://bnidirect.bni. co.id. BNIDirect can be accessed via a computer or cellphone connected to the internet network. Also available now is BNIDirect Mobile, which is very flexible and easy to install on every type of mobile phone.

corporate segment - other Transactions strategies in 2019Throughout 2019, BNI implemented strategies to increase transactions in cash management, as follow:1. Maintaining and acquiring SOE/Corporate Customers

who have significant ecosystems.2. Exploring and identifying the potential for Non-Tax

State Revenue (PNBP) and the expenditure flows in Government Ministries/Institutions (top 10) in order to offer possible business solutions.

3. Exploring and identifying derivative businesses and value chains from corporate customers in order to provide close loop transaction solutions.

4. Expanding the scope of transaction access to the commercial customer segment by optimizing the potential of BNI debtors in each region.

corporate segment-other Transactions Productivity in 2019In 2019, the number of cash management account units reached 158,121 account units, an increase of 33.6% or 39,762 account units, compared to 2018. The increase in the number of accounts with cash management transactions in BNI is due to BNI’s success in maintaining the trust of corporate customers, so it remains committed to using BNIDirect as a transaction tool.


(account unit) (account unit) (account unit) (%)

Cash Management 158,121 118,359 39,762 33.6

Throughout 2019, BNI continued to be successful in increasing its presence as a customer choice transaction bank through a variety of efficient, effective, safe and reliable cash management services. As a result, the total frequency of integrated cash management service transactions through BNIDirect grew 32% to reach 28.2 million transactions with a value of Rp2,409 trillion, which provided fee-based income that grew 0.2% to Rp591 billion at the end of 2019.

Table BNIDirect Transactions

Description2019 2018 Growth

(rp million) (rp million) (%)

Number of Transaction (million transaction) 28.2 21.3 32

Transaction Value (Rp Trillion) 2,409 1,605 50

Fee Based Income (Rp Billion) 591 590 0.2

Number of Users 89,424 65,675 36




The performance improvement was supported by several strategic initiatives in 2019. Among other things, throughout 2019 BNI succeeded in increasing the penetration of transactional banking services in the corporate customer segment (including SOEs and Government), and expanding its presence in the commercial customer segment by optimizing the potential of BNI debtors in each region. BNI also managed to gain trust in developing public services that support the efficiency and transparency of the bureaucracy in various government ministries and agencies. Among them are electronic online real-time tax payment (BNI e-Tax) and payment of customs and import of goods (BNI e-PIB), payment of making passports, online PBB payments (e-PBB), and also playing a role in various government programs related to BumDes. BNI’s various cash management solutions have succeeded in helping customers create more efficient business processes so as to increase customer productivity. The electronic solutions that are built are also able to create efficient work processes within BNI, thereby increasing service for customers. Increasing the value chain with financial supply chain transactions also has begun to show a pretty good potential.

As in previous years, BNI transactional banking services have been recognized by various awards in 2019, including:1. Indonesia Market Leader (Asian Bank Only) as voted by

corporations in 2019, by CMN Survey2. Best Receivables Solution in Southeast Asia for BNI

autopayment and BNI Cash Management, by Alpha Southeast Asia

corporate segment-other Transactions Prospects and strategies In 2019, which is a political year, prospects for an increase in BNI Cash Management transactions are still wide open, especially in the digital segment, by cooperating with fintech companies whose transactional activities can synergize with BNI cash management. For the Government ministries and institutions segment, the opportunity is still large by optimizing APBN funding through various central and regional government projects. In the SOE and private segment, although somewhat restrained at the beginning of the year, it is believed to continue to grow and have good prospects, by choosing the right product/solution.

By seeing the potential in 2020 and drawing lessons from experience in 2019, BNI Cash Management immediately improved, by making a different business strategy from the previous year, as follows:1. Acquiring new customers by focusing on potential high

transaction customers, such as e-commerce, fintech, p2p, local and multinational private companies.

2. Penetration on BNI customers who have not yet used transactional solutions.

3. Activating the customer transaction optimization of existing, but not yet optimum, users of transaction banking products and solutions.

4. Product upselling to increase the utilization of integrated transaction banking products and solutions.

corporate segment revenues and Profitability


(rp million) (rp million) (rp million) (%)

Interest income and sharia income - net *) 14,096,224 12,813,111 1,283,113 10.0

Premium income - net -

Other operating income 3,346,810 3,376,656 (29,846) (0.9)

Provision for impairment losses (4,306,047) (1,431,145) (2,874,902) 200.9

Other operating expenses (6,040,821) (5,541,492) (499,329) 9.0

Operating profits 7,096,166 9,217,130 (2,120,964) (23.0)

Non-operating income (expenses) - net 1,136 21 1,116 5.279.6

Profit before tax 7,097,302 9,217,151 (2,119,849) (23.0)

Total assets 283,707,850 258,869,706 24,838,144 9.6

Total liabilities 301,808,937 270,621,130 31,187,807 11.5

*) including internal transfer pricing components between operational segments




Revenues and profitability of the Corporate Segment is presented as follows:In 2019 interest income and sharia income - net of the Corporate Segment reached Rp14.1 trillion, growing by 10.0% compared to 2018 that amounted to Rp12.8 trillion. Operating profit of the Corporate segment in 2019 reached Rp7.7 trillion, down 16.4% compared to the previous year of Rp9.2 trillion. The increase in revenue was due to the increased contribution of credit growth in the Corporate segment by 9.8% and growth in the amount of Third Party Funds by 23.3%.

medium and small The Medium and Small Segment include loans, customer deposits and other transactions for small to medium scale business customers.

medium segment - loans Discussions related to BNI Medium Segment - Loans strategies, productivity, business prospects in 2019 are presented as follows:

Description medium segment - loansThe Medium Segment provides loans of between Rp15 billion and Rp300 billion to individual and group customers.

medium segment in 2019Growth in the medium segment loans in 2019 is below the growth of the national banking system. That is because in 2019 the medium segment is more selective in expanding and is more focused on improving loan quality and in handling problem loans.

activities in 2019Various strategies were carried out throughout 2019 so that the goal of increasing profitability was achieved, including:1. Control of problem loans, through the formation of

a credit quality improvement team that implements a systematic and comprehensive credit analysis tool known as Smart CA and PACE.

2. The formation of Task Force teams at the head office and in the regional offices with the assignment of various levels of employees in order to accelerate the handling of Loans at Risk.

Operational review

3. Quality credit expansion and generate optimal interest income through priority and leading sectors in each Region.

4. The Medium segment expansion also targets the value chain and supply chain of corporate debtors, depositor and branch referrals with a good track record.

5. Increased non-credit business through acquisition of Emerald customers, payroll customers and activation of debtor cash management through BNI.

medium segment-loans Productivity in 2019In 2019, BNI’s Medium Segment loans reached Rp72,691 billion, covering all major Indonesian cities from 33 (thirty three) Medium Credit Centers (SKM) facilities.

medium segment-loans Growth

20192018201720162015

72,69174,73170,261

61,330

51,147

Medium segment loans consist of Working Capital Loans which accounted for Rp45.1 trillion or 62.1%, while the remaining Rp27.6 trillion or 37.9% were Investment Loans. The majority of Medium Segment loans were channeled to the Trading, Restaurant and Hotel sector with 30.6%, followed by loans to the Manufacture sector by 27.3% of the total Medium Segment loans. The following details the distribution of Medium Segment loans by sector, which are described in the following table:




Table medium segment loan Distribution by sectors

sector2019 2018 Growth 2018-2019

(rp billion) composition (%) (rp billion) composition (%) (rp billion) (%)

Trading, Restaurant, and Hotel 22,240 30.6 23,497 31.4 (1,257) (5.4)

Mining 1,994 2.7 2,007 2.7 (12) (0.6)

Manufacture 19,835 27.3 19,585 26.2 250 1.3

Agriculture 3,730 5.1 3,622 4.9 107 3.0

Construction 7,391 10.2 7,787 10.4 (395) (5.1)

Transport, Warehouse, and Communications 7,303 10.1 7,940 10.6 (637) (8.0)

Electricity, Gas, and Water 366 0.5 456 0.6 (90) (19.8)

Business Services 6,880 9.5 7,082 9.5 (202) (2.9)

Social Services 2,952 4.1 2,755 3.7 196 7.1

Total 72,691 100.0 74,731 100.0 (2,040) (2.7)

In line with the direction of government policy, namely equitable development, the Medium Segment focuses on the government’s strategic industries and improves the economic welfare of the community through growth in the agricultural sector.

Further, to ensure quality business growth, growth is directed at businesses that have the potential to continue to grow and not be affected by disruption, such as social services, by significantly increasing lending in that sector in 2019.

In internal BNI, the Medium Segment business continues to make improvements in order to focus on achieving profit, improvements are made on the human resources, technology and business processes side. Improvements on the human resources side are done by increasing the ability of credit staff through various programs to improve hard skills and soft skills, as well as to quickly fulfill the amount of resources in accordance with business needs that are increasingly increasing. On the technology side, the Medium Segment is developing a variety of data automation systems so that business processes can be expected to run quickly and agile.

medium segment-loans Prospects and strategies Economic growth in 2020 in Indonesia is projected to be between 5% -6% by various national and international institutions. Credit growth is estimated to be under 10% by the FSA and the National Banking. In line with this, the BNI Medium Segment targets growth of below 10%.

At the end of 2019 various system setups and tools to support the growth of the Medium segment in 2020 have been implemented, so it is expected that business capabilities in BNI medium segment can grow in accordance with the targets set.

The objectives of the Medium Segment in 2020 is to contribute maximally to BNI’s profitability and provide added value to stakeholders. Strategies have been prepared in order to achieve these objectives, as follows:1. Increased profitability through the management of all

business activities of debtors, so as to provide maximum profit value for BNI.

2. Optimal handling and management of Loans at Risk in order to reduce the cost of provision for loan quality impairment.

3. Expansion is directed at industries that have good prospects and potential in the following years.

In 2020, the Medium Segment is still focused on the Corporate supply chain, improving business processes and improving credit quality.

BNI has set a series of strategies to achieve the targets set as follows:1. Selective expansion in priority sectors and regions in

potential areas2. Focus on the main players in the priority sectors in each

region3. Supply chain for selected corporations by maximizing the

value chain potential of Corporate and Medium segment debtors.




Operational review

4. Develop digital capabilities through digitization of process and monitoringa. Digitization of credit applicationsb. Utilization of Big Data

5. Improving credit quality through comprehensive monitoring and management of loans at risk. 6. Improve synergy and business potential by encouraging closed loop transactions, increasing CASA through cross selling of,

among others, cash management and customer value chains

revenues and Profitability of medium segment Medium segment revenues and profitability are presented as follows:



Interest income and sharia income - net *) 3,512,476 4,404,225 (891,749) (20.2)

Premium income - net

Other operating income 678,614 531,615 146,999 27.7

Provision for impairment losses (1,281,781) (1,955,952) 674,171 (34.5)


Operating profit 1,802,003 1,973,205 (171,202) (8.7)

Non-operating income (expenses) - net (426) 167 (593) (355.6)

Profit before tax 1,801,577 1,973,372 (171,795) (8.7)

Total assets 70,007,377 72,188,657 (2,181,280) (3.0)

Total liabilities 9,041,178 11,081,343 (2,040,165) (18.4)

*) Including internal transfer pricing components between operational segments

In 2019, interest income and sharia income - net in the Medium segment reached Rp3.5 trillion, down 20.2% from the 2018 position of Rp4.4 trillion. Accordingly, operating profit of the Medium segment declined in 2019 by 8.7% to Rp1.8 trillion, from Rp2.0 trillion in 2018. The decline in profitability of the Medium segment in 2019 was due to the greater focus on improving asset quality.

small loans Discussions related to strategies, productivity, business prospects and achievement of BNI Small Segment-Loans in 2019 are as follow.

Description of small segment-loansBNI Small Segment manages productive loans for individual, business and business group customers with a maximum loan ceiling of Rp15 billion.

small segment-loans strategy in 2019BNI’s success in maintaining positive performance in the Small Segment in 2019 is the result of strategies that have been carried out, among others, optimizing supply chain financing from corporate customers and debtors, strengthening the synergy of SOEs for lending in the

production sector, financing focused on business centers through clustering patterns, as well as improving digital-based credit processes. BNI’s commitment as an agent of development is manifested through the support of government programs, especially the provision of credit to MSMEs as a stimulus to improve welfare. The government loan program is also the basis for BNI’s credit growth in 2019.

BNI’s support for the government program in 2019 is realized through the activities that have been carried out, including:1. Distribution of People’s Business Credit (KUR) to farmers

who have a Farmer Card, the types of agriculture financed vary consisting of rice, corn, sugar cane and onions. The realization of KUR Farmer Card for 2019 amounted to Rp1.2 trillion, which has been distributed to 60,309 farmers. BNI also developed Agriculture 4.0 through Smart Farming, which is an intelligent farming method based on Internet of Things to support modern agricultural management.

2. Social forestry program, which is the utilization of Perhutani’s unmanaged lands by giving management rights to the surrounding community farmers. Thus, the




surrounding community can utilize Perhutani’s land to improve their welfare, supported by financing from BNI through KUR facilities.

3. Rejuvenation of the People’s Palm Oil, refinancing the people’s oil palm plantations so as to provide capital assistance to develop and improve the yield of their plantations.

4. Financing to fishermen through the development of fishermen’s house is a method developed for fishermen that can connect between fishermen, providers of fishing needs, buyers and banks.

5. KUR financing for salt farmers to expand access to salt farmers to obtain additional capital so as to increase salt production and reduce salt price fluctuations at harvest through warehouse receipts.

small segment-loans Productivity Loan growth in the Small Segment is presented in the following table:

Table small segment loan Growth by Type of Product

Product

2019 2018 Growth

outstanding (rp billion) NPl (%) composition

(%)outstanding (rp billion) NPl (%) composition

(%)outstanding (rp billion) (%)

KUR 24,418 0.8 32.4 20,225 0.7 30.7 4,192 20.7

Non KUR 51,043 2.7 67.6 45,838 2.0 69.4 5,205 11.4

Total 75,461 2.1 100.0 66,063 1.6 100.0 9,398 14.2

The Small Segment managed to maintain credit growth in double digits, which in 2019 was 14.2%. The Small Segment loan portfolio as of December 31, 2019 was Rp75.5 trillion, growing Rp9.4 trillion from the previous year. The success in maintaining credit growth cannot be separated from significant growth in BWU product which grew by 42%, People’s Business Credit (KUR) which grew by 20.7%, and small loans above Rp1 billion to Rp15 billion, which grew by 8%.

The distribution of KUR facilities by BNI in 2019 reached Rp17.7 trillion, which was distributed to 178,256 debtors. Some 55.2% of the 2019 KUR distribution was channelled to the production sector which included the agriculture sector, the fisheries sector, the industrial sector and the services sector. In addition to channelling KUR, BNI also plays a role in supporting the Government’s program in developing MSMEs and social economy through the programs of Social Forestry, Agricultural Entrepreneurship, KUR Tani and Smart Farming, etc.

Credit quality was maintained at the end of 2019. The NPL ratio was maintained at 2.1%. The Small Segment also managed to reduce the Special Mention Loan ratio from 3.6% to 2.9%. The improvement in the Special Mention Loan ratio is the result of more optimum portfolio management in terms of processing, monitoring and internal policies.

Table small segment loan Portfolio by economic sectors

economic sector 2019(rp billion)

2018(rp billion)

Growth2018-2019 composition NPl 2019 NPl 2018

Manufacture 8,308 7,109 16.9% 11.0% 1.9% 1.4

Trading, Restaurant and Hotel 41,679 37,897 10.3% 55.3% 2.5% 1.9

Agriculture 9,075 6,541 38.7% 12.0% 1.2% 1.0

Business Services 6,194 6,131 1.0% 8.2% 1.6% 1.6

Transport, Warehouse and Communications

2,062 1,848 11.6% 2.7% 1.0% 1.0

Construction 3,134 2,670 17.4% 4.1% 3.0% 2.2

Electricity, Gas and Water 112 100 12.0% 0.1% 0.9% 0.0

Mining 395 313 26.2% 0.5% 2.5% 0.2

Social Services 4,502 3,454 30.3% 6.0% 1.4% 1.2

Total 75,461 66,063 14.2% 100% 2.1% 1.6




small segment-loans Prospects and strategiesSmall credit financing opportunities are still wide open, given the number of MSMEs in Indonesia which reaches ± 62 million people. This is also supported by the government’s commitment to empower MSMEs. The magnitude of this potential will be answered by BNI through strengthening of all aspects ranging from the process up to the marketing channel (outlet/digital channel).

Reflecting on the achievements in 2019, BNI is optimistic that it can improve performance to achieve the 2020 performance target through the following strategies:1. Increased Credit Expansion

a. Acquisition of potential customers who are not yet debtorsb. Increased capability of digital-based credit processesc. Strengthening supply chain financing and value chains from corporate customers and debtorsd. Intensification of financing to business centers through clustering patternse. Synergy with SOEs and related Government Ministries/Institutions to expand market reachf. Making the Government program the basis of credit growth through:

- The expansion of KUR Tani from initially only in East Java and Garut Regency - West Java, then in collaboration with the Ministry of Agriculture will be expanded to 11 other regions namely in Bali, South Sulawesi, South Sumatra, North Sumatra, Aceh, Lampung, South Kalimantan, Gorontalo, Southeast Sulawesi, North Sulawesi and NTB.

- Working on the potential of fishing and financing to 10 (ten) New Bali tourism destinations

2. Credit Quality Strategya. Strengthening digital-based credit processes, including credit monitoringb. Improving the early detection systemc. Acceleration of debtor handling categorized as a special mention loand. Acceleration of KUR claim collection

medium and small segment Income and Profitability Income and profitability of the Medium and Small Segment is presented as follow:



Interest income and sharia income - net *) 4,338,847 4,167,606 171,241 4.1


Other operational income 886,156 774,886 111,270 14.4

Provision for impairment losses (895,483) (1,831,670) 936,187 (51.1)

Other operational expenses (1,681,707) (1,540,707) (141,000) 9.2

Operating profits 2,647,813 1,570,115 1,077,698 68.6

Non-operating income (expenses) - net (427) 17 (445) (2.555.8)

Profit before tax 2,647,386 1,570,132 1,077,254 68.6

Total assets 72,290,923 63,119,904 9,171,019 14.5

Total liabilities 3,144,293 3,576,948 (432,655) (12.1)

*) including internal transfer pricing component between operational segments

In 2019, interest income and sharia income -net of the Medium and Small segment amounted to Rp7.8 trillion, down by 8.4% compared to 2018 that amounted to Rp8.6 trillion. However, operating profit of the Medium and Small Segment in 2019 increased by 26.7% to Rp4.5 trillion, from Rp3.5 trillion in 2018. Increased profitability of Medium and Small Segment is supported by good credit growth along with maintained credit quality.

Operational review




consumerMeeting every customer’s need, the Consumer Loan Business provides services including consumer financing loans such as: home ownership loans, multipurpose loans, payroll loans (unsecured loans), pension loans, cash collateral credit or ORI (Instant), motor vehicle loan financing, cash card and credit card.

Description of consumer and retail segment-loans Consumer loan products consist of mortgage loans, credit card, payroll-based loans, and others.1. Mortgage BNI Griya is a loan facility intended for individuals who

wants to own residential properties, apartments, shops/houses and villas, both new or second-hand. This facility can also be used to purchase plots of land, building, renovating, refinancing, takeovers, top ups through the BNI Griya Multiguna program.

2. Payroll Based Loan BNI Fleksi is an Unsecured Loan product from BNI available to active employees and retirees whose payment of salaries

and retirement benefits is made through BNI.

3. Others BNI Instan is a loan product guaranteed by Deposits, Savings and Current Accounts placement at BNI.

strategy, Productivity, Prospects and strategies of consumer and retail-loans in 2019

consumer credit Performance

consumer segment

2019 2018 Growth

(rp billion) (rp billion) (rp billion) (%)

Mortgage 44,128 40,770 3,358 8.2

Payroll Loan 26,522 23,744 2,778 11.7

Fleksi 22,931 20,134 2,797 13.9

Employee Loans 3,580 3,580 0 0.0

Other payroll loans 11 31

Credit Card 12,844 12,558 286 2.3

Others 2,380 2,663 (283) -10.6

sub Total consumer credit 85,874 79,735 6,139 7.7

*) Others : Instan, Multiguna, Oto, Others

Consumer loans in 2019 amounted to Rp85.9 trillion, growing by 7.7% from 2018. The growth of consumer loans of Rp6.3 trillion in 2019 was dominated by growth in home ownership loans (BNI Griya) and payroll loans through BNI Fleksi product with growth of 13.9%.

BNI GriyaIn 2019 BNI Griya’s portfolio of Rp.44.12 trillion experienced a growth of 8.24%, compared to 2018. BNI Griya’s expansion of Rp3.36 trillion was focused on the primary property market segment through collaboration with property developers and online property media, as well as the secondary property segment market through property agents.




BNI Griya strategy in 2019 To increase loan expansion and market share of BNI Griya, BNI implemented the following programs and strategies:• DisbursementofBNIGriyaintheprimaryproperty

market through strategic partnership with property developers and in the secondary property market through the optimization of existing mortgage customers, while providing convenient and fast loan application process for potential debtors, and also engaging in customer gathering events to increase acquisition of BNI Griya application.

• FocusingthemarketingofBNIGriyatocustomersinthe fixed-income segment, while optimizing the role of branches, especially in the major cities, to facilitate the loan process. Also, creating synergy with Business Banking (Corporate, Medium and Small) and with subsidiaries, to provide banking services for employees of BNI’s institutional partners, including construction loans to property developers.

• Forthemillennialsegmentinparticular,BNIGriyain2019 introduced the e-form, a website-based online loan application to facilitate consumer who wish to apply for BNI Griya loan through mobile banking, BNI website, or from http://bit.ly/eFormBNIGriya, or from the websites of property online media partners. In addition, BNI Griya also offers affordable installment facility through the Angsuran Suka-Suka feature with effective fixed interest rate of 6.75% p.a. for the first two years and loan tenor of up to 30 years.

support for Government ProgramsBNI is always active in supporting the government program to provide housing for low-income communities (MBR) through the channeling of Housing Financing Liquidity Facilities (FLPP) funds in collaboration with the Ministry of Public Works and Public Housing.

BNI Griya award during 20191. Rank II - KPR Conventional Commercial Bank - Digital

Brand Award 2019 (INFOBANK)2. 3rd Best Overall - Conventional Commercial Bank

Mortgages - Digital Brand Award 2019 (INFOBANK)3. Best Banking Products and KPR Services 2019

(Indonesia Property & Bank Award XIV)4. Pioneer for Millennial Mobile Credit Application

(Indonesia Property & Bank Award XIV)5. Great Performing Brand KPR in Social Media - Social

Media & Digital Marketing Award 20196. Best Supporting Bank in Property Excellence: The

Highest Growth of Subsidized Housing Loans (KPR FLPP) - Golden Property Awards 2019.

Operational review

BNI Griya strategy for 2020 BNI Griya remains optimistic regarding growth in 2020, and expects to contribute to expand the market share of BNI consumer loans while increasing interest and non-interest income.

Some strategies that will be implemented in 2020 specifically for BNI Griya marketing:1. Focus on the potential from existing customers, while

optimizing value chain business from Business Banking (Corporate, Medium and Small) as well as subsidiaries, which will provide business potential for Consumer Banking and especially for BNI Griya.

2. Optimizing the entire branch/outlet network spread throughout Indonesia as BNI Griya’s marketing channel, as well as increasing the ease and speed of BNI Griya’s processes, including increasing cooperation with property business partners, namely Developer and Property Agent.

3. BNI Griya marketing to target the millennial segment with initiatives in:a. Digitizing the loan application process and

strengthening BNI Griya’s marketing through strategic partnerships with online property media.

b. Optimizing Big Data (Crawling from Business Directory, Higher Education, Market Place, and Social Media) to obtain quality Griya Millennials leads data.

c. Massive campaigns focus on online and social media, as well as providing education to the millennial segment about the importance of having a house early on.

BNI FleksiBNI Flexi is a payroll/employee benefit-based consumer credit that is still a major factor driving consumer credit growth, BNI Flexi portfolio reached Rp22.93 trillion, with growth (YoY) of 13.89%. BNI Flexi growth is supported by optimizing the database of Corporate Segments, as well as institutions. In 2019, BNI Fleksi focuses on expanding penetration to low-risk profile customers.

BNI Fleksi strategy in 2019 The increase in the number of payroll accounts during 2019 gives the potential for increased BNI Flexibility by collaborating with several companies or agencies and optimizing the value chain of exclusive customers.

Various BNI Flexi programs have been carried out during 2019, including ease of submission of BNI Flexi, which can be submitted at any nearest BNI branch or digitally, with a relatively short processing time. Increased acquisition of BNI Flexi is also supported by the flexibility of marketing




channels through ATM channels, Mobile Banking, SMS Banking, in addition to accelerating the process with SLA credit process for 1 (one) day, simplification of documents and ease of processing.

BNI Fleksi strategy for 2020To increase BNI Fleksi credit expansion in 2020, strategies will be focused on: 1. Providing ease of acquisition of BNI Fleksi new and

existing payroll through digital platforms, as well as ease in the credit process while optimizing the expansion of digital channels.

2. Penetration of potential payroll customers by optimizing data analytics.

3. Increase partnership cooperation in supporting comprehensive financial transactions (one stop solution).

4. Increasing loyalty programs for existing customers.5. Developing the ease and monitoring of credit processes

through digitalization, and optimizing the role of branches as office channeling.

BNI InstanBNI Instan or Cash Collateral Credit (C3), is a credit product for BNI customers. BNI Instan is a loan facility that is guaranteed with customer deposit in the form of Savings/Deposits/Giro issued by BNI or guaranteed by Indonesian Government Bonds included in Government Securities (SUN) and liquid in nature, including Retail Government Bonds (ORI), Sukuk Retail (SR), Fixed Rate (FR), Variable Rate (VR) except for Sukuk Savings and Savings Bond Retail (SBR), which customers buy at BNI or other banks or Securities Companies as selling agents and are stored in Sub-Registries according to regulations.

BNI Instan strategy in 2019BNI Instant expansion during 2019, is focused on providing facilities to existing customers and accelerating bookings with the support of a digital platform. The development of BNI Instant features is also carried out with guarantees in the form of individual bonds other than ORI.

BNI Instan strategy for 2020 BNI Instan is still a driving force for third-party fund retention strategies, by continuing to focus on accelerating bookings through managed institutions, SOE Corporation customers, Ministries and Universities, as well as selected partners and customers, with digital enhancement support, and developing BNI Instan features.

credit card Credit cards are payment instruments using cards that can be used by individuals and corporations to make payments for obligations that arise such as shopping transactions and or cash withdrawals. Credit card is a Consumer loan product.

BNI Credit Card products consist of: 1. Regular Credit Cards, which consist of: BNI Visa Silver,

BNI Mastercard Silver, BNI Visa Gold, BNI Mastercard Gold and BNI JCB Gold.

2. Premium Credit Cards, which consist of: BNI Style Titanium, BNI Visa Platinum, BNI JCB Precious, BNI Mastercard World, Visa Signature, and BNI Visa Infinite.

3. Co-Branding Credit Cards, consisting of: BNI-Garuda, BNI-LOTTE Mart, BNI-Bank Sumsel Babel, BNI-Bank BJB, BNI-Bank DKI, BNI-Pertamina, BNI-Telkomsel.

4. Affinity Credit Cards, consisting of: University Cards, Alumni Association Cards, and Community Cards such as the BNI WWF Credit Card and the BNI Harley Owners Group.

5. Corporate Credit Cards, consisting of: BNI Visa Corporate Card Gold, BNI Visa Corporate Card Platinum and BNI American Express Business Card.

6. Private Label Credit Card consisting of: BNI Traveling Card, BNI Gasoline Card, BNI Health Card and BNI Distribution Card.

7. BNI Cash Card is a revolving unsecured loan and can be changed into fixed installments, can only be used to make cash withdrawals at ATMs or tellers.

credit card strategy 2019With the tag line “Starts from the Card”, BNI Card Business focuses on increasing the BNI Credit Card portfolio and increasing fee-based income in 2019. Increasing the penetration portfolio of credit card acquisitions from captive data based and focusing on acquisition in the Selected Company managed by Business Banking. In order to increase sales volume in 2019, BNI carries out the following strategies:1. Increase acquisition through Optimizing Captive

Data and Development of Application-Based Digital Acquisitions.

2. Strengthening penetration of e-commerce transactions through a focus on top strategic partners and feature development.

3. The focus of promos and communications on merchants in the “leisure experience” category including travel, dining, and entertainment.




4. Developing new Business Commercial Card in collaboration with Fintech and Supply Chain Financing.5. Increase the contribution of regional sales volume through the usage program (regional wisdom)6. Optimizing Big Data capability through enhancing customer propensity models.7. To increase customer loyalty, a digital dashboard credit card application, BNI Credit Card Mobile Application has been

launched on July 5, 2019.8. Launching BNI Visa Signature Credit Card and BNI Telkomsel Co-Branding products.

Sales Volumedalam Rp. triliun

20192018

5.30%

38.92 40.99

Outstandingdalam Rp. triliun

20192018

2.28%

12.56 12.84

Friends Group (ACE Hardware, Informa, Toys Kingdom), Mitra 10, Ranch Market, Farmer Market, Gramedia, Frank & Co., Urban Icon, Fossil, Biyan and various other merchants.

4. Being the only credit card product that offers redemption reward points (BNI Reward Points) at online merchants such as at Garuda Indonesia, Citilink, Tokopedia, Blibli, Dinomarket and blanja.com.

5. Participating in various major events such as the Java Jazz Festival, Inacraft, BNI Japan Airlines Travel Fair, Mommy and Me, Pondok Indah Mall Winter Wonderland, Plaza Indonesia Independence Day Bazaar, BNI Expo and Kompas Travel Fair in 3 major cities (Medan, Surabaya, Makasar), Kidz Store Warehouse Sale, Indonesia Maternity, Baby & Kids Expo, The Crazy Toys Sale (ToysKingdom), Biyan Annual Show and other major events.

credit card awards 2019 In 2019, BNI Credit Card received several awards including:1. Best Corporate Card from VISA2. Best Sales Volume Issuing Bank in Indonesia 2018 from

the 2019 JCB Award of Appreciation3. Best New Card Acquisition from Issuing Bank

in Indonesia 2018 from the 2019 JCB Award of Appreciation

4. The Best Digital Brand 2014-2018 Conventional Commercial Bank Credit Card from the 2019 Infobank Digital Brand Awards

Operational review

credit card Performance in 2019 Growth in the number of cards and an increase in credit card sales volume through penetration in e-commerce programs and the issuance of new products that have an impact on the increase in outstanding BNI Credit Cards at the end of 2019. The acquisition of credit card sales volume in 2019 increased by 5.3% compared to 2018 while the acquisition of outstanding credit cards in 2019 increased by2.28% compared to the end of 2018. During 2019, BNI actively organized various attractive programs for BNI Credit Card holders and new product development To expand the market for BNI Credit Card users, among others: 1. Continuously collaborating with favourite e-commerce

merchants such as Traveloka, Tokopedia, Bukalapak, Blibli, Tiket.com, Shopee, Garuda, Agoda, JD.id, Lazada, Zalora, and other favorite e-commerce merchants, in the form of regular programs, tactical, 0% installment, and redemption BNI Reward Points.

2. Credit card payments through an e-commerce merchant, Tokopedia.

3. In addition to collaborating with e-commerce merchants, the continuity program is still ongoing for other favorite merchants by adding 0% installment features, discount programs, vouchers, and redemption points to favorite merchants such as Boga Group (Bakerzin, Shaburi, Kintan, Peperlunch, and etc.), The Duck King, Pizza HUT, Accor Group Hotels, KidzStation, Lotte Mart, Electronic City, Erafone, iBox, Samsung by Nasa, Best Denki, Old




5. Great Performing Brand in Social Media from the 2019 Social Media Award

6. Bronze Winner of Planet Tourism Indonesia Awards 2019 in Credit Card from the 2019 Markplus Center

7. Rank III of Conventional Commercial Bank Credit Card Brands from Infobank 8th Digital Brand Awards 2019

8. 3rd Best Overall Conventional Commercial Bank Credit Card from Infobank 8th Digital Brand Awards 2019

credit card Prospects and strategy 2020 In 2020, along with developments in millennials and digitalization, the need for the use of credit cards in the community will increase, thus impacting on the increasing prospects of the credit card business. In capturing these opportunities, BNI Credit Card business focuses on several strategies including:1. Increase digital-based credit card acquisition.2. Improve digital transactions and optimize the business

ecosystem by utilizing API Management.3. Further develop the BNI Credit Card Mobile Application.4. Focus on promos and communication at merchants in

the “Lifestyle Experience” category to increase sales volume.

Deposits/Third Party Funds BNI develops a variety of deposit products to meet the needs of customers, comprising savings and deposit products. In 2019, BNI’s deposit products are:

savingsThere are several variants of BNI savings products, as follow:1. Tabungan Plus (Taplus), is a savings account that

provides PLUS services with a variety of features and benefits.

2. Taplus Bisnis, is a savings product that is intended for business or non-business customers, both individuals and non-individuals, which is equipped with features and facilities that provide convenience and flexibility in supporting business activities.

3. TAPPA (Taplus Employees/Members), is a savings that is intended for Employees/Members of a Company/Institution/Association/Professional Organization that cooperates with BNI that functions as a means of savings and as Employee/Member identity cards.

4. Taplus Muda, is a savings product for young people with ages ranging from 15 (fifteen) years to 25 (twenty-five) years that can be submitted individually or in Co-Brand with Higher Education institutions in cooperation with BNI.

5. Taplus Anak, a savings product to help teach children to save from an early age, is intended for children under 17 (seventeen) years of age.

6. Emerald Saving, is a savings product for the Emerald customer segment

7. BNI Dolar, a type of deposit in the form of foreign currency (USD/SGD/AUD) which has a more stable and secure exchange rate and provides convenience in transactions

8. Tapenas, is a term savings product to assist with financial planning to realize future goals with more certainty and security.

9. Simpanan Pelajar, is a savings product for students in early childhood education, kindergarten, elementary, junior high, high school, Islamic school (MI, MTs, MA) or equivalent, issued nationally by banks in Indonesia, with easy and simple requirements and attractive features, in the context of education and financial inclusion to encourage a culture of saving from early age.

10. Tabunganku, is a savings product for individuals with easy and affordable requirements that are jointly issued by banks in Indonesia in order to foster a culture of saving money and improve people’s welfare.

11. BNI Pandai, is a savings product for individuals with easy and affordable requirements issued by BNI that have the characteristics of a Basic Savings Account (BSA) and can be opened through the BNI Branch Office or through an Agent.

Time Deposits BNI Deposito is a time deposit product available in several choices of denomination (IDR/USD/SGD/JPY/HKD/EUR/GBP/AUD) with attractive interest rates. BNI Deposito is the investment of choice for customers preferring a relatively higher return. For ease of account opening, BNI Deposito account opening is available through BNI Mobile Banking application, with the customer no longer have to visit a conventional branch.

strategy, Productivity, Prospects and strategy of Deposits

strategy of Deposits in 2019 The wide selection of savings products offered by BNI is tailored to the needs of customers at every stage of life.

During 2019 the strategy for achieving Third Party Funds (DPK) in the consumer segment is to focus on managing payroll and merchant customers, and in increasing customer transactions both debit cards and e-channels in order to increase the growth of closed loop transactions that have an impact to sustain the increase in funds.




TaplusAs the core savings product with the largest portfolio, BNI Taplus has an important role in achieving DPK growth. This year, BNI Taplus launched a major program, Kejutan BNI Taplus, which is a program to get fresh funds from individual customers by giving direct prizes as appreciation and to increase customer engagement with BNI. In addition, in 2019 BNI has developed digital features and services for customers, namely digital account opening services and BNI POIN+.

BNI PoIN+ In 2019, BNI launched the BNI POIN+ customer loyalty program. BNI POIN+ is a point reward program as an appreciation to BNI’s loyal depositor customers. All customer activities with BNI, from making a saving deposit, activation of e-Banking channels (Mobile Banking, Internet Banking and SMS Banking), transactions at all distribution channels of BNI (Mobile Banking, Internet Banking and SMS Banking, ATM, Electronic Data Capture/EDC), inter-BNI and inter-bank fund transfers, will earn a reward in BNI POIN+. These points will accumulate and can be exchanged with a variety of attractive gifts such as e-voucher at various merchants, airline tickets, hotels, car rent, and others. The POIN+ can also be transferred to other customers of BNI. Customers can check and redeem their BNI POIN+ through BNI Mobile Banking.

emerald savings In an effort to achieve savings funds in the Emerald segment, BNI continues to carry out programs that focus on meeting customer needs and giving more rewards to customers in appreciation of customer loyalty with BNI. The programs that have been carried out include the Welcoming BNI Emerald Package for BNI customers in the priority segment, the Free BNI Emerald Card Trial for non-priority customers to be able to feel the privilege of being Emerald customers, the BNI Bonus Poin+ for Emerald which allows customers to get more Poin+, and special programs at selected merchants.

Taplus BisnisIn an effort to become a transactional banking, BNI continues to innovate in various features and benefits in savings products for the entrepreneurial segment in monitoring financial or business transaction flow. The entrepreneurial segment is a target market that is seriously worked on by offering BNI Taplus Bisnis that makes it easy for entrepreneurs to transact with banks. Specific programs

targeting the entrepreneurial segment include the Taplus Bisnis acquisition program through the Semarak Wirausaha program, Merchant Reward program, BNI Taplus Bisnis-KUR Retail Bundling, collaboration with strategic partners, programs in the Business Center, and acquisition of BNI Taplus Bisnis Sahabat Agen 46. The growth of Taplus Bisnis is focused on increasing closed loop transactions, which are inline with business processes through increasing entrepreneurial transaction segments, including increasing the number of merchant transactions, and optimizing the management of merchants in all branches/outlets.

PayrollIn an effort to increase the collection of low-cost funds, particularly in increasing savings balances, BNI has marketed BNI Taplus and BNI TAPPA products specifically for employees of depositor customers and companies/institutions, especially those who have become BNI Customers/Debtors in the Business Banking sector (Corporate, Medium and Small).

For company employees whose payroll is handled by BNI, they will get various benefits including BNI Fleksi unsecured loan (KTA) facilities with competitive interest and fast-track KPR BNI Griya mortgage. In addition, BNI payroll customers can also enjoy debit shopping promos in the form of discounts or cashback, products bundling with other savings products such as Taplus Anak and Tapenas, payroll loyalty program and promo info through the BNI Experience application. During 2019, the payroll loyalty program was held at 44 selected companies, aiming to increase the loyalty of payroll customers spread throughout the region.

Taplus anak and Taplus mudaActivities for the children and millennial segments in 2019 are increasingly varied. Through BNI Taplus Anak and BNI Taplus Muda, BNI consistently supports a variety of music-themed events and running competitions organized by Indonesian millennial generation, including the BNI Java Jazz Festival, Sounds Fest, Hogdepodge, SkyAvenue (Labschool), Cravier (Labschool), SkyRun (LabRool), UI Half Marathon, ITB Ultra Marathon, and so on.

In the movie world, BNI Taplus Anak is also present in a musical genre children’s movie titled “Doremi & You”, which stars the young singer Naura. BNI Taplus Anak customers can also complete the collection of co-brand debit card with the special design of “BNI Taplus Anak-Doremi & You” in the period June - August 2019.

Operational review




For millennials, in 2019, BNI refreshed the BNI Taplus Muda generic card design. Further, for millennial customers who have a hobby of traveling, BNI launched a “BNI-Citilink” co-brand debit card with attractive benefits including up to 30% Discount for Pre-Book Meals and 20% Discount Green Zone. BNI-Citilink is also marketed in the momentum of BNI’s support at the Kompas Travel Fair (Medan, Surabaya, Makassar) and BNI-Japan Airlines Travel Fair (Jakarta).

To accommodate digital developments in financial transactions, BNI Taplus Anak and BNI Taplus Muda customers are now starting to shift to digital rewards in the form of e-wallet balances with the choice of LinkAja, GoPay, or OVO. In commemoration of Youth Pledge Day, from 28 October to 2 November 2019 BNI held an acquisition program with LinkAja and BNI POIN+ balance as prizes and activation in the community area of 17 (seventeen) BNI Regional Offices.

TapenasAs a savings plan for the future, BNI Tapenas is a BNI term savings product to help realize various financial plans as future goals with more certainty and security. BNI Tapenas provides free life insurance protection for customers as a manifestation of BNI’s commitment to provide more certainty in the realization of various customer plans in the future. During 2019, there were a number of BNI Tapenas promotional programs, including the Semarak BNI Tapenas program that gave direct prizes to customers in the form of mobile phones and gold bullion, as well as the 2019 Employee Get Member program that promoted the opening of BNI Tapenas accounts through the Mobile Banking channel referenced by BNI employees.

support for Government Programs and Financial InclusionIn addition to general customers, BNI savings products that have the characteristics of a basic saving account are also used to support government programs in terms of channeling government aid funds which also support financial inclusion programs such as:

1. Financial literacy:• CollaborationwithBNP2TKItoprovidefinancial

literacy and education material since the migrant workers are still in the country (before departure) through BNI branch offices in the country as well as providing literacy material to migrant workers who have been abroad through overseas branch offices and representative offices.

• CollaborationwithBNP2TKItoprovidefinancialliteracy training (training for trainers) to BNP2TKI instructors in collaboration with OJK, to provide continuing knowledge transfer to prospective Indonesian migrant workers.

• CollaborationwithBIforcommunityempowermentprograms.

• CollaborationwithProvincial/Regency/Municipalitygovernments for the implementation of financial literacy among students through the Ayo Menabung Dengan Sampah (Let’s Save With Trash) program.

2. Financial Inclusion • Integratedempowermentformigrantworkersand

families.• Acquisitionofstudentsavingsproductstosupport

the OJK one student one account program, including by simple acquisitions in schools and Islamic boarding schools, one of which is through the Let’s Save with Trash program.

• AcquisitionofParentBankWasteandUnitsasAgents46.

• DistributionofKURTaniandKURTKI.• Farmercarddistribution.• CarddistributiontosupportotherGovernment

Programs such as Kusuka Card (Maritime and Fishery players), Indonesia Smart Card, Bidikmisi Card, Family Hope Program, etc.).

• Ane-retributioncardprogramfortradersinmarkets.• AcquisitionofSimpananPelajarsavingsaccountfor

members of the Jakarta Regional Kwartir (kwarda) Scouts and will be developed to other kwarda.

• Developingenvironment-themedpartnershipprograms with schools such as school environment ambassadors.




Operational review

Number of account Third Party Funds

Product2019 2018 Growth

(unit account) (%) (unit account) (%) (unit account) (%)

Savings 46,220,562 99.18 43,181,705 99.16 3,038,857 7.04

Time Deposit 384,357 0.82 364,979 0.84 19,378 5.31

Total 46,604,919 100.00 43,546,684 100.00 3,058,235 7.02

An increase in the number of savings accounts in 2019, including through payroll cooperation programs with companies/institutions especially those that are BNI customers/debtors in the Business Banking sector (Corporate, Commercial and Retail), school to school and campus to campus acquisition programs, and implementation the 2019 government program with several ministries and government agencies such as the Non-Cash Social Assistance Program, the Smart Indonesia Program (PIP) and the Simpanan Pelajar (Simpel) program. While the number of deposit accounts grew by 5.31%.

Table Third Party Funds

Product2019 2018 Growth

(rp billion) (%) (rp billion) (%) (rp billion) (%)

Savings 182,323 71.03 189,708 73.37 (7,385) (3.89)

Time Deposits 74,359 28.97 68,855 26.63 5,504 7.99

Total 256,682 100.00 258,563 100.00 (1,881) (0.73)

The savings portfolio in 2019 is Rp182.32 trillion. This year BNI focuses on increasing sustainable and low-cost funds by optimizing customer transaction increases. This is in line with the growth of savings in the individual business segment which is growing positively, driven by the segment of employees, housewives, students, and individual entrepreneurs. While the deposit portfolio in 2019 was Rp74.36 trillion, growing by 7.99% in line with the growth in the number of accounts. awards related to BNI third party funds achievements in 2019:1. Innovative Banks Simple Implementation (FIN OJK EXPO

2019).2. The Best Bank to Implement Simple/Simple iB (FIN OJK

EXPO 2019)3. Social Media Award category Saving Account (Social

Media & Digital Marketing Award 2019)4. Indonesian Relation Award 2019 in the Sustainability

Business Category for the Let’s Save with Trash Program.

5. Padmaditra Award 2019 in Digital Innovation Category for the Let’s Save with Trash Program.

Third Party Funds (DPk) strategy for 2020Economic growth is predicted to increase by 5.3% in 2020, economic growth is expected to have the potential for TPF growth which is expected to grow by at least 10%. BNI continues to be committed so that the growth of Third Party Funds continues to grow above the industry which is predicted to grow by 9% to 10%. By continuing to improve digital transactions, strategic partnerships, and business model development, and sustainable savings, BNI’s savings are expected to grow by 10%.

Focus of DPk Increase in 2020 The strategy to increase DPK in 2020 is focused on the employee, entrepreneurship, Emerald and millennial savings sectors, through increasing closed loop transactions and increasing e-channel transactions both POS and e-commerce, and optimizing the role of Agen 46.

Employees, focus on increasing the account balance and number of accounts through the acquisition and loyalty programs to selected companies and the customer retention program, and increasing synergy in the form of cooperation with Business Banking and subsidiaries.




Entrepreneurs, focus on increasing the acquisition of business savings account and increasing the account balance through merchant acquisition and increasing merchant transaction activities, in cooperation with Business Centers, as well as optimizing the role of branches and marketers and Agen 46.

Emerald customers, focus on acquisition of new customers and increasing the account balances through improvement in customer services, provision of BNI Emerald Special Experience Package, customer rewards, and other such privileges. Improvement in Emerald customer services will be accompanied by further refinement of the Emerald savings and the development of Digital Business Wealth Management.

Increase in transactional savings, in line with the objective of the Consumer Business to make savings accounts as transactional accounts, BNI strives to increase transactions using the savings accounts for millennials, through an approach to formal and non-formal educational institutions, first jobbers, and acquisition through digital platform.

For existing customers, the increase in transactions is to be achieved with improvements in customer preferences and customer experience through education and activation of e-channel facilities, debit usage program and e-channel transactions, BNI Poin+ campaign and loyalty programs for BNI depositor customers who actively increases their account balances, and transactions through e-channel and debit card. Savings transaction is also made more convenient with the development of digital applications and transactions through EDC machines.

Time Deposits, BNI continues to facilitate customers to open a time deposit account through digitalization. Customers can open a time deposit account for themselves, easily and quickly, through Internet banking and mobile banking features. The digitalization is expected to appeal to the millennials segment and to customers who wants the utmost in conveniences amidst their busy schedules.

Debit card Business BNI continues to maintain its position as one of the leading banks in the credit card business while continuously developing its debit card business.

BNI debit cards have a variety of choices with Indonesian batik designs including the BNI Silver Debit Card, the BNI Gold Debit Card, the BNI Platinum Debit Card and the BNI Emerald World MasterCard (specifically for priority customers). In addition, BNI also continues to widen

cooperation with non-profit communities and colleges/universities in the form of Affinity Debit Cards and the business community in the form of Co-brand Debit Cards including GamaCard Debit Cards (Gadjah Mada University), UI Iluni Debit Cards (Alumni Association Universitas Indonesia), KAUP (Pancasila University Alumni Family) Debit Card, LotteMart Wholesale Debit Card, Garuda Debit Card, Citilink Debit Card, Multimart Debit Card and Indogrosir Debit Card, and others

support for Government Programs BNI is always active in its support for the government program to implement the National Payment Gateway (GPN), the national payment system, through the issuance of Debit Cards with GPN Logo which are accepted for transactions at all ATM and EDC connected to the GPN system. With GPN implementation, customer transaction data are protected, with more efficient transaction cost.

Debit card strategy in 2019 BNI debit cards always provide usage experience through attractive usage program and activation program so as to increase customer loyalty and the number of debit card transactions.

BNI debit cards also understand the development of diverse and dynamic types of customer transactions, therefore BNI debit cards through the 3D secure payment method are present to meet customer needs in safe and practical online transactions.

In addition, BNI debit cards have intensified campaign communication programs through digital and print media to increase awareness of transactions using BNI Debit cards.

During 2019, BNI Debit Card implemented programs with leading online merchants, including promos throughout the year and thematic promos including Chinese New Year, Mayday, Ramadan, BNI Anniversary, Indonesian Anniversary and National Shopping Day (10.10, 11.11, 12.12). BNI Debit Card also consistently engaged in promo events at merchants who are regular locations for customer transactions including Supermarket, Convenience Store, Department Store and Restaurants as well as Cinemas and Home Furnishing outlets. In support of GPN implementation, BNI also held the GPN Day promo program with national and local merchants for users of debit card with GPN logo.

BNI Debit Card is also active in providing promo programs to customers during events such as the Java Jazz Festival, Inacraft, Japan Airlines Travel Fair, BNI Expo 2019, Kompas Travel Fair, Kidz Station Warehouse Crazy Sale, and many more.




Some programs are aimed at providing business benefits for both parties in the form of appreciation not only for BNI customers but also BNI’s business partners. For holders of Garuda BNI Co-brand debit cards, customers can get Miles every transaction using the Cobrand Garuda BNI debit card. LotteMart Wholesale Co-brand debit card program provides benefits in the form of free products or cashback every month for every customer who transacts at LotteGrosir. BNI BNI-Indogrosir debit card holders also get additional benefits for customers who transact at Indogrosir.

In September 2019, the BNI Debit Card launched the Co-brand BNI Citilink Debit card. The BNI Citilink Co-brand Debit Card provides cardholders with benefits of up to 30% discounts on tickets, meals and baggage through the website citilink.co.id.

Debit card Performance 2019

Debit card 2019 2018 Growth

2019 2018

Sales Volume (Rp. M) 28,137 23,126 21.70 21.70

Number of TRX 52,157,626 40,862,311 27.60 33.30

Card TRX 5,238,084 4,469,866 17.20 24.90

Operational review

In 2019, BNI Debit Card sales volume grew by 21.7% YoY, relatively stable compared to growth in 2018. This was driven by the increase in BNI Debit Cards transactions in 2019 by 17.2%.

BNI Debit card awards for 2019, as follows:1. Best Mastercard World Card for Issuer Growth

(Mastercard Award 2019).2. The Best Affinity Debit Card Program (Mastercard Award

2019).3. The Best Affluent Debit Card Program (MasterCard

Award 2019).4. Most Creative Acquisition Campaign (MasterCard Award

2019).

Debit card strategy for 2020In order to increase the sales volume, BNI Debit Card strategy focuses on the commitment to continue to expand customer preferences and provide a good customer experience through the use of debit programs with strategic merchants (Top 10 Merchants) to increase the number of debit card transactions in both POS and e-commerce transactions.

BNI debit cards actively monitor market developments and customer transaction behavior to capture business potential such as e-commerce transactions and millennial generation. In addition, other potentials that have not been explored in the second tier area will be further optimized to get closer to customers, especially those outside the Jabodetabek area.

BNI Debit Card will certainly try to increase customer awareness of transacting with debit cards through online and offline media both owned by BNI and through paid media.

BNI Debit Card will continue to develop new debit card features in order to improve on customer security and convenience in debit card transactions, such as through: 1. Cooperation of BNI Debit Card brand Co with selected

institutions.2. Development of BNI secure 3D Master Debit Card

features.3. Development of the B-secure feature for e-commerce

Private Label Debit Card transactions, to support the National Payment Gateway (GPN) program.

4. Migrating magnetic stripe debit cards into debit cards that use chips, both for debit cards in cooperation with international principals and GPN.




Income and Profitability of consumer and retail segment Income and profitability of the Consumer and Retail segment is presented as follows:

Table Income and Profitability - consumer and retail segment



Interest income and Sharia income - net *) 11,370,563 10,775,890 594,673 5.5


Other operating income 7,309,367 6,580,492 728,875 11.1

Provision for impairment losses (1,301,295) (1,285,949) (15,346) 1.2


Operating profit 7,709,055 7,129,110 759,945 8.1

Non-operating income (expenses) - net 43,345 14,074 29,271 208.0

Profit before tax 7,752,400 7,143,184 609,216 8.5

Total assets 84,780,500 78,206,547 6,573,953 8.4


In 2019 interest income and sharia-net income from the Consumer and Retail segments grew by 5.5% to Rp11.4 trillion from Rp10.8 trillion in 2018. Along with this improved income, the operating profit of the Consumer and Retail segment in 2019 reached IDR7.9 trillion, compared to IDR7.1 trillion in the previous year.

Treasury and InternationalThe Treasury and International segment comprises the Bank’s treasury activities including foreign exchange transactions, money markets, capital markets and fixed income, as well as international banking business and overseas branch supervision.

TreasuryDiscussions related to segment, strategy, productivity and business prospects of BNI Treasury segment in 2019 are presented as follows:

Description of Treasury segmentBNI treasury products are classified as transactional products, investment products, and hedging products.

Transactional Transactional products consist of Forex-TOD, Forex-TOM, Forex-SPOT, and Forex-Bank Notes. Detailed description of these transactional products are as follow:1. Forex - ToD Foreign exchange trading where the transaction

agreement and transaction settlement are carried out on the same day.

2. Forex - Tom Foreign exchange buying and selling where transaction

settlement is carried out 1 (one) working day after the date of the transaction agreement.

3. Forex – sPoT Foreign exchange buying and selling where transaction

settlement is carried out 2 (two) working days after the date of the transaction agreement.

4. Forex - Bank Notes Transactions involving the exchange of physical

ownership of the currency (banknotes) involved in the transaction. Can be distinguished by;a. Banking Transactions Banknote deposits or withdrawals from customer

accounts with the same currency. Revenue for branches is fee income in lieu of exchange.

b. Trading Transactions Buying or selling banknotes generating revenues

from exchange rate differences.

InvestmentsTreasury investment products consist of Deposit on Call (DOC), Money Market Account (MMA), and retail bonds. Details regarding investment products are described as follows:1. Deposit on Call (Doc)

a. Placement of funds for a minimum period of 3 days and up to 30 days.

b. The interest rate is based on interbank interest rates.c. Can be withdrawn at any time.d. Minimum placement Rp100 million or USD 75

thousand.




2. Money Market Account (mma)a. Placement of funds for a minimum period of one day

and up to 1 year.b. The interest rate is based on interbank interest rates.c. Can be withdrawn at any time.d. Minimum placement Rp1 billion or USD 100

thousand.

3. retail Bond Bonds are evidence of indebtedness by the issuer, which

will be repaid at maturity in accordance with the terms and conditions previously established. Bond transactions that can be made between the Treasury Division and Individual Clients for transactions include:a. In the primary market including corporate bonds and

non-retail government bonds.b. In the secondary market including corporate bonds,

retail government bonds.c. Non-retail government, and other countries’

government bonds.

4. Depo swap A Depo Swap is an investment product in foreign

currency with a maximum rate of return with the principal investment placement guaranteed 100%. Depo Swap is a combination of forex transactions in the form of FX Swap and deposit. In this transaction the customer converts their forex currency into other foreign currencies and reconverts the forex currency in the future for the tenor at exchange rates established at the start of the transaction agreement. The foreign exchange gain on foreign exchange transactions (forex gain) becomes the optimal return on the customer’s investment fund placement.

5. market linked-Dual currency Investment (ml-DcI) ML-DCI is a structured product that is a combination

of foreign exchange savings products and FX Options. This product provides a high return when compared to conventional savings products as it combines savings products linked to exchange rate movements. This product has non-capital protected characteristics/does not guarantee the principal investment.

Hedging1. Currency Forward Sale and purchase of foreign currencies where

settlement is carried out more than two business days after the transaction date. The exchange rate used for this forward transaction takes into account forward points.

Operational review

2. Domestic Non-Deliverable Forward (DNDF) Standard foreign exchange against rupiah derivative

transactions (plain vanilla) is Forward transactions with fixing mechanisms carried out in the domestic market. The fixing mechanism is a transaction settlement mechanism without the movement of principal funds by calculating the difference between the Forward transaction rate and the reference rate on a certain date specified at the fixing date.

3. Currency Swap ‘Buy and Sell’ transactions for one currency against

another currency that is carried out simultaneously with the same counterparties.

4. Currency Option Agreement to provide a right and not an obligation of

the seller (option writer) to the buyer (option holder) to buy or sell a certain amount of nominal currency in the foreseeable future at a predetermined price (strike price) on or before the specified time (expiry date).

5. Interest Rate Swap (Irs) Agreement between two parties to exchange a series of

fixed interest payments (fixed rate) in one currency with a series of fluctuating interest payments (variable rate) in the same currency (or vice versa), without the exchange of principal loans.

6. Cross Currency Swap (ccs) An agreement between two parties to exchange

principal and interest payments in different currencies. The exchange loan principal uses the exchange rate at inception.

7. Call Spread Option (cso) A Structured Product with a combination of 2 Currency

Option transactions i.e. Buy Call Option (purchase with the right to purchase a particular currency) and Sell Call Option (sale with the right to purchase a particular currency), for the same nominal amount and Time Period, but with different strike prices for each Buy Call Option and Sell Call Option. The CSO transaction must be made through Dynamic Hedging with the aim that hedging executors are not exposed to exchange rate risk due to market rates beyond the Sell Call Option strike price. Dynamic Hedging is executed by performing several CSO transactions in accordance with the number of market rate frequencies exceeding the Sell Call Option strike price, and the CSO with dynamic hedging as part of the initial CSO transaction in one unit.




Treasury segment strategy 2019 In 2019, the Treasury segment strategies included the following: 1. Managing short-term liquidity through issuance of Negotiable Certificate of Deposit (NCDs), utilization of owned assets as

underlying such as Banker’s Acceptance and Term Repo as well as Bank Indonesia facility such as GWM Averaging, etc. 2. Managing the Marketable Securities portfolio actively while maintaining risks, both as liquidity reserve and to generate

income from Capital Gain, taking advantage of market momentum and interest rate movements.3. Optimizing pricing policy in terms of both assets as well as liabilities in order to reduce pressure on business margins. 4. Developing digital applications for Treasury products and services.5. Optimizing business potential of debtors through synergy with BNI business units and subsidiaries in line with the closed

loop transaction program.6. Improving the competency and capability of RMs and marketing staff so as to be able to provide the best Treasury solutions

according to the needs of customer business.

Productivity of Treasury segmentThe following are details of BNI forex transactions performance against interbank based on transaction volume and profit.

Table Growth of Forex Gain based on volume and Profit

Information 2019 2018 Growth

Based on volume (usD million)

SPOT 61,780 68,586 (0.10)

FORWARD 1,774 1,259 0.41

SWAP 40,521 52,547 (0.23)

CCS, IRS 119 839 (0.86)

Total 104,194 123,231 (0.15)

Based on Profit (rp million)

FOREX GAIN 563,91 433,036 0.30

Forex GainIn 2019, the volume of forward forex transactions increased by 41% in line with the increase in the Bank’s business activities, while the volume of hedging transactions by customers, such as forward cross currency swap (CCS), interest rate swap (IRS), and call spread option (CSO), tended to be stable.

As one of the leading foreign exchange banks in Indonesia, BNI is often the preferred provider bank for comprehensive financial solution for treasury product for private corporations and SOEs. In recognition, Alpha Southeast Asia awarded BNI as the Bank with ‘Best Corporate Treasury Sales and Structuring Team’ and ‘Best FX Bank for Structured Hedging Solutions and Proprietary Trading Ideas’ at the 2019 FX & Treasury Award held in Kuala Lumpur by Alpha Southeast Asia.

In 2019, revenues from forex transactions increased amidst volatile market condition with rupiah continuing to strengthen against the US dollar to touch Rp13,866 per US Dollar. BNI Managed to book Rp563.91 billion in forex gain in 2019, on the strength of increased customer transactions, increased access to domestic and international markets, competitive prices, and competent Treasury personnel.




Table Growth of capital Gain - Interbank Trading based on volume and Profit

Product

2019 2018 Growth

volume Profit volume Profit volume Profit

(rp billion) (rp billion) (rp billion) (rp billion) (%) (%)

Trading Bond 75.17 128 104,935 57 (40) 55

capital Gain - Trading InterbankIn 2019, trading bond transaction volume decreased 40% compared to 2018 from Rp104.93 trillion to Rp75.17 trillion. However, transaction profit (capital gain) increased by 55% from Rp56.9 billion to Rp127.84 billion. The increase in trading bond transaction profit is the result of optimizing trading activities utilizing the momentum of rising bond prices in the market which is influenced by the Fed’s policy to cut its benchmark interest rate 3 times from 2.50% to 1.75% and followed by Bank Indonesia which also cut rate policy 3 times from 6.00% to 7.00%.

capital Gain - Bonds and securitiesIn the fourth quarter of 2019, outstanding securities amounted to Rp54 trillion, the majority of which were placed on government bonds, down 7.8% from last year’s position. Although dominated by government bonds and BI instruments, BNI continues to diversify into several corporate bonds as a form of yield enhancement within the limits and measured risk corridors.

Amid the conducive bond market conditions in 2019, BNI managed to book a fee-based income from the sale of securities of Rp551 billion.

Product

2019 2018 Growth

volume Profit volume Profit volume Profit

(rp billion) (rp billion) (rp billion) (rp billion) (%) (%)

Bonds and Securities 85,119 551 63,946 539 24.87 2.17

Operational review

Treasury segment Prospects and strategyTo achieve the 2020 target, the following strategies will be implemented: 1. Optimizing liquidity through DPK and FNK instruments to

support bank business growth.2. Active Securities Portfolio Management with measured

risks through primary and secondary markets.3. Development of BNI Money Changer outlets at

international airports and tourist areas.4. Implementing Treasury digital applications namely

FX Mobile, Smart Forex Web Client, Digi Bond, so customers transact with BNI online.

5. Customer development for all treasury products.6. Human capital capacity development.7. Making BNI a one stop financial solution provider.

InternationalThe description of segment explanation, strategy, productivity, business prospects and strategies for achieving it for the International Segment at BNI in 2019 is as follows:

Description of International segmentThe Financial Institution Banking segment offers services in Financial Institutions business both from overseas branches and in Indonesia (domestic), including banking products in the form of BNI Smart Trade, Remittance, International Desk, Custody, and Trustee.

overseas Branches Products and services provided by the Overseas Branches include the following:




loan Product In accordance with BNI Road Map as a bridge between businesses in Indonesia and the world, lending products offered by Overseas Branch Offices focus on facilitating Indonesian companies in developing their business abroad, including through:1. Local Loan Local loan is a credit facility offered by Overseas Branch

Offices (KCLN) to Indonesian business groups and counter parties from Indonesian companies abroad both bilaterally and syndicated. The types of loans offered can be in the form of Working Capital Loans, Investment Loans and term loans.

2. Offshore Loan Offshore loan is a credit facility provided by the

Overseas Branch Office (KCLN) to debtor customers in the country to finance working capital needs (short-term) as well as to finance the procurement of capital goods for the purpose of rehabilitation, modernization, and expansion to which payment will be completed in the medium or long term.

3. Trade Loan Trade Loan Is a financing facility for Overseas Branch

Offices (KCLN) based on Trade Finance transactions conducted by Indonesian business groups and counter parties from Indonesian companies abroad.

Third Party Fund Product Overseas Branch Office (KCLN) with full banking license such as those in Singapore, Hong Kong, Tokyo and Seoul can collect Third Party Funds from local customers where the KCLN is located consisting of Savings, Time Deposits, and Demand Deposit products. Details relating to overseas third-party fund products are described as follows:1. savings A deposit service that was developed to accommodate

the needs of individual customers.

2. current account Deposit services for individual and company customers

to meet the needs of payment of operational activities with a check facility as a means of withdrawal.

3. Deposito Term deposit services with a period ranging from 1 (one)

to 12 (twelve) months offered by KCLN by providing special rates to selective customers at each KCLN according to its license.

servicesServices offered by all KCLN are as follow.1. Export Letter of Credit Where the Bank receives the original LC including

preadvice and amendments from:a. Issuing Bank to be forwarded to the Beneficiary

Second Advising Bankb. First Advising Bank to be forwarded to the

Beneficiary.

2. opening Import letter of credit A bank activity to open LC (master LC) including

Preadvice and amendments (amendment LC) as a guarantee of conditional payment on the basis of instructions or requests from Applicants or in its own name.

3. confirming letter of credit A bank activity to ensure payments of a LC and advise

amendments upon request or appointment by the Opening Bank as required under the LC.

4. Standby Letter of Credit (sBlc) A bank activity to execute Standby Letter of Credit

(SBLC) transactions, s subject to UCPDC or ISP, covering:a. Publishing SBLCb. Extending SBLCc. Confirming SBLCd. Transferring SBLCe. Cancelling SBLCf. Realizing SBLCg. Un-used SBLC

5. Inward Bill collection:a. The Collecting Bank to instruct collection from the

Remitting Bank to the Presenting Bank, orb. The Presenting Bank to instruct collection from the

Remitting Bank.

6. Outward Bill Collection An activity as Remitting Bank to send commercial

documents, or accompanied by financial documents (draft/promissory note), and to instruct collection to the Presenting Bank, or through overseas Collecting Bank, for submission to the Drawee on the basis of payment or acceptance.




7. Bank Guarantee Bank guarantees issued on behalf of customers such

as for the establishment of the company, employment contracts, etc. for full cover or by using an existing credit facility.

8. Remittance Is a written order at the request of an individual or legal

entity (ordering customer or institution) to a remitting bank/institution, to send a sum of money to another designated party (beneficiary customer or institution).

9. Financial Institution business services Financial Institution business products and services

include the following Business to Business (B2B) services:a. Bank Guarantee Under Counter (BGUC) The issuance of Bank Guarantees based of request

and with a sure guarantee from the correspondent bank (The Instructing Party).

b. Bank to Bank Financing – Refinancing A derivative for a trade finance transaction where

BNI provides financing on bills held by Bank correspondents for trade finance transactions.

c. Bank to Bank Financing-Trade Advance Financing Refinancing by BNI for the Issuing Bank, in the form

of payment for LC/SKBDN, or non-LC/SKBDN, to the Nominated Bank.

Operational review

d. Bank to Bank Financing-Forfaiting Purchasing the right to collect Banker’s Acceptances

(B/A) held by the Bank as a Correspondent Nominated Bank (forfaitee) in respect of L/C or SKBDN transactions with discount without recourse.

e. Risk Participation Is the partial transfer of risk owned by an applicant

bank to BNI in a funded or unfunded form that is related to trade transactions agreed upon between the applicant bank and other banks.

International Banking Domestic services The International Banking segment offers Financial Institution business services from branch offices in Indonesia (domestic), including banking products such as BNI Smart Trade, Financial Institution, Remittance, International Desk, Custody, and Trustee. BNI smart TradeBNI Smart Trade is classified as a trade product, trade service, and trade finance. Details of the Smart Trade-related products are described as follows:

BNI smartTrade

Trade Product Trade service Trade Financing

letter of credit open Negotiation

skBDN advising Discounting

Bank Garansi realization refinancing

Doc collection settlement Bills Payment




Trade Product1. Letter of Credit Letter of Credit is a guarantee of payment instrument

issued by the bank (Issuing Bank) to recipients (Beneficiary) which is subject to Uniform Customs and Practice for Documentary Credits (UCP).

2. Domestic letter of credit A Domestic Letter of Credit is a guarantee of payment

instrument issued by the bank (Issuing Bank) to recipients (Beneficiary), which is subject to Bank Indonesia Regulations and is used for domestic trade transactions.

3. Bank Guarantee A Bank Guarantee is a guarantee of payment instrument

issued by the bank to guarantee recipients (Beneficiary) if the guaranteed party is in breach of contract (tort). Bank Guarantees are subject to Bank Indonesia Regulations or Uniform Rules for Demand Guarantee (URDG) or International Standby Practices (ISP).

4. Documentary Collection Documentary Collection is a payment system for world

trade conducted through banking services in the form of undocumented bills subject to Uniform Rules for Collections (URC).

Trade Services Trade Services is a trade business that provides services

to customers to receive products/services in the framework of trade transactions, or export/import and domestic trade. Trade services include:

1. Open Opening is a service for the issuance of an instrument

(L/C, SKBDN, Bank Guarantee), which ensures certainty of payment, or underwrites contract performance, by the beneficiary with the conditions agreed upon by the parties to the agreement.

2. Advising Advising is a delivery service such as verification of the

validity/correctness of an L/C, SKBDN, Bank Guarantee transmitted by overseas and domestic correspondent banks for delivered to the recipient/beneficiary.

3. Realization Realization is a service to deliver/submit trade

documents to the recipient of the documents as the importer/purchaser, with agreed conditions.

4. Settlement Settlement is a service to settle trade transactions

in the form of transaction payments that have been implemented or agreed. This trade service transaction makes payments to the exporters/sellers via bank transfers.

Trade FinancingTrade Financing is a business managed by the International Division to provide financing to customers for trade/commercial transactions with instruments in the form of L/C, SKBDN, Documentary Collection, Bills Payment, and Invoices or bills. Trade financing includes:1. Negotiation Negotiation is the receiving of draft payments drawn

by the beneficiary to a bank on the basis of documents presented and declared in accordance with the terms and conditions of the LC/SKBDN/SBLC with sight tenor.

2. Discounting Discounting is the receiving of draft payments drawn by

the beneficiary with a bank on the basis of documents presented and declared in accordance with the terms and conditions of the LC/SKBDN/SBLC with usage tenor.

3. refinancing Discounting is the receiving of draft payments drawn by

the beneficiary with a bank on the basis of documents presented and declared in accordance with the terms and conditions of the LC/SKBDN/SBLC with usage tenor.

4. Bills Payment Bills Payment is financing for exporters/sellers and

importers/buyers on the basis of a documentary collection/open account transaction.

Financial Institution Products and servicesFinancial Institution business products and services include the following Business to Business (B2B) services:1. Bank Guarantee Under Counter (BGuc) The issuance of Bank Guarantees based of request and

with a sure guarantee from the correspondent bank (The Instructing Party).

2. Bank to Bank Financing – Refinancing A derivative for a trade finance transaction where BNI

provides financing on bills held by Bank correspondents for trade finance transactions.




3. Bank to Bank Financing-Trade Advance Financing Refinancing by BNI for the Issuing Bank, in the form

of payment for LC/SKBDN, or non-LC/SKBDN, to the Nominated Bank.

4. Bank to Bank Financing-Forfaiting Purchasing the right to collect Banker’s Acceptances

(B/A) held by the Bank as a Correspondent Nominated Bank (forfaitee) in respect of L/C or SKBDN transactions with discount without recourse.

5. Bank to Bank Financing-Term Loan Facility Bank Granting of credit facilities to other banks either with the

status of BUMN, BUSN, BUMD, or Branch Offices of Foreign Banks domiciled in Indonesia.

6. Risk Partication Is the partial transfer of risk owned by an applicant bank

to BNI in a funded or unfunded form that is related to trade transactions agreed upon between the applicant bank and other banks.

RemittanceRemittance is a written order at the request of individuals or legal entities (ordering customer or institution) to a remitting bank/institution, to transfer money to another designated party (beneficiary customer or institution).

Types of remittance includes:1. Incoming Fund Transfer or Incoming transfer (ITR) or

Incoming remittances Remittances from individuals or legal entities through overseas remitting banks in foreign currency/rupiah, or through domestic banks, especially for foreign currency, addressed to BNI as the recipient bank, for recipients’ benefit whose names are designated in the remittance, either as BNI customers or non-customers in the country. The ITR transaction code in BNI is S06. BNI Wesel PIN is a Remittance/Incoming Transfer (ITR) service from overseas, that can be exchanged for cash (without an account) in BNI outlets and BNI paying agents such as Pos Indonesia, Alfamart, and pawnshops. Disbursements are made through a correct PIN number and valid identity cards (KTP/SIM/Passport).

2. Outgoing Fund Transfer (OTR) or Outgoing remittances Unconditional written order from BNI at the request of a customer and/or for BNI’s benefit addressed to the

correspondent bank to pay a certain amount of money to a specified person/entity (beneficiary). Includes foreign currency remittances to correspondent banks at home and abroad. The OTR BNI transaction code is S10. BNI remittances can be received on the same day (same day service) with time limits (cut off time) determined by each currency. BNI also has multi currency remittances services that can be received in 125 types of currency from 160 countries.

International Desk1. Loan The International Desk Unit provides loan services in the

form of IDR or offshore loans in USD and JPY currencies and Open Account Financing (OAF) for International Corporate Clients in Indonesia with competitive interest rates based on Stand by LC (SBLC), guaranteed by international banking/financial institutions. For granting these loans or Open Account Financing (OAF) scheme, the International Desk coordinates with the Credit units (LMC, SKM, SKC).

2. Third Party Funds Cooperation with branches in providing services for

opening Savings, Current Accounts and Deposits for Customers, and foreign and International corporations in Indonesia.

3. Cash Management In collaboration with Transaction Banking Services

Division (TBS), marketing BNI Cash Management products to International corporate customers in Indonesia.

4. credit card In cooperation with the Business Card Division (BC)

offers personalized credit cards to foreign individuals as well as International corporations.

custodyBased on Law no. 8/1995, custodian and other assets related to securities and other services, including receiving dividends, interest and other rights, completing securities transactions, and representing the account holders as our customers. BNI Custodial Services offers the following:1. Custody Services

a. Storage, management and administration of securities, either script or scripless, on the Indonesian Stock Exchange.

Operational review




b. Storage, management and administration of securities issued by the government such as Government Securities (SUN), Indonesian Retail Bonds (ORI), Sharia Securities (SBSN).

c. Storage, management and administration of securities in the international market registered at Euroclear as one international Depository institution.

2. Fund Services Transaction process services up to the net asset value

calculation (balance sheet, profit/loss, portfolio reports) for Mutual Funds, Fund Management Contracts (KPD) and Unit Link. Services provided include Fund Accounting/Fund Administration, monitoring, reporting and publication.

3. Trustee and agencya. Trustee Acting as a party representing the interests of debt

securities, including:i. Compiling trusteeship contracts with issuers.ii. Monitoring issuers for fulfillment of their

obligations.iii. Submitting reports and information disclosure.iv. Organizing Bondholders General Meeting

(RUPO).

b. Security Agent Administration of assets guaranteed by a party based

on an agreed agreement.

c. Paying Agent Processing payments in accordance with

agreements for activities related to capital market transactions such as payment of coupons/interest, dividends, principal bonds or other debt securities and payment services for sale/purchase and others.

d. Escrow Agent Managing, monitoring and controlling escrow

accounts (special accounts) in accordance with agreements.

TrusteeTrust is a bank business in the form of care for the management of settlor’s property (owning parties who entrust their property to be managed by the Trustee/Bank) based on a written agreement between the Bank as Trustee with the Settlor for the benefit of the Beneficiary. Based on Otoritas Jasa Keuangan (POJK) regulation No.27/POJK.03/2015 concerning Bank Custody Management (Trust) as amended by POJK Regulation No. 25/POJK.03/2016, Trustees can act as:1. Paying Agent2. Investment Agent3. Borrowing Agent

Trustees not only serve corporate clients, but also individual customers based on POJK No 25/POJK.03/2016. This is a relaxation of the rules to support the Tax Amnesty program.

International segment 2019 strategy The International Division, with its vision of becoming a key player in international trade and international payment for Indonesia’s banking industry, have succeeded in supporting BNI business activities through the implementation of strategies throughout 2019. One of its significant achievement is the focus on increasing business performance in the Overseas Branch Offices (KCLN). BNI maintains six KCLN in international business centers in Singapore, Hong Kong, Tokyo, Seoul, London and New York, as well as one Representative Office in Yangon. In 2019, the KCLN succeeded in increasing its net income contribution by 84.6% y-o-y.

Productivity, Prospects and strategies of International segmentThe following explanation provides details regarding productivity, prospects and strategies for achieving it for Overseas Branch Offices (KCLN) and International Banking Domestic Services.

overseas Branch office (kclN)The Overseas Branch Office (KCLN) total assets for 2019 are shown as follows:




kclN Performance Table


(rp million) (%) (rp million) (%) (%)

Total Loan 41,750,166 61.51 39,918,309 53.06 4.59

Other assets 25,346,208 38.29 35,317,273 46.94 (28.23)

Total asset 67,096,374 100.00 75,235,582 100.00 (10.82)

Total loans disbursed by KCLN throughout 2019 amounted to Rp41.8 trillion. This is in line with KCLN strategy to focus on Indonesia-related businesses in support of the global expansion of Indonesian companies. This is reflected in the significant achievement of KCLN local loans at Rp21.1 trillion, or a growth of 32.84% y-o-y compared to the previous year at Rp15.9 trillion. KCLN represents BNI as a bridge for local companies to relate with Indonesian companies.

kclN Third Party Funds Product Fund deposit by KCLN in 2019 are supported by local loans and local trade customers. In addition, BNI also optimized on the banking accounts of the respective Indonesian embassy or consulate at each KCLN:

Income of overseas Branch offices Table



Savings 99,494 3.96 100,383 3.82 (0.89)

Current Account 1,751,398 69.68 2,226,082 84.74 (21.32)

Time deposit 662,713 26.37 300,610 11.44 120.46

Total 2,513,605 100.00 2,627,075 100.00 (4.32)

In 2019, total third party funds at KCLN amounted to Rp2.5 trillion. This amount is contributed by four (4) KCLN with full branch status, allowing them to conduct retail transactions, namely the KCLN at Singapore, Tokyo, Hong Kong and Seoul. In order to support more third party fund at KCLN, the New York branch has a plan to implement a global certificate of deposit program in 2020.

revenues of overseas Branch offices (kclN)By emphasizing the business focus of Indonesian customers or companies that will and have expanded overseas and optimizing business potential/transactions that generate fee-based income, the revenue portrait for 2019 at KCLN is as follows:

Income of overseas Branch offices Table

Description2019 composition 2018 composition Growth


Net Interest Income 1,046,260 67.47 895,117 79.06 16.89

Fee Based Income 504,538 32.53 237,120 20.94 112.78

Net operating Income 1,521,392 100.00 1,164,753 100.00 36.97

Operational review




Revenues of KCLN comprises fees on loans, trade activities and remittances, as well as gain on securities. In 2019 the YoY performance increased by 36.97% from the achievement in 2018, and amounted to Rp1.5 billion.

International Banking Domestic servicesRevenues of International Banking domestic services are derived from trade, remittance, financial institutions, custody, trustee and international desk businesses.

Table revenues of International Banking Domestic services

revenue Type2019 composition 2018 composition Growth

(rp billion) (%) (rp billion) (%) (%)

Fee Based Income 1,723 63.9 1,594 62.8 8.1

Interest Income 972 36.1 943 37.2 3.1

Net operating Income 2,695 100 2,537 100 6.2

The performance of International Banking Domestic Services in 2019 was Rp2.7 trillion, an increase of 6.2% from the achievement in 2018 of Rp2.5 trillion.

Income and Profitability of Treasury an International segment Income and profitability of the Treasury and International Segment are presented as follow:


(rp billion) (rp billion) (rp billion) (%)

Interest income and Sharia income - net *) 2,126,635 2,086,897 39,738 1.9


Other operational income 3,650,287 2,950,936 699,351 23.7

Provision for impairment losses (353,262) (145,055) (208,207) 143.5

Other operational expenses (2,172,859) (1,947,361) (225,498) 11.6

Operating profit 3,250,801 2,945,417 305,384 10.4

Non-operational income (expenses) - net 23,209 2,697 20,512 760.5

Profit before tax 3,274,010 2,948,114 325,896 11.1

Total asset 262,960,028 275,552,690 (12,592,662) (4.6)


In 2019 interest income and net-sharia revenue from the Treasury and International segments rose 1.9% to Rp2.1 trillion. Meanwhile, the operating profit of the Treasury and International segment in 2019 reached Rp3.2 trillion, up 10.4% from 2018 of Rp3.0 trillion.




In carrying out its business activities, in addition to being reviewed from business segments or operations, can also be viewed from a geographical aspect. BNI’s geographical segments include Indonesia, New York, Europe and Asia. The profitability of the geographical segments for 2019 and 2018 is as follows:

Table Geographical segment Profitability 2019

(Rp Billion)

Description Indonesia New york europe asiaadjustment

and elimination

consolidated

Interest income and sharia income - net 35,618 170 240 615 (40) 36,602

Premium income - net 1,697 - - - - 1,697

Other operating income 14,337 124 139 417 (1,305) 13,712

Provision for impairment losses (8,834) - (3) (1) - (8,838)

Other operating expenses (22,990) (133) (114) (449) - (23,687)

Operating profit 19,828 161 262 582 (1,346) 19,487

Non-operating income/(expenses) - net (106) - (1) (13) 3 (118)

Profit before tax 19,721 161 261 569 (1,343) 19,369

Net income 15,509

Total assets 782,516 12,321 13,256 48,415 (10,903) 845,605

Total liabilities 616,252 12,327 13,254 48,352 (1,695) 688,489

Table Geographical segment Profitability 2018

(Rp Billion)

Description Indonesia New york europe asiaadjustment

and elimination

consolidated

Interest income and sharia income - net 34,567 155 176 557 (10) 35,446

Premium income - net 1,712 1,712

Other operating income 12,257 79 124 221 (1,068) 11,613

Provision for impairment losses (7,322) (16) (1) (50) (7,388)

Other operating expenses (21,184) (128) (105) (366) (21,783)

Operating profit 20,031 90 194 362 (1,078) 19,599

Non-operating income/(expenses) - net 216 (0) (1) 3 3 221

Profit before tax 20,247 90 194 365 (1,074) 19,821

Tax expenses (4,729)

Net income 15,092

Total assets 743,711 13,442 9,533 52,510 (10,623) 808,572

Total liabilities 598,015 13,510 9,567 52,538 (2,392) 671,238

Operational review




DIGITal BaNkING

BNI is developing digital banking through a variety of products and developing marketable e-channel products while at the same time being able to provide added value to all BNI business segments in terms of cost and revenue efficiency. In addition, the development of BNI digital banking also supports the realization of BNI’s vision to become a financial institution that excels in service and performance in addition to responding to challenges and changes in accordance with the latest developments.

The innovations carried out are contained in the development of 5 (five) digital banking capabilities, namely:1. Digital Branding and Proposition Develop personal customer-based services accompanied

by providing information and products according to customer needs. In this process design thinking is also carried out to validate these needs more deeply.

2. New Digital channela. Develop D-Branch as a physical channel by utilizing

the use of smart kiosks.b. Develop Chat Bot (Artificial Intelligent (AI) that can

serve banking-based messaging information).

3. Digital Business and ecosystema. Enhancing digital business solution penetration

programs in several priority ecosystems.b. Developing an automation process in a series of BNI

operational processes.

4. agile ITa. Developing Two Speed IT Development

(development of the capability of acceleration and agility in the process of developing solutions).

b. Developing API Management which is the development of capabilities connecting to potential digital ecosystems, such as marketplace ecosystems, smart cities, and so on).

c. Providing Big Data which is the development of behavioral analytic capabilities to deliver contextual solutions to customers.

5. Digital culture & Innovationa. Build a BNI Innovation Center with capabilities to

incubate potential digital business ideas.b. Organizing BNI Business Innovation Award (Binnova)

as a competition to collect ideas and business innovations from internal BNI employees to spark the spirit of innovation.

c. Creating BNI Digital Ninja as a change agent program to support the internalization of digital culture in the BNI organizational environment.

strategy in 2020 In line with the BEYOND program set out in BNI’s corporate plan, BNI’s digital banking strategy is “Developing the B2B2C business ecosystem and digital attacker (small and consumer segment) through optimizing customer trips, analytic data and maintaining sustainability with venture capital to capture the opportunities of Beyond Banking”.

various e-Banking Products BNI offers a variety of E-Banking facilities which include ATM channels, SMS Banking, Mobile Banking, Internet Banking, Agen46, TapCash, LOVE and Electronic Data Capture (EDC). The explanation of each product is as follows:

aTmBanking service channel, which facilitates the Customer in making cash deposit, withdrawal, transfer, payment and purchase transactions. BNI ATM services currently number 18,659 machines spread throughout Indonesia and connected to the Link ATM Network, ATM Bersama, ATM Prima, International Network Mastercard, Visa, JCB, APN, Union Pay and Cirrus.

sms BankingBNI SMS Banking is a channel that can be used by customers to transact transfers, payments and purchases that can be accessed through the SMS Banking menu application, Syntax SMS and USSD *141# access.

mobile BankingBNI Mobile Banking is a transactional channel that can be used by customers in transacting transfers, payments and purchases through a mobile banking application that can be accessed by smartphones based on Android and iOS. BNI Mobile Banking can also be activated and used for transactions abroad.




DiGital

BraNch




Internet BankingBNI Internet Banking is one of the BNI e-Banking transactional channels owned by customers through BNI Internet Banking URLs that can be accessed via computers or mobile phones. BNI Internet Banking also has a reliable feature in the form of Personal Financial Management and is equipped with a security standard that uses 2 (two) types of financial transaction authorization tools namely BNI e-Secure and BNI m-Secure.

agen46Agen46 is BNI’s partner in providing banking services to the public in the framework of financial inclusion. In addition to BNI’s partners in providing various banking services, Agen46 also has various government programs, such as the distribution of social assistance or subsidies, which can be either cash or non-cash. Through Agen46, banking transactions have become easier, faster and more accessible to the surrounding community. TapcashTapCash is an electronic money substitute for card-based cash that can be transacted at various points of acceptance in the form of BNI cooperation merchants as well as various modes of transportation and toll roads. TapCash users are also spoiled by the TapCash Go application which makes it easy to check TapCash balances and to top up TapCash cards.

cINTaCINTA is one form of chatbot development by utilizing artificial intelligence and machine learning technology that makes it easy for users to access various banking information through social media platforms. CINTA has the capability to personalize programs, surveys and customer education.

BNI Debit onlineBNI Debit Online (BDO) is a method of payment for online transactions using a Virtual Card Number (VCN) that can be requested via SMS Banking or BNI Mobile Banking.

sms NotifikasiIt is a transaction information service carried out by customers delivered via SMS to the mobile number registered by the customer for notification of debit/credit transactions made by customers.




iPayBNI iPay is a product derivative of BNI Internet Banking that makes it easy for BNI Internet Banking users to complete their online shopping transactions in one transaction flow. After selecting goods or services on the e-commerce site, users will be directed to the BNI iPay site to be able to make payments immediately using the user ID, password, and secure code generated by e-secure or m-secure BNI Internet Banking.

smartpayBNI Smartpay is a product derivative of BNI SMS Banking that provides convenience (seamless transaction) for customers using BNI SMS Banking to do their online shopping transactions in one transaction flow. After selecting goods or services on the e-commerce site, the Customer then only needs to input the pin challenge from the 3346 incoming SMS.

electronic Data capture (eDc)/merchant NetworkMerchant network is a network of services for receiving APMK transactions (using credit, debit and prepaid cards). The merchant network is a collaboration between the Bank (acquirer) with global principals such as VISA, MasterCard, Japan Credit Bureau (JCB), UPI, and local principals such as Artajasa, Prima, and ALTO. As a member of the principal, in its activities the merchant network cooperates with shops, hotels, restaurants, and various other business entities that accept payments for goods or services using APMK (credit, debit and prepaid cards) and get fees in the form of merchant discount rates (MDR) of each transaction amount.

e-Banking user composition

Description 2019 2018 2017Growth

user %

Internet Banking 1,996,653 1,893,721 1,781,297 102,932 5.4

Mobile Banking 4,877,738 2,892,518 1,368,771 1,985,220 68.6

SMS Banking 10,865,581 9,819,514 8,497,014 1,046,067 10.7

2019

27.5

61.2 11.3

2018

19.8

67.2 13.0

Internet Banking

Mobile Banking

SMS Banking

e-Banking user composition (%)

Operational review




Digital Banking Performance In 2019Judging from the growth in the number of users, number of transactions, and transaction volume throughout 2019, the performance of each E-Banking product is as follows:

aTmIn 2019, ATM channel services increased by 185.79 million transactions or 14.41% to 1,474.73 million transactions from 2018 transactions of 1,288.95 million transactions. In line with the increase in the number of transactions, the nominal value of the transaction grew 3.21% or Rp21.47 trillion to Rp689.47 trillion from 2018 amounting to Rp668.01 trillion.

Description 2019 2018Growth

Nominal %

Number of Transaction (million) 1,474.73 1,288.95 185.79 14.41

Transaction Volume (Rp trillion) 689.47 668.01 21.47 3.21

sms BankingIn 2019, BNI recorded a number of SMS Banking users of 10.87 million, an increase of 10.65% from the 2018 position of 9.82 million users. Based on the number of transactions, SMS Banking successfully recorded a total of 660.19 million transactions, an increase of 30.98% compared to the previous year which reached 504.05 million transactions. Supported by an increase in the number of these transactions, the value of SMS Banking transactions in 2019 was recorded at Rp68.23 trillion or grew by 33.19% compared to the achievement in 2018 of Rp51.23 trillion.


Nominal %

User (million) 10.87 9.82 1.05 10.65

Number of Transaction (million) 660.19 504.05 156.14 30.98


mobile BankingDuring 2019, the number of Mobile Banking users was 4.88 million, growing by 68.63% from 2018 of 2.89 million users. Along with the increase in the number of users, Mobile Banking managed to record a total transaction of 201.85 million transactions in 2019, up 108.36% compared to 2018 of 96.88 million transactions. The increase in the number of users and the number of transactions has an impact on the increase in the volume of Mobile Banking transactions in 2019 which grew 136.68% to Rp315.74 trillion compared to 2018 which was recorded at Rp133.41 trillion.


Nominal %

User (million) 4.88 2.89 1.99 68.63






Internet BankingBNI recorded 2.00 million internet banking users, an increase of 5.44% in 2019 compared to 1.89 million users in the previous year. Internet Banking also recorded a total of 29.86 million transactions in 2019, an increase of 8.60% compared to 2018 which amounted to 27.50 million transactions. In line with the increase in the number of transactions, Internet Banking posted a transaction volume of Rp92.92 trillion in 2019, up 1.82%, compared to the position in 2018 of Rp91.25 trillion.


Nominal %

User (million) 2.00 1.89 0.10 5.44



agen46In 2019, the number of Agen46 was recorded at 157.14 thousand agents, an increase of 40.51% compared to the number of agents in 2018 which totalled 111.84 thousand agents. Based on the number of transactions, the number of Agen46 transactions reached 124.88 million transactions, up 57.47% from the previous year of 79.31 million transactions. In line with the increase in the number of agents and transactions, the volume of transactions increased by 68.90% to Rp159.57 trillion in 2019 from the position of 2018 of Rp94.47 trillion.

BNI also noted the number of BNI Pandai accounts increased by 5.96% to 9.72 million accounts in 2019 from 9.18 million accounts at the end of 2018. The BNI Pandai third party funds generated by these accounts reached Rp771.98 billion, growing 21,18% compared to 2018 which was recorded at Rp636.25 billion. The amount of third party funds by Agen46 was recorded at Rp1,442.48 billion in 2018 or grew 31.53% compared to 2018 amounting to Rp1,096.73 billion.


Nominal %

Agen46 (thousand) 157.14 111.84 45.31 40.51

Transaction (million) 124.88 79.31 45.58 57.47

Amount (Rp trillion) 159.57 94.47 65.09 68.90

BNI Pandai account (million) 9.72 9.18 0.55 5.96

BNI Pandai DPK (Rp billion) 771.98 636.25 134.73 21.18

Agen46 DPK (Rp billion) 1,442.48 1,096.73 345.75 31.53

TapcashIn 2019, the number of TapCash cards was 6.34 million, an increase of 39.55% from 2018 of 4.54 million cards. The increase in the number of cards was followed by an increase in the number of Tapcash transactions to 62.84 million in 2019, an increase of 23.81% compared to the achievement in 2018 of 50.76 million transactions. In line with the increase in the number of cards and the number of transactions, Tapcash transaction volume in 2019 reached Rp1,371.38 billion, an increase of 69.92% compared to the position in 2018 of Rp807.09 billion.


Nominal %

Cards (million) 6.34 4.54 1.80 39.55

Transaction (million) 62.84 50.76 12.08 23.81

Amount (Rp billion) 1,371.38 807.09 564.29 69.92

Operational review




electronic Data capture (eDc)EDC services increased the number of purchase transactions by 35.63%, to 55.44 million transactions in 2019 from 40.88 million transactions in the previous year. Supported by an increase in the number of transactions, transaction volume increased by 27.9% to Rp70.51 trillion in 2019 compared to the previous year which only reached Rp55.13 trillion.


Nominal %



cINTa CINTA has 552 thousand followers on the Line application platform and has actively provided various promo information, surveys/couponing and customer education through the chat platform throughout 2019.


Nominal %

Follower (thousand) 552 349.0 203 58.2

contribution of BNI e-channel Transactions The contribution of e-channel transactions to all BNI banking transactions in 2019 reached 96.41% with an average contribution of 95.57%. The highest transaction contribution occurred in December with an achievement of 96.41%. The growth of e-channel transaction contributions can be seen in the following graph:

BNI e-channel Transactions to all BNI Banking Transactions (%)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

94.63

95.05 94.98 95.09 95.20

96.58

94.7894.40

94.74

95.70

94.9694.56




Subsidiaries

In 2019, all BNI subsidiaries posted positive performance with total profits of rp967.57 billion, a growth of 49.4% compared to 2018 of rp647.45 billion.




Along with the development of increasingly diverse financial product and service needs for corporations and the public, banks are demanded to be able to provide varied and integrated financial products and services. However, taking into account the limitations from the authority, banks need to involve the subsidiaries to meet all the stakeholders’ needs for financial products and services. Therefore, as one of the leading banks in Indonesia, BNI synergizes with subsidiaries to provide a one-stop, comprehensive financial services to customers.

BNI manages its subsidiaries through equity participation in companies engaged in the financial sector with reference to applicable provisions in the banking industry. The following table describes the majority ownership of BNI in several subsidiaries in order to build strategic alliances and synergies to create added value for BNI customers.

Name line of Business share ownership

Date of established

operation status

Total assets 2019

(rp million)Domiciled

PT Bank BNI Syariah Sharia Banking 99.90% 22-03-2010 Operation 49,980,371 Jakarta

PT BNI Multifinance Consumer Financing 99.99% 08-04-1983 Operation 1,859,603 Jakarta

PT BNI Sekuritas Securities brokerage and underwriting, including Securities Trading, also acting as Investment Guarantor and Advisors

75.00% 12-04-1995 Operation 1,106,011 Jakarta

PT BNI Life Insurance Life Insurance Services 60.00% 28-11-1996 Operation 18,113,288 Jakarta

BNI Remittance Remittance Service 100.00% 19-11-1996 Operation 6,472 Hong Kong

BNI subsidiaries

Sekuritas Remittance Multifinance SyariahLife

In 2019, all BNI subsidiaries posted positive performance with total profits of Rp967.57 billion, a growth of 49.4% compared to 2018 of Rp647.45 billion, with a profit contribution, according to BNI ownership percentage, of 5.46% of BNI’s profit, increasing from 3.79% in 2018.




Table of earnings Performance of BNI subsidiaries

subsidiaries %Growth 2019 2019 2018 2017 2016 2015

rp million % rp Billion rp Billion rp Billion rp Billion rp Billion

BNI Syariah 99.94 187.17 45.0 603.25 416.08 306.69 277.37 228.53

BNI Life 60.00 109.36 59.1 294.40 185.04 374.90 183.95 160.04

BNI Sekuritas 75.00 5.61 30.7 23.89 18.28 10.91 12.34 38.88

BNI Multifinance 99.99 17.79 65.0 45.15 27.36 26.87 7.41 (12.27)

BNI Remittance 100.00 0.19 27.0 0.88 0.69 0.73 0.21 (0.56)

Total 320.11 49.4 967.57 647.45 720.10 481.28 414.62

BNI’s strategy for business development to improve financial performance, business growth, customer satisfaction, and the position of subsidiaries among peer groups and industries in 2020 are as follow:• ImproveBNIGroupsynergy• Improvejointmarketingcommunicationandcorporatecommunication• Provideinformationsystemsthatsupportthebusinessesofsubsidiaries

PT Bank BNI syariah (BNI syariah)

explanation, Productivity, revenues and ProfitabilityIn 2019, BNI Syariah successfully posted a positive performance with net income after tax of Rp603 billion, growing by 44.98% of 2018 profit of Rp416 billion, and reaching 69.43% of the 2019 year-end target of Rp869 billion.

BNI Syariah’s total assets amounted to Rp49,980 billion, reaching 105.73% of the 2019 year-end target of Rp47,273 billion. This achievement was driven by achievements in financing and third party funds (DPK), which grew by 15.02% and 23.31%, respectively. The position of financing in December 2019 was Rp32,649 billion, reaching 100.44% of the end-of 2019 target. The highest growth in financing was in the Micro segment by 47.47% and the Commercial segment by 25.55%. The DPK position in December 2019 was Rp43,772 billion or 109.25% of the target.

Details related to BNI Syariah’s financial performance during 2019 are described in the following table:

Table PT Bank BNI syariah Financial Performance


rp million rp million rp million %

Balance sheet

Assets 49,980,371 41,048,543 8,931,828 21.76

Investments 16,836,283 12,327,502 4,508,781 36.57

Placements with BI 8,228,726 4,554,393 3,674,332 80.68

Placements with other banks 199,997 327,022 (127,025) (38.84)

Securities 8,407,560 7,446,086 961,473 12.91

Financing 32,649,073 28,386,197 4,262,877 15.02

Murabahah/Salam/Istishna Receivables (sale and purchase contract) 19,193,843 18,201,807 992,036 5.45

Qardh Receivables (Sharia credit card) 1,655,912 1,564,282 91,629 5.86

Financing 11,512,534 8,274,741 3,237,793 39.13

Ijarah 286,784 345,366 (58,582) (16.96)

Third party Funds 43,771,879 35,496,519 8,275,360 23.31

Subsidiaries




Table PT Bank BNI syariah Financial Performance



Wadiah Deposits Funds 11,940,404 8,835,445 3,104,959 35.14

Unrestricted Investing Funds (Mudharabah Muthlaqah) 31,831,475 26,661,074 5,170,401 19.39

Equity 4,736,068 4,242,165 493,903 11.64

Profit and loss

Operating income 4,461,043 3,836,743 624,301 16.27

Income from Fund Distribution 4,036,377 3,567,329 469,048 13.15

Murabahah Margin 2,319,480 2,212,338 107,142 4.84

Ijarah Leases 18,160 12,244 5,916 48.32

Mudharabah Profit Share 135,970 123,307 12,663 10.27

Musyarakah Profit Share 824,271 498,757 325,514 65.26

From Bank Indonesia 45,721 38,826 6,895 17.76

Other TPF Income 139,085 148,678 (9,593) (6.45)

From other Banks 553,690 533,179 20,511 3.85

Other operating income 424,666 269,413 155,253 57.63

Profit sharing for investors Unrestricted Investment Funds 990,497 1,007,841 (17,344) (1.72)

From non-bank third parties 982,288 1,007,227 (24,939) (2.48)

From Bank Indonesia - - - -

From other banks 8,209 614 7,595 1236.82

Operating income after profit share distribution 3,470,546 2,828,901 641,645 22.68

Expenses (Income) allowance for uncollectible accounts 807,951 675,597 132,354 19.59

Expenses (Income) estimated losses on commitments and contingencies

249 (215) 464 (215.83)

Other operational expenses 1,820,256 1,587,151 233,105 14.69

Operating Profit (Loss) 842,090 566,368 275,722 48.68

Non-Operating Income (Expenses) (42,013) (16,131) (25,883) 160.45

Profit (Loss) Before Tax 800,077 550,238 249,839 45.41

Tax 196,828 134,158 62,670 46.71

Net Income (Loss) After Tax 603,249 416,080 187,169 44.98

ROA and ROE of BNI Syariah in 2019 were 1.6% (up 0.26%) and 12.74% (up 2.93%), respectively, increasing in line with 2019 profit growth. BOPO in 2019 was 81.71%, a decline of -3.66% from 85.37% in 2018. NPF increased by 0.4% from 2.93% in 2018 to 3.33% in 2019.

Table PT Bank BNI syariah Financial ratios

Financial ratios 2019 2018

NPL 3.33% 2.93%

ROE 1.60% 10.39%

ROA 12.74% 1.42%

BOPO 81.71% 85.37%

FDR 74.30% 79.61%

NIM 7.35% 7.16%

CAR 19.23% 19.15%




In recognition of 2019 performance, BNI Syariah won awards from various institutions, including:

Table PT Bank BNI syariah awards in 2019

No award Name Predicate category organizer Date

1 Top Brand Award 2019 Outstanding Achi. in Build. the Top Brand

Sharia Savings Marketing magazine

02-2019

2 4th Indonesia Digital Innovation Award 2019 Innovative Company in Providing Waqf

Islamic Banking Warta Ekonomi 02-2019

3 Infobank 2nd Satisfaction Loyalty Engagement Award

Peringkat I Satisfaction (Fisik) Sharia Commercial Bank Infobank 03-2019


Peringkat II SLE INDEX 2019 Sharia Commercial Bank Infobank 03-2019


Peringkat I Satisfaction (ATM) Sharia Commercial Bank Infobank 03-2019


Peringkat I Engagement Sharia Commercial Bank Infobank 03-2019


N0. III Satisfaction (Customer Service)

Sharia Commercial Bank Infobank 03-2019


Peringkat II Net Promoter Score (NPS)

Sharia Commercial Bank Infobank 03-2019


Peringkat I Satisfaction (Satpam) Sharia Commercial Bank Infobank 03-2019


Peringkat II Loyalty Sharia Commercial Bank Infobank 03-2019


Peringkat III Satisfaction (Teller) Sharia Commercial Bank Infobank 03-2019


Peringkat II Satisfaction Bank Umum Syariah Infobank 03-2019

13 8th Digital Brand Award 2019 The Best Digital Brand 2014-2018 KPR Sharia Commercial Bank

Infobank 05-2019

14 8th Digital Brand Award 2019 2nd Best Overall Debit Card Sharia Commercial Bank

Infobank 05-2019

15 8th Digital Brand Award 2019 Rank 3 Savings Sharia Commercial Bank

Infobank 05-2019

16 8th Digital Brand Award 2019 Rank 3 Sharia Commercial Bank Infobank 05-2019

17 8th Digital Brand Award 2019 3rd Best Overall KPR Sharia Commercial Bank

Infobank 05-2019

18 8th Digital Brand Award 2019 Rank 2 KPR Sharia Commercial Bank

Infobank 05-2019

19 16th Banking Service Excellence Awards 2019 1st best security Shariah commercial bank

Infobank 06-2019

20 16th Banking Service Excellence Awards 2019 3rd best overall performance Shariah commercial bank

Infobank 06-2019

21 Digital Popular Brand Award No 1 in Industry KPR Sharia Commercial Bank

Trasn Co & Infobrand

07-2019

22 Top Eksekutif Muslim Moslem Top Executive Moslem Top Executive 2019 in Corporation Management

IPEMI and MADANI

07-2019

23 Best Syariah 2019 No 1 in Industry Best Syariah Bank 2019 Majalah Investor

08-2019

24 5th Indonesia Good Corporate Governance Award

No 1 in Industry Best of the best Ind. GCG Impl.Sharia Bank (Aset>25T)

Economic Review

08-2019

Subsidiaries




Table PT Bank BNI syariah awards in 2019

No award Name Predicate category organizer Date

25 Best CFO Indonesia - Wahyu Avianto Best Chief Financial Officer 2019 Indonesia Best Chief Financial Officer 2019

SWA 08-2019

26 24th Infobank Awards Excellent Performance 2014-2019

Excellent Performance 2014-2019

Infobank 08-2019

27 Anugerah Humas Indonesia 2019 Most popular in Online Media 2019

Sub category Non-Listed Subsidiary of SOE.

HUMAS INDONESIA

08-2019

28 Social Media Award 2019 Best (No 1 in Industry) Sharia Savings Marketing Magazine

01-092019

29 Digital Marketing Award 2019 Best (No 1 in Industry) Sharia Banking Marketing Magazine

01-09-2019

30 Bisnis Indonesia Financial Award 2019 Best Performance Sharia Banking Bisnis Indonesia

01-09-2019

31 Bisnis Indonesia Financial Award 2019 Best CEO Sharia Banking Bisnis Indonesia

01-09-2019

32 Best Islamic Finance Award 2019 Best Islamic Finance SME Bank Sharia Banking Alpha S.A. Magazine

01-09-2019

work Plan for 2020To maintain growth momentum, BNI Syariah has established several business strategies for 2020, including the following:• Focusonqualitygrowththroughcompetitivepricingstrategiesintherightbusinesssegmentsandeconomicsectors• ImproveassetqualitybyreducingtheNPFandFARratiothroughintensiveoptimizationofremedial&recovery• Increaseofthirdpartyfunds(DPK)andfeebasedtransactionsthroughdigitalserviceinnovationandinstitutional

collaboration• StrengthenbusinesssynergyandplatformsharingwithBNIGroup• OptimizebusinessontheapplicationoftheIslamicFinancialInstitutionQanuninAceh.

PT BNI life Insurance (BNI life)

explanation, Productivity, revenues and ProfitabilityIn 2019 BNI Life Insurance posted a net income after tax of Rp294 billion, a growth of 59.10% from the 2018 profit of Rp185 billion, and reaching 38.38% of the 2019 target of Rp767 billion. The profit growth was mainly due to an increase in 2019 of investment income, which grew 184.15% to Rp1,384 billion from Rp487 billion in 2018. In addition, BNI Life’s assets amounted to Rp18,113 billion, reaching 73.37% of the end-of-2019 target of Rp24,688 billion.

Details relating to BNI Life’s financial performance in 2019 are described in the following table:

Financial Performance of PT BNI life Insurance Table



Balance sheet Posts

Assets 18,113,288 17,287,801 825,487 4.77

Earning/Investment Assets 16,490,792 14,998,444 1,492,348 9.95

The obligation 12,495,650 12,077,462 418,187 3.46

Equity 5,617,639 5,210,339 407,299 7.82




Financial Performance of PT BNI life Insurance Table



Income statement

Total income 6,273,760 6,121,176 152,584 2.49

Gross Premium Income 4,733,220 5,568,467 (835,247) (15.00)

Gross Premium Net 4,777,335 5,518,252 (740,917) (13.43)

Investment Income 1,384,482 487,237 897,245 184.15

Non LINK 978,904 585,259 393,645 67.26

LINK 405,578 (98,022) 503,600 (513.76)

Others Revenue 111,943 115,687 (3,745) (3.24)

Total cost 5,987,729 5,948,989 38,741 0.65

Insurance/Claim Costs 4,461,722 4,287,772 173,950 4.06

Acquisition Cost 781,352 854,723 (73,371) (8.58)

Business costs 539,345 636,130 (96,785) (15.21)

Non Operational expenses (income) 205,310 170,364 34,946 20.51

PROFIT BEFORE TAX 286,031 172,188 113,844 66.12

TAX 8,367 12,851 (4,484) (34.89)

NET PROFIT 294,398 185,038 109,360 59.10

BNI Life’s ROA and ROE in 2019 were 1.58% and 5.24%, respectively, increasing by 0.58% and 1.69%, respectively, in line with profit growth. BOPO was 95.44%, a decline of 1.75% from 97.19% in 2018, due to revenue growth being greater than the growth of expenses in line with the increase in investment income. BNI Life’s RBC in 2019 was 732.11%, a decline of 3.62% from 2018 of 735.93% in line with the company’s business growth and dividend payments paid annually to shareholders.

PT BNI life Insurance’s Financial ratios Table


R O A 1.58% 1.00%

R O E 5.24% 3.55%

BOPO 95.44% 97.19%

Investment/Investment Results 8.40% 3.25%

RBC 745.22% 735.93%

This performance was achieved with the 2019 business strategy, in which BNI Life focuses towards selling profitable products and increasing the number of insurance policies. In recognition of this performance, BNI Life won various awards in 2019 including the following:

Subsidiaries




2019 PT BNI life Insurance awards Table

No. award Name Predicate category organizer Date

1 TOP Brand Award 2019 Top Brand Sharia Insurance Category Magazine.Mark (Frontier Research)

15/02/19

2 Unit Link Award 2019 Unit Link Terbaik, B-Life Link Dana Aktif

Shares (BUMN) for 5 years period; Infovesta, Magazine Investor

20/02/19

3 Unit Link Award 2019 Unit Link Terbaik, B-Life Link Dana Aktif

Shares (BUMN) for 7 years period; Infovesta, Magazine Investor

20/02/19

4 Unit Link Award 2019 Unit Link Terbaik, B-Life Link Dana Kombinasi

Mixed (Rupiah) period of 5 years; Infovesta, Magazine Investor

20/02/19

5 Unit Link Award 2019 Unit Link Terbaik, B-Life Link Dana Kombinasi

Mixed (Rupiah) period of 5 years; Infovesta, Magazine Investor

20/02/19

6 Unit Link Award 2019 Unit Link Terbaik, B-Life Dana Cemerlang

Fixed income (BUMN) for 5 years, Infovesta, Magazine Investor

20/02/19


Fixed income (BUMN) for 7 years, Infovesta, Magazine Investor

20/02/19


Fixed income (BUMN) for 10 years Infovesta, Magazine Investor

20/02/19

9 Contact Center Serv. Excell.Aw.

Achieving "Exceptional" Service Performance

Call Center Life and Health Insurance Magazine Service Exdellence

10/04/19


Achieving "Exceptional" Service Performance

Customer Service Email Center, Life and Health Insurance

Magazine Service Exdellence

10/04/19

11 Unit Link Award 2019 Unit Link Terbaik Kin Unit Link Types of Money Market Year 2018, Period 1 Year

Magazine Infobank 12/04/19

12 Unit Link Award 2019 Unit Link Terbaik Kin Unit Link Pend. Permanent Sharia Year 2018 Period 1 Year

Magazine Infobank 12/04/19


Top 10 Top 10 Most Trusted Insurance Companies (Life Insurance)

Magazine Gatra & ThinknovateComm

29/03/19

14 8th Digital Brand Awards 2019

Indeks tertinggi, digital branding Life insurance Conv. l Gross Premium 5 Trillion to Under 10 Trillion

Infobank and Isentia Indonesia

16/05/19

15 Corporate Image Award 2019

The Best in Building and Managing Corp.Image

Life insurance based on total assets of Rp10-20 trillion

Magazine Marketing 25/07/19

16 Asuransi Terbaik 2019 Peringkat Pertama Kategori Asuransi Jiwa

Life insurance with assets above Rp10 Trillion up to Rp25 Trillion

Magazine Investor 18/07/19

17 Superbrands Indonesia 2019

Asuransi Jiwa Life insurance as “Life Insurance Top of Mind”

Survior Nielsen 26/07/19

18 Penghargaan TOP GRC 2019

Perusahaan Asuransi #4 Stars Top GRC #4 Stars Top Business 22/08/19

19 Penghargaan TOP GRC 2019

GRC Leader The Most Commited GRC Leader 2019

Top Business 22/08/19

20 Pemeringkatan Syariah Terbaik

Best Syariah Syariah Magazine Investor 22/08/19

21 Top Insurance Award 2019

Top Life Insurance 2019 Top Life Insurance 2019 Assets 15-25 Trillion

Magazine Top Business 28/08/19

22 Bisnis Indonesia Financial Award

Special Award The Most Trusted and Outstanding Life Insurance in Investment

Bisnis Indonesia 20/09/19

23 Insurance Market Leader Award

Insurance Market Leader 2019 Insurance Market Leader 2019 Media Asuransi 21/11/19

24 CNBC Indonesia Award 2019

The best Insurance 2019 The Best Insurance Company CNBC Indonesia 04/12/19




work Plan 20201. Focusing on selling profitable products and increasing

the number of policies.2. Optimizing investment returns and performance from

Fund Unit Link.3. Optimizing captive markets.4. Increasing the ratio of renewing premium.5. Regional sales integration strategies.6. Increasing sales quality and productivity.7. Increasing the productivity of human resources.8. Improving business processes through digital.9. Maintaining the effectiveness and efficiency of OPEX.

PT BNI sekuritas (BNI sekuritas)

explanation, Productivity, revenues and ProfitabilityAt the end of 2019, BNI Sekuritas recorded a net income of Rp24 billion, growing by 30.69% from 2018 of Rp18 billion, and reaching 14.20% of the target of Rp168 billion. Operating income in 2019 amounted to Rp292 billion, growing by 14.69% from Rp254 billion in 2018. The

main source of revenues mainly comes from investment management fees (through BNI Asset Management as a subsidiary of BNI Sekuritas) with a contribution of Rp95 billion or 32.6% of BNI Sekuritas total operating income, brokerage commissions of Rp85 billion or 29.18% and Investment Banking Fee of Rp68 billion or 23.21%.

The total value of equity brokerage transactions by BNI Sekuritas in 2019 amounted to Rp83.7 trillion, up by 40.2% from 2018 of Rp59.7 trillion. Online transactions contributed Rp27.8 trillion, while the total value of regular transactions was Rp55.9 trillion. The number of active BNI Sekuritas accounts in 2019 was 99,954 accounts, an increase of 20% from 2018 of 83,270 accounts.

Details related to BNI Sekuritas financial performance are described in the following table:

PT BNI sekuritas Financial Performance Table



Balance sheet Posts

Assets 1,106,011 864,813 241,198 27.89

The obligation 304,859 382,381 (77,522) (20.27)

Equity 801,152 482,431 318,721 66.07

Income statement

Income 290,890 253,641 37,249 14.69

Brokerage commissions 84,887 80,453 4,434 5.51

Investment management fees 94,828 92,536 2,292 2.48

Brokerage Comm. From Fix Income Activities 20,747 18,583 2,164 11.64

Fees from Investment Banking Activities 67,508 42,310 25,199 59.56

Increase/(decrease) on net asset value of mutual funds 360 722 (361) (50.08)

Interest Revenue from Fund Separation & Bond & Dividend 5,337 8,422 (3,085) (36.63)

Gain (Loss) on trading of marketable securities - net (12,768) (21,734) 8,965 (41.25)

Margin and Overdue Revenue 24,676 28,960 (4,283) (14.79)

Other 5,314 3,389 1,925 56.81

Business costs 255,154 221,097 34,057 15.40

Other income 16,903 19,198 (2,295) (11.96)

Other Interest & Financial Charges (17,751) (20,747) 2,996 (14.44)

Total income 307,793 272,839 34,954 12.81

Total cost 272,906 241,844 31,062 12.84

L/R (EBT) 34,887 30,995 3,893 12.56

Tax (10,995) (12,712) 1,717 (13.51)

L/R (EAT) 23,893 18,283 5,610 30.68

Subsidiaries




ROA and ROE of BNI Sekuritas in 2019 amounted to 3.15% and 2.98%, respectively, declining by -0.43% and 0.81%, respectively, from 2018. The decline occurred due to additional capital injection by shareholders amounting to Rp300 billion in the quarter to III 2019, so the profit has not been maximized yet.

PT BNI sekuritas Financial ratios Table


R O A 3.15 3.58

R O E 2.98 3.79

BOPO 87.72 87.17

In recognition of 2019 performance, BNI Sekuritas has won awards from various institutions including:

2019 PT BNI sekuritas awards Table

No. award Name Predicate category organizer Date

1 Brand Indobank Award Juara1 Digital Brand Award Securities Company Info Bank 01 May 2019

2 Choise Market Dominance Securities Company RRI 01 September 2019

3 2019 The Best Brand Communication Securities Company BUMN Track 01 November

4 2019 The BestChief Marketing Officer Securities Company BUMN Track 01 November

5 2019 2019 Securities Company Business News 01 November

work Plan 2020For 2020, BNI Sekuritas will continue its strategy to achieve better performance with the following strategies:• ImprovesynergywithBNIGrouptoincreasecross

selling.• Equitybusinessexpansionisfocusedoninstitutionaland

retail customers• InvestmentBankingbusinessexpansionisfocusedon

SOE and Large Corporate clients.• DCM’sbusinessexpansionisfocusedonsynergywith

the BNI Group, including BNI subsidiaries.• OnlineTradingbusinessexpansion• Exploringthepotentialforcorporateactionorinorganic

growth.• Exploringthedevelopmentofnewbusinessesinthe

field of capital markets, advisory.

PT BNI multifinance (BNI multifinance) explanation, Productivity, revenues and ProfitabilityAs of December 2019, BNI Multifinance posted a positive performance with a net income of Rp45 billion, growing by 65.01% from 2018 of Rp27 billion, and reaching 87.3% from the 2019 target of Rp52 billion. Total assets amounted to Rp1,859 billion, growing by 41.11% from 2018 at Rp1,318 billion and reaching 71.43% from the

end-of-2019 target of Rp2,604 billion. Asset growth was driven by financing growth of 43.99% from Rp1,158 billion in 2018 to Rp1,666 billion in 2019, in line with the growth in liabilities (borrowings) by 51.01% from Rp986 billion in 2018 to Rp1,480 billion in 2019. Investment financing/leasing experienced the largest growth of 77.41% with a contribution of 80.06% of the total financing portfolio.

The 2019 performance was achieved by BNI Multifinance with a focus on investment financing (commercial) for commercial vehicles, heavy equipment, etc. on BNI referral accounts and BNI Multifinance repeat order customers, and four-wheeled vehicle ownership financing through the Car Ownership Program (COP) for the government official, corporate employee and BNI Business Group employee customer segments, and 4-wheeled Vehicle Operating Leases to BNI and BNI Group companies. The Company carries out consumer financing (multi-product & BNIMF OTO) with a focus on BNI and BNI Group employees and also starts factoring receivables on selective flow risk customers to maintain a healthy portfolio.




Details of BNI Multifinance’s financial performance are described as follows:

Financial Performance Table of PT BNI multifinance



Balance sheet Posts

Assets 1,859,603 1,317,858 541,745 41.11

Bank & cash 19,327 17,184 2,143 12.47

Deposit 40,233 48,734 (8,501) (17.44)

Financing 1,666,520 1,158,137 508,384 43.90

Rent 1,334,229 752,079 582,151 77.41

Consumer finance 168,427 222,092 (53,664) (24.16)

Factoring 163,864 183,966 (20,103) (10.93)

CKPN Financing (16,994) (13,876) (3,118) 22.47

The obligation 1,490,432 986,998 503,435 51.01

Equity 369,171 330,861 38,310 11.58

Income statement

Operating Income 231,800 177,970 53,830 30.25

Lease Income 140,063 84,189 55,873 66.37

Operating Lease Income 37,450 32,730 4,720 14.42

Consumer Financing Income 28,374 37,029 (8,655) (23.37)

Factoring Income 25,913 24,021 1,892 7.88

Other Operating Income 4,455 1,762 2,693 152.87

Total Operating Income 236,255 179,731 56,523 31.45

Total operational expenses 174,465 138,987 35,478 25.53

CKPN burden 14,607 12,766 1,841 14.42

Other income (expenses) (3,466) 2,884 (6,349) (220.17)

Profit before tax 58,324 37,860 20,464 54.05

Tax (13,173) (10,499) (2,675) 25.47

Net Income After Tax 45,150 27,361 17,789 65.01

ROA and ROE of BNI Multifinance in 2019 amounted to 3.14% and 12.23%, respectively, increased by -0.26% and 3.96%, respectively, from 2018, in line with profit growth. BOPO was 73.85%, declining (improved) -3.48% from 2018 of 77.33%. The 2019 NPL of 0.94% was down by -0.24% from 2018 of 1.18%. The 2019 DER of 4.04x increased by 1.05x from 2.98x in 2018 in line with the increase in borrowings as a source of funding for the expansion of the financing business.

PT BNI multifinance Financial ratio Table


NPL 0.94% 1.18%

ROA 3.14% 2.87%

ROE 12.23% 8.27%

BOPO (Operating Costs/Operating Income) 73.85% 77.33%

DER (Debt Equity Ratio) (times) 4.04 2.98

Subsidiaries




BNI Multifinance’s improved performance received appreciation (awards) from various parties, including the following:

No 2019 2018

1 Indonesia Good Corporate Governance Award 2019

3rd The Best Indonesia GCG Implementation 2019

Multifinance Subsidiary of S OE’s Company

Economic Review 23 August 2019

2 Top Multifinance 2019 Top Multifinance 2019 Assets <Rp 2 Trillion Top Business 28 August 2019

3 Top Multifinance 2019 Top Multifinance 2019 Multipurpose Financing Sector

Top Business 28 August 2019

4 Top Multifinance 2019 Top Multifinance 2019 CEO Multifinance 2019 Top Business 28 August 2019

5 Infobank 15th Multifinance Awards 2019

Very Good (Rating 176 Multifinance 2019)

Multipurpose Financing Sector

Info Bank 19 September 2019

6 Annual Indonesia Property&Bank Award 2019-14th

The Best Performance CEO Multifinance 2019

Special Award, Consultant and Building Material

Property & Bank 26 September 2019

7 Indonesia Multifinance Company of the Year 2019 - 6th

Achieving Excellence Through Digital Adaptation

Achieving Excellence Through Digital Adaptation

Warta Ekonomi 04 October 2019

work Plan 2020In order to minimize risk in 2020, BNI Multifinance business focus will still the same as the previous year, namely:1. Focus on increasing growth in investment financing and

working capital.2. Increasing the multipurpose financing portfolio

(consumer).3. Collaborating with providers of fintech transaction

services for distribution of funding.4 Assigning competent BNI employees at PT BNI

Multifinance.5. Acquiring additional funding from BNI and other banks

with competitive interest rates.6. Exploring the issuance of debt papers (Medium Term

Note - MTN) to strengthen the funding structure.7. Enhancing the function of the new IT Core System for

digitizing business processes.8. Opening representative posts (Point of Sales) at BNI

branches in potential areas, especially Jabodetabek.9. Exploring the possibility of engaging in strategic

partnership for inorganic business growth.10. Increasing social and environmental awareness and

responsibility in line with the Company’s Sustainable Financing Action Plan (RAKB).

BNI remittance limited (BNI remittance)

explanation, Productivity, revenues and ProfitabilityIn 2019, BNI Remittance recorded a positive performance with net income of Rp880 million, growing by 26.97% from 2018 net income of Rp693 million, and reaching 85.99% of the 2019 target of Rp1,023 million. BNI Remittance’s

total assets in 2019 reached Rp6.5 billion, growing 31.24% from 2018 of Rp4.9 billion. Total remittance transactions in 2019 were recorded at 303.4 thousand slips, an increase of 41% compared to the previous year of 214.8 thousand slips. Conventional transactions through tellers at counters totaled 109.9 thousand slips, while electronic transactions conducted through BNI ATMs in Hong Kong totaled 193.4 thousand slips.

The performance in 2019 was achieved by improving remittance services during the year, by strengthening the cooperation between BNI and local Money Service Operator (MSOs) that possessed wider outlet networks. With this collaboration, BNI’s remittance services can reach more expansively throughout Hong Kong. Collaboration was established with 2 local MSOs, namely BEST Remittance which has more than 40 outlets and Uniforex which has more than 100 outlets.

During 2019, BNI Remittance has also actively held various educational-based marketing programs, including; savings balance increase program, ATM and Mobile Banking utilization improvement program, and a customer-get-customer program through BNI digital account opening application (E-Form).

Through the KAMI program with BNI, BNI Remittance actively initiated capacity building programs for Indonesian migrant workers (PMI) in Hong Kong. The enthusiasm of PMIs to improve their capacity, and at the same time to widen the networking among fellow migrant workers, banks and other related parties can be seen from the large number




of participants present at each training sessions. The training was conducted in two stages, namely soft skills training in the form of entrepreneurial seminars and hard skills training in the form of practical skill classes. In 2019, this capacity building program was strengthened by involving the community, one of which is the Nahdlatul Ulama Hong Kong community, through the cooperation of the issuance of the Hong Kong NU Member ID Card based on the BNI Debit Card.

Details of BNI Remittance’s financial performance are described as follows:

BNI remittance limited Financial Performance Table



Balance sheet Posts

Total assets 6,472 4,931 1,541 31.24

Fixed Asset 200 410 (210) (51.16)

Current Asset 4,417 3,615 802 22.20

Other Asset 1,854 906 948 104.66

Total Obligations 1,480 1,048 432 41.16

Current Liabilities 1,480 1,048 432 41.16

Other Liabilities - - -

Total equity 4,992 3,883 1,109 28.56

Income statement

Income 12,094 11,614 479 4.13

Commission Earned 3,769 3,204 566 17.66

Exchange gain/Loss 2,376 3,079 (702) (22.82)

Other Commission 5,948 5,332 616 11.55

Cost 11,214 10,922 293 2.68

- Operational Expenses 11,214 10,922 293 2.68

EBT 880 693 187 26.97

TAX -

EAT 880 693 187 26.97

BNI Remittance ROA and ROE in 2019 were 13.59% and 17.62%, respectively, declining by -0.46% and -0.22%, respectively, from 2018 at 14.05% and 17.84%. BOPO decreased to 92.73% in 2019 from 94.04% in 2018.

BNI remittance limited Financial ratios Table


ROA 13.59% 14.05%

ROE 17.62% 17.84%

BOPO 92.73% 94.04%

DER 0.296 0.270

Subsidiaries




work Plan 2020In general, the Company’s strategy for 2020 will remain in line with the previous year, which is to focus on programs that educate and enhance the capacity of PMI customers, including:1. customer awareness Increase synergy with parent company and sister

subsidiaries to carry out above-the-line and below-the-line marketing programs. This customer awareness program involves existing customers who are members of the KAMI community with BNI to actively participate in educating BNI services in Hong Kong to fellow PMIs.

2. customer experience Collaborate with parent company to enhance the

experience of BNI customers in Hong Kong through programs that lead to digital banking, including:• OptimizingtheuseofATMs,especiallyfornon-cash

service features.• OptimizingtheuseofMobileBanking.• OptimizingtheuseofE-FormsforopeningBNI

accounts.

3. customer loyalty Initiating programs that can increase customer loyalty,

especially focusing on sustainable capacity building programs for PMIs.




Marketingaspects

as one of the banks with a large number of customers and thousands of outlets spread across Indonesia, one of the objectives of digitization at BNI is to increase the financial inclusion of the Indonesian people through the Digital opening account (Doa) service feature.




markeTING sTraTeGy

In line with current rapid technological advancements, BNI consistently seeks to become the leading Digital Financial Institution that competes in the digital banking business. This is based on the changes in customer behavior that demands ease and speed in all transactions either from the consumer and up to corporate level. These behavioral changes have made transacting into one that is digital-based, such as opening accounts, which initially must be made by visiting a branch, now changed into one’s hand by means of their own gadgets, at any time and anywhere, thereby allowing people to focus on engaging on more important things in their lives.

This is in line with BNI’s brand communications in 2019 of Be BNI, Be Exponential, wherein all of the ease and completeness of BNI’s digital services serves as a stepping stone for their lives such as by providing ample time to be with their families, friends or towards self-development.

Banking business competition is currently not merely just in terms of competing with banks alone but also with Technology-Based Financial Businesses (FINTECH), wherein BNI must be able to compete with developing market demand changes. As one of the banks with substantial customers and thousands of outlets situated throughout Indonesia, one of the objectives of BNI’s digitization is to enhance financial inclusion for all Indonesians through its Digital Opening Account (DOA) services feature. This product, which is catered for the wider public to enhance opening accounts online without the need to visit a BNI outlet by simply through the use of a smartphone and providing National Identity Card (KTP), Tax Identity Number (NPWP) and is not bound by place and time. BNI’s Digital Opening Account service feature is expected to serve as a means to help people make and fulfill the need for digital financial transactions.

Moreover, the development of this BNI Mobile Banking feature, is also comprehensively carried out, wherein service features present in branch offices as well as in the ATM’s can be made through BNI’s Mobile Banking, ranging from transfers though means of a bar-code scan, and to payment of household bills, and to top up for BNI’s Tapcash. This demand requires BNI Mobile Banking to become a superior and effective financial digital platform that is favored by the

general public and subsequently leads to loyal customers as well as enhances BNI’s brand image among Indonesians. As part of BNI’s concern and to enhance the volume of customer transactions through BNI Mobile Banking, various loyalty benefits are also provided through the Poin Plus program, wherein every BNI customer that constantly increases their transaction through BNI Mobile Banking are rewarded points that can be redeemed for various attractive prizes or discounts at available merchants. BNI Savings products that receive points are specifically catered for Rupiah-denominated individual depositors, with\ the main savings types that must be obtained by Customers namely, Taplus, Emerald Saving, Taplus Muda, Taplus Bisnis, Taplus Anak, Taplus Pegawai and/or additional savings products or other saving determined by BNI.

In terms of marketing, so as to obtain optimum results, the above message is disseminated to the general public through available and utilized channels by BNI. One of which is through the use of BNI’s organic Social Media, which as of December 31, 2019 @BNI Twitter Account already has 1,206,341 followers with an engagement level of 0.15%, followed by @bni46 Instagram with 220,223 followers and level of engagement of 0.65%, while BNI’s Facebook has 338,771 Fans with engagement of 3.5%. Public enthusiasm over a number of new features offered by the financial digital services mentioned above received favorable responses as reflected in the numerous testimonies submitted though BNI’s social media accounts.

The messages delivered in video as well as photographic form, are in the form of invitations to use the Digital Opening Account (DOA) service features. The following are several examples of the social media messages.




Aside from using organic accounts owned by BNI, social media activities also focus on maximizing results, namely by holding a photo contest that requires participants to post photos taken on the POIN+ diorama located in a number of branches that can be viewed through a number of photos below:

Marketing activities are also conducted through paid social media placement activities or using Online media such as placements on Detik.com, Brilio, LINE applications, Kompas.com and many others. Moreover, marketing activities through Online media are also applied by subsequently collaborating with a Key Opinion Leader (KOL) that includes through Raditya Dika’s YouTube account.

Marketing aspects




Marketing activities are also carried out through paid social media placement activities or using Online Media such as placement on Detik.com, Brilio, Tribunnews.com, Kompas.com and many more. This activity was also carried out with the intention to increase the scope of the message to be conveyed. Following are examples of placements made;

Aside from digital, mediums used to disseminate these features include through Offline media such as through Radio Adlips, television advertisements, Billboards, placement of advertisements in the print media and others. As a Digital Financial Institution, other programs include conducting other productive events throughout 2019 that sought to increase exposure to features of BNI Mobile Banking wherein every event, which constantly uses BNI Mobile Banking’s service features, if consistently and sustainably applied, will lead BNI to become the superior bank in terms of services and performance.




moNITorING INTeNsITy To ImProve sales ProDucTIvITy

The pattern of sales activity accompanied by daily monitoring intensity through the discipline of operationalization, serves as the sales execution pattern constantly promoted in 2019 to achieve the determined target levels. All of these aspects continue to be based on the vision of forming BNI Sales into one that is highly skilled, knowledgeable, and possess a positive attitude. BNI constantly seeks to develop and instill a strong Sales Culture, with the aim of instilling operational rhythm that impacts on achieving BNI’s business growth and strategy. This focused strategy is also carried out by formulating the 2019 Key Performance Indicator (KPI) that is based on efforts of achieving the product sales target with a sizeable yield margin.

By implementing this strategy pattern, sales registered an average increase in 2019. Average sales productivity increased 11.1% from 43.4% in 2018 to 54.5% in 2019. This sales productivity growth had a positive impact on consumer product achievements.

sales Productivityas a percentage

20192018

54.5%

43.4%

BNI Fleksi experienced a portfolio growth of Rp3.2 trillion or 13.9% compared to 2018. The increase in sales productivity that affected BNI Fleksi’s portfolio growth was also driven by the increase in the number of collaborations to provide BNI Fleksi facilities to selected partners namely Ministries, SOE’s and Multinational Private Companies, from 62,217 institutions in 2018 to 75,687 institutions in 2019, or an increase of 13,470 institutions (22% growth).

Number of Institutions Flexiondalam unit

20192018

75,687

62,217

BNI Griya experienced portfolio growth of Rp3.4 trillion or 8.2% from Rp40.77 trillion in 2018 to Rp44.13 trillion in 2019. The growth was also attributed to the increase in the number of borrowers derived from BNI Griya Komersial amounting to 10.7% YoY, through programs that includes HOP (Housing Ownership Program) with a number of institutions (BPK, Medco, Hutama Karya, BNI Life, Kemenkop), Interest Subsidies Program, Teacher’s Program, and Directorate General of Tax Program.

BNI also plays an active role in ensuring the success of the government’s programs, namely the 1 million Homes Program, by channeling the KPR Subsidi FLPP (Housing Financing Liquidity Facility), SSB (Interest Difference Subsidies), BP2BT (Savings Based Housing Financing Assistance) and KPR BPJS MLT (Additional Service Benefits), whereby in 2019 BNI successfully disbursed 9,743 units through the KPR Subsidi FLPP compared to its initial target of 7,170 units (136%).

Growth was also apparent in Credit Card product acquisition activities through improved sales strategy quality that optimized internal data. This impacted growth achieved by New to Bank composition from 44.4% in 2018 to 45.7% in 2019. The achievements produced by Credit Card products is reflected in the awards received in 2019 namely the award granted to BNI, namely the Consumer Sales Division from Mastercard International’s Principal, in the form of Mastercard’s Most Creative Acquisition Campaign Awards 2019.

Marketing aspects




BNI terdaftar dan diawasi oleh Otoritas Jasa Keuangan | BNI merupakan peserta penjaminan LPS I www.bni.co.id

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SEMUA TRANSAKSIBISA JADI REJEKISEMUA TRANSAKSIBISA JADI REJEKIKumpulkan poinnya & tukarkan dengan beragam hadiah di BNI Mobile BankingKumpulkan poinnya & tukarkan dengan beragam hadiah di BNI Mobile Banking

BNI terdaftar dan diawasi oleh Otoritas Jasa Keuangan | BNI merupakan peserta penjaminan LPS I www.bni.co.idBNI terdaftar dan diawasi oleh Otoritas Jasa Keuangan | BNI merupakan peserta penjaminan LPS I www.bni.co.id

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BNI CREDIT

CARD MOBILE

BUKA TABUNGAN

DIGITAL

BELANJA

ONLINE

NOTIFIKASI

TRANSAKSI

QUICK

TRANSFER

REWARDS

POINT

2020 BusINess PlaN

2019’s operational rhythm serves as a work pattern that will be intensified and optimized in 2020 by adjusting strategy to matters that represent ‘lessons learned’ as well as developments occurring in the previous period. The strategy adjustment is carried out through efforts to move sales in order to optimize digital-based acquisition activities and ecosystem-based business penetration through value chain effectiveness thereby forming close loop transactions. Initiating digital-based acquisition that will be optimized includes Digital Signature for Credit Card acquisition activities, Digital Opening Account for opening Savings accounts and Digi Loan for consumer lending product acquisition.




markeT share

Market share analysis is classified based on the amount of assets owned, the amount of third party funds managed, and amount of loans disbursed by the Bank.

market share Table

Description 2019* 2018 2017

Asset (Rp Trillion) Industry 8,318 8,068 7,388

BNI 846 809 709

Market share of industry 10.2% 10.0% 9.6%

Loans (Rp Trillion) Industry 5,561 5,358 4,782

BNI 557 513 441


DPK (Rp Trillion) Industry 5,904 5,630 5,289

BNI 615 579 516


comparison of Financial ratios with commercial Bank Industry averages

CAR Industry 23.5% 23.0% 23.2%

BNI 19.7% 18.5% 19.3%

BOPO Industry 80.7% 77.9% 78.6%

BNI 73.2% 70.1% 70.5%

ROA Industry 2.5% 2.6% 2.5%

BNI 2.4% 2.8% 2.8%

LDR Industry 94.0% 94.8% 90.0%

BNI 91.5% 88.8% 90.0%

*) Indonesian Banking Statistics, October 2019

Marketing aspects

market share Based on assetsIn the last three years, BNI has positioned itself as one the leading banks in Indonesia in terms of assets. In line with the growth in assets to Rp845.6 trillion, BNI’s market share in terms of assets is 10.17% or higher than in the 2018 and 2017 periods respectively at 10.02% and 9.60% that corresponds with the growth in disbursed loans.

markeT share BaseD oN ThIrD ParTy FuNDs (TPF)Throughout the 2017-2019 period, BNI was able to maintain its position as one of the largest banks in Indonesia in managing TPF. With Rp614.6 trillion in TPF, BNI’s market share in terms of TPF is 10.41% in 2019. The TPF market share over the previous two years are 10.28% in 2018 and 9.76% in 2017.

markeT share BaseD oN DIsBurseD loaNs In line with the increase in TPF, BNI was able to optimize disbursed loans by taking into account loan quality that amounted to Rp539.9 trillion. This achievement corresponds with a market share of 9.71% in 2019 compared to the market share in 2018 and 2017 respectively of Rp9.57% and 9.22%.

comParIsoN oF FINaNcIal raTIo wITh The BaNkING INDusTry’s averaGeBased on the Company’s financial ratio, the Capital Adequacy Ratio (CAR) level in 2018 amounted to 18.5%, which is lower compared to that in 2017 and is lower than the industry’s. Meanwhile, Operating Cost to Operating Income Ratio (BOPO) was lower in 2018 at 70.1% compared to 2017 and remains lower than the industry. Return on Assets (ROA) was relatively stable at 2.8% in




2018 and remains higher than the industry’s. Moreover, Loan to Deposit Ratio (LDR) was lower by 88.8% in 2018 and continues to be lower than the industry’s

achIevemeNT

BNI received various awards in 2019 that includes:

1. OJK’s 2019 best financial services advertising award for the following categoriesa. Best Commercial Bank Television Advertisement

• OpeningBNIDigitalSavingsProductb. Best Social Media Advertisement

• BNIGriyaProduct

2. 2019 Social Media Award & Digital Marketing Award. MarketingGreat Performing Brand in Social Media Magazine for

• SavingscategorythroughBNITaplus,• KPR/HousingLoancategorythroughBNIGriya,• CreditCardcategorythroughBNICreditCard,• ShariaSavingscategorythroughBNISyariah.

3. OJK Finexpoa. Most Innovative Bank for Implementing SimPel/

SimPel iB b. Most Innovative Bank for Implementing SimPel/

SimPel iB by a Commercial Bank

4. 2019 Padmamitra+ Awards.Gerakan Ayo Menabung dengan Sampah (Let’s Save through Waste Movement)

5. Real Estate Creative Award 2019Most Innovative Millenial KPR Service untuk “BNI Griya Gue”

6. Award from Lembaga Prestasi Indonesia–DuniaPKS Massal 146 Developers

record mass contract of 1.946 debtors KPR (FLPP & Commercial)

7. Principal Mastercard International Mastercard’s Most Creative Acquisition Campaign

Awards 2019.




Financial review

In 2019, BNI posted higher than industry loan growth at 8.4% y-o-y, or an increase of rp42.0 trillion to rp539.9 trillion, from its position a year previously at rp497.9 trillion.




PT Bank Negara Indonesia (Persero) Tbk or the Company or BNI in presenting the following financial performance is based on the Company’s consolidated audited Financial Statements as of December 31, 2019 and 2018 as well as for years ending on December 31, 2019 and 2018. The Financial Statement was audited by the Public Accounting Firm of Purwantono, Sungkoro & Surja (Ernst & Young) and received a favorable opinion, in all material aspects. The consolidated financial position of PT Bank Negara Indonesia (Persero) Tbk and its subsidiaries as of December 31, 2017, as well as the consolidated financial performance and cash flow for the year ending on this year, is in accordance with Financial Accounting Standards in Indonesia. This independent auditors report to shareholders is dated January 20, 2020 and signed by Danil Setiadi Handaja, CPA with public accountant license No. Ap. 1008.

Presentation of values for accounts specified within this report represent net value upon deducting allowance for impairment losses unless otherwise stated.

sTaTemeNT oF FINaNcIal PosITIoN

asseTs

In line with national banking industry’s slow asset growth in 2019 that was driven by the national economic growth slowdown brought about by the trade war between the US and China, BNI’s assets grew moderately by 4.6% in 2019. This moderate assets growth was driven by the limited increase in disbursed loans of 8.4% from Rp497.9 trillion in 2018 to Rp539.86 trillion in the previous year. This account is the largest contributor to total assets accounting for 63.8% in 2019 from 61.6% in the previous year that reflects BNI’s core business as a distributor of loans. On the other hand, other productive assets, in the form of government bonds, that account for 9.6% of BNI’s total assets declined 6.6% from Rp86.8 trillion to Rp81.0 trillion in 2019, which corresponds with the management’s strategy towards yield enhancement.

consolidated statement of Financial Position

asseTs2019 2018 2017 Growth

2018-2019Growth

2017-2018

(rp billion) (rp billion) (rp billion) (rp billion) (%) (rp billion) (%)

Cash 15,362 14,044 11,578 1,318 9.4 2,466 21.3

Current accounts with Bank Indonesia 37,104 35,591 32,701 1,513 4.3 2,891 8.8

Current accounts with other banks - net 14,963 13,134 21,335 1,829 13.9 (8,201) (38.4)

Placements with other banks and Bank Indonesia - net 47,777 39,324 28,593 8,453 21.5 10,731 37.5

Marketable securities - net 27,162 32,044 36,050 (4,882) (15.2) (4,006) (11.0)

Securities purchased under agreements to resell - net 411 - 679 411 - (679) (100.00)

Bills and other receivables 19,208 24,587 15,701 (5,379) (21.8) 8,886 56.6

Acceptances receivables - net 18,558 20,295 18,106 (1,737) (8.6) 2,189 12.1

Derivative receivables - net 312 605 217 (293) (48.4) 388 179.1

Loans 539,862 497,887 426,790 41,975 8.4 71,097 16.7

Government Bonds 81,029 86,791 79,849 (5,762) (6.6) 6,942 8.7

Prepaid taxes 1,050 1,624 623 (574) (35.4) 1,002 160.9

Prepaid expenses 2,609 2,337 2,319 272 11.6 19 0.8

Equity investments - net 523 604 713 (81) (13.4) (109) (15.3)

Other assets - net 11,801 11,900 10,381 (99) (0.8) 1,519 14.6

Fixed assets - net 26,525 26,127 22,805 398 1.5 3,322 14.6

Deferred tax assets - net 1,349 1,676 891 (327) (19.5) 785 88.2

Total assets 845,605 808,572 709,330 37,033 4.6 99,241 14.0




cashBNI registered cash amounting to Rp15.4 trillion in 2019, which is 9.4% higher compared to the previous year of Rp14.0 trillion. This increase is in line with the increase in liquidity demand at BNI’s outlets and ATM to support its business. The increase was mainly driven by the 8.2% increase in Rupiah-denominated cash to Rp14.4 trillion in 2019. Rupiah denominated currency continues to dominate cash accounting for 93.5% of BNI’s total cash.

current accounts with Bank IndonesiaIn carrying out its activity as a conventional and sharia bank, BNI and its subsidiaries are required to have a Rupiah-denominated Legal Reserve Requirement (LRR), as well as a foreign currency-denominated LRR for foreign currency transaction activities.

BNI booked current accounts with Bank Indonesia (BI) amounting to Rp37.1 trillion in 2019, which is 4.3% higher compared to the previous year’s position of Rp35.6 trillion and the increase corresponds with the growth in the Bank’s Third Party Funds. This account has a portion amounting to 4.4% in 2019, which relatively is unchanged compared to the previous year’s position. BNI’s Legal Reserve Requirement (LRR) is based in accordance with Bank Indonesia Regulation (PBI) No.15/15/PBI/2013 dated December 24, 2013 on Bank Legal Reserve Requirement denominated in Rupiah and Foreign Currencies for Conventional Banks that was amended on a number of occasions the latest of which is PBI No. 20/3/PBI/2018 dated March 29, 2018.

Giro table with Bank Indonesia

Description 2019 2018 2017

Growth2018-2019

Growth2017-2018

(rp billion) (%) (rp billion) (%)

Rupiah 28,887 27,878 26,321 1,010 3.6 1,557 5.9

United States Dollar 8,217 7,714 6,380 503 6.5 1,334 20.9

Total 37,104 35,591 32,701 1,513 4.3 2,891 8.8

minimum reserve requirements (msr)

2019 2018 2017

GWM - Rupiah 6.70% 6.53% 6.57%

GWM - Foreign currency 8.01% 8.01% 8.01%

BNI’s primary LRR Ratio amounts respectively to 6.09% and 6.53% for Rupiah-denominated and 8.01% and 8.0% for foreign currency-denominated as of December 31, 2019 and 2018. The primary LRR ratio for the Sharia Business Unit for the period dated December 31, 2019 and 2018 respectively amounts to 5.12% and 5.13% for Rupiah-denominated and 1.26% and 1.64% for foreign currency.

current accounts with other Banks - NetBNI booked current accounts with other banks amounting to Rp15.0 trillion with a growth of 13.9% in 2019 compared to the previous year’s position of Rp13.1 trillion. This increase was mainly attributed to the increase in foreign currency current accounts with other banks of Rp14.4 trillion (gross) or 12.1% higher compared to the previous year’s position of Rp12.8 trillion and corresponds with the growth in customer deposits. This account’s contribution to total assets amounts to 1.8% in 2019, which is higher compared to the previous year’s portion of 1.6%.

Financial review




current accounts with other Banks - Net


2018-2019Growth

2017-2018


Rupiah 562 290 344 273 94.2 (54) (15.7)

Foreign currency 14,402 12,847 20,995 1,555 12.1 (8,147) (38.8)

Allowance for impairment losses (2) (3) (3) 1 (38.9) 0 (0.5)

Total - net 14,963 13,134 21,335 1,829 13.9 (8,201) (38.4)

All of the current accounts with other banks are classified as current and the Bank’s management believes that the amount of allowance for impairment losses stated above is sufficient. The interest rate per year for this account is 2.50% and 2.00% for that denominated in Yuan while for the US Dollar denominated are 0.01-2.50% and 0.01-2.50% for 2019 and 2018 respectively.

Placements with other Banks & BI - NetPlacement with other banks and BI by BNI in 2019 amounts to Rp47.8 trillion, or 21.5% higher compared to the previous year’s position of Rp39.3 trillion. This growth was mainly attributed to the increase in placements in foreign currency-denominated Bank Indonesia Deposit Facility (FASBI) to Rp19.19 trillion in 2019 from Rp5.00 trillion in the previous year, whereby this increase was made to maintain the need for foreign exchange in conditions of tight liquidity. Moreover, placements in the form of Rupiah-denominated Negotiable Certificate Deposits was also lower from Rp1.38 trillion in 2018 to Rp212 billion in the following year. On a cumulative basis, placements in FASBI comprise the largest portion of 83.7% of total placements with other banks and BI.

Placement Table at other Banks & BI - Net


2018-2019Growth

2017-2018


Bank Indonesia - FASBI 39,993 33,293 18,019 6,699 20.1 15,274 84.8

Call money 6,080 3,042 6,627 3,038 99.9 (3,585) (54.1)

Time deposit 1,491 1,613 2,828 (122) (7.7) (1,215) (34.8)

Negotiable Certificate Deposits 212 1,376 1,119 (1,164) (84.6) 257 23.0

Allowance for impairment losses (0) (0) (1) 0 0 0 (97.1)

Total - net 47,777 39,324 28,593 8,453 21.5 10,731 37.5

All placements with other banks and BI are classified as current and the amount of allowance for impairment losses stated above is deemed sufficient. In addition to this, there are no placements with other banks that were used as collateral. Aside from its denomination in Rupiah, US Dollar, Korean Won and Chinese Yuan currencies, the placements with Bank Indonesia and other banks did not receive interest.

marketable securitiesSecurities are one alternative form of funds placement carried out by BNI aside from loan disbursements. In addition to interest income gained from investment in these marketable securities, BNI also receives non-interest income from sales transactions and mark to market over these securities. As of December 31, 2019, the Bank booked total marketable securities amounting to Rp27.1 trillion, or 15.2% lower compared to that achieved in the previous year of Rp32.0 trillion. This decrease represents part of BNI’s strategy to improve management of productive assets namely, through yield enhancement.




The composition of BNI’s marketable securities are as follows:

The composition of securities owned by BNI


Growth2018-2019

Growth2017-2018

(rp billion) (%) (rp

billion) (%)

Mutual fund 9,541 8,973 6,100 568 6.3 2,873 47.1

Bonds 12,445 11,660 10,166 786 6.7 1,494 14.7

Subordinated bonds 1,015 1,517 2,306 (502) (33.2) (789) (34.2)

Certificate of Bank Indonesia 3,446 7,505 5,508 (4,059) (54.1) 1,997 36.3

Certificate of Deposits Bank Indonesia - 1,983 11,531 (1,983) (100.0) (9,548) (82.8)

Asset backed security 242 308 387 (66) (21.3) (79) (20.5)

Other securities 758 416 361 342 82.2 55 15.2

Allowance for impairment losses. (285) (318) (309) 32 (10.4) (9) (2.9)

Total – neto 27,162 32,044 36,050 (4,882) (15.2) (4,006) (11.0)

Tables of marketable securities

Description

2019 2018 2017 Growth2018 - 2019

Growth2017 - 2018


billion) (%) (rp billion) (%) (rp

billion) (%) (rp billion) (%)

Fair value throughprofit or loss

8,646 100.0 7,249 100.0 8,429 100.0 1,397 19.3 (1,180) (14.0)

Mutual funds 5,180 59.9 4,053 55.9 3,981 47.2 1,127 27.8 72 1.8

Other bonds 2,299 26.6 2,106 29.1 2,487 29.5 192 9.1 (381) (15.3)

Subordinated bonds 409 4.7 674 9.3 1,600 19.0 (265) (39.3) (926) (57.9)

Other debt securities 758 8.8 416 5.7 361 4.3 342 82.2 55 15.2

available for sale 17,117 100.0 23,768 100.0 26,806 100.0 (6,651) (28.0) (3,037) (11.3)

SDBI - 0.0 1,983 8.3 11,531 43.0 (1,983) (100.0) (9,548) (82.8)

SBI 3,446 20.1 7,505 31.6 5,508 20.5 (4,059) (54.1) 1,997 36.3

Mutual funds 4,362 25.5 4,920 20.7 2,119 7.9 (558) (11.3) 2,801 132.2

Other bonds 8,463 49.4 8,209 34.5 6,555 24.5 254 3.1 1,654 25.2

Subordinated bonds 604 3.5 843 3.5 706 2.6 (239) (28.4) 137 19.4

Other debt securities 242 1.4 308 1.3 387 1.4 (66) (21.3) (79) (20.5)

held to maturity 1,684 100.0 1,345 100.0 1,124 100.0 339 25.2 221 19.7

sub Total 27,447 100.0 32,362 100.0 36,359 100.0 (4,916) (15.2) (3,997) (11.0)

Allowance for impairment losses (285) (318) (309) 33 (10.4) (9) (2.9)

Total 27,162 32,044 36,050 (4,882) (15.2) (4,006) (11.0)

Financial review




marketable securities by Issuer

Description

2019 2018 2017 Growth2018 - 2019

Growth2017 - 2018




Corporations 18,465 67.3 16,284 50.3 13,718 37.7 2,182 13.4 2,566 18.7

Bank 5,535 20.2 6,590 20.4 5,602 15.4 (1,055) (16.0) 987 17.6

Bank Indonesia 3,447 12.6 9,489 29.3 17,039 46.9 (6,043) (63.7) (7,550) (44.3)

Total 27,447 100.0 32,362 100.0 36,359 100.0 (4,916) (15.2) (3,997) (11.0)

Allowance for impairment losses (285) (318) (309) 33 (10.4) (9) 2.9

Nett 27,162 32,044 36,050 (4,882) (15.2) (4,006) (11.0)

In terms of the breakdown of issuers of these securities, marketable securities issued by corporations comprise the largest portion amounting to 67.3% or equivalent to Rp18.5 trillion in 2019 in contrast to 50.3% or Rp16.3 trillion (gross) in the previous year.

In terms of collectibility, 98.0% and 98.3% of the marketable securities held by BNI are categorized as current for the period ending on December 31, 2019 and 2018 respectively. Therefore, the amount of allowance for impairment is deemed sufficient.

loans based on collectibility

Description

2019 2018 2017 Growth2018 - 2019

Growth2017 - 2018




Current 26,966 99.3 31,859 99.4 35,781 99.3 (4,821) (15.1) (3,994) (11.2)

Doubtful 196 0.7 185 0.6 269 0.7 (62) (19.0) (11) (4.2)

Loss 0 0 0 0 0 0 0 0 0 0

Total 27,162 100 32,044 100 36,050 100 (4,882) (15.2) (4,006) (11.0)

securities purchased under agreements to resellAs of December 31, 2019, there were Rp411.4 billion securities purchased under agreements to resell classified as current, which is in the same position as in the previous year there by BNI does not have any outstanding for this account. The contractual interest rate for the securities purchased under agreements to resell amounts to 5.0%-5.5%.

Bills and other receivablesBNI booked Rp19.2 trillion in bills and other receivables or 21.9% lower in 2019. This decrease was mainly attributed to the decline in foreign-denominated bills to Rp1.6 trillion in 2019 from Rp8.4 trillion in the previous year.

Rupiah-denominated bills and other receivables was the most dominant portion of BNI’s bills and other receivables accounting for 83.2% and 62.1% respectively in 2019 and 2018. Other bills and other receivables are in the form of Local Letter of Credit (SKBDN), bills, and other receivables in the form of open account financing and supply chain financing.




2019

83.18

16.750.04

0.030.00

2018

62.06

36.990.92

0.020.01

composition based on currencies 2019 and 2018 (%)

RupiahUSDYuanEuroYen

Source: BNI

acceptances receivablesBased on the recipient, BNI’s acceptances receivables is distinguished to non-bank and bank borrowers. BNI’s acceptance receivables amounts to Rp18.6 trillion in 2019, 8.6% lower compared to the previous period of Rp20.3 trillion. This decrease is mainly attributed to acceptances receivables to customers in foreign currency from the bank that amounted to Rp85.8 billion in 2019 compared to Rp1.6 trillion in the previous year.

Based on Bank Indonesia’s collectability, there is outstanding of Rp17.3 trillion classified as current and Rp1.8 trillion classified as special mention with allowance for impairment losses formed in accordance with the prevailing provisions. Management believes that the amount of allowance for impairment losses that was formed is sufficient. Derivative receivablesIn the normal course of business, BNI enters into transactions involving derivative financial instruments such as foreign currency forward contracts, foreign currency swaps, interest rate swaps and spot transactions for financing, trading and hedging purposes. The instrument that BNI uses is classified based on the type of risk associated with exchange rate, interest rate and both. Derivative receivables that are based on exchange rate are in the form of buy/sell forward contracts, buy/sell currency swaps, buy/sell currency spot, and buy/sell currency options. Interest rate related instruments comprise of interest rate swaps while exchange and interest rate related instruments are in the form of USD cross currency and interest rate swaps.

On a cumulative basis, BNI’s derivative receivables is valued at Rp312.3 billion in 2019, or 48.4% lower than in the previous year of Rp605.2 billion whereby out of this

total derivative receivables, foreign currency swap-sell instruments in US Dollars booked the largest nominal amount of Rp245.1 billion in 2019 from Rp298.1 billion in the previous year. All of the derivative receivables as of December 31, 2019 are classified as current.

loansThe Indonesian banking industry experienced slowing trend in loans disbursed in 2019. Loans disbursed by BNI continued to grow above the banking industry’s growth, namely on a year on year basis of 8.4% or increased by Rp42.0 trillion to Rp539.9 trillion compared to the previous year’s position of Rp497.9 trillion. The loans that were disbursed (gross) are the Bank’s core business and respectively accounted for 65.8% and 63.4% of total assets in 2019 and 2018. BNI’s loans are disbursed in both Rupiah and foreign currency. Rupiah-denominated Loan (gross) continues to comprise the largest portion of 83.8% (2019) and 83.6% (2018). Meanwhile, foreign currency loans (gross) are mainly denominated in US Dollars and accounts for 15.2% and 15.4% in 2019 and 2018.

The contractual rate for loans disbursed in Rupiah are 5.00%-48.00% ; US Dollars (1.00%-12.75%); Chinese Yuan (7.00%); and Japanese Yen (0.50%-5.50%) for the period of December 31, 2019. For the previous one-year period, the contractual rate for BNI loan for these four currencies respectively are 5.00% - 22.00%; 1.43% - 12.50%; 7.00%; and 1.39 – 6.05%.

On the basis loan types, BNI provides loans in the form of a working capital loan, investment loan, consumer loan, syndicated loan, employee loan and government program loan. Working capital loans comprise of the largest portion of BNI’s (gross) loan portfolio of 47.6% and 49.3% in 2019 and 2018. On a cumulative basis, this loan portfolio is well

Financial review




diversified with contribution derived from other types whereby the portion that is relatively sizeable in 2019 are investment loan (24.1%); consumer loan (17.6%); and syndicated loan (9.9%). The loan breakdown based on the loan type are as follows:

loan composition by Type

Description2019 2018 2017 Growth

2018 - 2019Growth

2017 - 2018


Working capital 264,813 252,926 206,684 11,887 4.7 46,242 22.4

Investation 133,984 114,239 97,273 19,746 17.3 16,965 17.4

Consumer 98,043 90,496 81,031 7,548 8.3 9,464 11.7

Employee 4,123 3,884 3,799 239 6.2 85 2.2

Syndication 55,352 50,734 51,912 4,618 9.1 (1,178) (2.3)

Government program 455 500 613 (45) (9.0) (113) (18.4)

Allowance for impairment losses (16,909) (14,892) (14,524) 2,017 13.5 368 2.5

Total 539,862 497,887 426,790 41,975 8.4 71,097 16.7

In regards to syndicated loans, BNI’s participation in syndicated loans with other banks amounts to Rp55.4 trillion and Rp50.7 trillion respectively on December 31, 2019 and 2018. Syndicated loans are loans granted to borrowers based on joint financing agreement with other banks. The percentage of BNI’s part in the loan syndication, whereby BNI serves as the lead amounts to 14.43%-89.54% in 2019 and 16.11%-93.00% in 2018. Employee loan are loans granted to employees with an interest rate of 3% - 5% per year that is used to purchase a house and other needs with a tenor ranging between 1 to 20 years. Payment of the loan’s principal and interest is made by deducting the monthly salary.

Government Program Loans comprise of Food Security Loan (KKP), Two Steps Loan (TSL), Cattle Breeding Business Loan (KUPS), and Plantation Revitalization that can be partially or entirely funded by the Government.

The portfolio structure of the loans disbursed in 2019 continued to be dominated by the corporate segment amounting to 44.3%, and subsequently followed by the consumer and small segment respectively comprise of 15.4% and 13.6%, middle commercial segment of 13.1%, and overseas branches of 7.5% of total disbursed loans. On a consolidated basis, subsidiaries contribution to loan disbursals amounts to 6.2% of total loans disbursed.

loan composition by segment

Description

2019 2018 2017 Growth2018 - 2019

Growth2017 - 2018




corporate 246,629 44.3 222,910 43.5 188,026 42.6 23,719 10.6 34,884 18.6

Rupiah 201,139 81.6 181,449 81.4 154,555 82.2 19,690 10.9 26,894 17.4

Foreign currency 45,490 18.4 41,461 18.6 33,471 17.8 4,029 9.7 7,990 23.9

medium 72,691 13.1 74,731 14.6 70,261 15.9 (2,040) (2.7) 4,470 6.4

Rupiah 70,292 96.7 72,292 96.7 67,983 96.8 (2,000) (2.8) 4,310 6.3

Foreign currency 2,399 3.3 2,439 3.3 2,279 3.2 (40) (1.6) 160 7.0

small 75,461 13.6 66,063 12.9 56,477 12.8 9,397 14.2 9,586 17.0

Rupiah 75,331 99.8 65,937 99.8 56,360 99.8 9,393 14.2 9,578 17.0

Foreign currency 130 0.2 126 0.2 117 0.2 4 3.2 9 7.5

consumer 85,925 15.4 79,735 15.5 71,445 16.2 6,190 7.8 8,290 11.6




loan composition by segment

Description

2019 2018 2017 Growth2018 - 2019

Growth2017 - 2018




Rupiah 85,917 100.0 79,719 100.0 71,380 99.9 6,198 7.8 8,339 11.7

Foreign currency 8 0.0 16 0.0 65 0.1 (8) (50.5) (49) (75.4)

International 41,750 7.5 39,789 7.8 30,734 7.0 1,961 4.9 9,055 29.5

Rupiah - 0.0 - 0.0 - 0.0 - -

Foreign currency 41,750 100.0 39,789 100.0 30,734 100.0 1,961 4.9 9,055 29.5

subsidiaries 34,316 6.2 29,550 5.8 24,369 5.5 4,766 16.1 5,181 21.3

Rupiah 34,142 99.5 29,367 99.4 24,214 99.4 4,774 16.3 5,153 21.3

Foreign currency 174 0.5 183 0.6 155 0.6 (9) (4.8) 28 17.9

Total loans 556,771 100.0 512,778 100.0 441,314 100.0 43,992 8.6 71,465 16.2

Total Rupiah 466,820 83.8 428,765 83.6 374,492 84.9 38,055 8.9 54,273 14.5

Total Foreign currency 89,951 16.2 84,013 16.4 66,822 15.1 5,938 7.1 17,191 25.7

In terms of economic sector, loans disbursed by BNI was also well diversified thereby mitigating risks of a loan concentration on a specific sector. The three economic sectors whose contribution accounts to over 10% of the total loans disbursed in 2019 are the industrial sector, which accounts for 19.2%; trade, restaurant and hotel (17.5%); and agriculture (10.2%). The amount of loans disbursed to these three sectors remains relatively unchanged compared to the previous year’s contribution of 18.8%; 18.5%; and 9.6% respectively.


Growth2018-2019

Growth2017-2018


billion) (%)

Trade, Restaurant and Hotel 97,649 89,751 76,391 7,898 8.8 13,360 17.5

Manufacturing 107,125 98,034 82,744 9,091 9.3 15,289 18.5

Agriculture 56,942 49,185 46,888 7,757 15.8 2,297 4.9

Trade Services 55,216 52,575 42,309 2,641 5.0 10,266 24.3

Construction 41,177 34,474 27,499 6,704 19.4 6,975 25.4

Transportation and Communications 28,985 31,351 25,986 (2,366) (7.5) 5,365 20.6

Electricity Gas and Water 31,020 24,179 26,767 6,840 28.3 (2,587) (9.7)

Social Services 20,027 16,033 12,149 3,994 24.9 3,884 32.0

Mining 12,391 18,301 11,949 (5,909) (32.3) 6,352 53.2

Others 106,238 98,896 88,633 7,342 7.4 10,263 11.6

Allowance for impairment losses (16,909) (14,892) (14,524) (2,017) 13.5 (368) 2.5

Total – nett 539,862 497,887 426,790 41,975 8.4 71,097 16.7

overseas Branches loans Disbursed


Growth2018 - 2019

Growth2017 - 2018


BNI New York 8,771 7,971 6,489 800 10.0 1,482 22.8

BNI London 8,571 6,297 4,148 2,274 36.1 2,149 51.8

BNI Tokyo 5,490 6,603 3,919 (1,113) (16.9) 2,684 68.5

Financial review




overseas Branches loans Disbursed


Growth2018 - 2019

Growth2017 - 2018


BNI Hong Kong 7,560 7,527 7,032 33 0.4 495 7.0

BNI Singapore 9,452 9,108 7,946 344 3.8 1,162 14.6

BNI Seoul 1,906 2,284 1,200 (378) (16.6) 1,084 90.3

Total 41,750 39,789 30,734 1,961 4.9 9,055 29.5

BNI TokyoIn billion rupiah

BNI New yorkIn billion rupiah

2019

8,771

2018

7,971

2017

6,489

2019

5,490

2018

6,603

2017

3,919

BNI londonIn billion rupiah

BNI hongkongIn billion rupiah

2019

7,560

2018

7,527

2017

7,032

2019

8,571

2018

6,297

2017

4,148

BNI singaporeIn billion rupiah

BNI seoulIn billion rupiah

2019

1,906

2018

2,284

2017

1,200

2019

9,452

2018

9,108

2017

7,946




In terms of Bank Indonesia’s collectability, the collectivity of loans disbursed by BNI are mostly classified as whose portions are 93.1% and 94.1% for 2019 and 2018 respectively. This improved loan collectability profile corresponds with BNI’s policy to maintain productive asset quality particularly by disbursing loans prudently and in accordance with the regulator’s provisions. BNI and its subsidiaries non-performing loan ratio on a gross basis (prior to deducting allowance for impairment losses) as of December 31, 2019 and 2018 are 2.3% and 1.9% respectively. Meanwhile, BNI’s consolidated non-performing loan ratio on a net basis for the same period are 1.2% and 0.8%.


2018 - 2019Growth

2017 - 2018


Current 518,397 482,492 414,371 35,905 7.4 68,120 16,4

Special Mention 25,412 20,248 16,845 5,164 25.5 3,404 20,2

Substandard 5,041 2,028 1,271 3,013 148.6 757 59,5

Doubtful 696 3,009 1,592 (2,313) (76.9) 1,417 89,0

Bad 7,225 5,001 7,234 2,224 44.5 (2,233) (30,9)

Allowance for impairment losses

(16,909) (14,892) (14,524) 2,017 13.5 368 2,5

Total 539,862 497,887 426,790 41,975 8.4 71,097 16,6

NPl by segment(%)

2016 2017 2018 2019

3.6

Small 2.1

3.4Medium 4.1

2.63.0

3.0

Total 2.32.8

Corporate 1.9

2.7

Consumer 2.01.92.5

1.9

2.3

1.7

2.7

1.8

1.8

loan write-offs and recoveries – Bank only As a follow up to a debtor’s condition that no longer has potential, both in business as well as operational terms, BNI has written-off loans amounting to Rp5.6 trillion throughout 2019, which is lower compared to that in 2018 of Rp7.4 trillion. In implementing this, BNI’s Management prioritize debtors that are bankrupt and with legal issues, wherein maximum efforts have been carried out. In comparison to the total loans disbursed by the bank only, the loan write-off ratio is relatively low at around 1.1%. Meanwhile, recovery amounts to Rp2.7 trillion in 2019 with a recovery rate of Rp48.2%, which is better than in 2018 of 35.7%.

write off & recovery (Bank only)In billion rupiah

2017 2018 2019

2,657

7,447

2,686

5,577

8,730

25.4%

35.7%

48.2%

2,220

Recovery

Hapus Buku

Recovery to Write off Ratio

Financial review




Government BondsGovernment bonds are financial instruments that are classified within the low risk criteria but offer a competitive interest rate level while on the other hand also supports Government funding towards the State Budget. As of December 31, 2019, BNI registered Government Bonds amounting to Rp81.0 trillion or 6.6% lower compared with the same position in 2018. BNI has Rupiah as well as foreign currency denominated Government Bonds. Government Bond transactions denominated in Rupiah amounts to Rp57.0 trillion or 4.1% lower in 2019 compared to the previous year’s position of Rp59.4 trillion. Meanwhile, foreign currency government bond transactions are valued at Rp24.0 trillion and Rp27.4 trillion in 2019 and 2018. The contribution of this account towards BNI’s total assets in 2019 and 2018 respectively are 9.6% and 10.7%.

Government Bonds

Description

2019 2018 2017 Growth2018 - 2019

Growth2017 - 2018




Fair value throughprofit or loss

3,327 4.1 3,350 3.9 2,936 3.7 (24) (1) 414 14.1

Available for sale 55,715 68.8 60,283 69.5 56,237 70.4 (4,568) (7.6) 4,046 7.2

Held to maturity 21,987 27.1 23,158 26.7 20,676 25.9 (1,171) (5.1) 2,482 12.0

Total 81,029 100.0 86,791 100.0 79,849 100.0 (5,762) (6.6) 6,942 8.7

Fixed interest rate 76,966 95.0 80,805 93.1 73,803 92.4 (3,838) (4.7) 7,002 9.5

Floating Interest Rate 4,063 5.0 5,987 6.9 6,046 7.6 (1,924) (32.1) (60) (1.0)

Total 81,029 100.0 86,791 100.0 79,849 100.0 (5,762) (6.6) 6,942 8.7

Judging by the type of government bond interest rates, Government Bond transactions with fixed interest rates have a dominant portion of 95.0% and 93.1% in 2019 and 2018. While for floating interest rate bonds, the portion of government bond transactions is 5.0 % and 6.9%.

2019

5.0% 95.0%

2018

6.9% 93.1%

Fixed interest rateFloating Interest Rate

Source: BNI

For fixed interest rate, the market price for Government Bonds is between 81.0% and up to 126.6% and between 76.0% and up to 122.2% respectively on December 31, 2019 and 2018. Meanwhile, the market price for Government Bonds that bear a floating rate range to up to 100% and between 99.55% up to 99.87% of the nominal value for the same period.

Within the Government Bond financial instrument there are Government Bonds derived from the recapitalization program, whereby the amount of recapitalization bonds as of December 31, 2019 and December 31, 2018 amounts to Rp2.1 trillion and Rp3.0 trillion respectively.




The Government Bond’s contractual rate level in 2019 for fixed interest rates are 5.5%-12.9% in Rupiah; 2.2%-5.9% (US Dollar); and 1.9%-3.3% (Singapore Dollar), compared to the previous year for these three currencies amounting to 5.11% -12.03%; 1.8%- 7.8%; and 2.2% -3.3%. On the other hand, the annual floating rate for Government Bonds in 2019 amounts to 5.8% from 5.6%-5.8% in the previous year.

Prepaid Taxes and expenses BNI booked prepaid taxes and expenses for the period ending on December 31, 2019 amounting to Rp1.0 trillion and Rp2.6 trillion. These two accounts respectively amount to Rp1.6 trillion and Rp2.3 trillion in the previous year.

Equity InvestmentsBNI’s net equity investments in associated companies amounts to Rp523.1 billion in 2019, which is lower than in the previous year of Rp603.9 billion since there was an increase in allowance for impairment in 2019, which is in accordance with prevailing accounting policies. There is an investment in PT Fintek Karya Nusantara with a share ownership of 11.0% in 2019.

ownership Percentage Table

companies 2019 2018

Sarana Bersama Pembiayaan Indonesia 8.0% 8.0%

Swadharma Nusantara Pembiayaan 6.9% 7.3%

Bursa Efek Indonesia 1.2% 1.2%

Kustodian Sentral Efek Indonesia 2.5% 2.5%

Pemeringkat Efek Indonesia 0.6% 1.9%

Mizuho Indonesia 1.0% 1.0%

Bank Tabungan Pensiunan Negara 0.2% 0.5%

PANN Pembiayaan Maritim 48.4%*) 48.4%*)

Fintek Karya Nusantara 10.9% 0.00%

*) Unaudited

other assets - netBNI’s other assets amounts to Rp11.8 trillion in 2019, or 0.8% lower compared to the previous year’s position of Rp11.90 trillion. The decrease is mainly brought about by the increase in Receivables pertaining to ATM and Credit Card transactions to Rp3.2 trillion from Rp2.3 trillion in 2018.

Fixed assetsBNI booked net fixed assets valued at Rp26.6 trillion in 2019 from Rp26.1 trillion in the previous year, whereby none of BNI’s entire fixed assets are placed as collateral. This increase is caused by the recording of the Menara Pejompongan building asset amounting to Rp748 billion in 2019. Moreover, the management believes that there is no decrease in the value of BNI’s fixed assets within the current year since management believes that the fixed asset’s carrying amount does not exceed the estimated value that can be recovered. Fixed asset’s (net) contribution to BNI’s total assets in 2019 and 2018 are 3.1% and 3.2% respectively.

Financial review




Fixed assets


2018 - 2019Growth

2017 - 2018


Land 15,781 15,557 13,857 225 1.4 1,700 12.3

Buildings 6,487 5,612 4,252 873 15.6 1,360 32.0

Office Equipment and motor vehicles 10,719 10,096 9,136 623 6.2 960 10.5

Total acquisition cost 32,988 31,265 27,245 1,723 5.5 4,020 14.8

Assets in settlement 2,674 2,743 2,960 (69) (2.5) (217) (7.3)

Total acquisition cost 35,662 34,009 30,205 1,654 4.9 3,803 12.6

Accumulated depreciation

Building 821 414 783 907 98.3 (370) (47.2)

Office Equipment and motor vehicles 8,317 7,469 6,617 848 11.4 851 12.9

Total accumulated depreciation 9,137 7,882 7,401 1,255 15.9 482 6.5

Net book value 26,525 26,127 22,805 398 1.5 3,322 14.6

Deferred tax assets - netBNI’s deferred tax assets amounts to Rp1.3 trillion in 2019, which is lower than the previous year’s position of Rp1.7 trillion.

liabilitiesBNI’s liabilities grew 2.6% to Rp688.7 trillion in 2019 and was principally supported by the increase in customer deposits. BNI’s TPF increased 5.5% to Rp582.5 trillion that corresponds with the increase in CASA to Rp393.6 trillion with growth of 8.0%. This growth in customer deposits is needed to support the Bank’s core business of channeling credit.

liabilities


Growth2018-2019

Growth2017-2018


billion) (%)

Obligations due immediately 5,273 4,160 4,868 1,133 26.8 (707) (14.5)

Deposits from customers 582,541 552,172 492,748 30,368 5.5 59,424 12.1

Deposit from other banks 11,584 13,874 11,683 (2,290) (16.5) 2,192 18.8

Derivative payables 203 322 114 (119) (36.9) 208 182.9

Securities sold under agreements to repurchase 2,183 21,524 2,390 (19,341) (89.9) 19,134 800.6

Acceptances payables 5,341 4,417 4,507 925 20.9 (91) (2.0)

Accrued expenses 999 876 971 122 14.0 (95) (9.8)

Taxes payable 568 481 80 87 18.0 401 498.2

Employee benefits 4,392 3,512 4,094 880 25.1 (582) (14.2)

Provision 185 178 192 8 4.2 (15) (7.7)

Other liabilities 14,901 14,609 14,731 292 2.0 (122) (0.8)

Securities issued 2,985 2,987 2,986 (2) (0.1) 1 0.0

Borrowings 57,236 52,026 44,722 5,210 10.0 7,302 16.3

Subordinated Securities 100 100 0 0 0.0 100 0.0

Total liabilities 688,489 671,238 584,087 17,251 2.6 87,151 14.9




obligations due immediately BNI’s obligations due immediately increased to Rp5.5 trillion with growth of 31.5%. Compared with the previous position of Rp4.16 trillion, this account’s increase in 2019 was in line with the growth in the bank’s business that led to the increase in obligations as an issuer bank (ATM) to Rp2.6 trillion, which is higher than in the previous year of Rp1.5 trillion.

obligations due immediately


Growth2018-2019

Growth2017-2018


billion) (%)

Obligations due immediately 5,273 4,160 4,868 1,113 26.7 (707) (14.5)

Total 5,273 4,160 4,868 1,113 26.7 (707) (14.5)

Deposits from customersAmidst tight liquidity conditions within the banking industry throughout 2019, BNI booked total TPF amounting to Rp582.5 trillion or 5.5% higher than in 2019 from its position in the previous year of Rp552.2 trillion. Out of this total TPF, 67.6% are in the form of Current Account Saving Account (CASA) or equivalent to Rp393.6 trillion in 2019. Compared with the previous year, this CASA is 8.0% higher or equivalent to Rp29.3 trillion that was mainly backed by the increase in current account by 20.3% to Rp202.2 trillion. This increase corresponds with BNI’s policy to optimize fund sources from low cost third parties.

BNI’s third party funds (TPF) has a dominant contribution to liabilities namely 84.6% and 82.3% of total liabilities in 2019 and 2018 respectively.

Deposits from customers BNI compositionRp million

2018 2019

GiroTabunganDepositoCASA 187,812 188,924

196,254 191,390

168,107 202,227

66.0%67.6%

Sumber: BNI

522,182582,541

BNI’s TPF portfolio is well diversified with savings and current account (CASA) composition of 67.6% while time deposits are 32.4% in 2019, which is higher compared with 2018. This shows that in despite tight liquidity, BNI is able to manage low cost funding.

In terms of currency, BNI’s Rupiah-denominated TPF has a dominant portion of 83.3% and 83.6% in 2019 and 2018 that corresponds with the loan disbursals that are also dominated by Rupiah. On the other hand, the loan disbursement portion in foreign currency amounts to 15.8% and 15.6%. From the foreign currency TPF that amounts to Rp97.3 trillion, US Dollar TPF has a dominant portion amounting to Rp90.5 trillion in 2019 and Rp86.0 trillion in the previous year.

Financial review




Description

2019 2018 2017 Growth 2018 - 2019

Growth 2017 - 2018

(rp billion) % (rp

billion) % (rp billion) % (rp

billion) % (rp billion) %

Deposits 202,227 34.7 168,107 30.4 142,233 28.9 34,120 20.3 25,874 18.2

Rupiah 149,427 25.7 125,757 22.8 107,973 21.9 23,670 18.8 17,784 16.5

Foreign Currency 52,800 9.1 42,350 7.7 34,259 7.0 10,449 24.7 8,091 23.6

Savings 191,390 32.9 196,254 35.5 174,041 35.3 (4,864) (2.5) 22,213 12.8

Rupiah 183,274 31.5 181,331 32.8 160,401 32.6 1,943 1.1 20,929 13.0

Foreign Currency 8,116 1.4 14,923 2.7 13,639 2.8 (6,807) (45.6) 1,284 9.4

Total Demand Depositsand Savings 393,617 67.6 364,361 66.0 316,273 64.2 29,256 8.0 48,087 15.2

Deposits 188,924 32.4 187,812 34.0 176,475 35.8 1,112 0.6 11,337 6.4

Rupiah 152,575 26.2 154,522 28.0 150,304 30.5 (1,947) (1.3) 4,217 2.8


Total Deposits 582,541 100.0 552,172 100.0 492,748 100.0 30,368 5.5 59,424 12.1

Rupiah 485,276 83.3 461,609 83.6 418,679 85.0 23,667 5.1 42,930 10.3


In regards to savings products, this type of BNI TPF product is classified into BNI Savings, Sharia Savings, and Haj Savings. These three types of savings account for 94.9%, 3.7% and 1.4% of total savings respectively in 2019. In 2018, the contribution of these three types of savings to BNI’s total savings was 96.3%, 2.5%, and 1.2% respectively.

The annual interest rate and profit sharing for TPF in Rupiah is 0.00% - 9.50%; 0.00% - 4.00% (US Dollar); 0.00% - 0.50% (Singapore Dollar); 0.00% - 3.68% (Euro); and 0.01% - 0.45% (Japanese Yen) in 2018. For 2019, interest rates and profit sharing per year for TPF from each of these four currencies are 0.00% -9.01%; 0.00% -9.85% (US Dollars); 0.05% -0.15% (Singapore Dollar); 0.05% - 3.70% (Euros) and 0.01% -0.45% (Japanese Yen).

Deposits from other banksBNI’s deposits from other banks BNI amounted to Rp11.6 trillion, a decrease of 16.5% in 2019 compared to the previous year’s position of Rp13.9 trillion. The decline was apparent in the interbank money market loan instrument, which is a short-term financial instrument. However, to improve the maturity gap and maintain long-term liquidity on the Negotiable Certificate of Deposit (NCD) instrument, which is a long-term financial instrument, there was an increase to Rp3.1 trillion in 2019 compared to only Rp938.7 billion in the previous year. Cumulatively, this account’s portion to total liabilities amounted to 16.8% in 2019 and 20.7% in 2018.


Growth2018-2019

Growth2017-2018


billion) (%)

Negotiable Certificate of Deposit 3,151 939 4,248 2,212 235.6 (3,309) (77.9)

Deposits 2,870 2,128 2,370 742 34.9 (242) (10.2)

Time deposits 875 1,323 513 (448) (33.8) 810 157.9

Other deposits 883 1,026 1,251 (143) (13.9) (225) (18.0)

Interbank money market 3,805 8,459 3,352 (4,654) (33.6) 5,107 152.3

Total 11,584 13,874 11,734 (2,290) (16.5) 2,140 18.2




Interest rates and profit sharing per year for deposits from other banks in Rupiah in 2019 are 0.00%-7.70% (Rupiah); 0.00%-7.19% (US Dollars); 0.01%-0.45% (Japanese Yen); and 0.00%-2.00% (Singapore Dollar). For 2018, the interest rates and annual profit sharing for this account for the four currencies are 0.00% - 8.40% respectively; 0.00% - 3.39%; 0.08% - 0.33%; and 0.00% - 2.11%.

securities sold under agreements to repurchaseBNI recorded significant lower securities sold under agreements to repurchase by 89.9% from Rp21.5 trillion in 2018 to only Rp2.2 trillion the following year. This decrease was mainly due to adequate liquidity obtained from Third Party Funds which certainly is a source of funding that tends to be cheaper, hence by implementing an optimal funding management strategy for securities sold under agreements to repurchase in foreign currencies a decline is apparent.

The annual interest rates for securities sold under repurchase agreements are 6.99% - 7.55% (Rupiah) and 2.77% - 3.25% (US Dollars) for 2018 and 5.35% - 7.55 % (Rupiah) and 2.20% - 2.72% (US Dollars) for 2019.


Growth2018-2019

Growth2017-2018


billion) (%)

Related parties 0 88 0 0 0.0 0 0.0

Third parties 2,183 21,437 3,979 (19,341) (89.9) 17,546 441.0

Total 2,183 21,524 3,979 (19,341) (89.9) 17,546 441.0

acceptance payables BNI booked acceptance payables from Rp4.4 trillion in 2018 to Rp5.3 trillion in the following year with an increase of 20.9%. The increase in acceptance payables specifically derive from acceptance payables to third parties amounting to Rp4.5 trillion from Rp3.3 trillion in 2018 that is compensated with the decrease from acceptance payables to related parties of Rp860 billion or 31.8% lower than in the previous year.

accrued expensesBNI’s accrued expenses reached Rp997.3 billion in 2019. The account value was up by 13.8% compared to the previous year’s position standing at Rp876.3 billion. An increase of accrued expenses mainly came from office expenses of Rp.89.2 billion and technology & telecommunications costs worth Rp.83.8 billion.


Growth2018-2019

Growth2017-2018


billion) (%)

Obligations as a Issuing Bank 20 74 167 (54) (73.6) (93) (55.8)

Office Expenses 396 307 383 89 29.1 (76) (19.8)

Mudharabah Deposits 52 47 49 5 10.9 (2) (4.9)

Mudharabah bonds - - 4 0 0.0 (4)

Technology & Telecommunications costs 348 264 193 84 31.7 71 36.7

Loyalty Expenses 76 89 84 (13) (15.1) 5 6.5

Promotion Expenses 30 28 36 2 7.4 (8) (21.7)

Others 76 67 55 9 12.7 12 22.0

Total 997 876 971 121 13.8 (95) (9.8)

Financial review




Taxes payableBNI booked an increase in taxes payable from Rp481.1 billion in 2018 compared to Rp567.8 billion in 2019 with a growth of 18.0%. This increase is in line with the increase in corporate income tax to Rp456.6 billion in 2019 and other taxes to Rp111.2 billion or Rp45.9 billion higher compared to the previous year.


Growth2018-2019

Growth2017-2018


billion) (%)

Corporate income tax 457 416 20 41 9.8 396 1,973.9

Other taxes 111 65 60 46 70.3 5 8.2

Total 568 481 80 87 18.0 401 498.2

employee benefits Employee benefits in 2019 amounts to Rp4.4 trillion in 2019. This achievement represents a 24.8% increase compared to its position in 2018 of Rp3.5 trillion that corresponds with the increase in short-term employee benefits from Rp1.6 trillion to Rp1.8 trillion in 2019 as well as the increase in other long-term employment benefits for BNI to Rp1.9 trillion from the previous year’s position of Rp1.3 trillion and for its subsidiaries to Rp703.4 billion from a previous of Rp608.9 billion


Growth2018-2019

Growth2017-2018


billion) (%)

Employee costs 2,082 1,815 1,733 267 14.7 (82) (4.7)

Long-term employee benefits 2,310 1,697 2,361 613 36.1 (664) (28.1)

Total 4,392 3,512 4,094 880 25.1 (582) (14.2)

ProvisionsBNI’s provision account comprise of estimated losses from commitments and contingencies as well as provision for legal cases. BNI booked provision of Rp185.0 billion, which is slightly higher compared to the previous year’s position of Rp177.5 billion. This increase in provision derive from provision for legal cases from Rp46.1 billion to Rp139.4 billion compensated by the decline in provision for estimated losses from commitments and contingencies in 2019 to Rp45.7 billion from Rp131.4 billion.

other liabilities Other liabilities increased 2.0% from Rp14.6 trillion in 2018 to Rp14.9 trillion in 2019. The largest component from these other liabilities are obligation to policy holders that increased 6.2% to Rp11.6 trillion in 2019 from the previous year’s amount of Rp10.9 trillion. Moreover, liability to third parties also increased 12.7% to Rp463.5 billion from Rp571.2 billion in the previous year.

securities issuedBNI has issued debt-related securities in the form of BNI Continuous Bonds I Year 2017 valued at Rp3.0 trillion with a tenor of 5 years and coupon of 8.0% per year that will be paid quarterly. BNI’s bonds, which is rated idAAA by Pefindo, was issued on July 11, 2017 and was listed with the Indonesia Stock Exchange on July 12, 2017. This bond’s issuance is based on the effective letter from OJK by virtue of letter number S-349/D.04/2017. The bond’s outstanding value net of discount that has not been amortized amounts to Rp712 million on December 31, 2019 and Rp956 million on December 31, 2018.





Growth2018-2019

Growth2017-2018


billion) (%)

Related parties 1,269 1,269 645 0 0.0 624 96.8

Third parties 1,716 1,719 2,342 (3) (0.1) (623) (26.6)

Total 2,985 2,987 2,986 (2) (0.1) 1 0.0

BorrowingsBorrowings received by BNI comprise of various types namely, Two step loans, Liquidity credit for members of primary cooperatives credit, Bilateral loans, Bankers acceptance and others. Total borrowing received for the period ending on December 31, 2019 amounts to Rp57.2 trillion or 10.0% higher than the previous year’s position of Rp52.0 trillion. This increase corresponds with the increase in 2 of the largest components in borrowing received namely, banker acceptance that increased 14.9% to Rp16.3 trillion in 2019 from Rp14.2 trillion in the previous year and increase in bilateral loans by 7.1% to Rp39.7 trillion in 2019. This increase in bilateral loans as well as Bankers acceptance as one of the Bank’s funding strategy to maintain short-term and long-term funding composition


Growth2018-2019

Growth2017-2018


billion) (%)

Step loans 61 73 75 (12) (16.7) (3) (3.4)

Liquidity credit for members of primary cooperatives credit

1 1 1 (0) (2.6) 0 0.0

Bilateral loans 39,650 37,010 36,823 2,641 7.1 187 0.5

Banker acceptance 16,298 14,182 7,258 2,116 14.9 6,924 95.4

Others 1,225 759 565 467 61.5 194 34.4

Total 57,236 52,025 44,722 5,211 10.0 7,302 16.3

subordinated securities Aside from corporate bonds, BNI also issued subordinated securities in the form of BNI Subordinated I Medium Term Notes Year 2018 (“Subordinated MTN”).

BNI received the effective letter from OJK by virtue of letter number S-73/PB.31/2018 for the issuance of BNI’s Subordinated Medium Term Notes I of 2018 dated June 8, 2018 with the value of the issued Subordinated Rp100.00 billion with tenor of 5 years, coupon of 8.0% per year that will be paid quarterly. BNI’s Subordinated MTN was issued through a limited offering.

BNI use the proceeds from the MTN Subordinated issuance to strengthen complementary capital (tier 2) and working capital in the context of business development, especially in the provision of credit and to increase the composition of the long-term fund structure, in accordance with OJK Regulation No. 11/POJK.03/2016 concerning the Minimum Capital Requirement for Commercial Banks as amended by OJK Regulation No. 34/POJK.03/2016 and subsequently will be used by BNI to support increased productive assets.


Growth2018-2019

Growth2017-2018


billion) (%)

Related parties 25 25 645 0 0.0 (620) (96.1)

Third parties 75 75 2,342 0 0.0 (2,267) (96.8)

Total 100 100 2,986 0 0.0 (2,886) (96.7)

Financial review




Temporary syirkah Funds - mudharabah current accounts BNI’s total temporary syirkah funds experienced a 19.1% increase to Rp32.1 trillion that was mainly backed by customer’s deposits that reached Rp31.8 trillion with growth of 19.4%. From this total customer deposits, mudharabah deposits comprise of the largest contributor of 50.1% of total temporary syirkah funds.


Growth2018-2019

Growth2017-2018


billion) (%)


Mudharabah Current Accounts 4,808 1,167 929 3,642 312.1 238 25.6

Mudharabah Saving Accounts 10,876 9,803 8,254 1,073 10.9 1,548 18.8

Mudharabah Deposit Accounts 16,086 15,633 14,166 453 2.9 1,466 10.4

Simpanan dari bank lain 341 358 494 (17) (4.6) (136) (27.5)

Mudharabah Current Accounts 11 24 22 (13) (53.2) 3 11.8

Mudharabah Saving Accounts 151 110 144 42 38.0 (34) (23.8)

Mudharabah Deposit Accounts 179 224 328 (45) (20.3) (104) (31.7)

Sukuk Mudharabah yang diterbitkan 496 (496) (100.0)

Total Dana syirkah Temporer 31,112 26,961 24,340 4,150 15.4 2,621 10.8

Deposits from customersBNI booked deposits from customers valued at Rp31.8 trillion with growth of 19.4% in 2019. Total deposits from customers in the previous year amounts to Rp26.6 trillion. This increase in deposits from customer was attributed by the increase in Mudharabah Current Account and Mudharabah Savings that respectively increased 312.1% and 10.9% in 2019. These two increases in deposits from customers reflects BNI’s commitment to optimize low cost funding sources with a contribution of 49.4% of total customer deposits that serve as part of the temporary syirkah funds in 2019 compared to the previous year’s position of 41.2%. Meanwhile. Mudharabah Time Deposits increase 2.9% to Rp16.1 trillion in 2019.

Mudharabah savings represent other party fund deposits that receive a share in the revenue derived by the Bank from the use of such funds based on a pre-determined and pre-agreed ratio. Mudharabah time deposits are investments in other parties that receive a share in the income derived by a subsidiary from the use of such funds based on a pre-determined and pre-agreed ratio.


Growth2018-2019

Growth2017-2018


billion) (%)

Mudharabah current accounts 4,808 1,167 929 3,642 312.1 238 25.6

Mudharabah savings accounts 10,876 9,803 8,254 1,073 10.9 1,548 18.8

mudharabah current accounts 16,086 15,633 14,166 453 2.9 1,466 10.4


Deposits from other banksSimilar to customer deposits, deposits from other banks also comprise of Mudharabah Current Account, Mudharabah Savings, and Mudharabah Time Deposits. Deposits from other banks experienced a decline of 4.6% from Rp358.1 billion in 2018 to Rp341.5 billion in 2019. This decline corresponds with the decrease in mudharabah time deposits to Rp178.7 billion from Rp224.1 billion in line with the optimization of low cost funding sources from other banks.





Growth2018-2019

Growth2017-2018


billion) (%)

Mudharabah Current Accounts 11 24 22 (13) (54.1) 3 9.1

Mudharabah Saving Accounts 151 110 144 42 37.3 (34) (23.8)

Mudharabah Deposit Accounts 179 224 328 (45) (20.1) (104) (31.7)

Deposit from other banks 341 358 494 (17) (4.6) (136) (27.5)

equityBacked by the growth in the Bank’s revenues, BNI’s total equity increased 13.1% to Rp124.8 trillion in 2019. This increase was mainly influenced by improvements in retained earnings that increased to Rp82.5 trillion or grew 16.1% compared to Rp60.31 trillion in 2018.


Growth2018-2019

Growth2017-2018


billion) (%)

Issued and fully paid: 9,055 9,055 9,055 0 0.0 0 0.0

Additional paid-in capital 14,568 14,568 14,568 0 0.0 0 0.0

Transactions with non-controlling interests 2,257 2,257 2,257 0 0.0 0 0.0

Asset Revaluation Reserve” 14,947 14,979 12,283 (32) 0.2 2,696 21.9

Unrealized (losses) gains on available-for-sale marketable securities and Government Bonds,net of tax

(822) (3,914) 22 3,092 (79.0) (3,936) (17,706.1)

Exchange difference on translation of foreign currency financial statements

47 85 93 (38) (44.4) (8) (8.9)

Retained earnings 82,464 71,047 60,314 11,417 16.1 10,733 17.8

Total equity attributable to equity holders of the parent entity

122,516 108,077 98,592 14,439 13.2 9,485 9.6

Non-controlling interests 2,488 2,297 2,311 191 8.3 (14) (0.6)

Total equity 125,004 110,374 100,903 14,630 13.3 9,470 9.4

share capitalShare capital in BNI reached Rp9.1 trillion in 2019. This achievement did not increase or decrease from 2018 that reached Rp9.1 trillion.

additional Paid-In capital Additional paid-in capital/share capital in BNI amounted to Rp14.6 trillion. This achievement did not increase or decrease from 2018 of Rp14.6 trillion.

exchange difference on translation of foreign currency financial statementsExchange difference on translation of foreign currency financial statements in BNI amounted to 47.2 billion. This achievement represents a Rp38 billion decline from 2018 of Rp84.9 billion.

unrealized Net (loss)/Gain from (decrease)/increase in fair value of securities and government bonds available for sale after deducting deferred tax unrealized Net (Losses)/Gain from (decrease)/increase in fair value of securities and government bonds available for sale after deducting deferred taxes at BNI reached (Rp.822.3) billion in 2019. This achievement increased by Rp3.1 trillion from 2018 of (Rp3.9) trillion.

asset revaluation reserveAsset revaluation reserve in 2019 amounts to Rp14.9 trillion, wherein there were no significant differences between the fixed asset’s fair value with its carrying amount compared with the asset revaluation reserve in 2018.

Financial review




retained earnings BNI’s retained earnings in 2019 amounts to Rp82.5 trillion, increased Rp11.4 trillion or 16.1% compared to Rp71.0 trillion in the previous year.

Non-controlling InterestsNon-controlling interests over subsidiaries net assets that was consolidated in BNI amounts to Rp2.5 trillion, which represents an increase of 8.3% or Rp191.5 billion to Rp2.3 trillion.

statement of Profit or loss and comprehensive Income BNI registered net profit of Rp15.4 trillion or 2.5% higher from Rp15.0 trillion in 2018


Growth2018-2019

Growth2017-2018


billion) (%)

Pendapatan bunga dan pendapatan syariah 58,532 54,139 48,178 4,393 8.1 5,961 12.4

Beban bunga dan pendapatan syariah (21,930) (18,692) (16,240) (3,238) 17.3 (2,452) 15.1

Pendapatan bunga dan pendapatan syariah - neto 36,602 35,446 31,938 1,156 3.3 3,509 11.0

Pendapatan premi-neto 1,697 1,712 1,768 (15) (0.9) (56) (3.2)

Pendapatan operasional lainnya 13,712 11,613 11,040 2,100 18.0 573 5.2

Total pendapatan operasional 52,012 48,771 44,746 3,241 6.6 4,025 9.0

Beban operasional lainnya (23,687) (21,783) (20,396) (1,904) 8.7 (920) 4.4

Pembentukan cadangan kerugian penurunan nilai (8,838) (7,388) (7,126) (1,450) 19.6 (262) 3.7

Laba operasional 19,487 19,599 17,223 (113) (0.6) 2,377 13.8

Pendapatan (Beban) bukan operasional-neto (118) 221 (57) (339) (153.1) 279 (486.4)

Laba sebelum beban pajak 19,369 19,821 17,165 (452) (2.3) 2,655 15.5

Beban pajak (3,861) (4,729) (3,395) 868 (18.4) (1,334) 39.3

Laba tahun berjalan 15,509 15,092 13,771 417 2.8 1,321 9.6

Penghasilan komprehensif lain, setelah pajak penghasilan

2,875 (856) 1,847 3,731 436.1 (2,703) (146.3)

Jumlah laba (rugi) komprehensif 18,384 14,236 15,618 4,148 29.1 (1,381) (8.8)

Laba tahun berjalan yang dapat diatribusikan kepada:

Pemilik entitas induk 15,384 15,015 13,616 369 2.5 1,399 10.3

Kepentingan non pengendali 124 77 154 47 61.8 (77) (50.3)

laba tahun berjalan 15,509 15,092 13,771 417 2.8 1,321 9.6

earning per share (ePs) 825 805 730 20 2.5 75 10.3

Interest and sharia income BNI was able to book growth in interest and sharia income of 8.1% to Rp58.5 trillion that was mainly backed by the growth in disbursed loans as the largest earning asset that grew 11.3% despite the domestic economy’s slow growth. Loan revenue continue to provide the biggest contribution amounting to 81.6% of total interest and sharia income of Rp58.5 trillion in 2019 from the previous year’s position of Rp42.9 trillion. The contribution from interest and sharia income in the previous year amounts to 79.3%.





Growth2018-2019

Growth2017-2018


billion) (%)

Loans 47,748 42,919 39,184 4,829 11.3 3,735 9.5

Marketable securities and Government Bond 4,936 5,196 4,303 (260) (5.0) 893 20.8

Margin, profit-sharing revenue and sharia bonus 4,036 3,567 3,175 469 13.1 393 12.4

Placements with Bank Indonesia and other banks 824 874 629 (50) (5.7) 244 38.8

Bills and other receivables 654 667 428 (13) (2.0) 239 55.9

Others 334 916 459 (581) (63.5) 457 99.6

Total 58,532 54,139 48,178 4,394 (8.1) 5,961 237.0

LoansMarketable securities and Government BondMargin, profit-sharing revenue and sharia bonusPlacements with Bank Indonesia and other banksBills and other receivablesOthers

2019

1.46.9

1.1

8.4

81.6

0.6

2018

1.66.6

1.2

9.6 79.3

1.7

2019 and 2018 Income composition(%)

Interest and sharia expenseThe composition of interest and sharia expense continue to be dominated by deposits from customers and other banks that serve and BNI’s main source of funding by contributing 78.6% in 2019 and 74.6% in 2018. Amidst tight liquidity in the market as a result of the trade war between the US and China, resulted in the less than optimum deposit penetration in the market thereby leading interest expense to increase to Rp17.2 trillion compared to Rp13.9 trillion in the previous year.

Another interest and sharia expense components having a contribution more than 10.0% are borrowings with a share of 15.7% in 2019 and 18.7% in the previous year. BNI recorded a decline of borrowings by 1.1% from Rp3.5 trillion in 2018 to Rp3.4 trillion in the following year.


Growth2018-2019

Growth2017-2018


Simpanan nasabah dan bank lain 17,244 13,952 13,172 3,292 23.6 780 5.9

Pinjaman yang diterima 3,440 3,488 1,875 (48) (1.4) 1,612 86.0

Bagi hasil Mudharabah 981 987 919 (7) (0.7) 69 7.5

Efek-efek yang diterbitkan 248 243 216 5 2.2 27 12.5

Others 17 22 58 (5) (21.2) (36) (61.5)

Total 21,930 18,692 16,240 3,238 17.3 2,452 15.1

Financial review




Interest income and sharia income - netIn line with the increase in interest income and sharia income in 2019, BNI was able to book net interest income and sharia income of Rp36.6 trillion. This achievement represents a growth of 3.3% compared to the previous year’s position of Rp35.4 trillion.

Premium income - netThe account represents a portion from BNI Life as one of BNI’s subsidiaries that contribute to BNI’s revenues on a consolidated basis. BNI Life’s net premium amounts to Rp1.7 trillion in 2019 or slightly lower by 0.9% compared to Rp1.7 trillion in 2018. Apart from this, investment income gained was influenced by fluctuations in securities and government bond market prices that has become as BNI Life’s investment facility to develop its portfolio.

other operating incomeBNI recorded other operating income of Rp13.7 trillion in 2019 or 18.1 higher than the previous year’s position of Rp11.6 trillion. This increase was mainly backed by the increase in provision and other commission that grew 13.4% from Rp7.8 trillion to Rp8.8 trillion in 2019 that corresponds with the growth in disbursed loans amidst the slowdown in Indonesia’s economic growth. The contribution of provision and other commission respectively are 64.5% and 67.2% in 2019 and 2018. Meanwhile, recovery of assets written off contributed 17.2% in 2019 backed by the increase of 17.9% to Rp2.4 trillion in 2019 from Rp2.0 trillion in the previous period.


Growth2018-2019

Growth2017-2018


Other fee and commission 8,851 7,802 6,872 1,049 13.4 930 13.5

Recovery of assets written off 2,354 1,997 1,732 357 17.9 265 15.3

Gain on sale of financial assets classified as available for sale and held for trading

0 12 (38) (12) (98.7) 50 (131.3)

Gain on sale of financial assets classified as available for sale classified as available for sale

972 509 720 463 91.1 (212) (29.4)

Foreign exchange gains - net 633 494 908 139 28.2 (414) (45.6)

Others 903 800 846 103 12.9 (46) (5.5)

Total 13,705 11,613 11,040 2,092 18.0 573 5.2

other operating expensesOther operating expenses increased 8.7% to Rp23.7 trillion in 2019, which is higher than the position in 2018 of Rp21.8 trillion. This increase supported BNI’s business expansion throughout 2019. Posts that experience growth include salaries and expenses, general and administrative, deposit insurance premium as well as other expenses that grew respectively by as much as 7.0%; 7.7%; 14.4% and 20.7%.


Growth2018-2019

Growth2017-2018


Salaries and employee benefits expense 10,186 9,519 9,277 667 7.0 242 2.6

General and administrative expenses 8,259 7,667 6,923 592 7.7 744 10.8

Promotion expense 1,312 1,291 1,039 22 1.6 252 24.2

Guarantee premium savings 1,111 971 877 140 14.4 93 10.6

Others 2,819 2,336 2,281 483 20.7 55 2.4

Total 23,687 21,783 20,396 1,904 8.7 1,387 6.8




Salaries and Employee Benefits ExpensePromotion expenseGeneral and administrativeSavings Guarantee premiumOthers

2019

11.9

4.67

5.5

34.9

43.0

2019 oTher oPeraTING eXPeNses (%)

2018

10.7

4.5

5.9

35.2

43.7

2018 oTher oPeraTING INcome (%)

Financial review

allowance for impairment losses Allowance for impairment losses in 2019 amounted to Rp8.8 trillion. This expense increased 19.6% from the previous year’s position of Rp7.4 trillion. The largest increase is found in allowance for loan impairment losses expenses from Rp14.9 in 2018 to Rp16.9 in 2019.

Income before tax expenseBNI booked slightly lower income before tax expense from Rp19.82 trillion in 2018 to Rp19.4 trillion in 2019.

Tax expenseBNI booked tax expense amounting to Rp3.9 trillion in 2019 compared to Rp4.7 trillion that corresponds with the increase in the Bank’s profitability.

Income for the yearBacked by the decrease in tax expenses in 2019, BNI booked income for the year amounting to Rp15.4 trillion with growth of 2.5%.

other comprehensive income (loss) for the year BNI booked total comprehensive income for the year amounting to Rp2.9 trillion in 2019 compared to comprehensive loss for the year of Rp855.51 billion.

The largest increase in other comprehensive income came from gains from changes in the value of financial assets in the available for sale category by Rp4.0 trillion from the previous year (Rp5.0 trillion).

comprehensive current year total profit (loss) attributableBNI’s comprehensive profit and income attribution reached Rp18.4 trillion. This is an increase of Rp4.1 trillion from 2018 that amounted to Rp14.2 trillion.

earning Per share (ePs)Company and diluted earnings attributable to the owners of the parent company were Rp825 in 2019 from Rp805 in 2018, an increase of 2.5%.




consolidated statement of cash Flows


Growth2018-2019

Growth2017-2018


Net cash provided from operating activities (12,611) (4,274) 33,677 (8,337) 194.9 (37,951) (112.7)

Net cash provided from investment activities 13,483 (9,612) (23,274) 23,095 (240.3) 13,663 (58.7)

Net cash provided from financing activities (18,491) 20,609 3,194 (39,100) (189.7) 17,415 545.3

Net increase in cash and cash equivalents (17,618) 6,723 13,597 (24,342) (362.1) (6,874) (50.6)

Cash and cash equivalents at beginning of year 98,922 91,977 78,284 6,945 (7.6) 13,693 17.5

Cash and cash equivalents at End of year 81,184 98,922 91,977 (17,738) (17.9) 6,945 7.6

cash flows from operating activities BNI booked net cash used for operating activities amounting to Rp12.6 trillion in 2019 and Rp4.3 trillion in 2018. BNI booked receipts of interest and sharia income amounting to Rp56.5 trillion and Rp4.0 trillion in 2019 or much higher that the previous year’s position of Rp49.6 trillion and Rp3.57 trillion. Despite this, changes in the operating assets and liabilities in the form of loans disbursed amounts to Rp50.0 trillion in 2019 from Rp79.30 trillion affected the increase in net cash that was used for operating activities.

cash flows from investment activitiesBNI booked net cash from BNI’s investment activities amounting to Rp13.5 trillion in 2019. This is due to the sale of marketable securities available for sale and held for maturity – net respectively of Rp6.6 trillion. On the other hand, in the previous year, BNI booked net cash used in investment activities of Rp9.6 trillion that was mainly due to the purchase of government bonds amounting to Rp10.3 trillion.

cash flows from financing activities On a cumulative basis, net cash used for financing activities amounted to Rp18.5 trillion in 2019. This was attributed to the decrease in securities sold under agreement to repurchase amounting to Rp20.0 trillion and dividend payments of Rp3.8 trillion. On the other hand, BNI previously booked net cash provided from financing activities amounting to Rp20.6trillion that corresponds with the increase in securities sold under agreement to repurchase amounting to Rp18.5 trillion.

cash and cash equivalents at the end of the period BNI booked a deficit in net cash and cash equivalents growth of Rp17.6 trillion in 2019 that is caused by the deficit in net cash provided from financing activities and operations. Nevertheless, this was compensated by cash and cash equivalents at the beginning of the year of Rp98.9 trillion. Therefore, cash and cash equivalents at the end of 2019 amounts to Rp81.2 trillion.




Financial ratios

Financial ratio Table

2019 2018 2017

(%) (%) (%)

caPITal

CAR-Tier I 18.6 17.4 17.4

CAR-Tier II 1.1 1.1 1.1

CAR (Credit, Market and Operational Risk) 19.7 18.5 18.5

asset Quality

NPL Nett 1.2 0.8 0.7

NPL Gross 2.3 1.9 2.3

Adequacy ratio of provision for losses to non-performing loans 133.5 152.9 148.0

Profitability

ROA 2.4 2.8 2.7

ROE 14.0 16.1 15.6

Net Interest Margin 4.9 5.3 5.5

efficiency

BOPO 73.2 70.1 71.0

CIR 43.9 42.5 43.9

liquidity

LDR 91.5 88.8 85.6

RIM 86.6 84.6 80.0

LFR 91.2 88.4 85.2

compliance

GWM (Rupiah) 6.7 6.5 6.6

Net Open Position 2.4 2.0 2.5

BMPK Percentage of violation 0.0 0.0 0.0

BMPK Percentage of exceedance 0.0 0.0 0.0

Financial review

Financial ratios

capital adequacy ratioBNI strengthened its capital structure throughout 2019 with improved Capital Adequacy Ratio (CAR) in 2019 of 19.7% compared to that achieved in 2018 of 18.5%. This is attributed to the improvements in retained earnings in line with optimization of productive assets that year. This achievement is substantially higher than the provisions set by Bank Indonesia through POJK No. 11/POJK.03/2016 on Minimum Capital Requirement for Commercial Banks that was amended through POJK No. 34/POJK.03/2016 namely a minimum of 9% of Calculated Risk Weighted Assets (ATMR) for banks with a risk profile rating of 2.

asset Quality ratios

NPl ratioPrudent productive asset management policy amidst lending expansion is carried out through, among others, by selectively choosing the sector that will serve as the loan recipients supported by management of non-performing borrowers but that continue to possess the potential for recovery through a remedial and restructuring scheme to support improvements to the borrower’s financial and business conditions serve as the key to managing BNI’s NPL. Gross NPL amounts to 2.3% while net NPL is 1.2% in 2019, which is higher than that achieved in 2018 of 0.8% and 1.9% respectively.




coverage ratioBNI recorded higher provision compared to the previous year in line with mitigating lending risks as reflected in the coverage ratio of 133.5%, which is higher compared to the position in 2018 and 2017 of 152.9% and 148.0% respectively.

Profitability ratios

roaIn line with the decline in the ROA ratio in the industry level that was brought about by the decline in benchmark rates, BNI’s Return on Assets (ROA) ratio was lower to 2.42% in 2019. This achievement is lower compared to the previous year’s ROA of 2.8% and 2.7% for 2018 and 2017 respectively.

roeIn line with the ROA ratio, BNI also booked a lower ROE ratio amidst the capital increase. Lower income margins and higher operating expenses challenges affected BNI’s profitability ratio. Return on Equity (ROE) declined to 14.0% in 2019 from 16.1% (2018) and 15.6% (2017).

NImBNI’s Net Interest Margin (NIM) declined from 5.3% in 2018 to 4.9% the following year. This is due to the continuing decline in benchmark rates carried out by Bank Indonesia by 100bps to 5.0% throughout 2019.

BoPo efficiency ratioThe challenges of higher operating expenses in the industry level was also felt by BNI. In line with the increase in the Indonesian banking industry’s BOPO ratio, BNI’s BOPO (Operating Expenses to Operating Income) ratio also decreased to 73.2% in 2019 from 70.1% (2018) and 71.0% (2017).

cIrCost to Income Ratio (CIR) is one of the ratios used to measure the level of efficiency over operating expenses to optimally obtain income. BNI encountered challenges in increasing BNI’s CIR ratio to 43.9% in 2019 from 42.5% and 43.9% for 2018 and 2017 respectively.

liquidity ratios

loan to Deposit ratio (lDr) BNI reported higher loan to deposit ratio (LDR) in 2019 of 91.5% from 88.8% the previous year. This increase was mainly due to the much lower growth in TPF compared to the growth in loans in 2019. This is driven by the challenges in liquidity conditions in the Indonesian financial market amidst the global economic uncertainty.

makroprudensial Intermediation ratio (rIm)BNI’s Macroprudential Intermediation Ratio was reported to have increased to 86.6% compared to 84.6% the previous year. The achievement of RIM is still within the limits set by the regulator of 84%-94%.

loan to Funding ratio (lFr)In line with the RIM ratio, BNI’s LFR recorded an increase compared to the previous year of 91.2% compared to the previous year 88.4%. Likewise, this LFR ratio is still within the range of regulator provisions.

compliance ratio

Giro wajib minimumBNI has consistently been able to maintain an optimum level of liquidity to support daily operations and meet Bank Indonesia’s requirements through the Statutory Reserves (GWM). BNI’s Rupiah GWM was 6.7% and 8.0% for Foreign Currency GWM in 2019 compared to the previous year’s position of 6.5% and 8.0% respectively. This liquidity position is in accordance with PBI No. 20/3/PBI/2018 concerning Statutory Reserves in Rupiah and Foreign Currencies for Conventional Commercial Banks, Sharia Banks and Sharia Business Units, and Members of the Board of Governors Regulation (PADG) No.19/4/PADG/2017 concerning Banks Statutory Reserves in Rupiah and Foreign Currency for Conventional Commercial Banks.

Net open Position BI Net Open Position (PDN) for the period ending on December 31, 2019 amounts to 2.41%, which is higher compared to the previous year’s position of 2.0%. Nevertheless, this level is far below the maximum amount determined by BI through PBI No. 5/13/PBI/2003 on Net Open Position for Commercial Banks that has been amended of which the most recent was with PBI No. 17/5/PBI/2015, namely 20% of capital.




commitment and contingencies

BNI has commitments and contingencies. An overview of the Bank’s commitments and contingencies, as stated in its contracts, are as follows:


Growth2018-2019

Growth2017-2018


billion) (%)

commitment receivables

Unsettled purchased of foreign currency futures 39,866 68,881 66,057 (29,016) (42.1) 2,824 4.3

Others 178 510 462 (333) (65.2) 48 10.4

Total 40,043 69,391 66,520 (29,348) (42.3) 2,872 4.3

commitment payables

Unused loan facilities Outstanding irrevocable 58,305 54,228 49,963 4,077 7.5 4,265 8.5

Irrevocable letters of credit yang masih berjalan 9,170 12,456 11,630 (3,825) (26.4) 825 7.1

Sales of foreign currency futures unresolved 39,661 68,772 66,017 (29,112) (42.3) 2,755 4.2

Total 107,136 135,455 127,611 (28,319) (20.9) 7,845 6.1

contingent receivables

Bank guarantees received 18,396 17,434 18032,492 962 5.5 (599) (3.3)

Interest receivable on non performing assets 5,004 4,064 4705,325 940 23.1 (641) (13.6)

Others 229 194 163,123 35 18.0 31 19.0

Total 23,629 21,692 22,901 1,937 8.9 (1,209) (5.3)

liabilitas kontinjensi

Guarantees issued in the form of

Performance bond 27,941 29,755 29,760 (1,813) (6.1) (5) 0.0

Advance payment bonds 9,735 10,679 10,832 (944) (8.8) (153) (1.4)

Standby letters of credit 7,384 9,215 8,269 (1,832) (19.9) 946 11.4

Other bank guarantees 10,043 7,940 7,124 2,103 26.5 816 11.5

Bid bonds 2,752 4,174 3,481 (1,422) (34.1) 693 19.9

Shipping guarantee 4 4 2 (0) (9.6) 2 137.5

Risk sharing 0 0 0 0 0.0 (0) (100.0)

Total 57,859 61,767 59,496 (3,908) (6.3) 2,299 3.9

The following table details the commitment and contingencies transaction that occur in the normal course of the Bank’s activities and have credit risk:

Financial review




2019 2018

(rp billion) (rp billion)

Bank guarantees issued

Related parties 22,087 26,925

Third parties 35,772 34,843

Irrevocable letters of credit

Related parties 5,333 8,170

Third parties 3,838 4,285

Total 67,030 74,223

Commitments and contingencies that have a credit risk based on collectability is specified in the following table:

2019 2018


Current 65,419 73,855

Special mention 1,578 294

Substandard 10 74

Doubtful 1 0

Loss 22 0

Total 67,030 74,223

Moreover, BNI also has compiled details pertaining to Commitment and Contingencies growth that is specified in the following table:


Growth2018-2019

Growth2017-2018


billion) (%)

commitment bill

Purchase of foreign currency futuresnot resolved

39,865 68,881 66,057 (29,016) (42.1) 2,824 4.3

Others 178 510 463 (332) (65.1) 47 10.2

Total Commitment Bill 40,044 69,391 66,520 (29,348) (42.3) 2,871 4.3

commitment liabilities

Credit facilities to customers that have not been withdrawn

58,305 54,228 49,963 4,077 7.5 4,265 8.5

Irrevocable L/C Ongoing 9,170 12,456 11,630 ( 3,285) (35.8) 826 7.1

Spot Sales and Derivative Positionsstill walking

39,660 68,772 66,018 (29,111) (42.3) 2,754 4.2

Total Commitment Liabilities 107,135 135,456 127,611 (28,319) (26.4 ) 7,845 6.2

contingency Bill

Guaranteed Received 18,396 17,434 18,032 962 5.2 (598) (3.3)

Interest Income in Settlement 5,004 4,064 4,705 940 18.9 (641) (13.6)

Others 229 194 163 35 15.3 31 19.0

Total Contingency Charges 23,629 21,692 22,900 1,937 8.2 (1,208) (5.3)





Growth2018-2019

Growth2017-2018


billion) (%)

contingent liabilities

Bank Guarantee Provided 57,859 61,767 59,468 (3,908) (6.8) 2,299 3.9

Total Contingent Liabilities 57,859 61,767 59,468 (3,908) (6.8) 2,299 3.9

Financial review

Within the course of its business, BNI conducts derivative financial instrument transactions such as foreign currency forward contracts, foreign currency swaps, interest rate swaps, and spot transactions to manage exposures on market risks, such as currency risks and interest rate risks. Derivative financial instruments are recognized in the consolidated statement of financial position at fair value. Every increase in the derivative contract’s fair value is booked as asset when the fair value is positive and as a liability when the fair value is negative. Derivative receivables and payables are classified as financial assets and liabilities at fair value through profit and loss. Gains or losses resulting from fair value changes are recognized in the consolidated profit and loss statement.

The fair value of derivative instruments is determined based on discounted cash flows and pricing models or quoted prices from brokers of other instruments with similar characteristics. Foreign currency forward contracts, foreign currency swaps and cross currency swap as well as interest rate swaps are for funding and trading purposes.

Moreover, in conducting its business, BNI carries out derivative financial instrument transactions such as foreign currency forward contracts, foreign currency swap, interest rate swap and spot transactions for financing, trading and hedging purposes.

Total commitment liabilities in 2019 declined 26.4% compared with 2018 that was largely brought about by the 42.3% decline in sales of foreign currency futures unresolved. Contingent receivables in 2019 increased 8.2% compared to 2018 largely due to the 18.9% increase in Interest Receivable on Non-Performing Assets. However, contingent liabilities position declined 6.8% compared to 2018 and was caused by the decline in Bank Guarantees issued. Overall, the fluctuating movements in commitments and contingencies corresponds with loan growth, as borrowers are increasingly using BNI’s numerous products and services that have competitive features.

Derivatives and hedging Facilities BNI conducts derivative transactions both for the Bank as well as its customer’s interest. As of December 31, 2019, BNI carried out USD-IDR Cross Currency Swap (CCS) transactions booking total asset value of USD 29 million. Apart from the CCS transaction, BNI also carried out Interest Rate Swap (IRS) transactions with total asset value as of December 31, 2019 of USD 238 million. The CCS and IRS transactions was carried out by taking into account the conditions of the market and its portfolio, in anticipation of currency as well as interest rate movements that could potentially harm the bank.




Table of Derivative Bills and liabilities by Type and currency

Instrument

2019

Notional number of eyes foreign money

Fair value

Derivative bills Derivative liabilities

full amount (rp million) (rp million)

related exchange rates

Futures contract - buy

USD 137,084,144 654 6,336

Futures contract - sell

USD 151,226,912 10,605 24

swap foreign currencies - buy

EUR 104,221,620 11,269 9,605

USD 690,870,027 25 124,644

GBP 500,000 562 -

swap foreign currencies - sell

AUD 10,000,000 - 2,125

EUR 180,225,997 5,541 26,480

GBP 9,500,000 - 976

USD 663,848,943 245,073 -

spot foreign currencies - buy

AUD 9,000,000 23 174

EUR 15,500,000 296 13

GBP 59,000,000 1,564 1,004

USD 45,340,000 - 2,029

spot foreign currencies - sell

AUD 6,000,000 72 82

EUR 18,000,000 - 524

GBP 60,000,000 493 2,394

USD 31,453,671 1,304 9

Foreign currency options - buy

USD 126,500,000 5,169 4,736

AUD 181,236 - 7

EUR 60,200 - 1

Foreign currency options - sell

USD 126,500,000 8,594 7,531

related to Interest rates

swap on interest rates

USD 238,026,229 11,631 6,222

related exchange rates and Interest rates

swap in foreign currencies and interest rates

USD 29,039,143 9,388 8,137

Total 2,712,108,122 312,265 203,054




Instrument

2019

Notional number of eyes foreign money

Fair value

Derivative bills Derivative liabilities

(full amount) (rp million) (rp million)

related exchange rates

Futures contract - buy

USD 239,031,000 2,565 (26,092)

Futures contract - sell

USD 466,832,415 84,598 (2,594)

CNY 12,100,000 312

swap foreign currencies - buy

EUR 59,068,329 2,699 (12,776)

JPY 600,492,755 5,752

USD 734,914,068 8,415 (220,572)

GBP 500,000 (36)

swap foreign currencies - sell

AUD 4,700,000 165 -

EUR 2,900,000 1,259 (44)

GBP 3,500,000 36 (336)

CNY 20,688,068 33 -

JPY 1,050,862,321 1,512 (29)

HKD 423,790,330 (531)

USD 683,686,726 298,097 (15,686)

spot foreign currencies - buy

USD 119,225,000 - (16,305)

EUR 2,300,000 - (40)

spot foreign currencies - sell

EUR 2,800,000 79 -

JPY 6,600,000 3 -

SGD 100,000 6 -

USD 108,691,079 14,956 -

option foreign currencies - buy

USD 8,550,000 5 (3,834)

Foreign currency options - sell

USD 23,550,000 3,605 (1,355)

related to Interest rates

swap on interest rates

USD 1,862,000,000 156,187 (1,303)

related exchange rates and Interest rates

swap in foreign currencies and interest rates

USD 120,028,426 24,964 (20,495)

Total 605,248 (322,028)

Financial review




Table of Derivative claims and liabilities based on relationships

2019 2018


Derivative bills

related parties

Foreign Currency 28,116 56,317

Third parties


Total 312,266 605,248

Derivative liabilities

related parties


Third parties


Total 203,054 322,028

Based on the results of the Bank’s management evaluation and review, all of the derivative receivables are classified as current as of December 31, 2019 and 2018.

loans Basic lending rate Based on the Financial Services Authority Regulation (POJK) No. 6/POJK.03/2015 on Bank Transparency and Report Publication that has been amended with POJK No. 32/POJK.03/2016 and Bank Indonesia Regulation Number 7/6/PBI/2005 on Bank Product Information Transparency and Use of Customer Personal Data (State Gazette of the Republic of Indonesia of 2005 Number 16, Supplement to the State Gazette of the Republic of Indonesia Number 4475), Banks that conduct businesses conventionally in Indonesia are required to report and publish Prime Lending Rate (PLR) in Rupiah.

Implementing this PLR seeks to provide clarity to the customer and enhance the customers to determine the benefit, costs and credit risks that is offered by the Company. Moreover, PLR is meant to enhance good governance and promote healthy competition within the banking industry by, among others, instilling enhanced market discipline.

Moreover, PLR is used as an indicator of the loan interest rate to be applied to customers applying for loans from the Company. As a result, BNI constantly updates the PLR in accordance with benchmark rate movements determined by Bank Indonesia. PLR is generally calculated based on 3 (three) components, namely Cost of Funds for Loans (HPDK) arising from customer fund raising activities, operating expenses incurred for fund raising and loan disbursement activities as well as profit margin component that is determined by the Company in its lending activities. The PLR calculation has not taken into account the risk premium component of the borrower, whose amount is determined on the basis of the evaluation of the borrower’s risks. Therefore, the loan interest rate charged to the borrower is not necessarily the same as the PLR.

BNI is required to report the PLR calculation to Bank Indonesia on a monthly basis and periodically widely publish in the media. The PLR calculation applies to corporate loans, retail loans, micro loans, and consumer loans (Housing Loan and non-housing loan). However, Bank Indonesia submits the classification for corporate loan, retail loan and consumer loan (Housing Loan and non-housing loan) based on the internal criteria used by the bank.




In determining the PLR, BNI always takes into consideration changes to the regulator’s policies. In 2016, OJK issued Letter No. S-18/D.03/2016 on Maximum Interest Rates whereby OJK submitted a directive to gradually reduce borrowing rates to single digit at the end of 2016. In regards to this, BNI is committed to reduce its borrowing rates, which is reflected in the PLR comparison in 2016 and 2015 as follows:

Prime lending rate per year

Based on Business segments

creditcorporation retail credit micro credit

consumer credit

kPr Non kPr

Prime Lending Rate 9.95 9.95 - 10.25 12.25

Bank health level The Bank’s Health Level (BHL) is the result of the Bank’s risk and performance assessment. The Bank Health Level Assessment is carried out using the Risk-based Bank Rating approach both individually as well as on a consolidated basis. The Bank’s health level is a means to identify at an early stage the bank’s problems, determine the future business strategy, formulate and implement corrective action over a bank’s weakness/problem, provide the basis for the process of linking capital with risk, as a basis for decision-making as well as to enhance competitiveness. Meanwhile, the Bank’s Health Level serves as a means for determining the strategy and focus for supervision on the Bank for the supervisory authorities.

The Bank’s health level rating is based on 4 (four) factors as follows:1. risk Profile The risk profile assessment is carried out by evaluating

the Inherent Risk (risks that is attached to the Bank’s activities) and the Risk Management Application Quality (RMAQ) towards 8 risk types.

2. Good corporate Governance Good Corporate Governance assessment evaluates the

Bank’s management quality over the application of Good Corporate Governance principles.

3. earnings Assessment over the Earnings factor covers profitability

performance evaluation, profitability sources, profitability’s sustainability, and profitability management.

Financial review

4. capital Assessment over the Capital factors covers an

evaluation over Capital and Capital Adequacy. In the evaluating Capital Adequacy, BNI links its capital adequacy with its risk profile.

The Bank’s Health Level Rating is reported to the regulator (OJK) every 6 months in June and December. The results of BNI’s BHL rating for the December 31, 2019 period falls within the “Healthy” level that implies the following: a. The Bank’s condition was generally healthy, thereby

deemed able to withstand significant negative effects from changes in business conditions and other external factors.

b. The rating assessment factors (Risk Profile, GCG, Profitability, and Capital) are generally good whereby if weaknesses are apparent, then these weaknesses are generally deemed insignificant.

As one of the factors to evaluate BHL, BNI’s risk profile in the December 31, 2019 period falls within rank 2 (low to moderate). As a consequence of BNI’s risk profile that falls within the low to moderate ranking and in line with the calculation using the Internal Capital Adequacy Assessment Process (ICAAP), the minimum CAR that corresponds with its risk profile is 9.95%. If coupled with the buffer capital, namely the Conservation Buffer of 2.50%, Countercyclical Buffer of 0% and Capital Surcharge of 1.50%, then the Minimum Capital Requirement Ratio (MCRR) limit is 13.95%. BNI’s MCRR in 2019 amounts to 19.7%, which exceeds the specified minimum limit.




Guaranteed Bank assetsBNI did not guarantee the Bank’s assets for the period ending on December 31, 2019.

Impact of Interest changes on the Bank’s PerformanceBank Indonesia has determined to gradually reduce the benchmark rates by as much as 4 (four) times throughout 2019. The first reduction in the BI 7-day Reverse Repo Rate (BI7DRR) was as much as 25 bps to 5.75% that was determined within the Bank Indonesia Board of Governors Meeting (RDG) held on July 17-18, 2019. This policy was carried out in line with the low projected inflation rate and need to push forth the momentum for economic growth, amidst the uncertainty within the global financial market and controlled external stability.

At the Board of Governors meeting held on August 21-22, 2019, BI reduced the BI 7-day Reverse Repo Rate (BI7DRR) by as much as 25 bps to 5.50% and the Deposit Facility rate by as much as 25 bps to 5.25%. Similar reductions took place at the BI Board of Governors Meeting held on September 18-19, 2019 again reduced the BI7DRR by as much as 25 bps to 5.25%. The last benchmark rate reduction was carried out through the BI Board of Governors Meeting held on October 23-24, 2019 that determined to reduce the BI 7-Day Reverse Repo Rate (BI7DRR) by 25 bps to 5.00%. This is consistent with the projected low inflation rate that falls within the middle of its targeted range, continued attractiveness of investment returns derived from domestic financial assets thereby supporting external stability, as well as a pre-emptive step to accelerate the momentum for future economic growth as a result of the global economic slowdown.

This policy is backed by a monetary operations strategy that continues to be reinforced to maintain adequate liquidity and support transmission of a series of accommodative policies. Macro prudential policies remains accommodative to promote bank lending and expand financing for the economy. The payment system and financial market deepening policies also continue to be strengthened to support economic growth. Bank Indonesia’s coordination with the Government and related authorities continues to be strengthened so as to maintain economic stability, drive domestic demand, and increase exports, tourism and foreign capital inflows, including Foreign Direct Investment (FDI).

This subsequently impacts the condition of the national banking system, which is experiencing significant pressure in the decline in net interest margins (NIM). The drive to reduce lending rates to support Indonesia’s economic growth at a time when inflation appears to be more controlled has received the right momentum. This resulted in a decrease in BNI’s NIM to 4.9% in 2019 compared to 5.3% (2018) and 5.5% (2017).

Fee Based Income Growth acceleration Fee based income that was successfully managed by BNI in 2019 amounted to Rp11.4 trillion, or 18.0% higher compared to 2018 of Rp9.6 trillion. This increase is dominated by 4 (four) banking activities that include Account Maintenance, Card Business, ATM and Trade Finance. The increase in fee based income from Account Maintenance services grew 16.3% from Rp1.7 trillion in 2018 to Rp2.0 trillion in 2019. Card Business registered growth of 10.6% from Rp1.4 trillion in 2018 to Rp1.6 trillion in 2019. ATM grew 13.2% from Rp1.1 trillion in 2018 to Rp1.3 trillion in 2019. In line with the increase in these three services, Trade Finance services also grew by 4.8% from Rp1.2 trillion in 2018 to Rp1.3 trillion in 2019.


Growth2018-2019

Growth2017-2018


billion) (%)

Recurring Fee 11,107 9,380 8,441 1,728 18.4 939 11.1

Non Recurring Fee 244 236 867 8 3.2 (631) (72.8)

Total 11,351 9,615 9,308 1,735 18.0 308 3.3




oTher maTerIal FINaNcIal INFormaTIoN

ability to Pay DebtBNI has sound liquidity and solvency levels for the period up to December 31, 2019. This is reflected in BNI’s ability to meet all of its maturing obligations in a timely manner, both in terms of principal as well as interest payments. The banking financial ratio used to measure BNI’s liquidity and solvency are as follows:

ability to Pay short-Term Debt (Bank liquidity) BNI’s ability to meet its short-term obligations is made by maintaining good liquidity. In line with the increase in short-term liquidity resiliency, BNI maintains adequate liquidity by managing a number of indicators that include Primary Reserve, Secondary Reserve, and Liquidity Coverage Ratio in accordance with the regulator’s provisions.

LCR is a comparative ratio between High Quality Liquid Assets (HQLA) and estimated total net cash outflows for the next 30 (thirty) days in a crisis scenario. In December 2019, BNI’s LCR reached 181.6% (bank only) and 184.1% (consolidated), which is above regulatory provisions that set LCR compliance to at least 100%.

In the context of managing liquidity for a longer period (1 year), BNI maintains Net Stable Funding Ratio (NFSR) by increasing bank funding stability that is adjusted with asset composition and administrative accounts. NSFR is a ratio that compares the amount of Available Stable Funding to the Required Stable Funding. As of December 2019, BNI’s NSFR was 136.2% (bank only) and 141.1% (consolidated), which is above the regulatory limit of 100%.

ability To Pay long-Term Debt (Bank solvency) BNI’s Capital Adequacy Ratio (CAR) is the capital to Risk Weighted Assets (RWA) ratio, which in 2019 increased 19.3% compared to the CAR in 2018 of 18.5%. This implies that BNI’s capital structure has the capability to balance credit risk, market risk, and operational risk wherein these ratios are higher than the minimum capital adequacy ratios determined by the regulator.

Financial review

loan collectibilityBNI booked Non Performing Loan (NPL) that is slightly higher in 2019 of 2.3% from 1.9% in 2018. Despite this increase, BNI’s NPL continues to be below the Banking Industry’s of 2.7%.

Disbursed loans restructuring Restructuring is carried out on debtors who still have business prospects and selectively carried out in accordance with the debtor’s ability. The amount of restructured loans at the end of 2019 reached Rp38.4 trillion, an increase of 31.5% over the previous year with the following details:1. Loans whose maturity is extended amounts to Rp3.9

trillion or 12.0% higher compared to the previous year.2. Loans whose maturity is extended and whose interest

rates are reduced amounts to Rp13.6 trillion or 17.8% higher compared to the previous year.

3. Loans whose maturity is extended, had their interest rates reduced and restructured through other means amounts to Rp20.8 trillion or 47.7% higher than in the previous year.

Breakdown of restructured loans based on collectability as of December 31, 2019 compose of current of 38.8%, special mention of 47.7%, and non-performing loans (NPL) of 13.5%. In terms of currency, 86.8% of the restructured loans were in Rupiah while the rest were denominated in USD currency. Breakdown of Restructured Loans based on their designation as of December 31, 2019 comprise of Working Capital Loans at 69.5%, Investment Loans at 26.1%, and Consumer Loans at 4.5%.

In terms of sector, the breakdown of restructured loans as of December 31, 2019 comprise of Corporate at 52.3%, Middle amounting to 30.4%, Small of 12.8%, and Consumer amounting to 4.5%. The restructured loans in 2019 is dominated by the Manufacturing sector of 36.2%, Restaurant and Hotel of 23.8%, followed by the services sector with 9.9%, Agriculture business sector of 8.9%, Trading sector of 5.8%, and the remainder equally spread in various business sectors.




restructured loans Table based on restructuring categories

restructuring category 2019 2018 2017

Extension of Credit Period 3,943 3,521 5,577

Extension of Term and Decrease in Credit Interest Rates 13,644 11,583 11,872

Extension of Term, Decrease in Credit Interest Rates, and SchemeOther restructuring 20,823 14,095 12,977

Total 38,410 29,199 30,426

Allowance for Impairment Losses (6,924) (5,253) (5,367)

Net 31,485 23,946 25,059

restructured loans per collectibility

Quality 2019 2018 2017

Smoothly 14,905 11,790 17,530

Special Mention 17,866 12,537 8,684

Not that smooth 3,396 1,472 876

Doubted 160 2,236 489

Jam 2,083 1,164 2,847

Total 38,410 29,199 30,426

restructured loans per Type of Business sector - Bank only

Quality 2019 2018 2017

Business Services 3,498 3,483 2,900

Social Services 266 252 265

Construction 1,553 1,309 1,065

Others 1,576 1,468 2,038

Electricity, Gas and Water 506 514 376

Freight, Warehousing and Trade 2,043 1,753 1,752

Restaurant and Hotel 8,419 6,286 6,433

Mining 1,569 1,829 2,726

Industry 12,794 7,097 6,171

Agriculture 3,148 2,098 4,319

Total 35,372 26,089 28,044

restructured loans per Designation Type - Bank only

allotment 2019 2018 2017

Working capital credit 24,576 15,016 14,058

Investment Credit 9,222 9,604 11,948

Consumptive Credit 1,574 1,469 2,038

Total 35,372 26,089 28,044




restructured loans per Designation Type - Bank only

segment 2019 2018 2017

Consumer 1,574 1,468 2,038

Corporation 18,515 12,076 13,297

Small 4,525 3,699 3,775

Middle 10,758 8,846 8,934

Total 35,372 26,089 28,044

capital structure and risk management Practices

capital structure

management Policy on capital structureBNI manages the Bank’s capital in order to maintain a strong capital position to support business growth as well as to maintain investors, depositors, customers and market’s confidence. In terms of capital management, the Bank considers factors such as: optimalizing capital return to shareholders, maintaining a balance between higher profits and gearing ratios as well as the security provided by a healthy capital position. It is carried out because BNI has a strong commitment to maintain contently the capital structure composition in accordance with the provisions and does not violate the minimum limit provisions applied by the Financial Services Authority (OJK) as a banking regulator.

Details of capital structureReferring to Basel III regulations in relation to capital requirements, BNI was able to record an increase post to RWA for credit risk, market risk, and operational risk by 5.9% from Rp563.4 trillion in 2018 to Rp598.5 trillion by the end of 2019. BNI has a strong commitment to manage a healthy capital structure to support maximum business growth.

capital structure-Bank only2019 2018 2017

(rp miliar) (rp miliar) (rp miliar)

Core Capital 111,672 98,014 89,765

Supplementary Capital 6,424 6,240 5,542

Total Core Capital and Supplementary Capital 118,095 104,254 95,307

Risk Weighted Assets (RWA) for Credit Risk 519,095 491,758 450,706

Risk Weighted Assets (RWA) for Operational Risk 76,232 68,484 61,393

Risk Weighted Assets (RWA) for Market Risk 3,157 3,198 2,378

Core Capital Ratio 18.7% 17.4% 17.4%

Capital Adequacy Ratio for Credit Risk, Operational Risk and Market Risk 19.7% 18.5% 18.5%

Financial review

Capital Components - Banks Only• CoreCapital Core capital is the Bank’s capital comprising of main

core capital and additional core capital in accordance with the Financial Services Authority Regulation (POJK) concerning “Minimum Capital Requirements for Commercial Banks”. BNI’s core capital grew 9.2% or up from Rp98.0 trillion to Rp111.7 trillion in 2019. This

increase was in tandem with an increase of profit for the current year during 2019 to Rp14.6 trillion.

• SupplementaryCapital(maximum100%ofcorecapital)

Supplementary capital (referring to the Bank’s capital) consists of general reserves of productive assets. BNI’s supplementary capital increased from Rp6.2 trillion




in December 2018 to Rp6.4 trillion in December 2019 or up by 12.6%. This increase was due to the PPA (Formation of Allowance for Assets) addition which was formed on provided loans with current quality.

2017 2018 2019

Tier 1 Minimum 6.0%

CAR Minimum 9.95%

Tier 1CAR

18.6%19.7%

17.4%18.5%18.5%

17.4%

risk management PracticesBased on Bank’s soundness rating assessment reported to the regulator (OJK) every 6 months (semester) in the June and December period. BNI’s soundness rating assessment results as of 31 December 2019 is ranked “Healthy” which means that:a. The Bank’s condition is generally healthy and is considered to be capable of facing significant negative influences from

business conditions and other external factors changes. b. The rating assessment factors (Risk Profile, GCG, Profitability, and Capital) are generally good. If there are any weaknesses,

they are insignificant.

BNI’s risk profile, as one of the soundness rating assessment as of 31 December 2019, is ranked 2 (low to moderate). As an impact of BNI’s risk profile which is at the level of Low to Moderate and according to calculations using the Internal Capital Adequacy Assessment Process (ICAAP), the minimum CAR based on the risk profile of 9.95%. If added with buffer capital, namely Conservation Buffer 2.50%, Countercyclical Buffer 0% and Capital Surcharge 1.50%, the Minimum Capital Adequacy Ratio (CAR) limit is 13.95%. In 2019, BNI’s CAR is 19.7% or had exceeded the minimum limit specified Details about capital structure and risk management that are presented separately in the Annual Report.

material commitments for capital Goods Investments

No Project vendor

1 Menara BNI PT Ariesta Pratama

2 Grha BNI PT Trakindo Utama

3 BNI KCU Cirebon PT Caturbangun Mandiri Perkasa

4 BNI Kantor Wilayah Bandung PT Marlanco

5 BNI KCU Cibinong PT Tunas Pembangunan

6 BNI KCU Tanjung Priok PT Caturbangun Mandiri Perkasa

7 Gedoeng BNI PT Chemindo Sukses Makmur

8 Consolidation, Rejuvenation & Server Capacity Enhancement, Storage & Supporting Infrastructure

PT Mitra Integrasi Informatika

9 Digital Banking Capability Enhancement PT Multipolar Technology

10 Network Equipment & Infrastructure Procurement/Refreshment PT Mastersystem Infotama

11 Middleware system PT Usadi Sistemindo Intermatika

12 Biometric PT Industri Telekomunikasi Indonesia

13 Procurement/Refreshment of Devices, Systems & Infrastructure at DC & DRC

PT Vektordaya




Financial review

commitment Purpose BNI has a material commitment related to capital goods investment that is aimed to purchase capital goods as outlined in the Bank’s Business Plan (RBB).

source of fundsBNI has budgeted for the current year as a source of funds for the capital goods procurement.

currencyAll transactions conducted for material capital expenditure are denominated in the Rupiah.

currency risk Protection measuresBNI does protect against currency risk since all binding transactions and capital expenditures were denominated in Rupiah. commitment value In 2019, BNI has committed capital goods related to the construction of office buildings and procurement of automation goods amounting to Rp1, 1 trillion. Regarding capital expenditure, BNI has made several binding commitments. Some binding of materials carried out include:1. Building Construction Projects

a. Further construction of the BNI Pejompongan Tower in 2019 amounting to Rp85.8 billion.

b. Further construction of the Grha BNI Building in 2019 worth Rp75.3 billion.

c. Construction of Cirebon KCU Building standing at Rp47.8 billion.

d. Construction of the Regional Office Building in Bandung amounting to Rp.41.8 billion.

e. Construction of the Cibinong KCU Building worth Rp38 billion.

f. Construction of Tanjung Priok KCU Building standing at Rp27.4 billion.

h. Continued development of BNI Gedoeng in 2019 worth Rp25.7 billion.

2. Development of IT and e-Banking infrastructurea. Consolidated Rejuvenation & Server Capacity

Enhancement, Storage & Supporting Infrastructure worth Rp204,9 billion.

b. Digital Banking Enhancement amounting to Rp119.9 billion.

c. Network Equipment & Infrastructure Procurement/Refreshment standing at Rp115.8 billion.

d. Middleware system worth Rp109.5 billion.e. Biometric standing at Rp26.7 billionf. Procurement/Refreshment of Devices, Systems &

Infrastructure at DC & DRC amounting to Rp21.3 billion.

sources of fundingBNI uses the remaining investment budget, total depreciation expense and the distribution/percentage of net income from the previous financial year as a source of funding for capital expenditure.

capital Goods Investment

BNI spends fund for capital expenditure to purchase fixed assets or to add fixed asset value which is expected to provide future benefit value.

Type of InvestmentThe actualized capital goods investments in 2019 reached Rp1.53 trillion in 2019 comprising of land and building, automated equipment, non- automated equipment and vehicles standing at Rp620 billion; Rp689 billion; Rp186 billion; and Rp33 billion, respectively.

capital Goods Investments objectivesBNI’s capital goods procurement purpose is to support and sustain the Bank’s whole operational activities.

capital Goods Investments valueBNI’S capital expenditure amounted to Rp1.97 trillion in 2019. It was implemented based on investment demand in that year to support the Bank’s strategic policies in 2019 to enhance BNI’s digital capability as well as to develop the business and services operation.




The following table presents the details related to capital goods investment:

capital Goods Investment table


Land and Building 906 822 1,259

Automated equipment 790 1,039 1,200

Non-automated equipment 237 224 300

Vehicles 38 66 31

Total 1,971 2,151 2,790

Property for investment

BNI does not own property assets that are used for investment purposes until the period ended December 31, 2019.

comparison of Targets and realizations and 2020’s Projection

2019’s Target achievement Domestic political turmoil and global economic slowdown impact indirectly towards BNI’s overall growth. BNI has been able to predict it since last year and took preventive measures to survive amidst competitive rivalry. As of December 2019 BNI’s profit was up by 2.8% compared to last year from Rp15.0 trillion in 2018 to Rp15.5 trillion in 2019.

BNI’s assets grew by 4.6% from Rp808.6 trillion in 2018 to Rp845.6 trillion in 2019. These assets growth were supported by the growth of placements with other banks and BI by 21.5% to Rp47.7 trillion, followed by Current Account growth at other banks by 13.9% to Rp14.9 trillion and then combined by an increase of provided loans by 8.6% to Rp556.7 trillion.

2019’s strategic policies 2019's Target 2019's realization remarks

1. To increase corporate business by providing integrated financial solutions in a business ecosystem.

2. To increase the productivity of medium businesses focused on corporate customer supply chains, business process improvements, and loan quality improvement.

3. To increase small business expansion through digitized business processes, improved loan quality and support for national economic equity.

4. To accelerate consumer business focused on customer preferences by using data analytic.

5. To increase CASA and FBI through enhanced digital transactions, strategic partnerships and developing new business models.

6. To increase the BNI Group capabilities through increased synergy, agile organization initiation, and big data and analytics

Return on Assets (ROA) : 2.2% - 2.6%Return on Equity (ROE) : 13.4% - 14.2%Loan Growth : 8.5% - 10.5%Non Performing Loan (NPL) Gross : 1.8% - 2.3%Loan to Deposit Ratio (LDR) : 90.0% - 92.0%Growth of Third Party Funds (DPK) : 8.0% - 10.0%Cost to Income Ratio (CIR) : 42.0% - 44.0%

2.4%14.0%8.6%2.3%

91.5%6.1%

43.9%

AchievableAchievableAchievableAchievableAchievable

Not AchievableAchievable

In general, until December 2019, BNI has reported a quite good performance, reflected on several key performance achievements as follows:1. Profitability measured by using the ROA ratio reaches the target realization of 2.4% with an ROE of 14.0%2. Loan growth reached 8.6% or still above the industry loans growth 3. Operating expenses efficiency reflected through the CIR at 43.9%




2020 projection

BNI has prepared a Bank Business Plan (RBB) for 2020 by considering the current economic conditions and 2020’s projected macroeconomic from macro and micro perspectives as a basis for business development in 2020. The Bank’s business plans are as follows:

2020s strategic policies 2020’s Target

1. To improve corporate businesses focusing on priority sectors and business ecosystem optimalization.

2. To strengthen the medium-sized businesses management to improve credit quality and productivity.

3. To improve the quality of small businesses focusing on the region potential to support national economic equality.

4. To increase consumer business focus on potential customers by optimizing data analytics.

5. To strengthen the risk management capabilities to support business expansion and the quality of digital businesses growth.

6. To enhance the capabilities of Human Capital.

Financial ratio:Return on Assets (ROA) : 2.5% - 2.8%Return on Equity (ROE) : 14.0% - 16.0%Net Interest Margin (NIM) : 4.9% - 5.0%Loan Growth : 10.0% - 12.0%Non Performing Loan (NPL) Gross : 2.0% - 2.2%Loan to Deposit Ratio (LDR) : 92.0% - 94.0%Growth of Third Party Funds (DPK) : 8.0% - 11.0%Cost to Income Ratio (CIR) : 43.0% - 44.0%

Negotiable certificate of Deposit (NcD)

BNI has issued a scripless Negotiable Certificate of Deposit (NCD) from 2016 to 2019 for the liquidity purpose and strengthening the structure and composition oh the Rupiah funding as follows:1. In the first semester of 2016, BNI successfully issued the first scripless Rupiah NCD with emission value of Rp3.0 trillion in

6 series of tenors (6 months to 3 years).2. In the second semester of 2016, BNI re-issued a scripless Rupiah NCD with a total realized emission value of Rp2.2 trillion

from the initial target of Rp1.0 trillion (oversubscribed). This oversubscription shows investors’ high level of trust and interest towards BNI.

3. In the first semester of 2017, BNI issued a scripless Rupiah NCD with total realized emission value of Rp2.7 trillion.4. In the first semester of 2019, BNI issued scripless Rupiah NCDs twice with total realized emission value of Rp950 billion

(NCD Rupiah I BNI Year 2019) and Rp1 trillion (BNI Rupiah II NCD Year 2019).5. In the Second Semester of 2019, BNI re-issued a scripless Rupiah NCD with an emission value of Rp2.39 trillion.

Issuance Phase Date currency Principal amount average rate

1 16-Jun-16 IDR 3,023 2,598 8.20%

2 27-Sep-16 IDR 2,200 1,877 6.70%

3 10-Mar-17 IDR 2,700 2,483 7.00%

4 28-Mar-19 IDR 1,000 950 7.70%

5 28-Jun-19 IDR 1,000 1,000 7.55%

6 25-Sep-19 IDR 3,000 2,390 6.61%

Fund BalanceThe remaining balance of funds which have not matured on the aforementioned NCDs worth Rp3.31 trillion as of December 31, 2019.

material Information and Facts that occur after the Date of the accountant’s reportIn order to meet the Financial Services Authority Regulation No. 31/POJK.04/2015 concerning Information Disclosure or Material Facts by Issuers or Public Companies dated on January 13, 2020, BNI submitted information or material facts dated January 13, 2020 in the form of a USD-denominated global certificateless deposit certificate program worth USD1,000,000,000 which can be done in several phases and transacted through Euroclear and Clearstream. This scripless deposit certificate issuance program has a tenor of up to 12 months and a clean basis (without collateral).

Financial review




The impact on performance and business risk in the future is that the funds from the issuance of the certificate of deposit are used for business expansion and debt refinancing.

Dividend Policy

Dividend Distribution PolicyBNI’s dividend distribution policy is determined yearly through the General Meeting of Shareholders’(GMS) approval.

Total Dividends DistributedBased on the decision of the Annual General Meeting of Shareholders (RUPS) dated on May 13, 2019, BNI paid dividends from the Bank’s net profit of Rp3,753,780 million from 2018’s net profit worth Rp15,091,763 million.

announcement and Dividend Payment

Dividend announcement and Payment Table

Fiscal year Total Dividend (rpbillion)

Dividend per share (rupiah) Dividend ratio Date of

announcement Date of Payment

2018 3,753.78 201.29 25% of net income in 2018 14-May-19 14-Jun-19

2017 4,765.76 255,56 35% of 2017 net income 20-Mar-18 20-Apr-18

2016 3,968.56 212,81 35% of 2016 net income 20-Mar-17 20-Apr-17

share ownership Program by management and/or employees (esoP/msoP)

Program objectivesEmployee stock bonus program is a bonus program in the form of Bank shares which is given to employees who meet certain criteria and requirements as stipulated in the Program Implementation Guidelines.

The purpose of this employee stock bonus program is as follows:1. A form of employee retention in the long run.2. Efforts to motivate employees to provide their best

performances.3. Efforts to increase employees’ sense of belonging to the

Bank.

Total esoP or msoP shares and realizationTaking into account point 4, letter a, number 3, of Regulation No. XI.B.2 jo. Article 9 of the OJK Regulation No. 2/POJK.04/2013, a share buyback may be diverted/used for the an Employee Stock Option Plan or employee Stock Purchase Plan, and the Company conducted a Disclosure of Information on May12,2016 stating that they will conduct the transfer of Series C shares through a buyback

Shareholding Program, for the Company’s Management and Employees, in the form of Bonus shares (hereinafter referred to as “Bonus Shares Program “).

The Shares Bonus Program Supervision is carried out by the Company’s Board of Directors and reported at the Company’s General Meeting of Shareholders closest to the implementation of the program.

The bonus shares allocation to members of the Board of Directors, and the Board of Commissioners, is in accordance with the Minister of State-Owned Enterprises Regulation No. Per-04/MBU/2014 concerning Guidelines for Determination of Board of Directors, Board of Commissioners and Board of Trustees of State Owned Enterprises, and was conducted after the Company obtained approval from the General Meeting of Shareholders/Ministry of SOEs. Based on the Minutes of AGMS No. 8 dated March 10, 2016, the allocation of bonus shares to members of the Board of Directors and Board of Commissioners was carried out after obtaining the approval of the Minister of SOEs.

Ministry of SOE Letter No. S-574/MBU/D5-06/2018 dated June 5, 2018 fixed the determination Long Term Incentive (LTI) at 10% of the Board of Directors and Board of




Commissioners Tantiem for Fiscal Year 2017. LTI is given in the form of shares deferred for three years or until the end of the term of office. This provision is not given to Independent Commissioners, where LTI is given in cash where the payment is deferred for three years or until the end of the term of office.

Allocation of the first phase for employee was completed in 2016, and employees entitled to be participants in the Bonus Share Program, were permanent employees as at October 30, 2016 (Disclosure date). Employees declared eligible for vesting were notified by email, or other communication media, which contained confirmation of the bonus shares entitlement and the vesting date.

The vesting conditions were determined as follows:1. Not undergoing cases and/or being subject to sanctions

according to the applicable Bank Personnel Regulations;2. Has not terminated their employment relationship on

their own accord; or3. Has not ended their employment relationship due to low

performance.

As of December 2018, 35,349,718 shares have been vested to 20,289 employees.

Time Period The share bonus allocation will be conducted over 3 (three) years between 2016 - 2018, with periodic vesting of stock.1. The terms for the share bonus allocation and vesting

requirements for employees covers other performance and administrative requirements based on internal company requirements.

2. Vesting will be conducted periodically based on position level at the end of January, April and July 2017 - 2019.

employee or management requirementsThe Bonus Shares Program became part of the remuneration pursuant to the Ministry of State Owned Enterprises Decree No. Per-04/MBU/2014 concerning Guidelines for Determination of Board of Directors, Board of Commissioners and Board of Trustees of State Owned Enterprises, in the form of long-term rewards where the shares repurchased were allocated to:

Financial review

1. Employees as a bonus for achievement of company performance, and

2. Members of the Board of Directors, and the Board of Commissioners as part of the bonus for the fiscal year concerned

exercise PriceReferring to the Financial Services Authority Regulation (OJK) No. 02/POJK.04/2013 dated August 23, 2013 concerning Repurchase of Shares Issued by Issuers or Public Companies in Significantly Fluctuating Market Conditions, and No. 5/SEOJK.04/2017 concerning Revocation of SEOJK No. 22/SEOJK.04/2015 concerning Conditions Other than Significantly Fluctuating Market Conditions in the Implementation of Share Buy Back Issued by Issuers or Public Companies, BNI conducted repurchases of Company’s shares that had been issued and listed on the Indonesian Stock Exchange (Buy Back).BNI appointed PT BNI Sekuritas as the institution conducting the repurchase of the Company’s shares to purchase shares over a period of three months, starting from November 2, 2016 to December 28, 2016.

The number of shares bought back was equal to 0.8% of the issued and fully paid, or 150,537,500 shares. The Company’s repurchased shares amounted to Rp749,979,275,500.00 (maximum of 750 billion rupiah) and the average Buyback price amounted to Rp4,982.00 per share. After the Company shares repurchase, the Company conducted a Disclosure of Information on October 30, 2016.

These repurchased shares were redistributed to employees who met the criteria, with an exercise price of Rp4.982,00 per share.

use of Public offering Proceeds realization (Debt securities)

sustainable Public offering (PuB)On June 22, 2017, BNI received an effective statement from OJK through letter No. S-349/D.04/2017 to issue BNI Sustainable Bonds Rupiah Phase I Year 2017 (“Bonds”). The value of the bonds issued was Rp3,000,000,000,000 (three trillion Rupiah), for a period of 5 years, with a coupon of 8% per annum, to be paid quarterly. BNI’s bonds were issued on July 11, 2017 and listed on the Indonesia Stock Exchange on July 12, 2017.




Bond Issuance structure

Bond Name Obligasi Berkelanjutan I BNI Phase I Year 2017

Bond Principal amount Rp3,000,000,000,000 (three trillion Rupiah)

Bid Price 100.00% from Bond Principal Amount

Tenor 5 (five) years after date of issuance

Trading unit Rp1 (one Rupiah) or multiples

unit/Trading Rp5,000,000 (five million Rupiah) or multiples

coupon rate 8.00% (eight point zero zero percent) per year

Type of Interest rate Fixed

Interest Payment period Quarterly

First Interest Date of Payment 11 October 2017

collateral These bonds are not secured by special collateral, but are secured by all of the Company assets, both movable and immovable property, whether existing or future, that becomes collateral for the Bondholder in accordance with the provisions of Articles 1131 and 1132 of the Civil Code.The Bondholder right is paripassu without any preferential rights with the rights of the other creditor of the Company either present or in the future, except for the rights of the creditor of the Company which are specifically guaranteed with the Company’s assets either existing or future

securities rating idAAA (triple A) from Pefindo

sinking Fund The Company does not provide a sinking fund for the bond principal repayment with a viewto optimizing the use of the proceeds from the issue in accordance with the planned usagepurpose.

Buy Back These bonds have a repurchase (buy-back) option under the terms and provisions of theTrusteeship Agreement.

Trustee PT Bank Rakyat Indonesia (Persero) Tbk has been appointed as Trust Agent in the issuance of thisBond in accordance with the provisions contained in the Trustee Agreement.

use of Proceeds Plan from a Public offeringThe proceeds from the Public Offering of Bonds, after deducting the total issuing costs, will be used by the Company for loan expansion in the context of business development.

realization and schedule of Interest Payment

PuB Issuance realization Table (rp Billion)

Type ofPublic

offering

effectiveDate

Public offering realization result Funds usage Plan Funds usage Public offeringresidual

FundsTotal Public

offering

Public offering

expensesNet result credit

expansion Total creditexpansion Total

BNI Phase I Sustainable Bonds I in 2017

22-Jun-17 Rp3,000 Rp7.4 Rp2,992 Rp2,992 Rp2,992 Rp2,992 Rp2,992 0




PuB Interest Payment Table

Interest Bond Interest Payment Date Interest

1 11 October 2017 8.0%

2 11 January 2018 8.0%

3 11 April 2018 8.0%

4 11 July 2018 8.0%

5 11 October 2018 8.0%

6 11 January 2019 8.0%

7 11 April 2019 8.0%

8 11 July 2019 8.0%

9 11 October 2019 8.0%

10 11 January 2020 8.0%

Financial review

PuB Interest Payment Table

Interest Bond Interest Payment Date Interest

11 11 April 2020 8.0%

12 11 July 2020 8.0%

13 11 October 2020 8.0%

14 11 January 2021 8.0%

15 11April 2021 8.0%

16 11 July 2021 8.0%

17 11 October 2021 8.0%

18 11 January 2022 8.0%

19 11 April 2022 8.0%

20 11 July 2022 8.0%

subordinated mTN

BNI issues Subordinate Medium Term Notes (MTN) in order to strengthen complementary capital (tier 2) and working capital for business development, especially lending and increasing the composition of long-term fund association structure, in accordance with OJK Regulation No. 11/POJK.03/2016 concerning the Minimum Capital Requirement for Commercial Banks as amended by OJK Regulation No. 34/POJK.03/2016.

This Subordinated MTN is not guaranteed by a specific collateral including not guaranteed by the Bank or its subsidiary, the Republic of Indonesia or other third parties and is not included in the bank guarantee program implemented by the Deposit Insurance Agency or its replacement in accordance with applicable laws and regulations and follows the provisions Article 19 paragraph (1) in accordance with OJK Regulation No. 11/POJK.03/2016, as amended by Financial Services Authority Regulation No. 34/POJK.03/2016 and is a subordinated Bank obligation, in accordance with the provisions of the Subordinated MTN issuance agreement. Rights of Subordinate MTN holders are juniors with the rights of other company creditors.

Information about offered mTN subordination The Subordinated MTN was issued in the amount of Rp100,000,000,000.00 (One Hundred Billion rupiahs) with a coupon payment period of 8% p.a every 3 months (quarterly), based on the interest calculation of 30/360 with a tenor of 5 years.

mTN subordinated Issuance structure

Name Medium Term Notes Subordinasi I BNI Tahun 2018

Principal amount Rp100,000,000,000 (one hundred billion Rupiah

Bid Price 100.00% from MTN Subordinasi principal value

Tenor 5 (five) years from date of issue

coupon rate 8.00% (eight point zero zero percent) per annum

Type of Interest rate Fixed

Interest Payment Period Quarterly

First Interest Payment Date 10 November 2018

collateral This Subordinated MTN is not guaranteed by any special collateral, including not guaranteed by the company or subsidiaries, the Republic of Indonesia or other third parties, and is not included in the bank guarantee program in the deposit insurance agency, in accordance with applicable laws and regulations, and following the provisions in Article 19 Paragraph (1) point f in pojk no. 11/pojk.03/2016 and is a subordinated liability of the company, in accordance with the provisions of the Subordinate MTN issuance agreement. The rights of Subordinated MTN holders are junior to the rights of other corporate creditors at the time of liquidation in accordance with the applicable laws and regulations.

securities rating idAA (double A flat) from PT Pemeringkat Efek Indonesia (Pefindo)




Purpose of the use of subordinated mTN FundsThe issuance of the Subordinated MTN aims to comply with OJK Regulation No. 14/POJK.03/2017 article 24 and article 37 concerning Recovery Plan, in which systemic banks are required to have capital characteristics debt notes by 31 December 2018 at the latest.

Balance of subordinated mTNAs of December 31, 2019, Subordinated MTN had a balance of Rp100 billion.

schedule of subordinated mTN coupon PaymentAn interest rate of 8% per annum is paid periodically every 3 months with the following schedule:

mTN subordinated Interest Payment Table

Interest to- mTN subordinated Interest Payment Date Interest

1 10 November 2018 8.0%

2 10 February 2019 8.0%

3 10 May 2019 8.0%

4 10 August 2019 8.0%

5 10 November 2019 8.0%

6 10 February 2020 8.0%

7 10 May 2020 8.0%

8 10 August 2020 8.0%

9 10 November 2020 8.0%

10 10 February 2021 8.0%

11 10 May 2021 8.0%

12 10 August 2021 8.0%

13 10 November 2021 8.0%

14 10 February 2022 8.0%

15 10 May 2022 8.0%

16 10 August 2022 8.0%

17 10 November 2022 8.0%

18 10 February 2023 8.0%

19 10 May 2023 8.0%

20 10 August 2023 8.0%

realization of use of Funds from Public offering (shares)

By November 25, 2010, at the Extraordinary General Meeting of Shareholders (EGMS), the Shareholders decided amongst others to approve an increase of BNI’s issued and fully paid capital through a Limited Public Offering III (PUT III) with an issuance of Pre-emptive Rights (HMETD) amounting

to 3,374,715,948 new Series C shares with a nominal value of Rp375 (full amount) per share. These Pre-emptive Rights may be traded inside and outside the Indonesia Stock Exchange (IDX) from 10 December 2010 to 16 December 2010, taking into account the prevailing regulation in the capital market

Total Funds acquisitionFrom the LPO III, BNI received an additional paid-up capital of Rp1,265,519 million and an additional net share after deducting the issuance cost of issuance of shares, amounting to Rp245,231 million.

Fund usage PlanFunds sourced from the Results of Limited Public Offering III are used for:1. 80% is used for corporate, commercial, small business

and consumer loans.2. 15% is used for infrastructure development on

information technology, outlets, ATMs and others.3. 5% is used for the development of subsidiaries

namely BNI Life, BNI Syariah, BNI Securities and BNI Multifinance.

Fund BalanceAs of December 31, 2018, the Fund from the Limited Public Offering III was Zero or similarly 100% of the funds had been disbursed.

aGm approval Date for changes in use of FundsThere is no change in fund usage from BNI’s Limited Public Offering Results.

use of proceeds realization from limited Public offering III Nominal

Proceeds from Public Offering (after deducted by expenses) - nett

Rp10,216,388,163,029

use of Proceeds realization

About 80% is used for corporate, commercial, small business and consumer loans

Per 31 December 2014 Rp8,173,110,530,423

About 15% is used for infrastructure development on information technology, outlets, ATMs and others.

Per 31 December 2014 Rp1,532,458,224,454,-

About 5% is used for the development of subsidiaries namely BNI Life, BNI Syariah, BNI Securities and BNI Multifinance.

Per 31 December 2014 Rp510,819,408,152,-

Public Offering Residual Funds Nil




material Information of Investment, expansion, Divestment, acquisition, or Debt and capital restructuring

InvestmentsBNI did not carry out investment activities until the period ended December 31, 2019.

expansionBNI did not expand until the period ended December 31, 2019.

DivestmentBNI does not carry out divestment activities until the period ending December 31, 2019.

acquisitionBNI does not carry out acquisition activities until the period ended December 31, 2019.

Debt and capital restructuringBNI did not conduct debt and capital restructuring activities until the period ended December 31, 2019.

material Information containing conflicts of Interest and/or Transactions with affiliated Parties

BNI does not conduct material transactions containing conflicts of interest in 2019. Therefore, BNI does not present information related to:1. The name of the party conducting the transaction and

the nature of the affiliate relationship;2. Explanation of the reasonableness of the transaction;3. Reasons for the transaction;4. Realization of transactions in the last fiscal year period;5. Company policies regarding the review mechanism of

transactions; and6. Compliance with relevant rules and regulations.

Transactions with related Parties

In the normal course of its business, BNI conducts transactions with related parties through ownership and/or management relationships. All transactions with related parties are conducted in accordance with the agreed upon policies and terms.

BNI and its Subsidiaries conduct transactions with related parties as defined in PSAK 7 regarding “Related Party

Financial review

Disclosures” and Bapepam-LK Regulation No. KEP-347/BL/2012 dated June 25, 2012 concerning “Guidelines for the Presentation and Disclosure of Financial Statements of Issuers or Public Companies”, and are defined as:1. Companies under the control of BNI and its Subsidiaries;2. Associated companies;3. Investors who have voting rights, which give them a

significant influence;4. Companies under the control of investors who have

voting rights, which gives the investors a significant influence;

5. Key employees and family members; and6. Entities that are controlled, jointly controlled or

significantly influenced by the Government, namely the Ministry of Finance or the Regional Governments who are shareholders of the entity.

relationship TypeBased on the type of BNI transaction relationship with related parties are presented in the following table:

related party relationship as the controlling

shareholder

The Government of republic of Indonesia through the ministry of Finance

Control through The Government of The Republic of Indonesia

Adhi Karya and Subsidiaries Amarta KaryaAneka Tambang and SubsidiariesAngkasa Pura I and SubsidiariesAngkasa Pura II and SubsidiariesASABRIASDP Ferry IndonesiaAsuransi Ekspor IndonesiaAsuransi Jasa IndonesiaAsuransi Jasa Raharja and SubsidiariesAsuransi JiwasrayaAsuransi Kredit Indonesia and SubsidiariesBahana Pembinaan Usaha Indonesia and SubsidiariesBalai PustakaBank Mandiri and SubsidiariesBank Rakyat IndonesiaBank Tabungan NegaraBarata IndonesiaBerdikari and SubsidiariesBhanda Ghara Reksa and SubsidiariesBina KaryaBiofarmaBiro Klasifikasi IndonesiaBoma Bisma Indra BPJS KesehatanBPJS KetenagakerjaanBrantas Abipraya Bulog and SubsidiariesDahana DamriAndareksa and SubsidiariesDirgantara Indonesia and SubsidiariesDjakarta Lloyd and SubsidiariesDok and Perkapalan Kodja Bahari





shareholder


Dok and Perkapalan Surabaya GaramGaruda Indonesia and SubsidiariesHotel Indonesia NatourHutama Karya and SubsidiariesIGLASIndah KaryaIndofarma and SubsidiariesIndonesia Asahan AluminiumIndra KaryaIndustri Gula GlenmoreIndustri Kapal IndonesiaIndustri Kereta Api and SubsidiariesIndustri Sanandg Nusantara Industri Telekomunikasi Indonesia Istaka KaryaJaminan Kredit Indonesia Jasa Marga and SubsidiariesJasa Tirta IJasa Tirta IIKawasan Berikat Nusantara Kawasan Industri MakassarKawasan Industri MeandKawasan Industri WijayakusumaKementerian Keuangan Republik IndonesiaKereta Api Indonesia and SubsidiariesKertas Kraft AcehKertas Leces Kimia Farma and SubsidiariesKliring Berjangka Indonesia Krakatau Steel and SubsidiariesLembaga Pembiayaan Ekspor Indonesia (LPEI)LEN Industri and SubsidiariesLKBN Antara Merpati Nusantara Airlines PAL Indonesia and SubsidiariesPANN and SubsidiariesPegadaian and SubsidiariesPelabuhan Indonesia I and SubsidiariesPelabuhan Indonesia II and SubsidiariesPelabuhan Indonesia III and SubsidiariesPelabuhan Indonesia IV and SubsidiariesPelayaran Nasional Indonesia and SubsidiariesPembangunan Perumahan and SubsidiariesPengembangan Pariwisata IndonesiaPercetakan Negara Republik IndonesiaPercetakan Uang Republik Indonesia and SubsidiariesPerhutani and SubsidiariesPerikanan IndonesiaPerikanan NusantaraPerkebunan Nusantara III and SubsidiariesPermodalan Nasional Maandi and SubsidiariesPertamina and SubsidiariesPertani Perum Produksi Film NegaraPerumnas Perusahaan Gas Negara and SubsidiariesPerusahaan Listrik Negara and SubsidiariesPerusahaan Pengelola Aset and SubsidiariesPerusahaan Perdagangan IndonesiaPindad and SubsidiariesPos Indonesia and SubsidiariesPrimissimaPupuk Indonesia Holding Company and SubsidiariesRajawali Nusantara Indonesia and SubsidiariesReasuransi Indonesia Utama and Subsidiaries


shareholder


Sang Hyang SeriSarana Karya Sarana Multigriya FinansialSarinah and SubsidiariesSemen BaturajaSemen Indonesia and SubsidiariesSucofindo and SubsidiariesSurveyor Indonesia Tambang Batubara Bukit Asam and SubsidiariesTaspen and SubsidiariesTelekomunikasi Indonesia and SubsidiariesTimah and SubsidiariesVaruna Tirta PrakasyaVirama KaryaWaskita Karya and SubsidiariesWijaya Karya and SubsidiariesYodya Karya

Control on Company’s Activities

Key Management

By Ownership and/or Management

Asuransi TripakartaDana Pensiun BNIDPLK BNI

Transaction value

Significant transactions with related parties recorded by BNI are presented in the following table:

Description2019 2018

rp million rp million

current accounts with other banks

Bank Mandiri 598,663 78,796

LPEI 172 112

Bank Rakyat Indonesia 80 -

Total 598,915 78,908

Placements with other banks and Bank Indonesia

Bank Tabungan Negara 579,900 35,222

Bank Mandiri 219,405 538,386

Bank Rakyat Indonesia 22,452 1,103,975

Total 821,757 1,677,584

marketable securities

Bank Rakyat Indonesia 892,426 1,316,320

Hutama Karya 840,684 690,400

Bank Tabungan Negara 822,604 852,752

Bank Mandiri 818,558 740,081

Perusahaan Listrik Negara 716,235 392,070

Permodalan Nasional Madani 691,962 505,971

Semen Indonesia 327,330 251






Pegadaian 302,109 302,999

Pelabuhan Indonesia II 294,687 285,548

Bahana Pembinaan Usaha Indonesia 259,950 257,364

Danareksa 165,428 173,938

Telekomunikasi Indonesia 149,695 171,412

Jasa Marga 126,639 25,114

Bio Farma 100,000 100,000

LPEI 97,637 827,413

Kereta Api Indonesia 95,760 -

Sarana Multigriya Finansial 94,656 45,043

Waskita Karya 89,053 280,484

Kimia Farma 80,433 -

Others 314,922 217,674

Total 7,280,770 7,184,834

Pos Indonesia 50,000 50,000

Timah 36,046 40,594

Angkasa Pura I 36,021 33,706

Pelabuhan Indonesia I 20,443 19,888

Aneka Tambang 19,320 179

Wijaya Karya 15,114 194

Adhi Karya 4,959 97

Tambang Batubara Bukit Asam 327 584

Pembangunan Perumahan 103 170

Perusahaan Gas Negara - 362

Total 7,280,770 7,184,834

Government Bonds

Pemerintah Republik Indonesia 81,029,020 86,791,402

Total 81,029,020 86,791,402

Bills and other receivables

Waskita Karya 5,473,586 2,773,748

Adhi Karya 1,924,689 2,729,825

Wijaya Karya 1,797,823 1,118,976

Brantas Abipraya 1,207,261 1,511,881

Hutama Karya 868,897 817,363

Garuda Indonesia 554,563 667,532

Bank Mandiri 303,974 941,616

Nindya Karya 266,552 180,714

Semen Gresik 185,040 36,906

Telkom 182,064 181,732

Others 196,832 747,493

Total 12,961,279 11,707,785

Bank Rakyat Indonesia 39,472 402,678

Financial review



Bank Tabungan Negara 1,668 -

Krakatau Steel - 235,672

LPEI 5,964 7,402

Pindad - 1,745

Len Industri 510 -

Total 12,961,279 11,707,785

acceptances receivables

Adhi Karya 2,318,652 811,520

PLN 2,090,422 1,121,858

Krakatau Steel 1,548,189 103,993

Garuda Indonesia 1,105,752 1,078,895

Hutama Karya 438,582 530,997

Pembangunan Perumahan 260,166 793,789

Semen Indonesia 234,475 9,821

Dahana 153,679 145,812

LEN Industri 146,053 40,854

Nindya Karya 110,603 44,448

Industri Kereta Api 106,565 -

Wijaya Karya 81,216 151,949

Petrokimia Gresik 62,965 63,476

Pindad 59,981 249,080

Dirgantara Indonesia 54,307 33,989

Rekayasa Industri 43,309 -

Others 190,998 367,570

Total 9,005,913 5,548,051

Brantas Abipraya 25,268 2,149


Barata Indonesia 16,587 38,662

Perusahaan Perdagangan Indonesia 16,302 -

Infrastruktur Telekomunikasi Indonesia 15,355 -

Rajawali Nusindo 15,097 6,154

Bank Mandiri 13,847 924

Others 2,695 310,865

Total 9,005,913 5,548,051

Derivative receivables

PLN 16,651 -

Pertamina 5,000 46,137

Antam 4,876 -

Garuda Indonesia 1,564 -

Bank Mandiri 25 1,907

Krakatau Steel - 8,122






Others - 151

Total 28,116 56,317

loans

PLN 11,601,526 14,414,539

Waskita Karya 8,943,472 6,641,236

Jasa Marga 8,660,396 7,825,356

Perum Bulog 8,394,412 12,599,313

Telkom 7,116,129 6,191,700

Semen Gresik 6,734,512 4,300,618

Krakatau Steel 5,334,174 4,583,740

Pegadaian 5,126,136 4,563,915

Ministry of Finance of the Republic of Indonesia 4,860,966 3,257,073

Hutama Karya 4,654,217 1,469,190

Petrokimia Gresik 3,554,270 4,108,777

Semen Indonesia 2,821,699 16,806

Perkebunan Nusantara III 2,807,412 2,634,126

Garuda Indonesia 2,627,256 904,015

Perkebunan Nusantara VII 1,972,908 2,222,540

Kereta Api Indonesia 1,962,689 1,738,875

Adhi Karya 1,804,911 430,000

Kimia Farma 1,771,639 291,409

Pertamina 1,667,536 8,888,804

Rajawali Nusindo 1,460,579 1,108,824

Pelabuhan Indonesia I 1,306,516 944,584

Bukit Asam 1,233,534 1,822,209

Aneka Tambang 1,024,510 977,840

Semen Baturaja 1,016,946 863,904

Permodalan Nasional Madani 953,584 679,972

Perkebunan Nusantara XI 931,099 924,818

Pindad 918,151 624,403

PAL Indonesia 821,782 915,692

Wijaya Karya 788,402 1,046,434

Perkebunan Nusantara IV 721,189 471,189


Angkasa Pura II 685,405 700,000

Brantas Abipraya 634,971 308,413

LEN Industri 632,776 638,896

Infrastruktur Telekomunikasi Indonesia 583,736 974,873

Indonesia

Perkebunan Nusantara V 563,664 416,318

Industri Kereta Api 384,801 -

Perum Peruri 363,357 541,512

Others 3,817,127 5,773,269



Total 111,947,133 107,404,932

equity investments

PT PANN Maritime Financing 724,338 724,338

ToTal 724,338 724,338

Deposits from customers

The entity is controlled through the Government of the Republic of Indonesia

88,969,702 87,220,328

Key Management 122,255 243,546

Total 89,091,957 87,463,874

Deposits from other banks

The entity is controlled through the Government of the Republic of Indonesia

2,478,538 2,968,169

Total 2,478,538 2,968,169

securities sold under agreements to repurchase

Bank Mandiri - 87,503

Total - 87,503

securities issued


Taspen 419,900 419,866

DPLK BNI 199,953 199,936

Mandiri 148,965 148,952

Dana Pensiun BNI 29,993 29,990

Others 12,996 12,998

Total 1,268,699 1,268,596

Borrowings

Mandiri 450,248 117,110


LPEI 23,171 37,805

Ministry of Finance 60,431 66,643

Total 633,850 321,557

subordinated securities

Asuransi Tripakarta 24,991 24,988

Total 24,991 24,988

Derivative payables


PLN 11,892 -

Bank Mandiri 1,933 33,390

Pertamina 1,879 -

Others - 931

Total 29,931 41,234






acceptances payables

Hutama Karya 340,298 280,584



Garuda Indonesia 84,220 71,483

Nindya Karya 44,790 14,746


Brantas Abipraya 16,242 -

Waskita Karya 10,728 5,424

Pindad 9,317 241,525

LEN Industri 7,365 5,573


Krakatau Steel 2,029 12,234

Adhi Karya 391 982

Dahana 339 144,327

Boma Bisma Indra 83 5,620

Petrokimia Gresik - 63,476

Percetakan Negara Republik Indonesia - 41,170

Others - 13,180

Total 859,909 1,253,947

Temporary syirkah Funds - mudharabah current accounts

Entitas dikendalikan melalui Pemerintah Republik Indonesia 371,145 209,056

Total 371,145 209,056

Temporary syirkah Funds - mudharabah Deposit accounts

Entitas dikendalikan melalui Pemerintah Republik Indonesia 1,947,269 357,052

Manajemen Kunci 15,475 13,475

Total 1,962,744 370,527

Temporary syirkah Funds - mudharabah saving accounts

Entitas dikendalikan melalui 15,579 16,545

Pemerintah Republik Indonesia 24 29

Total 15,603 16,574

sukuk mudharabah yang Diterbitkan

Bank Syariah Mandiri

Dana Pensiun BNI

Bank Rakyat Indonesia Syariah

Danareksa

Penjaminan Infrastruktur Indonesia

Asuransi Tripakarta

Total

Financial review



Bank guarantees issued

Hutama Karya 3,243,883 3,205,967

Telkom 2,532,430 1,350,365

Wijaya Karya 2,335,397 2,742,572

Garuda Indonesia 1,520,300 1,372,821

Nindya Karya 1,483,488 1,598,651

Rekayasa Industri 1,392,804 1,599,659

Pertamina 1,366,005 1,606,975

Adhi Karya 1,278,653 2,403,442

Pembangunan Perumahan 1,210,765 1,932,559

Brantas Abipraya 910,902 1,007,708

Bank Mandiri 854,973 891,354

Waskita Karya 706,707 1,448,595

Industri Kereta Api 613,723 613,723


Perum Peruri 252,423 255,046

Pindad 221,753 122,465


LEN Industri 195,669 141,693


PLN 154,949 1,457,433


PAL Indonesia 114,463 173,127

Rajawali Nusindo 97,942 98,466

Infrastruktur Telekomunikasi Indonesia 97,941 102,274

Dahana 97,300 90,418

Others 468,474 1,244,951

Total 22,086,854 26,924,576

letter of credit

Krakatau Steel 973,270 688,541

Kereta Api Indonesia 914,819 1,038,299

PLN 860,934 1,328,363

Pertamina 420,056 614,719


Hutama Karya 238,580 633,118

Pindad 210,492 544,579



Nindya Karya 128,355 119,760

Pupuk Kujang 121,782 -







Adhi Karya 69,951 46,480

Dahana 65,626 127,152

Semen Gresik 60,039 139,734

Rekayasa Industri 58,921 -

Perum Peruri 55,418 32,840

Industri Kereta Api 52,304 766,065


Perusahaan Perdagangan Indonesia 40,428 1,362

Pelabuhan Indonesia I 36,095 287,648


Pupuk Iskandar Muda 30,803 62,154

Pelni 30,027 -

Others 113,800 443,698

Total 5,332,853 8,169,836

salaries and benefits

Salaries, benefits and long-term employee benefits of the Board of Commissioners, Directors, Audit Committee, Senior Executive Vice President (SEVP), Executive Vice President (EVP) and Senior Vice President (SPV)

446,176 372,017

Total 446,176 372,017

In addition, transactions balances with related parties as of December 31, 2019 and 2018 were as follows:



assets

Current accounts with other bank 598,915 78,908

Placements with other banks 821,757 1,677,584

Marketable securities 7,280,770 7,184,834

Government bonds 81,029,020 86,791,402

Bills and other receivables 12,961,279 11,707,785

Acceptances receivables 9,005,913 5,548,051

Derivative receivables 28,116 56,317

Loans 111,947,133 107,404,932

Equity investments 724,338 724,338

Total assets with related parties 224,397,241 221,174,151

Total consolidated assets 845,605,208 808,572,011

Percentage of total assets with related parties to total consolidated assets

26.5% 27.4%



liabilities

Deposits from customers 89,091,957 87,463,874

Deposit from other banks 2,478,538 2,968,169

Securities issued 1,268,699 1,268,596

Subordinated securities 24,991 24,988

Securities sold under agreements to repurchase

- 87,503

Borrowings 633,850 321,557

Derivative payables 29,931 41,234

Acceptances payables 859,909 1,253,947

Total liabilities with related parties

94,387,875 93,429,868

Total consolidated liabilities 688,489,442 671,237,546

Percentage of total liabilities with related parties to total consolidated liabilities

13,7% 13,9%

Temporary syirkah Funds

Mudharabah Saving 2,349,492 596,157

Sukuk Mudharabah

Total Temporary syirkah Funds with related parties

2,349,492 596,157

Total Temporary syirkah Funds 32,111,818 26,960,676

Percentage of total total temporary with syirkah funds with related parties to total consolidated Temporary syirkah funds

7.3% 2.2%

significant Prohibition, limitation, and/or obstacle to Transfer Funds Between Banks and other entities in one Business Group BNI provided funds to related parties worth Rp5.2 trillion in 2019. Provision of funds to related parties is still in accordance with the maximum lending threshold in accordance with PBI No. 7/3/PBI/2005 concerning Commercial Bank Legal Lending Limits (BMPK) as amended by PBI No. PBI No. 8/13/PBI/2006 which is a maximum of 10% of bank capital. By 2019, BNI provided funds to related parties namely BNI Syariah worthed Rp2.5 trillion; BNI Asset Management amounted to Rp1.3 trillion and BNI Multifinance stood at Rp525 billion. Cumulatively, BNI has conducted transactions with related parties based on fair and reasonable principles.




Total Bank Funds Provided For related Parties up To December 2019 - Banks only

Descriptions rp Billion

Total exposure to related parties 5,151

Capital 118,096

BMPK (10% of Capital) 11,809

Over (Under) to BMPK (6,658)

Total Bank Funds Provided For related Parties up to December 2019 by Type

No related Party Type of Funds ProvisionFunds Provision

rp Billion

1 BNI Asset Management Securities 1,301

2 BNI Syariah Participations, Bank Guarantees 2,501

3 BNI Multifinance Participations, Loans, Corporate Card 525

4 BNI Life Insurance Participations, Corporate Card, Bank Guarantees 395

5 BNI Sekuritas Participations, Loans, Corporate Card, Bank Guarantees 325

6 BNI Remittance Participations 10

7 Perseorangan Consumer Loans, Credit Card 94

TOTAL FUNDS PROVISION TO RELATED PARTIES 5,151

CAPITAL 118,096

BMPK (10% of Capital) 11,809

SPACE/Over (Under) (6,658)

Taxation - contribution to the state

BNI plays the role of a taxpayer and tax cut/collector as a form of contribution to the country. BNI’s biggest contribution as a taxpayer is fulfilling the Corporate Income Tax obligations. On the other hand, BNI plays an active role in cutting every taxable object in carrying out its function as a tax deduction. BNI is always on time in terms of payment of tax obligations on Corporate Income Tax, Employee Tax, PPN and PBB. BNI also submits tax liability documents such as annual and monthly tax returns as well as liability documents to the regulator in a timely manner. BNI reported the amount of tax payments in 2019 amounting to Rp9.0 trillion, up by 13.4% compared to 2018 of Rp7.9 trillion.


Growth2018-2019

Growth2017-2018

rp Billion (%) rp Billion (%)

PPN 268 377 348 (109) (28.9) 29 8.3

PPh 4,827 3,634 3,254 1,193 32.8 380 11.7

PPh corporate 3,801 3,829 3,211 (28) (0.7) 618 19.2

Other taxes 80 78 86 2 2.6 (8) (9.3)

Total 8,976 7,918 6,899 1,058 13.4 1,019 14.8

Financial review




Tax law IssuesBNI has filed an objection to the Corporate Income Tax Assessment Letter (SKPKB) for the 2015 fiscal year. The Directorate General of Taxes has partially granted BNI’s objections to the SKPKB Corporate Income Tax for the 2015 fiscal year. Based on the objection to the Tax Court, BNI submitted an appeal against the objection to the Tax Court. The Tax Court has not yet issued a decision on the appeal submitted by BNI. The Bank believes that the appeal can be granted so that the Bank does not form reserves of the SKPKB.

Tax Payment arrearsBNI has paid all tax assessments as a result of audits that are due for payment as described previously in the discussion of Tax Law Issues. Although BNI is still in the process of submitting legal remedies against the Director General of Taxes’ provisions, BNI continues to make payment obligations more than what is required in the tax provisions. So that the provisions of BNI are not tax arrears.

Foreign account Tax compliance act

FATCA is a regulation issued by the Department of Treasury and the Internal Revenue Service (“IRS”) of the United States to prevent tax evasion by US citizens or companies (US persons) through funds or businesses that are stored outside the United States.

Related to FATCA, the steps taken by BNI are:

FacTa

BNI registeredwith the Irs at

the end of april2014

since January

2015, the customerDue Diligence process

requiring prospective customers to fill out

an additional account opening form has been

conducted

since July 1, 2014,the customer DueDiligence process

for individual customers has

been carried out

In 2015, additional forms for individual customers were included in the account opening form

Then through POJK No. 25/POJK.03/2015 dated 11 December 2015 concerning Submission of Foreign Customer Information Regarding Taxation to Partner Countries or Partner Jurisdiction, BNI has also committed to take part in compliance with FATCA provisions, which have registered with the IRS as a financial institution that will implement FATCA provisions. At present compliance with FATCA is part of the Customer Due Diligence process at BNI which has been implemented since July 1, 2017. Bank reporting related to the POJK will only be conducted at the end of April 2018 for domestic taxation, while for the purposes of international agreements will first be reported in early August 2018.




Transfer Pricing Document

Minister of Finance Regulation (PMK) No. 213/PM.03/2016 concerning Types of Documents and/or Additional Information that Must Be Stored by Taxpayers Conducting Transactions with Parties with Special Relationships, and Procedures for Management.

This regulation intends to improve the quality of documents prepared by taxpayers and increase transparency. Taxpayers also need to be more proactive and ensure that the information needed to prepare master documents and local documents is available in order to comply with the provisions in accordance with applicable regulations. PT Bank Negara Indonesia, Tbk (BNI) as a taxpayer who obeys and complies with all existing tax regulations and has complied with these regulations. PreliminaryThe Ministry of Finance issued a new regulation on taxpayers required to make Transfer Pricing Documentation (TP Doc). This new TP rule complements the provisions related to the application of the principle of fairness and custom of business in transactions involving parties that have a special relationship.

Based on the definition in Article 1 number 6 PMK-213/PM.03/2016 it is stated that the transfer pricing document is a document that has been violated by the taxpayer as the basis for applying the principle of fairness and business prevalence in determining the transfer price carried out by the Taxpayer.

This regulation was issued in connection with the provisions of the transfer pricing document, and did not replace the applicable regulation to regulate the principle of business fairness and customization, namely DJP Regulation No. PER-43/PJ/2010 as last amended by DJP Regulation No. PER-32/PJ/2011.

Types of Documents That must Be organizedBased on these regulations, taxpayers are required to hold and store 3 (three) levels of documents consisting of:1. Parent Documents;2. Local Documents; and3. Reports by Country.

The aforementioned transfer pricing document must be submitted in Indonesian. However, taxpayers who have obtained permission to keep books in foreign languages

Financial review

and currencies other than Rupiah can produce documents in English accompanied by transfer pricing documents in Indonesian.

subjects required to make TP DocParties that are required to make TP Doc can be grouped into 2 (two), including:1. Those who are required to produce master documents

and local documents; and2. Those who are required to produce master documents,

local documents and reports per country.

Impact of regulations for the companyIn terms of implementing regulations related to Transfer Pricing, BNI has disclosed transactions with subsidiaries and other related parties in accordance with applicable regulations. In terms of evaluating arms length transactions or the reasonableness of BNI transactions with related parties, the company uses the services of a public accountant. Delloite to conduct an assessment. Based on the results of the assessment that has been carried out, that all transactions conducted by BNI with related parties have met the specified fairness limit.

access to Financial Information for Taxation Purposes

PreliminaryAutomatic Exchange of Financial Account Information or (AEOI) is the G20 countries’ plan and was initiated by the Organization for Economic Cooperation and Development (OECD) regarding a system that supports the exchange of taxpayer account information between countries.

With this system, taxpayers who have opened accounts in other countries will be tracked directly by their home country’s Tax Authorities. AEOI has a new global standard that will later be useful to reduce the chance of avoiding tax payments.

The AEOI work system is the exchange of financial data of foreign nationals living in a country. The exchange of financial data is not done arbitrarily, but rather is carried out between the tax authorities in each country. Every country that has joined the AEOI system will send and receive pre-agreed information every year without having to submit special requests.




In Indonesia itself, with the presence of AEOI, the Directorate General of Taxes can supervise and explore potential taxation through banking transactions or other financial institutions conducted by taxpayers abroad and developed so that it applies to taxpayers in the country. It is done to strengthen the database which so far has limited access so that it is expected that the potential of state revenue from the tax sector can be maximized.

scopeIn accordance with Law No. 9 of 2017 concerning Determination of Government Regulation in Lieu of Law Number 1 of 2017 concerning Access to Financial Information for Taxation Purposes, the scope of access to financial information is divided into 2 (two), namely:1. Exchange information for the benefit of international

agreements or foreign customers2. For the benefit of Domestic Tax or Domestic Customers

in the context of implementing Tax Regulations.

reporting subjects and Providers of Financial InformationBased on Law No. 9 of 2017, Financial Institutions (LK) that must be subject to the reporter are as follows:

Financial Institution By sector

Banking capital market Insurance commodity FuturesTrading cooperatives

Commercial Bank Underwriting General and ShariaInsurance Companies

Futures Broker Koperasi Simpan Pinjam

BPR Securities Brokerage (PPE) Sharia Life and LifeInsurance Company

Futures Broker ClearingMember

Islamic Bank Investment Manager (MI) Sharia Reinsurance and Reinsurance Company

Custodian Bank

Administrative Bureau

laws and regulations amendments that have significant Impact on BanksSome of the changes in laws and regulations that occurred throughout 2019 having a significant impact on BNI as a consolidated basis are as follows:

laws and regulations amendments Table

No. regulation regulation Description Background of the regulation Issuance

affect on BNI andsubsidiaries

1. PoJk No. 32/PoJk.03/2018Concerning the Legal Lending Limit and Provision of Large Funds for Commercial Banks

1. Provision of Funds to:a. 1 (one) Borrower other than Related Parties; orb. 1 (one) group of Borrowers other than Related

Parties, a maximum of 25% (twenty-five percent) of the Tier 1 Capital (tier 1) of the Bank.

2. Banks are prohibited from providing Provision of Funds to Related Parties without an approval of the Bank’s Board of Commissioners.

3. Banks are required to apply the Risk Mitigation Technique (MRK) that meets certain requirements in the LLL calculation in the event that the Bank recognizes the existence of collateral, guarantees, guarantees, or credit insurance as a MRK Technique in calculating weighted assets according to the standard approach credit risk. This applies if the Borrower and guarantor or collateral issuer are other than the Related Party.

To reduce the potential for failure of the Bank’s business as a result of the concentration of Provision of Funds, Banks are required to conduct the distribution and diversification of the Provision of Funds portfolio primarily through restrictions on Provision of Funds, both to Related Parties and other Related Parties, known as LLL and Large Provision of Funds.In connection with the foregoing, OJK issues this POJK as a guideline for implementing LLL and Provision of Large Funds.

BNI has implemented and complied with these regulations, as follows:1. Adjustment to all

provisions affected by the POJK.

2. Implement MRK according to the POJK.







2. PoJk No. 9/PoJk.04/2019Concerning Securities Brokers for Debt and Sukuk Securities

Banks must:1. Registered as a Broker for Debt and Sukuk

Securities (PPE-EBUS) at OJK before conducting activities as PPE-EBUS. Application for registration must be submitted by the applicant electronically through the OJK registration system.

2. Submitting reports to OJK electronically through the OJK reporting system:a. Monthly periodic activity reports are submitted

no later than the 12th (twelfth) working day of the following month;

b. Incidental reports (in the event of changes in supporting data) are submitted no later than 7 (seven) working days since there has been a formal change.

OJK issued this regulation due to the need to prepare legal instruments for debt and Sukuk intermediaries that cover all related aspects such as provisions on the types and limits of business activities, licensing and/or registration, obligations and prohibitions for debt and Sukuk intermediaries.

BNI has submitted an application for registration as a Securities Trader for Brokers and Sukuk Securities to the OJK.

3. PoJk No. 12/PoJk.03/2019 Regarding Commercial Bank Reporting through the Financial Services Authority Reporting System

Banks must:1. Submitting commercial bank reports (daily reports,

weekly reports, monthly reports, quarterly reports, semester reports, annual reports and other reports) through the OJK Reporting System, which is currently carried out on the OJK Online Reporting Application (APOLO) and is responsible for completeness, the accuracy, timeliness, and integrity of the data, as well as the timeliness of report submission.

2. Appointing the person in charge of reporting to the OJK and the person in charge of reporting will appoint the reporting officer.

In line with technological developments, online and efficient reporting methods are needed through the OJK Reporting System to increase effectiveness in monitoring and analyzing data and information related to OJK policy determination.

BNI has implemented and complied with these regulations and submitted reports to the FSA through APOLO.

4. PaDG No. 21/18/PaDG/2019Regarding the Implementation of the National Quick Response Code Standard for Payment

1. BI established the National QR Code Payment Standard (Quick Response Code Indonesian Standard), hereinafter referred to as QRIS for use in facilitating payment transactions in Indonesia.

2. QRIS must be used in every payment transaction in Indonesia which is facilitated by QR Code Payments.

3. Nominal QRIS transactions are limited to a maximum of Rp. 2,000,000.00 (two million rupiah) per transaction.

4. The obligation to use QRIS in every payment transaction also applies to payment transactions in Indonesia which are facilitated by QR Code Payments using the source of funds administered and/or payment instruments issued outside the territory of the Unitary State of the Republic of Indonesia which are carried out through cooperation between Service Providers Payment system in the form of Issuer and/or Acquirer with the party administering the source of funds and/or issuing the payment instruments. The cooperation must first obtain approval from Bank Indonesia.

In order to support digital economic and financial development, BI has established a national QR Code for payment (QRIS) standard to ensure that payment system services facilitated by QR Code Payments in Indonesia run effectively and efficiently, and ensure clarity of the roles and responsibilities of the parties in processing Payment transactions using QR Code Payments.

BNI has implemented and complied with these regulations and has renewed QR licensing according to QRIS to BI.

Financial review







5. PoJk No. 25/PoJk.03/2019Regarding Reporting Foreign Customer Information Regarding Taxation To Partner Countries Or Partner Jurisdictions

Banks must:1. Submitting financial information reports in

accordance with international agreements for each financial account that must be reported through the Foreign Customer Information Submission System (SiPINA).

2. submit corrections to the report in the event that there is a misinformation in the report

To support the Government of Indonesia and LJK in the implementation of automatic exchange of financial information and reporting obligations of financial information based on international agreements in the field of taxation, OJK issues regulations regarding reporting of foreign customer information related to taxation to partner countries or partner jurisdictions.

BNI has implemented and complied with these regulations.

6. PBI No. 21/12/PBI/2019Regarding Amendments to PBI No. 20/4/PBI/2018 on Macroprudential Intermediary Ratio and Macroprudential Liquidity Buffer for Conventional Commercial Bank, Sharia Commercial Bank, and Sharia Business Unit

PaDG No. 21/22/PaDG/2019 on Macroprudential Intermediary Ratio and Macroprudential Liquidity Buffer for Conventional Commercial Bank, Sharia Commercial Bank, and Sharia Business Unit

Banks must:1. Conduct additional loan component received

by Conventional Commercial Bank (BUK) as a component of funding in the calculation for Macroprudential Intermediary Ratio (RIM).

2. Conduct additional loan component received by Sharia Commercial Bank (BUS) and Sharia Business Unit (UUS) as a component of funding in the calculation for Sharia Macroprudential Intermediary Ratio (Sharia RIM).

3. Adjust the parameter for disinsentive and the lower limit prudential criteria in the form of non-performing loan and financing ratio and CAR as governed in this regulation.

4. Adjust the interest rate reference used as the basis for calculating the mandatory payment sanction for banks unable to comply with Giro RIM/RIM Sharia, adjusted from JIBOR Overnight to Indonesia Overnight Index Average (IndONIA).

BI has implemented improvements to macroprudential intermediary ratio and macroprudential liquidity buffer for Conventional Commercial Bank, Sharia Commercial Bank, and Sharia Business Unit.

BNI has complied with and implemented the regulation, including among others:1. Adjustments of

related internal regulations.

2. Adjustment to the formula for calculating RIM/Sharia RIM in accordance with BI regulation.

7. PBI No. 21/13/PBI/2019About Amendments to PBI No. 20/8/PBI/2018 concerning Loan to Value Ratio for Property Loans, Financing to Value Ratio for Property Financing, and Advances for Credit or Motorized Vehicle Financing

1. Completion of the policy regarding the LTV/FTV ratio for KP/PP including setting the LTV/FTV ratio for KP/PP for environmentally friendly properties.

2. Improving the policy regarding Advances for KKB/PKB, including arrangements for Advances for KKB/PKB for environmentally sound motor vehicles.

In the context of the realization of sustainable development through an environmentally friendly economy (green economy), BI participates by encouraging environmentally friendly financing (green financing) and setting incentive policies in the form of a more flexible ratio to LTV Ratio for KP and FTV Ratio for PP specifically for Insighted Properties Environment, as well as lighter down payments for KKB or PKB specifically for Motorized Vehicles with Environmental Insights.

BNI has implemented and complied with these regulations, and has made adjustments to internal policies with reference to the regulations in question.







8. PBI No. 21/14/PBI/2019 About Foreign Exchange Export Results and Foreign Exchange Import Payments

1. All export proceeds (DHE) must be received through the Bank no later than the end of the third month after the Export Customs Notification Month (PPE). The DHE value received must be in accordance with the Export Value or the difference of no more than Rp.50,000,000.00 (fifty million rupiah).

2. Submission of a DHE Report is carried out for an Export Value greater than the equivalent of USD10,000.00 (ten thousand United States dollars).

3. Import Payment Foreign Exchange (DPI) must be reported to BI no later than the end of the third month after the Import Customs Notification Month (PPI).

4. Submission of a DPI Report for Import Value greater than the equivalent of USD10,000.00 (ten thousand United States dollars).

5. All DHE SDA must be received through the Bank in the Special Account (Reksus) DHE SDA no later than the end of the third month after the PPE Month.

In line with the issuance of Government Regulations on foreign exchange export proceeds from the activities of exploitation, management, and/or processing of natural resources and to improve the quality of information obtained for effective DHE monitoring, BI issued DHE SDA provisions governing, among others, the obligation to receive DHE SDA at the Bank through the DHE SDA Reksus.


9. PBI No. 21/9/PBI/2019About the Integrated Commercial Bank Report

PaDG No. 21/23/PaDG/2019About the Integrated Commercial Bank Report

Banks must:1. Prepare and submit Commercial Bank Reports

(Financial Information Group Reports, Risk Information Group Reports, Payment Information System and Financial Services Group Reports, Basic Data Information Group Reports) to Bank Indonesia in a complete, accurate, current, complete, and timely manner.

2. Submitting Reports and/or Report corrections online through Bank Indonesia’s integrated reporting system. However, if the Bank or BI network system experiences technical problems or other disruptions, the report can be submitted offline.

Integrated reporting is built with the aim of improving data quality, reporting effectiveness, and reducing the burden of submitting bank reports to BI, OJK, and LPS.

BNI has implemented and complied with these regulations, among others as follows:1. Enhancing

the system to accommodate the integrated reporting system.

2. Submitting reports through an integrated reporting system in parallel run.

10. PoJk No. 28/PoJk.03/2019About Banking Synergy in One Ownership for Islamic Banking Development

1. Banking Synergy is a collaboration between Sharia Commercial Banks (BUS) and Commercial Banks that have ownership relationships through optimizing Commercial Bank resources to support the implementation of BUS activities that provide added value to BUS and Commercial Banks.

2. Forms of Banking Synergy, among others:a. Sharia Commercial Bank (LSBU) services,

namely fund raising, financing, and/or other banking service activities based on sharia principles carried out on Commercial Bank office networks for and on behalf of BUS.

b. Use of Commercial Bank human resources by BUS as customer consulting services in certain sectors; and

c. The use of Commercial Bank data centers and/or disaster recovery centers by the BUS.

3. BUS and Commercial Banks in implementing Banking Synergy must enter into a written cooperation agreement.

4. BUS and Commercial Banks must have written policies and procedures to manage risks inherent in Banking Synergy.

5. BUS and Commercial Banks that implement Banking Synergy must obtain approval from the FSA. To obtain approval from the OJK, BUS and Commercial Banks must include the Banking Synergy plan in the BUS business plan and in the Commercial Bank business plan.

Banking Synergy can increase risks for banks, both BUS and Commercial Banks, so OJK issues regulations related to this.


Financial review




changes in accounting Policies

Some accounting policies changed in 2019 and their impact on BNI on a consolidated basis are as follows:

Table of changes in accounting Policies

No accounting Policy change Policy change reasonImpact of accounting Policy

changes on BNIand subsidiaries

1 ISAK 35: Presentation of Non-Profit-Oriented Entity Financial Statements

SAK 35 issued by DSAK IAI is an interpretation of PSAK 1: Presentation of Financial Statements paragraph 05 which provides an example of how non-profit oriented entities make adjustments either: (i) adjusting the description used for certain items in the financial statements; and (ii) adjusting the description used for the financial statements themselves. This ISAK takes effect as of January 1, 2020

There is no significant impact

2 Amendments to PSAK 1: Presentation of Financial Statements concerning the titles of financial statements

Amendments to PSAK 1 are adjustments to several paragraphs in PSAK 1: Presentation of Financial Statements that were not previously adopted from IAS 1 Presentation of Financial Statements to be adopted. This amendment opens options that allow entities to use report titles other than those used in PSAK 1. These amendments take effect on January 1, 2020

BNI was given the option to use another title in the financial statements. In its implementation BNI also refers to POJK VIII.G.7, which regulates the structure of financial statements of Issuers listed on the Indonesia Stock Exchange

3 Amendments to PSAK 22: Business Combinations

This amendment clarifies the definition of business in order to assist the entity in determining whether a transaction should be recorded as a business combination or an asset acquisition. This amendment takes effect on January 1, 2020

This amendment has no impact on changes in BNI's accounting policies because internal policies are still relevant to this amendment

4 PSAK 102: Murabahah Accounting (revised 2019)

PSAK 102 (2019) revised the reference ‘recognition of resilient murabaha income for sellers without significant inventory risk’ to ISAK 101. Previously, this transaction referred to PSAK 50, PSAK 55 and PSAK 60. PSAK 102 (2019) also includes the addition of the term, changes in scope and some other insignificant arrangements.

The revised PSAK 102 and the issuance of ISAK 101 provide guidance on recognizing resilient murabaha income. Some accounting policies are adjusted in line with the implementation of PSAK and ISAK as of 1 January 2020

5 ISAK 101: Recognition of Resilient Murabahah Revenues Without Significant Risks Regarding Ownership of Inventory

.ISAK 101 will be a reference for entities that apply the 'effective income method' which previously referred to PSAK 50, PSAK 55 and PSAK 60.

6 ISAK 102: Impairment of Murabahah Receivables Value.

ISAK 102 related to ‘impairment of murabahah receivables’ is the standard bridging until the issuance of SFAS of impairment of assets originating from sharia-based transactions

This standard will be a temporary reference in the concept of impairment in sharia-based transactions. In general, the concept is still the same as the current standards, so no major accounting policy changes are needed.

Implementation of Psak 71In 2014, IASB (International Accounting Standard Board) issued IFRS 9 - Financial Instruments. This International Standard is effective in countries that implement IFRS Full Adoption as of January 1, 2018 in countries that adopt IFRS in full replacing IAS (International Accounting Standard) 39 - Financial Instruments: Recognition and Measurement (in Indonesia adopted as PSAK 55 - Financial Instruments: Recognition and Measurement.

In September 2017, DSAK IAI (Financial Accounting Standards Board - Indonesian Institute of Accountants) issued PSAK (Statement of Financial Accounting Standards) 71– Financial Instruments. This PSAK adopts IFRS 9 and will be effective as of January 1, 2020 replacing PSAK 55. The basic differences between IFRS or PSAK 71 with PSAK 55 are:




arrangement Psak 71 Psak 55

Determination of Classification of Financial Assets & Liabilities

Based on the Business Model with SPPI (Solely Principal, Payment & Interest) test Based on Intentions

Classification of Financial Assets• FairValuethroughProfit/Loss(FVPL)• FairValuethroughOtherComprehensiveIncome(FVOCI)• AmortisedCost(AC)

• HeldtoMaturity(HTM)• FairValuethroughProfit/Loss(FVTPL)• LoanandReceivables(LAR)• AvailableforSales(AFS)

Reclassification of Financial Assets If there is a change in the Company's Business Model Allowed, for certain conditions (certain conditions

will be subject to tainting rules)

Tainting Rules Deleted Valid for reclassification of HTM categories to AFS beyond material limits

Hedge Accounting

• Requirementsanddocumentationaresimpler• ItisdirectlyrelatedtotheBank’sriskmanagement

strategy• Assessmentofeffectivenessinaccordancewiththe

objectives of risk management

• Requirementsanddocumentationaremoredetailed

• ThereisnodirectrelationshipwiththeBank’srisk management strategy

• Assessmentofeffectivenessfrom80%to125%

Stages of Impairment Determination

1. Stage 1 - Performing• Financialinstrumentsthatdonotexperiencea

significant increase in credit risk (investment grade, and no arrears)

• ExpectedCreditLoss12Monthsafterthereportingdate

2. Stage 2 - Under Performing• Financialinstrumentsthatexperienceasignificant

increase in credit risk but there is no objective evidence of impairment (dhi. There are arrears but have not passed the criteria for impairment that is 90 days in arrears)

• ExpectedCreditLoss:Lifetime(forthelifeofthefinancial instrument

3. Stage 3 - Non Performing• Financialinstrumentsthathavemettheimpairment

criteria (arrears ≥ 90 days)• ExpectedCreditLoss:Lifetime(forthelifeofthe

financial instrument

1. Performing and Not Significant in value• CKPNiscalculatedcollectively• UsingProbabilityofDefault(PD)andLoss

Given Default (LDG) based on historical data

2. Non Performing and/or Significantly Individually• CKPNiscalculatedindividually• UsingDiscountedCKPNCashflow

Statistical approach Point in Time (PiT), taking into account macroeconomic factors

Migration analysis and roll rates, without taking into account macroeconomic factors

CKPN for Loan Commitments CKPN is calculated on Loan Commitments No CKPN calculation for Loan Commitments is performed

Progress of Psak 71 Implementation - Financial InstrumentsWith the issuance of IFRS 9: Financial Instruments by the International Accounting Standard Board (IASB) in 2014, BNI responded by preparing a literature review and initial gap analysis. In the framework of preparation for implementation, BNI also actively participated in discussions with the Indonesian Institute of Accountants (IAI) as an authorized institution in the preparation of financial accounting standards in Indonesia, the banking industry association and the Financial Services Authority (OJK).

In 2018, BNI reappointed KPMG as a consultant to accompany the implementation of PSAK 71 in the preparation of policies and procedures in accordance with PSAK 71. In addition, after going through the procurement process, BNI appointed PT. Nexia Indonesia Advisory Service as a system development vendor in the process of system development in supporting the implementation of PSAK 71 in BNI.

Preparation for the implementation of PSAK 71 is divided into 3 quantities to facilitate the focus of the preparation, namely:1. Stream Classification & Measurement2. Stream Impairment3. Stream Hedge Accounting

Financial review




roadmap for implementing Psak 71

Initial Preparation (max. Q Iv/2017) Development

(max. to Q II/2019)

Gap analysis(maximum to.Q I/2018)

Final analysis and Parallel run (min 6 months)

lIve

20202017 2018 2019

General

classifica-tion-

and meas-urement

Impair-ment

hedging accounts

• improved comprehension of PSaK 71 comprehensively in related Satker, including tone from the top

• the establishment of a dedicated team to apply PSaK 71 and work plans

• Provision of resources (people, funds, infrastructure, policies and procedures)

• Provision of data/information for disclosure in accordance with PSaK 71

• Changing policies & procedures• Development of a support system

for calculating allowance for loss losses in accordance with the criteria set out in PSaK71

• Changes to policies and procedures

• MiS adjustment (if needed)

• Changes to policies and procedures

• MiS adjustment (if needed)

• Finalize policies and procedures

• Parallel

Seeing the adequacy of resources (human, funding, infrastructure, policies and procedures)

identification of differences & adjustments needed in the classification of financial instruments in accordance with PSaK71



In accordance with the roadmap set by the OJK in the second quarter of 2019, BNI conducted a parallel run of PSAK 71 and analyzed the impact of implementation on BNI.

Some of the phases that have been carried out in the implementation of PSAK 71 include:1. Conducting Gap Analysis between current conditions

and conditions needed in the context of the implementation of PSAK 71

2. Selecting IT vendors and advisors3. Perform SPPI (Solely Payment from Principal and

Interest) Tests and Business Test models to determine the classification of financial assets based on PSAK 71

4. Identifying and reviewing the availability of impairment calculation data

5. Conducts studies and reviews of similar credit groupings (segmentation) in impairments

6. Developing the probability of default (PD) model7. Develop the Loss Given Default (LGD) model8. Developing the Exposure at Default (EAD) model

9. Review and arrange the staging criteria and their displacement

10. Develop a forward looking model and Expected Credit Losses (ECL)

11. Develop Business Requirement Design (BRD) for modeling PD, LGD, EAD, ECL and SICR

12. Developing IT application PSAK 71, including:a. Data preparation and identificationb. Arranging Functional Specification Design (FSD)

refers to BRDc. Developing applicationsd. Perform a System Integration Test (SIT)e. Perform a User Acceptance Test (UAT)f. Implementation of Parallel Run of PSAK 71

Applications

Referring to the accounting standards in the local country, 3 (three) BNI Branch Offices abroad, namely Singapore, London and Seoul, have implemented IFRS 9 - Financial Instruments as of January 1, 2018.




Business continuity Information

matters Potentially having a significant effect on Business continuityWorld economic growth is projected to grow by 3.4% in 2020 compared to world GDP growth in 2019 which is estimated at 3.0% as stated by the International Monetary Fund (IMF) in its published report entitled World Economic Outlook in October 2019. Key factors driving improvement in global economic growth is GDP growth in developing countries by 4.6% when GDP growth in advanced countries is still relatively stagnant at 1.7%.

In line with this IMF growth projection, the World Bank in its Global Economic Prospects report published in January 2020 also predicted improvement in global economic growth in 2020 although it was limited to 2.5% compared to the previous year of 2.4%. The improvement in world GDP growth was mainly driven by economic growth in countries included in the Emerging Market and Developing economies (EMDE) category of 4.1% compared to GDP growth in developed countries which only grew 1.4%.

In line with the hopes of improving the world economy, the Government of Indonesia in the 2020 State Budget and Expenditure Plan (RAPBN) estimates economic growth of 5.3% in 2020 sustained by well and controlled inflation management reaching 3.1%. Supported by the estimated improvement in economic conditions accompanied by easing monetary and fiscal policies undertaken by Bank Indonesia (BI), the Financial Services Authority estimates credit growth in 2020 of 13.0% (sindonews.com, August 16, 2019).

In addition to macroeconomic considerations, another factor influencing BNI’s survival is the industrial revolution 4.0. The Industrial Revolution is expected to have a fundamental impact because it has the potential to change the way industry works from production to sales by utilizing information technology. This Industrial Revolution will make it easier for MSMEs to access a wider market with more cost-effective, and open up opportunities for opening new businesses as well as the need for loan capital. On the other hand, opening market access allows MSMEs to compete head-to-head with big players so that they need good monitoring and management to survive.

Financial review

management assessment of Potentially significant effects on Business continuityResponding to these challenges, BNI developed an end-to-end digital credit process to support faster processes supported by monitoring utilizing data analytics. In addition, BNI continues to improve credit quality through the development of an early warning system and improvements to the overall process, and by continuing to refresh the credit employees.

Furthermore, BNI internally manages productive assets with sustainable prudence amidst banking business expansion while responding to the challenges of the Cost to Income Ratio (CIR) and the ratio of Operating Expenses to Operating Income (BOPO) which is still relatively high. BNI considers the importance of increasing the productivity and efficiency of the banking process to support business initiatives and bank strategies in providing maximum service to customers.

The steps taken by BNI are carried out by considering the strength possessed by BNI which has the highest Credit growth compared to Competitor Banks; Highest Corporate Segment growth compared to Competitor Banks; high KUR growth; good cash management skills; high Payroll growth; the best remittance service provider; and utilization of API Management.

In addition, BNI also considers and utilizes business opportunities in the banking industry going forward to ensure the continuity of the Bank’s business. These opportunities include: sustainability of infrastructure policies; investment policies that are open as wide as possible; planned issuance of holding BUMN banks and financial services; simultaneous local elections 2020; and an upward trend in electronic money transactions over the growth of depositor funds. Several other business opportunities are triggered by high millennial financial transactions, the implementation of Qanun, and the implementation of Sustainable Financing.




assumptions used by management in conducting assessments to manage Potentials that significantly Influence Business continuityBNI considers several factors in conducting an assessment of business continuity based on the Bank’s Business Plan, including the following:• Capital• Liquidity• Profitability• AssetQuality

These four factors serve as one of the evaluations of the Bank’s short-term and medium-term performance as outlined in the Bank’s Business Plan and Corporate Plan, which serve as a reference for BNI to continue to grow and develop in the Indonesian banking industry. The Bank Business Plan Document is prepared as a reference in carrying out BNI’s operational activities in the short term in accordance with the Vision, Mission, and Direction of BNI listed in the Bank’s Long-Term Plan (Corporate Plan).

In addition, considering the increasing competition in the banking industry, BNI has 5 (five) strategies to deal with the banking industry competition as follows:a. Capturing the potential business flow of APBN & APBD

funds through penetration of the market share of regionally managed hospitals, educational institutions in the regions especially those whose operations are sourced from the state budget and regional government budgets and programs related to social assistance and subsidies. Besides striving for BNI to become an operational bank for the Regional Government/Regional Government so that it can facilitate transactions within the region or between regions to the center. Through transactional solutions that focus on partnerships in ministries/Government Institutions, SOEs, Non Bank Financial Institutions (NBFI) and Universities to increase regional income while increasing accountability in regional financial management.

b. Improving the business of Corporate and Area customers by optimizing the business of corporate customers through supply chain financing (SCF) facilities, as well as optimizing operational demand deposits.

c. Optimizing Debtor Funds by encouraging central debtor STA financial transaction activities through the use of cash management services. With the use of CMS, it is expected that 20% of the debit balance can be deposited in the form of current accounts

d. Develop solutions and transactions that are customized according to customer needs, so that BNI can become an operating bank for state-owned and government/private institutions.

e. Increasing new market share through the acquisition of new customers in the ministries/government institutions, SOEs, NBFIs and universities.




BNI BusINess ProsPecTs

Internal and external factors affect BNI’s business prospects. Internal factors include BNI’s ability to mobilize and allocate its resources as well as to maintain and develop its core capabilities. These are important factors in anticipating and capturing business opportunities amidst existing external conditions.

The external factors that influence the business prospects of the Bank are political, economic, social, technological, environmental, and regulatory conditions. In general, post-election political conditions are quite conducive for the business world and BNI is always ready to anticipate the dynamics. Demographic mapping that shows sufficient potential of the younger generation to be developed, and the estimated absence of horizontal and vertical shocks that may significantly disrupt activities in the real sector, are positive factors in the current social condition. Meanwhile, support from technological factor is reflected by the increased internet penetration and use of gadgets that cause changes in customer preferences to meet their needs, thus resulting in disruption of the business models in various industrial sectors. Meanwhile, efforts to minimize environmental, social and governance risks must be carried out more transparently in line with the regulation for implementation of sustainable financing in the financial services industry and issuers, in terms of environmental and regulatory factors.

Regarding economic factor, the Government of Indonesia has set a target for economic growth of 5.3% in 2020. Estimation for a higher economic growth is supported by strengthening consumption and investment. Household consumption is expected to grow, with maintained inflation, the effectiveness of social assistance programs, and job creation. Government consumption will be supported by an increase in operational expenditure and investment expenditure (capital, infrastructure, and human resources). Investment growth is supported by increased direct investment (FDI) and portfolio investment through financial market deepening, improvement of the Ease of Doing Business, Investment Grade, and infrastructure development. Exports will grow due to the strengthening of exports through product diversification, strengthening of export-oriented manufacturing industries, and increased tourism services. Meanwhile, imports will increase in line with increased economic activity. In line with optimism for improvement in Indonesia’s GDP growth in 2020, bank lending is expected to grow by 11.0% -13.0%. The increase

in loans provided by the banking sector is projected to be followed by growth in Third Party Funds (DPK) of 9.0% - 11.0% in the same year.

loNG-Term sTraTeGy 2019-2023

In order to achieve BNI’s vision to become a “Financial Institution with Service and Performance Excellence”, BNI has established the 2019-2023 Corporate Plan with BNI’s aspiration in 2023 to “Become One of the Most Profitable Financial Institutions in Indonesia”. This aspiration will be achieved through BEYOND Traditional Financial Services strategies, namely:

B “Business community’s Financial Insitution of choice” Optimizing capabilities to be the choice of the business community.

e “ecosystem orchestrator” Developing potential business ecosystems.

y “your Preferred Personal Financial Partner” Developing potential business ecosystems.

o “organizationally ready for The Future” Optimizing services and solutions in the consumer business to become the main bank in customer transactions.

N “National agent of Development” Optimizing on government programs as a basis

for growth.

D “Digital and Data Driven Institution” Optimizing business development driven by

digital and data analytics.

To achieve this, BNI will focus on business expansion through the development of digital business models and ecosystems that focus on increasing productivity, improving asset quality, efficiency, and collaboration between units in 2020.

Business Prospect




BusINess DeveloPmeNT sTraTeGy 2020

Taking into account the latest developments in Indonesia’s macroeconomic conditions and other factors in terms of political, social, technological, environmental and regulatory aspects, and referring to the 2019-2023 BNI Corporate Plan and the Board of Directors’ General Policies, the strategic steps to be taken in 2020 are as follows:

Improving the Corporate Business with a focus on priority sectors and the optimization of business ecosystems through improvements in financial solutions with digital-based supply chain management. BNI considers it necessary to increase the portion of lending to priority sectors, including infrastructure, to support Indonesia’s economic development. BNI acquires and optimizes funds from corporate group customers, Government ministries and institutions, universities, and hospitals, by offering integrated financial solutions in the business ecosystem. BNI is also committed to increasing the growth of business potential through integrated financial solutions for Provincial and Regency/City Regional Governments, including smart cities.

BNI also sees the importance of strengthening the management of Medium Business to improve credit quality and productivity through increasing the productivity of relationship managers (RM) and the implementation of Project SMART. BNI also intends to increase the financial activities of Medium segment debtors through Cash Management to increase low-cost funds. In addition, BNI optimizes the Medium business segment from the supply chain of the Corporate segment.

In addition, BNI plans to improve the quality of the Small Business with a focus on regional potential to support national economic equality. To achieve this goal, the Small segment also strives to improve RM productivity and the implementation of the SMART Project, optimizing supply chain management from Corporate customers with a digital approach, optimizing business expansion in areas that are connected with infrastructure, and expanding penetration of the MSME market around Bank’s outlets through the “Orange Zone program “. In terms of financial transactions, BNI seeks to encourage Small segment debtors to use BNI as the main transaction facility in order to increase low-cost funds.

In addition, BNI plans to improve the quality of the Small Business with a focus on regional potential to support national economic equality. To achieve this goal, the Small segment also strives to improve RM productivity and the implementation of the SMART Project, optimizing supply

chain management from Corporate customers with a digital approach, optimizing business expansion in areas that are connected with infrastructure, and expanding penetration of the MSME market around Bank’s outlets through the “Orange Zone program “. In terms of financial transactions, BNI seeks to encourage Small segment debtors to use BNI as the main transaction facility in order to increase low-cost funds.

Third party fund raising is focused on increasing CASA and fee-based income (FBI) through increasing digital transactions, strategic partnerships and development of new business models. This is done through increasing user and e-Banking transactions, including through champion products. BNI also increased cooperation with strategic partners to improve digital transactions and optimize the business ecosystem by utilizing application programming interfaces (API) management. In addition, BNI optimizes ecosystem-based solutions throughout the region, develops product innovation and digital-based business activities, and carries out branch transformation to support new business models.

In terms of risk management, BNI strengthens risk management capabilities to support business expansion and quality digital business growth by strengthening debtor assessment capability through enhancement to the Risk Rating tools, debtor process and monitoring, as well as strengthening Risk Review analysis to support expansion in the priority sectors. In addition, BNI strengthened its liquidity by optimizing an efficient funding mix to support business expansion; strengthening the Early Warning System and improved Operational Risk Management through the Operational Risk Management System (ORMS) and Governance Risk Compliance (GRC) Forum. BNI also plays an active role in strengthening risk management in the process of New and Digital Products and/or Activities development, including reviewing existing products and strengthening IT security in support of digitalization.

In terms of enhancing Human Capital capabilities, BNI pursues a variety of policies namely improving RM capabilities in providing total financial solutions for customers and accelerating leadership capabilities to support business improvement. In anticipation of future developments in the financial industry, BNI needs to build capabilities in accordance with the business strategy and development, including digital capabilities, advance analytics and data literacy to build a culture of innovation. BNI has a role in improving talent capabilities to support the strategic partnership between BNI Group and fintech companies.




Management Credit Risk

In line with the established risk appetite, BNI ensures credit quality is maintained through synergy between business units. As a result, BNI was able to maintain credit quality with the achievement of the non-performing loan (NPL) ratio at the level of 2.3%.




STRATEGY AND POLICY 2019

BNI consistently maximizes sustainable credit risk management strategies and policies. Through the Credit Risk Unit, BNI carries out the Credit Risk Management strategy and policy in order to oversee the Bank’s aggressive credit growth in 2019, as a whole, starting from the flow of the credit distribution process, credit monitoring, to credit remedial and recovery.

Loans Disbursed Process FlowBNI has made improvements in the Business Banking loan process in the Corporate, Commercial and Small Business segments. Improvements made in the Corporate and Commercial Segments included:1. Refining the Business Unit Functions The business units planned the list of prospects,

marketing, conducts overall credit feasibility assessments (including first way out and second way out analysis) and borrower monitoring;

2. Refining the Risk Unit Functions The Risk Units provided recommendations to the

business units after conducting loan risk and mitigation/risk control analysis that focuses on likely risks and high impact.

While Small Business Segment improvements included:1. The RM (Business Unit) preparing a list of prospects,

marketing, conducting overall loan feasibility analysis (including first way out and second way out analysis) and borrower monitoring;

2. RM direct supervisors besides having inherent supervision functions, also having a deeper loan risk assessment function.

To maintain quality credit growth, the Credit Risk Unit implemented Credit Risk Management as a key strategy which includes:1. Credit Risk Analysis:

a. Balancing the business units (SRM and RM) roles in the committee.

b. Maximizing the risk unit role when applying the four eyes principles.

2. Credit Risk Review:a. Conducting periodic reviews initiated by the risk

unit heads at the Branch, Regional and Head Office levels;

b. Collaborating with independent parties on specific matters.

3. Credit Administration:a. Ensuring fixed assets collateral taken correctly

safeguards BNI’s interests;b. Ensuring credit documentation complies with the

provisions;c. Evaluating partner performance.

In the Corporate segment, BNI made the efforts needed to improve its credit quality in 2019, in line with the 2019-2023 Corporate Plan, including the following:1. Review the implementation of industry specialist in the

Risk Unit to further sharpen risk analysis according to industry characteristics and mitigation.

2. Prepare industrial studies which include key risk parameters and mitigation analyzes for leading sectors including Oil Palm Plantation, Toll Road Infrastructure, Electrical Infrastructure, Coal Mining, Property/Real Estate, Pharmaceutical Industry, Large & Retail Trade, Sugar Industry, and Industrial Industry Paper.

3. Intensive monitoring of debtors with the category of Loan at Risk (LaR), namely debtors with Collectability 1 (one) Restruct, Pre-NPL, and watchlist status through the Credit Risk Review mechanism (forum between risk units and business units).

4. Pro-actively and comprehensively restructuring through joint efforts between business units, risk units, and remedial and recovery units.

To improve credit quality in the Commercial and Small Segments, in line with the 2019-2023 BNI Corporate Plan and quality improvement solutions developed jointly with McKinsey Consultants during 2019, BNI has made efforts to improve risk management and credit processes, among others as follows:




1. Credit Risk Analysis:a. Improvement of the credit process through the

implementation of Smart CA-based Credit Application Devices (PAK) and digital solutions for verification in the form of PACE (Package of Accurate, Convenient and Efficient Recasting) tools,

b. Strengthen the tracking process function c. Development and improvement of the electronic

Loan Origination (eLO) system as a tool to minimize risk in the process and credit decision making in the Small Business Segment end-to-end.

2. Credit Risk Review, including:a. Mapping and discussing loan problems that have

occurred and making recommendations (risk mitigation and lessons learnt).

b. Refining the identification and monitoring of borrower problems so that more accurate action plans can be determined.

c. The implementation of web-based Early Warning System (EWS), a monitoring tool to predict debtors’ trends from Current Payment Collectibility Status (Gol. 1) down to non-performing in the next 3 (three) to 6 (six) months.

3. The formation of ad-hoc teams in all remote units in an effort to reduce Loan at Risk (LaR).

4. Pro-actively and comprehensively restructuring by undertaking joint efforts between business units, risk units, and remedial and recovery units.

BNI continues to evaluate, improve and develop with the aim to improve the quality of loans that are distributed and managed. To accelerate the process, the Small Business segment, specifically the distribution of People’s Business Credit (KUR) and BNI Entrepreneurship (BWU), has been supported by an Electronic Loan Origination (eLO) system that continues to be developed (and has been calibrated against the parameters of debtor assessment and analysis) in line with business needs. In addition to these improvements and developments, RM’s pipeline management and supervision functions from the direct supervisor are consistently carried out. In addition, BNI also strengthened the four eyes principle at all stages, in the credit processing units up to credit decision making in the credit committees, covering credit approval officer, in accordance with their authority, aimed at maintaining the quality of loans disbursed.

To support business growth and the achievement of BNI’s profit, particularly in the consumer credit sector, credit risk management remains comprehensive and prudent, and makes improvements. Efforts made to improve credit quality during 2019 include:1. Preparation of BNI Griya policies and programs to

support the expansion in low risk segments, namely employees in selected institutions (eg BUMN/BHMN/BUMD, PTN, CASN/ASN, TNI/POLRI, Regulators, Higher Institutions/Government Agencies), payroll customers, emerald customers, existing debtors, and selected developers.

2. Formulation of policies and programs to support the expansion of BNI Credit Cards that focus on SOEs, government institutions, multinational private entities, existing customers, universities, selected professionals, or applicants who have been BNI customers for a minimum of six months.

3. Implementation of application software to detect the risk of fraud or bad incoming applications (Credit Loss Prevention System).

Loan MonitoringBNI conducts intensive monitoring and loan collection in order to create quality asset growth. This monitoring can be realized through visits to borrowers to see the condition of their business, review the feasibility of their loans, and monitor the payment of their liabilities.

In the segnment of business banking, BNI also optimizes its monitoring tools, namely watchlist system and credit risk review. Both are used to monitor the borrowers’ loan performance, and to determine any follow-up to ensure the loan quality does not deteriorate. Specifically for the Commercial and Small segments, BNI already has an Early Warning System (EWS) as a predictive probability of default, as well as establishing debtor follow-up to avoid a decline in credit quality.

Meanwhile, credit monitoring in the consumer segment is carried out by:1. Segmentation of billing based on credit card behavior

score, i.e. historical analysis of transactions and payment of debtor bills.

2. Priority of billing based on segmentasi institusi warning list for BNI Fleksi.

3. Increasing the productivity of collection by using the performance collection application for consumer credit products in centers and branches.





4. BNI Flexibility and Griya credit monitoring strategies• CorrectiveActionatcenters/branches• Changestothedebtorduedate• ListofPendingBuyBackGuarantee• SubmissionofBNIInstantDebtorswhohavearrears

and whose loans will mature.5. Credit card monitoring strategies, namely through SMS

Blast, letters, visits and telephone calls.

Credit Remedial and RecoveryIn 2019, the uncertainty of the global economy, among others due to the trade war, has a significant impact on the domestic economy and affect the performance of the banking industry. In facing the current economic situation, Banks continue to prioritize the principle of prudence in managing business risk and credit portfolios. BNI’s strategy is by providing loan to customers with good credit quality, carrying out the credit process prudently, and monitoring the loan strictly.

BNI keeps its loan remedial and recovery strategy in order to strengthen BNI’s financial fundamentals and maintain credit quality, among others by increasing the coverage ratio and optimally handling non-performing loans. Non-performing loan handling follows two strategies, loan restructuring and loan settlement. The restructuring strategy includes:1. Restructuring (Reconditioning, Rescheduling) borrowers

who have difficulties in fulfilling their obligations but still have prospects and are considered cooperative;

2. Deposits/Settlements through strategic investors;3. Sales of guarantees voluntarily or through execution of

Underwriting Rights; and4. Foreclosing Collateral (AYDA) and Temporary

Participation by the Bank (PSB).5. In collaboration with third parties, both advisors and

lawyers.

While the settlement strategy is applied to borrowers without any prospect of settlement. Written off loans will be pursued to the maximum to minimize bank losses through:1. Loan settlement through strategic investors;2. Sales of guarantees voluntarily or through execution of

Underwriting Rights;

3. Marketing loan collateral from the consumer and business banking segments by using collateral auction websites that can be accessed by the general public for;

4. Subrogation;5. Legal action by billing personal guarantors (PG)

andcompany guarantors (CG), execution of mortgage/fiduciary rights, litigation, bankruptcy and claims.

6. Office to office sales of guarantees.

Consumer credit non-performing loans are pursued through two strategies, loan restructuring and settlement, that include:1. Asset Quality Improvement and Acceleration Recovery

(PPKA) Program for borrowers who have difficulties in fulfilling their obligations but still have prospects and are considered cooperative;

2. Improving the buyback guarantee policy (BNI Griya).3. Optimizing Legal action (simple lawsuit, State Attorney/

JPN);4. Loan settlement through the transfer of NPL and Delete

Book receivables (cessie-transfer or sale of bank-owned loans to other parties or investors based on criteria set by the Bank);

5. BNI Griya Instant Program Approval for the purchase of NPL debtor credit collateral and write off books.

PERFORMANCE IN 2019

Selective Growth of Earning AssetsThroughout 2019, the trade war between the United States (US) and China became a central issue in the global economy. The trade war caused a decline in the volume of world trade and consequently slowed the pace of world economic growth. World economic growth is expected to decline from 3.6% in 2018 to only 3.0% in 2019. On the other hand, the Indonesian economy shows resilience, although it has slowed slightly in line with the weakening global economy. GDP growth in 2019 was recorded at 5.05% (yoy), although slowing slightly from the same period in the previous year at 5.17% (yoy).




Against this backdrop, BNI established a policy to continue to strengthen business expansion in selected corporate markets and commercial segments in selected sectors to maintain the growth of productive assets. BNI also optimizes supply chain and cross selling, as an important element in achieving quality credit growth through a deep assessment process on the parent account (Anchor Company).

Throughout 2019, BNI managed to record credit growth of 8.6% to Rp556.8 trillion, marking the stable acceleration of the banking intermediation function amid challenging economic conditions. This achievement was supported by the Bank’s efforts to improve and manage credit risk to create higher quality growth. In line with the established risk appetite, BNI ensures credit quality is maintained through synergy between business units. As a result, BNI was able to maintain credit quality with the achievement of the non-performing loan (NPL) ratio at the level of 2.3%.

Credit Risk Management StrategyThrough various strategies and policies, the Bank was able to record credit growth of Rp556.8 trillion in 2019. The credit growth was carried out by applying the principle of prudence consistently so that even the Non-Performing Loans (NPLs) up 2.3%, it was offset by the increase in CKPN of Rp1.8 trillion which lead to relatively high yields. BNI also implements a strategy of selective expansion in sectors that have low risk where BNI is a major player. In addition, BNI also restructured and remedial for troubled debtors, who still have the potential for financial and operational improvements. Absolute NPL (Bank only) recorded a decrease from Rp9.2 trillion in 2018 to Rp11.9 trillion in 2019. Then, the gross NPL ratio was recorded at 2.3% in 2019 with the net NPL recorded 1.2% in 2019. BNI continues to show commitment to continue to maintain the quality of loans provided amid aggressive expansion.

STRATEGY AND WORK PLAN 2020

In 2020, BNI established an aggressive growth policy while maintaining quality through internal and external studies that have been carried out. Credit expansion is again focused on prospective and priority industries. The strategy to improve credit quality is also one of the main focuses, namely through improving the credit process, which includes restructuring non-performing debtors, increasing risk control in the credit process by applying the four eyes principle and supervising superiors effectively. Credit monitoring is also continuously optimized in order to identify debtor problems from early on so as to enabling the Bank to implement appropriate corrective actions.

BNI plans to strengthen Credit Risk Management as the main strategy in guarding aggressive growth policies in 2020 including:1. Credit Risk Analysis, including:

a. Increasing the role and competence of Credit Risk Analysts, among others through:• CorporateSegments

- Optimization of industry specialists, especially for the leading sector;

- Joint Effort between Risk Unit and Business Unit for optimal handling of loans that fall into the category of loan at risk

- Strengthening the monitoring of debtor activity after the credit granting process, including monitoring the distribution of financial transactions in BNI and meeting the obligations of the DSRA (Debt Service Account) and DSPA (Debt Service Payment Account).

- Training and seminars according to industry specifications;

- Sharing sessions with industry players, regulators and other stakeholders;





• CommercialandSmallBusinessSegments- Implementation of eLO in processing credit

of up to Rp.3 billion in the small business segment;

- Strengthening the tracking process function;- Increased risk assessment of risk units

through knowledge sharing of certain sectors originating from industry specialists in the corporate segment;

- Sharing sessions with industry players, regulators and other stakeholders through the Risk Awareness Training Program;

b. Maximizing the role of the risk unit as a counterweight to the role of the business unit, and applying the four eyes principles.

2. Credit Risk Review, including:a. Mapping and discussing credit issues that have

occurred and the recommendations (risk mitigation and lesson learned);

b. Strengthening the ability to identify debtor problems early through the Early Warning System (EWS).

c. Sharpening the identification and monitoring of debtor issues so that the specified action plan is more accurate; and

d. Reviewing the key parameters of the existing industrial sector, to adjust to the macro and micro conditions of the industry.

Meanwhile, plans and strategies for consumer credit in 2020 include:• BNIGriyacreditexpansionfocusedonselected

partners (PKS Developer, selected institutions, existing debtors, selected professionals, Emerald and payroll customers), take over debtors of other banks that have good track records, Top Up programs for existing debtors, development of schemes cash in stages for the developer, as well as cooperation with fintech lending that has been registered and licensed by OJK.

• ExpansionofBNIFleksiwhichisfocusedonselectedinstitutions and selected partners who have collaborated with BNI (SOE, Government Agencies, Ministries, State Universities), the effectiveness of using existing payroll data leads for BNI Flexi.

• Increaseretention/loyaltyofKTABNIFlexithroughTopUp program from existing payroll.

• ImplementationoftheNewLoanOriginationSysteminall consumer centers and consumer credit processing branches.

• ProjectforImprovementofRiskManagementandCreditProcess for consumers, including bulk sales of collateral and enhancement of performance collection applications for consumer debtors.

• Implementationofapplicationstosupportdigitalverification using internal and external data (SmartDigi).

• PrepareaspecialbillingsegmentationforBNIGriyadebtors with outstanding above five billion rupiah.

• ExtensionoftheAssetQualityandAcceleratingRecovery (PPKA) Improvement Program for debtors who have difficulty in fulfilling their obligations but still have prospects and are are considered cooperative;

• Maximizingthestrategiesimplementedin2019asfollows:a. Optimization of Legal Action Collection (simple

lawsuit, Subpoena, cessie, bankruptcy and Attorney) b. Special Program for Remedial and Recovery of Credit

Card Debtors




Human Capital

Facing the challenges of rapid technological development in banking industry, the development and management of Human Capital (HC) has become one of the competitive advantages in supporting the achievement of BNI. Therefore, throughout 2019, BNI carried out the HC strategy and management that was aligned with the Bank’s long-term strategy and business developments in the financial industry both now and in the future. HC management in 2019 is focused on optimizing productivity through accelerating the development of capabilities to prepare BNI HC to be able to adapt to increasingly dynamic and competitive business challenges.




ROLE OF HUMAN CAPITAL

BNI believes that to realize the vision of becoming an excellent Financial Institution in Services and Performance, it takes “Highly Engaged Employee” and “Highly Productive Employee”. A number of factors that can promote employee engagement (engagement driver) are leadership, career paths, rewards and remuneration, organizational policies, employee learning and development, performance management, work environment, work-life balance, and work infrastructure. Meanwhile, the factors that influence employee productivity are business processes, organization, technology, and execution culture. Thus, to ensure that BNI employees are engaged and productive employees, Human Capital has the role to intervene through the preparation and implementation of Human Capital policies that are in line with BNI’s business strategy.

Table of Thinking System of Bank Negara Indonesia

BNI GROUP AS A FINANCIAL INSTITUTION WITH SERVICE & PERFORMANCE EXCELLENCE

HIGHLY ENGAGED EMPLOYEE

LEADERSHIP

CAREER

REWARD & REMUNERATION

WORKINGENVIRONMENT

PERFORMANCE MANAGEMENT

ORGANIZATIONPOLICY

WORK LIFEBALANCE

WORKINGINFRSTRUCTURE

LEARNING & DEVELOPMENT

HIGHLY PRODUCTIVE EMPLOYEE

PROCESS ORGANIZATION

TECHNOLOGYEXECUTION

CULTURE

HUMAN CAPITALINTERVENTION




HUMAN CAPITAL ARCHITECTURE

BNI’s policies on Human Capital is based on Human Capital Architecture (HC Architecture) which leads to Employe Value Proposition (EVP), namely “Together making BNI the best place to contribute, to learn and to grow”. BNI uses the phrase “Together” as an emphasize that employees and itself are two interrelated and inseparable entities in realizing BNI’s vision.

Under the HC Architecture applied at BNI, there are organization and employees that are interrelated with one another. The organization has a set of objective to be achieved, along with the strategy laid to achieve these goals, as well as corporate culture serving as guidelines of behavior of the employees. The employees are expected to be able to show performance that supports the achievement of organizational goals, competencies that are aligned with strategy, and employee behavior that is consistent with organizational culture.

To support the above, BNI’s HC is supported by career path system (talent & sucession), capability development system (learning & development), as well as appreciation for the contributions made (reward and recognition). As an organization with employees spread throughout Indonesia, it is imperative that the Bank has to be supported with Information, Communication & Technology as the main infrastructure, in order to reach all of its employees that spread throughout BNI operational area. And the most important thing in implementing Human Capital policy is the active role of leaders throughout the organization to the smallest unit to be able to implement policies optimally.

GoalPerformance

Co

mp

etency

Behavior

Str

aeg

y

Culture

Information Com

munication Tecn

olo

gy

I

nfo

rmat

ion

Com

mun

icat

ion

Te

cnology

Information Communication Tecnology

Leadership

Lea

ders

hip

Leadership

Org

aniz

atio

n

Talent &Succession

Learning &Development

Reward &Recognition

Peo

ple

EVP

Human Capital




HUMAN RESOURCE MANAGEMENT STRUCTURE

All human resource management at BNI is under the Human Capital Sector, which is led by the Human Capital & Compliance Director. The Human Capital Sector consists of the Human Capital Management Division which has the authority to set policies and carry out the operationalization of human resource management policies; and BNI Corporate University which has the main function in developing employee capabilities.

Managing Director Human Capital and Compliance

Human Capital Division

Human CapitalSystem Business Partner

Work Culture Managing Leadership

Manager of Non-Leaders

HMR (Region)

Assessment Center

Learning Consultant

Strategy & Operations

Learning Consultant Teaching staff

Learning Services

Systems & Infrastructure Knowledge

Management

Teaching staff

Human Capital Strategy

Recruitment andOutsourcing

OperationalHuman Capital

Pemprosesan Kasus Pegawai

IndustrialRelations

Human CapitalServices Business Partner Business Academy

Learning & OperationalExperience

Leadership Academyand Corporate Core

BNI Corporate University

Profile of Head of Division in the Human Capital Sector

The brief profile of heads of division in the sector that manages human resources is as follows:

1. Head of Human Capital Management Division The Human Capital Management Division is led by Efita Praharani who has 20 years of experience in managing human

resources at BNI. Previously, she served as Deputy Head of the Consumer Product Management Division and Head of Regional Consumer Banking, Head of Jakarta Kemayoran Regional Office. She holds a Bachelor’s Degree in Psychology from the University Gadjah Mada and a Masters Degree in Administration from the University of Indonesia.

2. Head of BNI Corporate University BNI Corporate University is led by Anang Basuki who has been serving as Chief of Learning Officer of BNI Corporate

University since July 15, 2019. He has experience in a number of strategic positions both at the head office and in the regional office, such as the Head of Credit Administration Division, Head of Internal Supervision Unit, CEO of Padang Regional Office. He has a Bachelor of Economics Degree in Accounting from Gadjah Mada University.




Profile of Employee Information about employee profiles can be found in the BNI Profile section of this Annual Report.

OPTIMIZING PRODUCTIVITY AND ACCELERATING DEVELOPMENT

In 2019, the Human Capital Strategy is adjusted to suit the main theme, namely “Optimizing Productivity and Accelerating Development”. This theme was realized through a number of initiatives including by optimizing employee productivity through robust workforce planning and by accelerating human resources development with an integrated development plan mechanism.

Workforce Planning StrategyWorkforce planning strategies include managing headcount, managing costs and managing capabilities that are aligned with BNI’s business processes. In order to increase employee productivity as measured by Earning per Employee (EPE), one of BNI’s strategies is by maintaining total number of employee. In 2019, total number of employee allocated by the Company is lower than that of 2018. Apart from the number of employees, in 2019 the composition of employees in business origination positions is also targeted to be increased in order to support the achievement of BNI’s business targets. A number of initiatives were undertaken to support the achievement of this target, among others through evaluating work processes, employee deployment towards business origination positions and employee recruitment focused on business origination positions. This initiative is certainly aligned with the employee capability development strategy before occupying a new position so that it is able to contribute optimally in supporting the achievement of BNI’s business targets.

The realization of total number of employees in 2019 was 27,211, lower than the number of employees in the previous year. This attainment has also proven to be effective in supporting the achievement of BNI’s business targets as measured by the Earning per Employee indicator of Rp. 537 million/employee, an increase from the previous year. The realization of the composition of employees in the business origination position reached 55%, an increase compared to 2018 by 49% and 2017 by 43%.

To ensure the availability of new talent in line with BNI’s business needs, in 2019 BNI will continue to open a number of recruitment channels in accordance with the position required. The employee recruitment process carried out aims to ensure that employee regeneration can take place on an ongoing basis.

The Officer Development Program or ODP is a prospective officer development program that aims to recruit new graduates from universities to pursue careers at BNI. Employees recruited through this path will then undergo the development process as trainee before eventually occupying the destination position. In 2019, the number of employees recruited through the ODP was 788 employees.

In addition to Officer-level positions, BNI also continues to open recruitment for assistant levels, mostly aimed at filling assistant-level positions at Branch Offices and Centers. The goal position of this channel recruitment is mostly focused on business origination positions such as sales, credit staff, and service-related positions with a total of 935 employees.

BINA BNI is an apprenticeship program as a manifestation of BNI’s social care and responsibility. The program, which has been running since 2017, aims to provide fresh graduates with the knowledge, skills and abilities to be able to compete in the workforce. Participants receive formal training before undergoing practice in their respective placement positions. Thus, participants have the opportunity to practice the knowledge gained during formal training. In their daily lives, trainees are also accompanied and directed by mentors to be given ongoing guidance. In 2019, the number of Bina BNI apprentices was 4329 participants.

Meanwhile, employee turnover in 2019 was 4.57% or decreased from 2018 of 4.76%. This decrease in turnover is the impact of the ongoing efforts of Human Capital management until 2019.

ACCELERATING TALENT DEVELOPMENT

Talent Development is part of talent management mechanism applied at BNI which consists of Talent Acquisition, Talent Classification, Talent Development, Talent Mobility and Talent Retention. The purpose of Talent Development is to develop talent so that it has the capability to support the realization of BNI’s vision, both now and in the future.

Human Capital




Leadership, Productivity and Accelerating DevelopmentIn line with the focus of BNI Human Capital in 2019, namely the development of employee leadership, accelerated employee development, and optimizing employee productivity, the role of future leaders is needed in making decisions promptly. In order to deal with these conditions, BNI established programs that aim to provide opportunities for employees to accelerate and improve the capabilities of hard skills and soft skills, especially in the field of leadership.

Leader Succession By focusing on leadership capabilities, BNI carries the theme of Leaders Create New Leaders, which can be translated into Building Immediate Successors and Preparing Future Leaders. It is intended to prepare successors, both in the short and long term. This successor development method uses the concept of 70:20:10, which is 70% Experiential Learning, where participants are actively involved in activities in related units, 20% Social Learning, namely through discussion and sharing from mentors or peers, and 10% Formal Learning, namely by studying material both from books and formal training.

The talent development system is formed by taking into account the results of the assessment, performance appraisal, and talent mobility plan. Mentoring, cross mentoring, and coaching programs are methods of developing fellow employees that aim to improve the ability of hard skills and soft skills, especially the leadership abilities of each employee.

Career Acceleration: Skip & Speed Track This program is intended to accelerate employee careers, to occupy higher managerial positions, with candidates sourced from internal BNI and carried out through a series of development programs so that candidates are expected to master more competence from positions to be occupied. Career acceleration program is divided into 2 (two), namely Skip Track which is the process of accelerating career mobility of employees to the level and grade of the destination position by jumping over 1 (one) position/level, and Speed Track is the process of accelerating employee mobility towards the level and grade of the destination position, faster than normal mobility.

BNI gave me the best opportunity to take part in the MT Rookie 46 Career Acceleration Program. At the time of the debriefing, BNI prepared me both in terms of soft skills and hard skills to become a reliable and integrated banker so that I was able to face the era of disruption to continue to innovate and think quickly in accordance with developments era.

Currently, I am given the mandate to become a Branch Manager in Branch Business Marketing (Deputy Branch Manager). This is an extraordinary opportunity for me to manage the team so that I can make an optimal contribution for BNI.

Thank you BNI, because with the spirit of Swadarma Bakti Negara, I have made more trust and optimism that BNI will continue to advance and develop to be the best.

Zaidir Syah MaulanaHead of Branch Office Business Marketing Jababeka – Career Acceleration Program

KCLN InternshipOne of the employee development programs implemented in 2019 is the Internship Program at the Overseas Branch Office for 3 (three) months which aims to develop BNI employees as future leaders who have global exposure, and able to optimize various global business opportunities in a number of BNI’s business lines, among them are CASA, Credit and other banking services which have an impact on increasing profit contribution. In 2019, 2 (two) batches of qualified participants enrolled in the KCLN apprenticeship program, in which the first batch of 16 employees had been dispatched for internships in a number of KCLN from Singapore to London, while the second batch was planned to depart on year 2020.




KCLN Internship Testimony

I am very grateful to have the opportunity of an internship at KCLN. This is a valuable experience for me to have a global exposure by learning firsthand about the business processes at KCLN.

The placement process of the interns was done carefully and paid attention to the background of my current field of work. I was placed in Seoul, which is one of the most innovative cities in the world and has a massive development of the Fintech industry. This is in line with my current interests and line of work, particularly in managing merchants and fintech.

As the best place to learn to grow and contribute, BNI truly embodies this where opportunities for developing employees to fulfill their competencies are truly realized.

Thank you BNI !

Aldio DwitamaE-Banking Division

Internship participants at KCLN Seoul BNI is the best place to learn, share and get the opportunity to become a Global Bankers with support from BNI Overseas Branch Offices (KCLN).

Besides providing an opportunity for me to become a Global Bankers, I get the opportunity to be able to study the Wealth Management business model abroad.

It was very inspiring and gave me insight to support my current work so that in the future I can contribute in improving BNI services, especially in the field of Wealth Management.

Growing Together With BNI, BNI always gives more

Aisyana Genia VicaksaniWealth Management Division

Internship participants at KCLN Singapore

Global Postgraduate ProgramIn an increasingly competitive business development, capability of employees is the key to support BNI to continue to be able to compete, not only domestically but also globally. BNI provides opportunities for employees to be able to continue their education abroad at various well-known universities for qualified employees. This program, is a program that will continue to be carried out in 2020.

Develop Analytics Data CapabilityAlong with the development of technology, the use of data in a company becomes a necessity to build competitive advantage. Capability in data analytics is one of the capabilities developed by BNI through a number of development programs that are systematically compiled. Programs that will be held in 2019 include the Data Scientist

Human Capital




Development Program, which aims to build an Analytics Center of Excellence and training in developing scientist data capabilities for Headquarters and Regional Office employees.

Developing Employee CapabilityThe development of employee capabilities at BNI is coordinated by BNI Corporate University. The concept of employee capability development is carried out through skillset, mindset and toolset interventions. Some BNI Corporate University programs include:• BNI’sAssessmentCenterbecomestheCenterofDigital

Assessment and Evaluation (BNI CODAE) placing BNI as the only State-Owned Bank (BUMN) that has an Assessment Center function in digital format. Through digitizing the BNI CODAE assessment process, it will improve the effectiveness of the service and the quality of the assessment results.

• ImplementationofBNISmarter,BNISMARTER(BNIIntegrated Learning System) which was developed since 2017 as an online one stop learning solution that adopts Learning and Development Theory 70:20:10. The BNI Smarter application has been registered with the Ministry of Justice and Human Rights in force since 1 August 2017, with PT. Bank Negara Indonesia (Persero), Tbk as the Copyright holder.

• ImplementationofBNILearningWallet(BLW),isa personal learning budget allocation managed by employees themselves with the aim of meeting the competency gap or can make working smarter, faster and more efficiently. The amount of the BLW budget is adjusted to the results of talent classification, total cash (salary), realization of learning and sharing and the availability of a learning budget. The BLW implementation is carried out online, starting from learning planning to reimbursement of learning costs.

• ImplementationofBNIExpertLocator,employeescanfind and contact experts needed to meet the needs of expert knowledge or expertise in supporting work, both in the process of problem solving and knowledge creation. Then, the activity is directly recorded the realization of learning. There are 588 employees who have been designated as BNI Experts in areas including: corporate communication, audit, policy, compliance, risk management, credit remedial and recovery, banking operational management, procurement management,

strategic planning, data management, IT assessment, project management, financial analysis, credit analysis and credit process, project financing, portfolio analysis etc.

• ImplementationoftheDailyExerciseEmployeeProgram 46 (DEEP46), a learning program with the employee method given short questions every day, to be done online between 00.00-19.00WIB with the aim of ensuring that employees master competencies according to their job position.

• LearningwithBNICorpUPodcast,isoneofthelearningchannels to support learning anywhere, anytime and anyhow. Learning topics include the areas of credit, leadership, learning and development and about digital transformation. This podcast can be accessed on BNI Smarter or general topics that can be accessed on Spotify.

• ImplementationofLeadershipProgramsconsistingofDigital Leadership for All Levels, Leadership Programs for Club 46, and Internship programs at Overseas Branch Offices for the 10 best graduates from each program, Advanced Management Development Program (AMDP), General Management Program (GMP), Management Development Program (MDP), and Management Trainee (MT) Program and Officer Development Program (ODP).

• BNIMoReUnLeaSh(BNImonitoringtheRealizationof Uploaded Learning and Sharing) is an application to foster learning and sharing culture among employees by stimulating employees to be able to do it every day and record it online using the application. BNI employees are required to do a minimum of 46 hours of learning and 46 hours of sharing each year.

• BNIDigitalLearningarelearningmodulesthatcanbeaccessed by employees anywhere and anytime, both in the form of pdfs, gamification, bite sized videos and so on. In addition it also contains pre and post tests, smartbooks and modules of learning programs that are held both in blended learning and 100% online learning.

• Learner’sVirtualAssistant(LeVA)isanArtificialIntelligence (AI) based application that can be downloaded via a smartphone. Where employees can interact with bots related to learning modules, as well as BNI Corporate University programs or related to Human Capital, through text or voice commands. With LeVA, employees do not need to read a module as a whole to find the required knowledge.




• DailyCheckInisanapplicationtooverseetheimplementation of on the job training (OJT), In Service Training and Evaluation (ISTE) and Field Evaluation (Evalap). This is to ensure the learning participants, mentors and Unit Leaders can carry out their tasks according to the learning design.

• LearningMarketplaceisalearningmarkettomeetemployees’ hard competency development in accordance with their job position. Employees can choose compulsory development and other developments based on discussions between superiors and subordinates.

• PublicTrainingInfoisamenutosupportemployeesinutilizing the BLW budget, which contains information about BLW provider training partners and their learning event schedules.

REALIZING A HIGHLY ENGAGED EMPLOYEE

In line with BNI’s thinking system, one of the goals to be achieved is realizing Highly Engaged Employees through the implementation of Human Capital policies. To that end, BNI periodically measures the level of employee engagement through the Employee Engagement Survey (EES). The results of this survey provide feedback for evaluating the human resource management system in order to be able to set policies in accordance with employee aspirations. The employee engagement survey results showed an increase, where employee engagement in 2019 was 90%, an increase from 2018 by 88% and in 2017 by 82.83%. This increase in employee engagement indicates that HR management policies can be accepted by employees. This is a good capital for increasing employee productivity.

CommunityTo increase the level of employee engagement, BNI organizes various communities for employees, both in the arts, sports, or certain hobbies. Channeling the interests and talents of these employees not only in the internal community but also in external activities. BNI also develops communities in a program called P46UYUBAN. Employees can participate in the community at BNI by registering at www.46paguyuban.com.

In 2019, the BNI internal community association held a basketball competition for head office and branch office employees and the BNI Bikers Jelajah Negeri program,

Human Capital

traveling Java Island from km 0 to the city of Denpasar. The communities at BNI also achieve proud achievements. This year, the Reog Ponorogo BNI community participated in the 26th National Reog Ponorogo festival in Ponorogo, and Gitaswara 46 BNI emerged as the Champion of the OJK 2019 Choir Competition.

Employee VolunteeringBNI provides opportunities for employees to carry out volunteering activities, one of which is the Jangkawan program, which is a donation program through the website www.jangkawanbni.com. BNI also collaborates with WWF for volunteering programs and national SAR agencies to provide training and certification to members of the disaster emergency response team.

Reward and RecognitionRemuneration is one of the important aspects in attracting, motivating, and retaining the best employees in the context of providing quality human resources and superior competence to support the achievement of company vision. BNI also gives appreciation to outstanding employees, including by providing career promotions by considering the capability of employees to carry out greater duties and responsibilities; performance consistency in recent years; and the need for positions for employees to be promoted.

To implement a remuneration strategy that is always competitive in the market, the remuneration adjustment initiative in 2019 is a continuation of the remuneration strategy in the previous year, namely increasing benefits and allowances and focusing on the composition of motivational rewards, especially for certain positions, which at the same time motivate and retain employees.

Working EnvironmentCollaboration is one of the important factors in achieving the Bank’s vision. To face increasingly competitive business challenges, BNI needs to build strong synergies between all components at BNI. At present, the work environment at BNI is increasingly driven towards open space, which is believed to be in accordance with the concept of agile work that promotes collaboration. To facilitate collaboration, BNI increasingly encourages the availability of open working space. BNI already has The 46 Hub as Coworking Space which can be used by employees to work as well as a space to gather for various communities in BNI. In addition, BNI also provides daycare facilities at work that can be used




by employees to leave their children during work hours, so employees can feel more comfortable working. BNI Innovation Award (Binnova) BNI Business Innovation Award (Binnova) is a manifestation of the BNI PRINCIPLE 46 Work Culture, which is the value of “Continuous Improvement”. This program aims to gather innovation in all units in BNI, and help foster a culture of continuous innovation in their respective units,

BNI Digi HCBNI already has an Integrated Human Capital System (IHCS) system as an HR management system that is regularly evaluated, in line with changes in Human Capital policies implemented at BNI. This system can not only be accessed via the web, but can also be accessed via mobile under the name Digi HC. The provision of various platforms aims to improve accessibility to facilitate employees in accessing various Human Capital policies, ranging from absenteeism, leave, financial information, to updates on the latest Human Capital policies.

Healthy Lifestyle for BNI Hi MoversHealth is one of the most valuable aspects of life, therefore, BNI specifically organizes various programs that support employee health including through routine Medical Check Up, Instant Medical Check Up, organizing seminars with the theme Health Awareness, Healthy Food programs Support and provision of a Gym Center that can be utilized by employees.

APPRECIATION AND AWARD 2019

BNI seriously places employees as the important element and strategic partner in carrying out business activities. On March 11, 2019, BNI Corporate University received the International Corporate Learning Improvement Process (CLIP) accreditation from EFMD as the largest international network association in management based in Brussels, Belgium. CLIP accreditation is an independent international accreditation granted to the Corporate Learning Organization. In addition to bringing internal and external recognition, CLIP can create a strategic dialogue among stakeholders of the learning function about the role of learning in improving performance and accelerating transformation and continuous improvement. CLIP evaluation includes Corporate learning & development both professionalism in managing L&D practices and processes as well as links to company strategies. CLIP accreditation

covers international standards in terms of strategic positioning, target market & participation management, programs, services & activities, marketing, external parties, company learning teams, resources and physical administration, innovation & development and global outreach.

In addition to the accreditation assessment, the Bank also participates in activities involving external parties in comparing and evaluating a number of aspects of HR management as a means of evaluating and comparing HR management systems each year. In the course of the evaluation, BNI also always gets appreciation and appreciation in the management of human resources, and in 2019, BNI was awarded the Best Human Capital for SOE Public Bank awarded by the Economic Review.

WORK PLAN, STRATEGY, AND PROGRAM 2020

Facing business challenges and the dynamics of the banking industry along with disruption in the banking industry, requires proper HR management strategy planning. To that end, in 2020, the Human Capital program will focus on improving employee capabilities through the following programs:• Enhancing Current Capabilites is an employee

capability enhancement program to be able to carry out its functions more optimally. This program includes aspects of Leadership, Business and Strategic Core Function Capability

• Job Shifting aims to prepare for changes in capabilities needed by the organization for functions that will be reduced, increased, lost or new functions as a result of changes in the company’s business direction

• Building New Capabilty is the establishment of future capabilities for employees to support BNI’s strategy and turn uncertainty into opportunities.

• Global & Digital Mindset aims to provide international/global insight through the opportunity to take part in Seminars, Scholarships and Internships to gain global exposure. As well as building employee digital mindsets, among others, to become learning agile, innovative, collaborative, data driven and human centric.




Information Technology

BNI has BNI Digital Services which provides convenience, speed, security to meet the needs of BNI’s financial services that are integrated throughout the existing digital business ecosystem and are currently growing.




INFORMATION TECHNOLOGY POLICIES AND STRATEGIC INITIATIVES

Through the Information Technology Solution Division (STI), Information Technology Operations Division (OTI), and Information Security Unit (ISU), BNI focuses on various policies and strategic initiatives to improve business processes, system availability, IT development for digital enablers, infrastructure, networks communication and service of the Bank’s digital products in line with the development of the banking industry. IT development is also aimed at infrastructure refreshment, both for systems and networks, to support increased transactions, and strengthen Information Security capabilities.

BNI Policies and Strategic Initiatives in 2019

As strategic partner in supporting BNI businesses through a more agile and dynamic IT

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Focus of IT Support 2019

Funding Lending International & Treasury IT & Ops Regulatory

Compliance Human Capital BNI Incorporated & SOE Synergy

Provide the necessary IT solutions needed to support the Bank’s

Strategic Plan to become a Competitive Financial Service

Providing Decision Support and Management Information System

services

Providing IT services with high availability & reliability

Ensuring compliance with IT banking governance

Providing IT based solution to support businesses through

inovation and implementation of IT Governance

Holding an excellent, innovative and secure IT Operation to

maintain availability, reability and maintainability of IT service for

business user

Become a strategic partner for the Business Unit in providing

information security services to relevant stakeholders

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ADVANTAGES OF BNI INFORMATION TECHNOLOGY

Some of BNI’s strengths in Information Technology that can support its business include:1. Application Programming Interface (API) as an open banking platform that facilitates integration and collaboration with third

parties including start-ups and financial technology companies (fintech) to utilize bank services securely and in real time.2. Using a data center that is supported by a disaster recovery center to ensure maximum service availability. BNI’s data

center has obtained Tier III Design Certification for the category of Tier Certification of Design Documents (TCDD) and Tier III Facility for the category of Tier Certification for Constructed Facilities (TCCF) from the Uptime Institute.

3. As the development of data warehouse, BNI adopts big data technology that enables companies to get better customer insight and business insight.

4. BNI also continues to innovate and develop customer centric information technology by focusing on the comfort and security aspects of transacting digitally.

5. The IT work unit has been strengthened by a special work unit that handles information security, so that IT security management becomes more optimal.

6. The development of IT Solutions applies the BI-CAPITAL approach, which is two separate work methods that remain coherent. The first method is optimized for areas that are more predictable and well understood, while the second method is more exploratory for solving new problems. The result is the application of conventional and agile development methods. Both of these methods are implemented with the aim of providing optimal service, faster time to market, and customer-centric.




UTILIZATION OF INFORMATION TECHNOLOGY

“In 2019, BI recorded a realization of capital expenditure or capital expenditure (capex) of up to 98%, the majority of which was in infrastructure projects of middleware, switching and surrounding systems.”

Information Technology Architecture

Throughout 2019, BNI continued to perfect the Application Architecture Landscape scheme as follows:

ENTERPRISE INFORMATION SYSTEM & DECISION SUPPORT SYSTEM

INFRASTRUCTURE

DATA WAREHOUSE

ADMINISTRATION

MIDDLEWARE

RISK

BANK MANAGEMENT

CUSTOMER MANAGEMENT

PRODUCTS PROCESSING

DELIVERY CHANNEL (DIRECT ACCESS)

PAY

ME

NT

S

DELIVERY CHANNEL (INDIRECT ACCESS)

BIG DATA

Application Architecture LandscapeOPERATION PROCESSING EKSTERNAL LINKS SUPPORTING BUSINESS APPLICATION

Information Technology Landscape Architecture applications are grouped as follows:1. DSS/EIS, is part of the application architecture that provides analytical applications and information processing consisting of

Regular Reports, Business Intelligence, Dashboards, and Analysis.2. Data Warehouse & Big Data, which is an integrated interface that processes Data Extract, Transform, Load (ETL) &

Extract, Load, Transform (ELT) and data management.3. Operational Processing, which is part of the application architecture that provides BNI business operational applications

consisting of 3 (three) sub sections, namely:a. Product Processing, the Bank’s main business operations application.b. Bank Management, application that supports the Bank’s main business operations.c. Customer Management, an application used to manage customer data/Bank user services.

4. Delivery Channel (Direct & Indirect Access), which is part of the application architecture that provides applications that facilitate the interaction of parties related to the Bank directly (direct access) and indirect (indirect access) by customers.

5. Middleware or Enterprise Application Integration (EAI), is the integration of data/information between applications.6. External Link, is part of the application architecture that provides applications that are connected with third parties, both for

business to business and business to government connections.a. Payment is a module for payment transactions, money transfers and transaction settlement.





7. Supporting Business Applicationsa. Risk is a collection of risk management applications.b. Administration is a collection of Administrative

Applications and their supporters.8. Infrastructure, is an application that supports all Bank

business operations and is closely related to IT activities

By using the Landscape Application Architecture as a reference, we can obtain standardized IT applications to produce effective and maximum utilization of IT services.

Information Technology Infrastructure

“BNI’s data center, supported by a disaster recovery center, has obtained Tier III Design

Certification for the Tier Certification of Design Documents (TCDD) category and Tier III Facility

for the Tier Certification for Constructed Facilities (TCCF) category from the Uptime

Institute.”

To support various digital activities in BNI’s business, a reliable and up-to-date IT infrastructure is key in maintaining the availability and accessibility of BNI services. Throughout 2019 BNI has improved the performance of IT infrastructure for ATM, Credit Card and Middleware services. In addition, rejuvenation from the core-banking side has become the backbone of all digital services at BNI, as well as the rejuvenation of the core service IT infrastructure to improve the performance of each BNI digital applications to accommodate future IT innovations such as omni-channels, microservices, and blockchain.

Aside from infrastructure rejuvenation, BNI has also adopted the High Availability (HA) Technology so as to minimize service disruptions, reduce downtime, and speed up service or system recovery times so as to have minimal impact on business operations at BNI. In line with this, to ensure the branch needs for intranet networks in daily operations, BNI builds backup-links through the internet or WAN (Wide Area Network) with the same level of security between the Main network and the backup network. With this backup-link, the availability of banking services at the branch becomes more secure despite a problem in one of the connecting networks to BNI’s data center.

The impact of digital business development at BNI is directly proportional to computing needs. Cloud technology is BNI’s step in meeting the needs for reliable and fast computing. BNI is actively developing Private Cloud facilities through the use of virtualization, where the deployment of applications will be more efficient in terms of cost and time and more flexible in the process of implementation and maintenance. At present the majority of BNI’s server infrastructure has been optimized using virtualization technology.

IT services at BNI branch offices are also crucial in carrying out daily operations, as a manifestation of BNI’s commitment to provide the best service for its customers. To ensure smooth bank operations without obstacles from the IT side, BNI significantly improves IT Helpdesk services in facilitating the need to escalate IT operational problems to the relevant units or divisions. The improvement of the IT Help Desk facility makes it easier for every IT stakeholder to submit reports on IT system failures, problem tracking and finding the most appropriate solution.

INFORMATION SECURITY CONTROL

In an effort to improve information security, in addition to implementing a variety of safeguards that refer to international standards, BNI also formed a special organization (Information Security Unit) that combines several units that have functions related to information security to maintain independence and focus more on evaluating, implementing, monitoring and improving cybersecurity.

This Information Security Unit plays a role in all activities related to information security at BNI, including in the areas of governance, access control, and business processes, and plays an active role in the field of application development, operational information security life cycle including digital forensic and incident handling related to cyber-crime.

Information Security ArchitectureThe information security architecture refers to Governance-Regulation-Compliance (GRC), Protection Security, and Operation Security with the following explanation:• GRC The implementation of governance, regulation and

compliance is always the focus of attention so that information security can run well and in accordance with internal policies, statutory provisions and best practice.




• ProtectionSecurity Implementation of information security for assets, data, applications, endpoints, networks and perimeter security to ensure

the principles of confidentiality, integrity and availability can run properly.• OperationSecurity Implementation of security operations is carried out by monitoring events and incidents at all times in an effort to detect

and prevent cybersecurity threats.

Perimeter Security

Protection Security

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Network Security

Endpoint Security

Application Security

Data Security

Asset BNI

Cybersecurity Proactive Cybersecurity is one important factor in gaining customer trust so that it will always receive serious attention to be developed continuously by BNI by implementing security controls to ensure business continuity from the threads of cybercrime.

Protection against cyber-crime threats that have been developed by BNI include:1. Cybersecurity capacity building and updates through hardware and software implementation.2. Development of cybersecurity monitoring capabilities.3. Application of security to prevent the spread of malware at atms.4. Implementation of security by using and updating antivirus on the device.5. Educate employees to increase awareness of cyber security.6. Provide 24x7 proactive monitoring of cybercrime potentials.7. Collaborating with various stakeholders, including with official state agencies and other cybersecurity activist communities.

In addition to the aforementioned matters, as well as taking into account the current trends of cyber attacks, which are increasingly widening towards customers, BNI implements several safeguards on the customer side, including:1. Application of various mechanisms of customer protection against fraud transactions caused by malware banking and social

engineering.2. Implementation of fake website detection in the name of BNI.





3. Notification mechanism for customer transactions.4. Continual education to customers about self-protection through password security, internet banking security, mobile

banking security, transaction security at ATMs and others.

With the direction of business development towards digital banking, cybersecurity will continue to be developed in guarding banking service innovations so that aspects of customer trust and comfort can always be maintained.

IT HR DEVELOPMENT

o be adaptive to changes in the fast digital era, capabilities are needed not only in terms of Process and Technology, but also in the People aspect. With the understanding that the development of Human Resources as BNI’s most important asset is needed for the future success of the organization, the IT Work Unit provides employees with a variety of training to develop soft skills and hard skills. Soft skill development includes training in digital leadership, technology presentation skills, as well as communication & negotiation skills. While providing hard skills such as project management training, IT architecture, programming, CI/CD, etc.

Throughout 2019, BNI has engaged IT employees to attend education and training, some of which are:

Training Objective

Project Management Certification For PMP, MPM & Project Support project achievement and organizational goals & can provide greater assurance to stakeholders that resources will be managed effectively.

Professional Scrum Master (PSM), Professional Scrum Product Owner (PSPO), Professional Scrum Developer (PSD)

Support the implementation of agile organizations by building mindset, values, work patterns, skills, and knowledge that are more adaptive to change by promoting collaboration between functions/units to achieve common goals.

Communication And Negotiation Skill For Business People Having communication and negotiation skills to reach a decision.

Business Technology Strategy Get in-depth knowledge and best practice between business and technology

IT Architecture Core Improve and sharpen IT Architecture skillset

Cobit 2019 Improve understanding of the principles, models and best practices of the COBIT framework for IT governance and management

Cyber Security

Knowing the definition of Cybercrime and computer fraud in general, Knowing the dimensions of cybercrime and computer fraud in criminal law, Knowing and understanding the countermeasures and steps of cybercrime and computer fraud, Understanding and ensuring the implementation of countermeasures and measures of cybercrime and computer fraud carried out effectively and efficiently

Swift Understanding the programming language SWIFT

Java Fundamental There is a need to upgrade front end programming skills and JAVA-based backend systems

Ci/Cd (Continuous Integration And Continuous Delivery) Understanding the DevOps concepts of Continuous Integration, Continuous Delivery and Continuous Deployment using Jenkins

Learning Alliance With Fintechs Develop a broad insight about Fintech related to the services offered and its credibility

Magic Communication For Selling And Product Knowledge Having communication and negotiation skills to reach a decision

Digital Leadership Introducing digital technology into organizations with the support of leadership abilities

Technology Presentation Skill Improve employee skills in the process of communicating internally and externally

Digital Risk Understand the potential risks to the digital age

Digital Fraud Understand the potential for fraud in the digital age




Testimony from Officer Development Program (ODP)

I am grateful to be able to join the BNI IT Team. I also get various kinds of IT training and certifications, one of which is Scrum Developer training & certification to prepare employees to become agile & reliable software developers.

Wildan AnugrahAPI Management Group

Being a part of BNI ODP is a matter of pride for me, moreover I’m not from accounting, finance, or management. This made me learn how to meet business needs according to my duties and responsibilities. I am grateful that by working at BNI, I gained positive energy and new knowledge.

Sondang Stevani LoupattyIT Governance Group


IT CertificationIn order to respond to challenges in the future, BNI needs a systematic IT HR education and training program and can develop IT HR capabilities. In addition, certifications possessed by IT human resources are also needed to gain national and international recognition of competencies, increase individual credibility, and add new insights that are not obtained in ordinary education and training. The certifications held by the Bank’s IT HR in 2019 are as follows:• ProfessionalScrumDeveloper(PSD):acertification

that proves an individual understanding of Scrum and Agile principles, and have learned specialized Agile engineering skills

• CertifiedInformationSecurityManager(CISM):asecurity certification of the Information Systems Audit and Control Association

• CertifiedInformationSystemsAuditor(CISA):world-renowned as the standard of achievement for those who audit, control, monitor and assess information technology and business systems.

• CertifiedEthicalHacker(CEH):aqualificationobtainedby demonstrating knowledge of assessing the security of computer systems by looking for weaknesses and vulnerabilities in target systems

• CertifiedInformationSystemsSecurityProfessional(CISSP): an independent information security certification granted by the International Information System Security Certification Consortium, also known as ISC

• ComputerHackingForensicInvestigator(CHFI):TheCHFI certification validate the candidate’s skills to identify an intruder’s footprints and to properly gather the necessary evidence to prosecute in the court of law

• COBIT(ControlObjectivesforInformationandRelatedTechnologies): a framework created by ISACA for information technology (IT) management and IT governance

• CiscoCertifiedNetworkProfessional(CCNP):ITcertification for a person in the IT industry who has achieved the professional level of Cisco Career Certification

• CiscoCertifiedNetworkAssociate(CCNA):CCNAcertification is an associate-level Cisco Career certification.




• ProjectManagementProfessional(PMP):aninternationally recognized professional designation offered by the Project Management Institute (PMI)

• CertifiedAssociateinProjectManagement(CAPM):acredential offered by the Project Management Institute (PMI) for project practitioners

• TheOpenGroupArchitectureFramework(TOGAF):a framework for enterprise architecture that provides an approach for designing, planning, implementing, and governing an enterprise information technology architecture

• ISEB-ISTQB:softwaretesting/softwarequalityassurancecertification

• CertifiedInformationTechnologyArchitect–Foundation(CITA-F): IT Certification for IT Architect knowledges based on Iasa’s IT Architecture Body of Knowledge (ITABoK)

• TheOracleCertifiedAssociate(OCA):TheOCAcredential ensures a candidate is equipped with fundamental skills, providing a strong foundation for supporting Oracle products

• TheOracleCertifiedProfessional(OCP):TheOracleCertified Professional has a command of a specific area of Oracle technology and demonstrates a high level of knowledge and skills. IT managers often use the OCP credential to evaluate the qualifications of employees and job candidates

• InformationTechnologyInfrastructureLibrary(ITIL):ITcertification for those who understand the concepts, languages, best practices, and processes utilized in the ITIL 4 lifecycle.

• BusinessTechnologyStrategy(BTS):ITcertificationforthose who have in-depth knowledge and best practice between business and technology

INFORMATION TECHNOLOGY MANAGEMENT

The implementation of IT Governance is carried out through aligning IT Strategic Plans with the Bank’s business strategy, optimizing resources, utilizing IT, measuring performance, and implementing effective risk management while still meeting the regulatory requirements of the Financial Services Authority and Bank Indonesia Regulations. The application of IT governance in BNI covers the following matters:

Active Supervision of Directors & Board of Commissioners

Internal Control System for the Use of IT

The Adequacy of the IT Risk Management

Process

Adequacy of IT Policies, Standards

and Procedures




The use of IT in BNI is regulated in policies, standards and procedures that are applied consistently and continuously, in accordance with the provisions of OJK Regulation No. 38/POJK.03/2016 dated December 1, 2016 and OJK Circular No. 21/SEOJK.03/2017 dated June 6, 2017 concerning the Application of Risk Management in the Use of Information Technology by Commercial Banks which includes aspects of:

Management IT OperationsCommunication

network

Development & Procurement

SecurityInformation

Disaster Recovery Plan

Electronic Banking Services

Use of IT Service Providers

IT Service Providers by Banks


The selection of a framework for good IT governance requires a balance between aspects of People, Process, and Technology. Based on these considerations, the implementation of IT governance in BNI adopted a variety of frameworks in accordance with the IT service area at BNI.

Control Objectives For Information And Related Technologies (COBIT)Control Objectives for Information and Related Technologies (COBIT) is widely recognized as an IT management and IT governance framework. COBIT manages IT in meeting the needs of BNI’s stakeholders through the management of its process groups and enablers, where business objectives are mapped to IT objectives, and their achievements and maturity are measured. BNI IT uses the COBIT framework as a reference for its governance, among others due to the synergy between business objectives and IT objectives, focusing on data and information, being able to flexibly follow the direction of the Bank’s work, and can be used in conjunction with other framework standards.

Information Technology Information Library (ITIL)The Information Technology Information Library (ITIL) is a standard framework for IT Service Management (ITSM), which is used by BNI’s IT in aligning IT support services to BNI’s businesses. ITIL focuses on IT processes, procedures, tasks and service levels to support the Bank’s strategy, provide added value, and maintain IT competency levels. With ITIL, BNI’s IT operations have set baselines as service benchmarks, as a basis for planning, implementing and measuring their achievements.

International Organization For Standardization 9001 (ISO 9001)ISO 9001 is a quality management system standard (Quality Management Systems) that is designed to ensure that BNI can meet stakeholder demands while complying with the needs of regulators regarding its products and activities. BNI IT has implemented ISO 9001 since 2007 with the scope of IT Operation and IT Security Management.

In 2018, BNI’s IT has successfully met the requirements to be able to upgrade ISO 9001: 2008 to ISO 9001: 2015 by establishing mechanisms and quality standards that focus on Bank performance with a risk-based thinking approach so that the IT unit will be more proactive in preventing and reducing undesirable effects and always improving the system on an ongoing basis (continuous improvement). In 2019, BNI succeeded in maintaining ISO 9001: 2015 certification.




INFORMATION TECHNOLOGY DEVELOPMENT PLAN

BNI IT StrategicDirection

BNI IT StrategicDirection

GovernanceToward Performance

Strive forOperationalExcellence

Innovativeand Agile

Organization

To ensure the implementation of the application development plan and support the corporate plan 2019-2023, BNI established 4 (four) strategic directions for IT, namely New Digital Proposition, Governance Toward Performance, Strive for Operational Excellence, and Innovative and Agile Organizations.

New Digital Proposition for IT utilization that answers how digitalization can bring something of new value to its users. This strategic direction encourages regular digital business value creation, by providing recommendations in the form of adjustments and development of new business models based on emerging IT trends or through digital innovation.

Governance towards Performance to fulfill good governance in order to encourage optimal performance, including through effective prioritization, reliable portfolio management, demand management and IT planning in line with business needs, and good synergy with all units and subsidiary companies.

Strive for Operational Excellence to optimize operational excellence through digitalization and automation of business processes while enhancing cybersecurity and developing a sustainable operating model in a consistent manner.

Innovative and Agile Organization to obtain an organization that is adaptive to change and has the capability to deliver deliverables quickly, including through a customer-centric innovation culture to meet customer needs precisely and efficiently, with visionary mindset transformation in IT strategy and planning, and application of Agile methodology.

As a manifestation of the strategic direction above, and also as part of an ongoing project planning system to meet business needs for IT support, BNI implements an IT Planning Session forum that brings IT work units together with all units in BNI. In the forum, all units discussed with IT work units related to business needs and achievement targets, as well as expectations in the future, both in terms of development solutions, security, operational, data processing, and reporting needs.

The IT Planning Session Forum can show the need for application/architecture development in 2020. To help facilitate the management of these development needs, it is divided into Line of Business including Funding, Lending, International and Treasury, IT Operations, Audit Regulatory Compliance, Human Capital, and BUMN Subsidiaries & Synergy Companies.

These development needs include strategic demands that have a direct impact on achieving business targets and business as usual (BAU) as a supporter of day-to-day business operations. The IT development plan has also been submitted to OJK, in line with POJK No. 38/POJK.03/2016 dated 01 December 2016 concerning the Implementation of Risk Management in the Use of Information Technology by Commercial Banks.




Digitization of Services

The development of information and digital technology has triggered changes in the field of industry known as the industrial revolution 4.0, for the anticipation, BNI promotes the creation of new more appropriate business models through the integration of digital technology into business processes.




DIGITAL INNOVATION

The development of information and digital technology such as the Internet, Cloud, Big Data, Internet of Things (IoT), and Artificial Intelligence (AI) has triggered changes in the industrial field known as the industrial revolution 4.0. This is marked by the increasing utilization of communication networks and the internet for various purposes, the automation process that is integrated with the use of AI, decision making using insights obtained from Big Data analysis, optimizing the use of the Cloud for business and personal needs, and connecting various daily devices with Internet. This development has resulted in changes in consumer behavior that has led to the creation of new, more appropriate business models. To anticipate these changes, digital transformation should be carried out which includes the integration of digital technology into business processes.

Some key technologies adopted have contributed significantly to the needs of BNI’s digital banking products and services development in recent years. Products supported by this technology include:

BNI Opening Digital Accounts (DOA)Opening a digital savings account is the development of a digital business in providing the convenience and convenience of opening a savings account anytime and anywhere.

BNI has launched the BNI Digital Account Opening (DOA) service on July 5, 2019 which can be accessed through the BNI Mobile Banking application.

BNI Digital Account Opening provides the convenience of opening a BNI savings account by using a smartphone device. With this application, prospective customers no

longer need to come to the BNI Branch to open an account and a savings account. Simply download the application, then fill in your personal data, prepare your e-KTP, then do video banking with BNI staff. Since launching from April to December 2019, the BNI Digital Account Opening application has been accessed as many as 74,936 devices/gadgets, with a total of accounts opened through this application totaling 8,242 accounts and a total fund raised of 11.09 billion.

Customers who have not yet operated BNI BNI can open a BNI Taplus or BNI Taplus Muda savings account without having to come to the branch, but only by using a smartphone, internet network, e-KTP, NPWP (if any), and active email. Customers immediately get an account with a virtual debit card facility that can be used to activate the Mobile Banking service.

The BNI campaign opens digital accounts through a variety of communication media and social media, as well as providing direct customer experience online transactions, since October 2019 a Bukalapak or Tokopedia e-voucher free savings program has been run for Rp100 thousand and several promo programs with Link Aja, DANA and Rupi Business. The BNI savings account opening service has also been linked to the University of Indonesia Alumni application, and collaborating with e-commerce and fintech for the integration of these services through their platforms is also a key strategy to increase public awareness.

The new service is expected to be a new channel to improve BNI based customers and improve BNI’s image as a bank that has qualified digital services.

The socialization of opening digital accounts was also carried out in various student communities in selected campuses and schools/students in several major cities in Indonesia.





Digital Account Opening Campaign (DOA)

BNI SONIC (Self Service Opening Account)Rapid technological developments are currently utilized by PT Bank Negara Indonesia (Persero) Tbk or BNI to create new innovations in the banking world as part of the digital branch.

BNI SONIC (Self Service Opening Account) is here to simplify the process of prospective customers opening savings accounts more practically and quickly. BNI SONIC services are handled by the machine quickly and thoroughly so that when finished opening an account, customers can immediately use a debit card normally like opening a savings account at a conventional outlet. BNI SONIC services make it very easy, especially for prospective digital savvy customers, and customers have limited time to come to conventional outlets.

Simply by using e-KTP and to start using the BNI SONIC machine prospective customers can be directly processed through biometrics or fingerprints and there is no need for an interview session with BNI Customer Service officers, with a process that is so easy that it only takes 3 minutes.

If BNI Sonic is placed in an outlet, BNI Sonic operates 8 hours or 480 minutes, with an average duration of opening an account of 2 Minutes 45 Seconds or 3 Minutes, and the number of account opening up to 160 accounts. This amount is more than the conventional account opening through petu-gas customer service that can serve up to 32 account opening. BNI Sonic is the first step in the Branch Transformation process and is currently available at 7 BNI Digital Branch outlets and is often used at various BNI events.




Prospective customers can freely choose the type of account desired either BNI Taplus, BNI Taplus Muda, or BNI Taplus Bisnis accounts, can also freely choose the type of debit card, either Platinum or Gold card, and can directly activate internet banking.

BNI Sonic is the first step in the Branch Transformation process and is now available in 125 BNI outlets throughout Indonesia, including in BNI Branch Station BNI City, Jakarta; Menara Pejompongan Branch, Jakarta; Cabang Pondok Indah Mall 2, Jakarta; Ciputra World Branch, Surabaya; Manado Town Square Branch, Manado; and Nipah Mall Branch, Makassar, and will increase by 200 machines by the end of 2020.

Since its launch in February 2019 until 31 December 2019, BNI Sonic has managed to collect Third Party Funds (DPK) of Rp34.35 billion with a total account opening of 13,191 accounts.

Through BNI Sonic, BNI received a Muri Record in the category “The First Bank to Open the Fastest Account Opening Through the Opening Account Machine”

BNI SONIC Campaign

e-FORM BNI GRIYAIn line with the BNItuDigital tagline, PT. Bank Negara Indonesia (Persero), Tbk continuously digitalize its system in each of its product innovations. This time, through a Home Ownership Credit (KPR) product, BNI Griya, on February 1, 2019 an online application or e-Form feature was launched to facilitate the submission of BNI Griya loans.

The presence of the BNI Griya e-Form feature is BNI’s offering to the wider community who want to submit mortgage applications easily, especially the Millennials segment which is highly dependent on gadget usage. Submitting is easy, with just the following 4 steps:1. Access e-Form at www.bni.co.id (select “Digital Services”) or BNI Mobile Banking (select “E-Form) or you can also through

http://bit.ly/eFormBNIGriya2. Select “BNI Griya”, then click “Register” and select the “Application” menu.3. Fill in the complete application, then click SUBMIT4. After getting a notification via email, the BNI officer will immediately contact you.





In addition, BNI Griya e-Forms can also be accessed through online property media in collaboration with BNI, so that the application for mortgages can easily be done at the same time when choosing a property to be financed. With BNI Griya e-Form, KPR submission can be done anywhere and anytime.

Access for BNI Griyadi Mobile Banking e-Form, www.bni.co.id or http://bit.ly/eFormBNIGriya

BNI Griyad E-Form Campaign is conducted through various communication media and social media, as well as providing customers with direct online transaction experience.

EDC ANDROIDEDC Android is savings account opening and financial services utilizing Electronic Data Capture engine (EDC Android) so as to facilitate customer access to open accounts during events/community gathering without

having to go to BNI outlets/branches. EDC Android services is expected to increase customer based through the acquisition of new customers, especially for millennial customers and entrepreneurs.

EDC Android has been used in various events, such as Java Jazz, InaCraft, Crazy Sale Kid’s Station, mall to mall in Sumarecon Bekasi, Kasablanca City and Margo City, BNI Expo 2019 in Medan and Surabaya and IMBEX (International Mother & Baby Expo).

New UI Mobile BankingBNI Mobile Banking’s New User Interface (UI) is a rejuvenation of BNI Mobile Banking’s appearance to be more attractive to all people. The new interface is also equipped with a new launcher for applications owned by BNI, such as BNI Open a Digital Account, BNI Poin+, BNI Credit Card Mobile.

Comparison of New UI Mobile Banking Display




New UI TapCash GoRejuvenate the TapCash Go application with a more informative display, complete with written guidance and animated instructions for topping up TapCash balances, both for customer and non-customer users.

EDC Care Mobile AppsMonitoring tools application that aims to report the constraints that occur on the EDC BNI by scanning QR Codes that exist on the EDC BNI. This application can be used by PIC Merchants, Cashiers, Customers, BNI Customers, BNI Employees and the general public.

CINTACINTA is a Chatbot developed by utilizing Artificial Intelligence and Machine Learning technology. CINTA utilizes the chat platform in providing services to CINTA followers, especially BNI customers with the millenial segment. The value proposition offered is simple, personalize, familiar. CINTA is also equipped with capabilities which include personalization of programs, ATM-Locator, promos, banking education facilities for customers as well as survey & couponing.




Agen46Agen46 is a service that is classified in the system of LKD (Digital Financial Services), Laku Pandai (Officeless Financial Services for Inclusive Finance), and e-Payment. Using this service, BNI presents banking services for all Indonesian people, even penetrating into remote areas in Indonesia. There are currently 157,144 Agen46 spread throughout Indonesia. The developed system can run on web and mobile platforms. The Agen46 are also equipped by EDC Android to facilitate transactions.

Offline EDCOffline EDC is a system developed by BNI intended to be able to provide transaction services in remote areas that previously have not been touched by network infrastructure. This system was built without the need to use network infrastructure to be able to conduct transactions with verification using Biometric technology. At present this service is provided to assist Government programs in terms of distributing social assistance in remote areas.

Smart CityIt is one of the concepts of urban development based on digital technology or information and communication (ICT) to improve the quality and performance of urban services, reduce costs and resource consumption, and to engage more effectively and actively with citizens. In this concept, BNI plays a role in supporting the realization of Smart Governance, Smart Living, Smart Environment, Smart Economy, Smart People and Smart Mobility.

BNI Call Virtual AssistanceChatbot is one of the innovations starting to be widely used by various businesses, with the support of various technologies such as AI (artificial intelligence), Natural Language Pro-cessing (NLP), etc. to help customers get the information they need. BNI Call is a virtual assistance application for BNI customers and non-customers based on conversation-al, both text and voice for informational and transactional needs that can be accessed using a mobile device. Based on data on the use of BNI Call Virtual Assistance as of December 2019, a target of 20% of the total inquiry activity services was planned, with a total of more than 1.26 million conversations by 36000 ++ total us-er/active users. Estimated savings achieved for telecommunications costs in the first year of 3 billion, and estimated savings in outsourcing costs of 4 billion in the first year.

BNI Digital ServicesIt is an API-based Digital capability that provides convenience, speed, and security for the needs of the integrated use of BNI’s financial services to all digital businesses that exist today. Entities that can be linked to BNI’s API Services include Startup & Fintech, SOEs, Ministries, Universities, retail, etc. Until the end of 2019, more than 150 B2B services have been connected with the BNI API.





BNI eCollectionOne of the collection management features supported by information technology is the provision of virtual accounts. Virtual account services, both VA debit and VA credit/billing, can provide convenience to the digital business ecosystem in running various digital businesses to their customers. In addition, BNI eCollection is also supported by the API Platform to integrate collection management into the existing and growing digital business ecosystem. This product has been successfully implemented since 2017 and continues to experience increased transactions. Until the end of 2019, the number of transactions that occurred reached 82.86 million transactions with a total value of Rp. 55.8 Trillion.

Several technological initiatives have been carried out by the IT work unit to explore innovation both in terms of technology and business process optimization, including:

1. Blockchain Research and Development (R&D) Blockchain is a distributed ledger technology that has the

opportunity to become a disruptor in the business world because it can eliminate intermediary functions.

This technology can be used to create new business

models or replace existing business processes so that they are faster, safer, and cheaper. BNI actively continues to explore the potential use of the blockchain for businesses, including through workshops, R&D, PoC with fintech, etc.

2. Intelligent Video Analytics Research and Development (R&D)

Intelligent video analytics technology can be used to identify still and moving objects, facial recognition, space density analysis, building surveillance/AI-based space surveillance, identity verification, and other things. Through this technology, face recognition features have been tested for several use-case research such as the process of opening an account via mobile phone and monitoring employee activities through CCTV.

3. Collaboration with various fintech and technology-based business startups

In 2019, BNI established a partnership with Plug and Play, a global startup accelerator company that has a technology-based startup incubation & acceleration program and has a reputation for connecting startups with various corporations. Through this collaboration, BNI has the opportunity to collaborate to take advantage of innovations/solutions from various startups and fintech to support business, improve the capability of internal processes at the Bank, as well as other forms of cooperation that can be done. In addition to collaborating in exploring potential collaborations with startups, BNI is also actively involved in various events along with startups, one of which is the holding of BNI Corporate Day 2019 which involves 20 Plug and Play Indonesian startups. Through this event, collaboration between BNI groups and startups is expected to improve existing services, and accelerate the presence of new services for the wider community. On the other hand, with synergistic collaboration, BNI is expected to be able to help startups to grow to become bigger and more established, among others, to participate in developing Indonesia’s economic industry going forward.

In order to optimize innovation both in terms of technology and business process optimization, BNI has also utilized the services of the Independent International Research Institute on an ongoing basis since 2007 to obtain references, descriptions, trends and insights on technology and the development of the global industry in general and banking in particular.

BNI Credit Card MobileBNI Credit Card Mobile is one of the BNI Credit Card service based applications that helps BNI Credit Card holders get credit card information through smartphones.

BNI Credit Card has features including:1. Details of BNI Credit Card Information2. Transaction and Bill Information for the Last 3 Months3. Manage Card (Manage Cards in the application)4. Card product information and promos5. Other menus, such as: Location of BNI branch offices,

ATMs, and Agen46 and BNI credit card referrals




Contactless Credit CardIt is a BNI credit card with a signature variant that works with VISA which has the main feature of payment using a credit card faster by simply bringing the credit card closer to the EDC machine with the contactless/paywave logo.

“MoRe” or BNI Mobile RemittanceRemittance application where remittances can be made via smart phones based on IOS and Android so that it can be accessed anywhere and anytime. This application makes it easy for Indonesian Migrant Workers (PMI) who work in Singapore to send money to all banks in Indonesia easily, safely, quickly and reliably.

BNI Trade OnlineIs a web-based internet transaction transaction service for customers using the BNIDirect - Trade Application System. This service can be used to submit applications for trade transactions or receive the results of decisions or other information relating to trade transactions from the Bank. With BNI Trade Online services, customers can submit trade transactions to BNI without having to come to the outlet. Transaction requests can be made anywhere and anytime.

GPI SWIFTThe SWIFT GPI (Society for Worldwide Interbank Financial Telecommunication - Global Payment Innovation) is a cross-border global payment innovation currently implemented by BNI. By implementing the first GPI SWIFT in Indonesia, BNI will provide new experiences to customers in making global payments for business, education and other needs in foreign exchange (foreign exchange) from Indonesia to the world easily, quickly, comfortably and safely.

The advantages of SWIFT GPI are:• Speed Money transfer transactions can be completed on the

same day (same day service)• Transparent Transparency of information that can be accessed by

all parties, including payment confirmation and fees charged.

• Traced Every transaction sent can be tracked by all parties in

real time.• GoInternational BNI will join 106 major banks around the world who have

become members of the SWIFT GPI, where the bank will get priority in cash transfer transactions.





Handling Complaints through Social MediaEfforts to add non-branch channel services, BNI Social Media management by the BNI Contact Center is able to make this service an inexpensive and fast alternative choice for interacting with banks. Requests for information and handling complaints through Social Media namely Facebook, Twitter and Instagram are served directly by BNI Contact Center staff so as to speed up the resolution of customer complaints.

Online Request Management (ORM) for Merchant ServicesIn an effort to expedite the resolution of merchant complaints, in 2019 an Online Request Management (ORM) service was implemented.

BNI Direct MobileIs one of the User Interface to access BNI cash management services, the position is equal or equal to a web browser, the process initiated through BNI Direct Mobile will be executed by the existing BNI Direct Apps Server.

Transactions initiated from a web browser will be monitored and viewed in BNI Direct Mobile and vice versa, initiation transactions by BNI Direct Mobile can be monitored through the web browser User Interface.




Data Management

To support digital transformation and competitive analytics, BNI has developed Big Data Analytics by utilizing the advantages of machine learning and other analytical tools and is supported by reliable data scientists.




STRATEGY AND POLICY IN 2019

Data is the most valuable and treasure asset that can processed and used as guidance and support for the business. Data has three enablers namely People, Procedure (Data Governance & Strategy and System Operating Procedure), and Technology (Data Warehouse, Big Data, and Network). The output of data management is in the form of data, information, and insight to support business strategies & decisions regarding products and services that meet customer needs. Data Management’s mission is to realize a reliable Single Source of Truth for the bank’s business interests and as a center of analytics excellence at BNI.

Strategic Analytic Program Management

Integrated Data Management (Data Governance, Data Quality & Data Profilling)

Metadata Management

Data Archieve

Data Security

Data Lifecycle Management

Master Data

Manual and External

Data WarehouseDPK

Loan

Others

Information Delivery

Big Data Analytics Services

Prinsip Arsitektur Informasi

To realize this, the flow of data information in Data Management adheres to the Principles of Information Architecture, where data from various source systems enter the Data Warehouse (EDWH) and Big Data through the Extract Transfer Load (ETL) process which is then used to form datamart for report and analytics. Data governance is needed to ensure the availability, accessibility, quality, auditability and security of data in the organization in order to improve data as an organizational asset so that the data can be used for decision making in accordance with the level of compliance with established data standards and also contains the ability to proactively identify data changes in the organization and communicate those changes to their intended purpose.




INNOVATION 2019

To support digital transformation and competitive analytics, BNI has developed Big Data Analytics by utilizing the advantages of machine learning and other analytical tools and is supported by reliable data scientists. Complementing the previous enterprise data warehouse, the adoption of Big Data technology went as expected. Big Data platform with the latest technology has been successfully implemented in a number of applied business cases. As such, BNI’s ability to collect, process and retrieve value from one or a set of data is increased, not only limited to structured data, but also to semi-structured and unstructured data whose volume is large and the speed of data growth is sufficient high.

Big Data - BNI ExadiaOne application that utilizes Big Data is BNI Exadia. BNI Exadia is implemented for all branch offices, especially for Customer Service (CS) officers. BNI Exadia with the ability of Big Data can analyze transaction behavior, product ownership, and customer profiles so that it can help Customer Service by recommending BNI product to offer in a personalized manner in accordance with the customer’s profile.

Data Management




Like other data management systems, Big Data has the ability of data loading, data retrieving, or synchronizing data between systems. Therefore, the integration between Big Data systems and previous other systems went quite well. In addition, the ability to retrieve data from external sources is also equipped with web crawling capability, which is taking data from the internet as a data source.

Other capabilities of Big Data that have been implemented are the advanced analytics tools, such as data mining tools, statistical modelling, machine learning, and artificial intelligence. With these tools, several outputs can be generated such as data matching, predictive analysis, statistical models, a list of prospect customers with specific offers (leads), and dashboards. The results of Big Data Analytics will help BNI to get to know customers (customer insight), identify new opportunities and realize business data driven that leads to business value creation.

STRATEGY AND WORK PLAN IN 2020

In 2020, BNI formed a Data Scientist Development Program (DSDP) team, an embodiment of BNI’s Corporate Plan initiative to form an Analytic Center of Excellence (ACOE) which will deliver BNI into a Data Driven Organization.




Network and Services

In the competition of the banking industry which is increasingly competitive and fast in the current digital era, BNI continues to commit to transforming banking services to meet increasingly complex customer demands.




The network and service development performed by BNI in 2019 among others is addition of office networks (outlets), electronic networks (ATMs), Agen46 and various network and service innovations supported by the Customer Service Center Unit. This efforts are intended to support the achievement of BNI’s established business performance

PERFORMANCE IN 2019

Office Network (Outlet)In order to expand the network, improve services and expand the reach of financial inclusion to public, in 2019, BNI added 1 (one) branch office, 4 (four) Cash Offices, 15 (fifteen) Payment Point, 2 (two) O-Branch (Mobile Cash Service). In addition to improving business performance, effectiveness and optimization of outlets and operational risk control, BNI also improved the status of 2 (two) Cash Offices to become Sub-Branch Offices.

BNI office network until the end of 2019 is spread in 34 (thirty four) Provinces and reaches 469 (four hundred sixty nine) Cities/Regencies (90%) throughout Indonesia, consisting of 17 (seventeen) Regional Offices, 201 (two hundred and one) Branch Offices, 1,111 (One thousand one hundred and eleven) Sub-Branch Offices, 602 (six hundred and two) Cash Offices including 14 (fourteen) Digital Branch (D-Branch) services, 122 (one hundred twenty-two) Payment Points and 232 (two hundred thirty-two) O-Branch fleet (Mobile Cash Service). To serve customers’ needs on weekends, BNI operates 78 (seventy eight) outlets that serve customers on Saturdays and Sundays (Weekend Banking Services). To provide the best service to the Wealth customer segment (both priority and private customers), BNI also has 28 (twenty eight) BNI Emerald service outlets. To date, as many as 56% of all BNI outlets are in Java and 44% are outside Java.

Of the total BNI outlets, 1,347 (one thousand three hundred forty seven) or 70% are in the strategic commercial business center (shopping areas) and 567 (five hundred sixty seven) or 30% are in the strategic office and residence area.

In 2019 the number of BNI outlets decreased by 11 (eleven) outlets (2.3%) compared to 2018. This is in line with BNI’s strategy in conducting digital transformation.

Number and Network of BNI OutletsUnit

2019

2,245

2018

2,256

2017

2,150

ATM NetworkAs its continuing commitment to providing convenience to BNI customers and other banking customers in making transactions, in 2019 BNI added 11 (eleven) units of ATM for cash transactions, 1 (one) unit ATM for non-cash transactions, and 270 (two hundred seventy) units ATM for cash deposit withdrawal transactions (Cash Recycle Machine/CRM) so that the total BNI ATMs throughout Indonesia as of the end 2019 amounted to 18,593 (eighteen thousand five hundred and ninety three) units consisting of 15,845 (fifteen thousand eight hundred forty-five) Cash ATM (including Drive Thru and Ride Thru ATMs), 1,747 (one thousand seven hundred forty-seven) Cash Deposit Machine (CRM) and 1,001 (one thousand one) Non-Cash ATMs. Of a total of 18,593 (eighteen thousand five hundred and ninety three) BNI ATMs spread throughout Indonesia, 10,965 (ten thousand nine hundred sixty five) or 59% were in Java, while 7,628 (seven thousand four hundred eighty four) or 41% is spread outside of Java.

From a total of 18,593 (eighteen thousand five hundred and ninety-three) BNI ATM units, as many as 10,461 (ten thousand four hundred sixty-one) BNI ATMs or 57% are




in the strategic commercial business area (shops and shopping) and as many as 7,850 (seven thousand eight hundred fifty) or 43% are in the strategic office and residential area.

In the context of SOE synergy to continue providing ease of transactions, especially for customers who are members of the State Bank Association (Himbara), BNI converted 10,097 (Ten thousand Ninety-seven) BNI ATMs into ATM Merah Putih (Link).

The increasing number of BNI ATMs throughout Indonesia will further improve banking transaction services both for BNI customers and other who are members of a joint ATM network, ATM Link, ATM Global Master Card International and ATM Prima network, as well as increasing base fee income (FBI) from transactions through BNI ATMs.

Number and Growth of ATM BNIin Unit

2019

18,659

2018

18,311

2017

17,966

Innovation in Office NetworksIn order to keep abreast with the increasingly fast development of technology and digital, BNI has already have 14 (fourteen) digital branches that prioritize banking services through the addition of digital devices. The said digital branches are spread in big cities, including Jakarta, Bandung, Surabaya, Medan, Bali, Yogyakarta, Makassar and Manado.

To provide a digital transaction experience, D-Branch outlets are equipeed with digital devices that can facilitate customers in conducting banking transactions, among others; ATM/CRM (cash deposit transactions, cash withdrawals, transfers and others), Smart Kiosk (opening account machine), Interactive Wall (BNI touchscreen product education device), Interactive Table (touchscreen Information device) and Big Screen (promo and information device).

In order to tap into the business potential of the millennials through a more modern, comfortable and up-to-date transaction experience, BNI provides Banking Cafe at several D-Branch outlets.

STRATEGY AND WORK PLAN FOR 2020

In the increasingly competitive and fast banking industry in the current digital era, BNI keeps its commitment to transforming banking services to meet increasingly complex customer demands. Following up on this and in order to increase the growth of BNI customer customers. In 2020, BNI will focus its effort on structuring office networks to optimize outlet and service businesses by upgrading the status of 4 (four) Cash Offices to Sub-Branch Offices and relocating 66 outlets to potential areas. The addition of office network is only in potential areas and blank spots consisting of 1 (one) Sub-Branch Office, 4 (four) Cash Offices, 9 (nine) Payment Points, 1 (one) Functional Office, and 5 (five) O-Unit Branch

In addition to structuring office networks, BNI will add 375 (three hundred seventy five) ATM/CRM as part of an electronic network to support business and service outlets.

In 2020 BNI focuses on increasingly modern banking services through improvements to business processes and branch services, making it simpler according to customer expectations with more digital and sophisticated service devices such as Self Service Passbook Printer, and Foreign Exchange Machine.

Network and Services




BNI Contact Center

In line with one of BNI’s missions to provide excellent service and value-added solutions to all customers, BNI Contact Center through BNI Call 1500046 continues to strive to provide the best services for BNI customers. BNI Contact Center gives customers the ease of obtaining information, conducting transactions and obtaining solutions to any problems both for banking services, credit cards, merchants and remittance and trade transactions.

STRATEGY, POLICIES AND WORK PROGRAMS

BNI Contact Center continues to strive to provide the best service for BNI customers. Through BNICall 1500046 services, customers are provided with the ease of getting information, conducting transactions and obtaining solutions to any problems both for banking services, credit cards, merchants and remittance and trade transactions.

In today’s current digital era, BNI continues to progress away from traditional banking to beyond traditional banks and to become an entity providing financial services that provide all-digital services. BNI quickly improved to adapt through digital transformation, starting from improving internal processes, preparing Human Resources (HR) who are technology-savvy, to offering a variety of electronic and digital services and products to customers.

In the spirit of BNItuDigital, in 2019, BNI opened a Digital Opening Account service to facilitate the opening of BNI savings accounts at anywhere and anytime through smartphones. In addition, BNI also strives to always provide the best services to customers by completing digital services through BNI Call Application, making it the first banking Contact Center application in Indonesia based on Artificial Intelligence (AI) that is equipped with Voice Command features and Natural Language Processing (NLP). Continuing to improve the BNI Call Application, the BNI Contact Center has added transaction features to




complete the application in addition to providing information on BNI products and services as well as the latest general information needed.

Digital Account Opening Services and BNI Call Applications provide customers with new experiences, especially for millennials and add alternative channels so that customers are given various choices with ease and convenience of access, that might lead to increase customer satisfaction with BNI Call 1500046 services.

The efforts to add non-branch channel services, BNI Social Media management by the BNI Contact Center is able to make this service an inexpensive and fast alternative choice for interacting with the bank. Requests for information and handling complaints through Social Media are served directly by BNI Contact Center staff so that customers feel the same experience as if communicating directly by telephone.

In order to support BNI’s commitment in providing excellent services for people with disabilities by implementing strategic policies and disability-friendly financial inclusive programs, BNI Contact Center participated in the 2019 International Disability Day celebration held by the Ministry of Social Affairs of the Republic of Indonesia on 2 and 3 December 2019. During this event, 2 (two) BNI Contact Center officers, who happened to be disabled people, participated in introducing the use of the disability-friendly BNI Call Application to the general public.

In addition, to support the Financial Inclusion program at the Fin Expo 2019 with the theme of Reaching the Peak of Inclusion, More Certain Protection organized by the Financial Services Authority (OJK) on 17 to 20 October 2019, as well as the Financial Services Industry Contact Center Forum held by the Financial Services Authority on 25 November 2019 to enhance the role of contact centers in improving education and services, BNI Contact Center actively participated by introducing the BNI Call Virtual Assistance Service Application to the participants.

As outlined in the Quality policy, among others “Commitment, Proficiency and Careful”, BNI Contact Center’s commitment to continuously improve the quality of service for customers is materialized through the standardization of quality in all services so that ISO 9001: 2015 Certification continues to be maintained in 2019.

Through various strategies, policies and work programs implemented, BNI Contact Center was able to gain a number of achievements throughout 2019. The achievements among others are awarded the first rank in the category of Phone Banking based on the results of a survey of the Bank Service Excellent Monitor (BSEM) from Marketing Research Indonesia (MRI), receiving the predicate of Excellent in the category of Regular Banking and Platinum Credit Card based on the 2019 Contact Center Service Excellent Award (CCSEA) survey from Service Excellence Magazine in collaboration with Carre-Center for Customer Satisfaction and Loyalty (Carre-CCSL). Obtained 2 (two) Gold Medals in the category of The Best Technology Innovation and The Best Digital Media in the 2019 Indonesia Best Contact Center.

BNI Contact Center actively acts as a point of contact for BNI customers in delivering voice of customers by providing various insights to business units in enhancing superior products, features and services to customers, including by providing feedback to business/product owners related to customer complaints; monitor the Service Level Agreement (SLA) for the resolution of complaints; adjustments to internal provisions if there are changes in legislation and improvements to the application for handling customer complaints Online Request Management, so that the achievement of SLA settlement of customer complaints in 2019 reached 98%.

In addition to having a role as a point of contact for Customers/Non-Customers, BNI Contact Center also contributes as one of the data sources to strengthen opportunities for increasing revenue in the Consumer and Retail Segments through referral and cross selling programs so that BNI Call 1500046 becomes a point of contact by providing service solutions and integrated sales.

Along with the growing demands of society in general, the BNI Contact Center will continue to develop features in the BNI Call Application to improve the quality of services expected to further enhance customer experience and customer satisfaction.

BNI Contact Center




PROCEDURES FOR SERVICE AND SETTLEMENT OF COMPLIANCE FROM BNI CUSTOMERS

BNI Customer Complaint Submission Media

ORALCustomer Contact BNI Call 1500046

Customer visiting Nearest BNI’ Branch

Customer visiting Nearest BNI’ Branch

Customer sending e-mail to [email protected]

or faks. (021)25541203Customers submit complaints through social media, such as Twitter: @bni, Facebook: bni,

Instagram: @bni46

Customer visitingwww.bni.co.id on sub menu Contact Us

WRITTEN

BNI Contact Center, as one of BNI’s frontline services for BNI customers, always strives to provide the best service, including by resolving customer complaint on banking and credit card services. BNI customers are provided with easy access to complaints services with a variety of media choices both verbally and in writing. With the integrated Online Request Management complaint handling application, BNI Contact Center carries out the activity of receiving and settling customer complaints in the application and making it easier to monitor the status of customer complaint resolution.

Solution for customer complaints submitted verbally is done within a maximum of 5 (five) working days *) and written complaints within a maximum of 20 (twenty) working days. Should the supporting documents for customer complaints submitted verbally is required, BNI will kindly request customers to submit complaints in writing. Under certain conditions, the fulfillment of documents and settlement of complaints can be extended within the next 20 (twenty) working days in accordance with POJK No.1/POJK.07/2013 and updated through POJK No.18/POJK.07/2018 *) regarding Services Consumer Complaints in the Financial Services Sector. The extension of the time for complaint settlement is notified in writing to the customer.




Customers

BNI Officer

Makes a complaint

Registers the complaint

Submission and Settlement Completion

• BNI strives to settle verbal complaints within a maximum of 5 working days and written complaints within a maximum of 20 working days.

• If supporting documents are needed for customer complaints submitted verbally, then BNI will ask the customer to submit a complaint in writing.

• If there is a lack of documents, the customer can submit the missing documents within a maximum of 20 working days.

• Under certain conditions, the document requirement and complaint settlement can be extended for a further 20 working days

Provide a receipt or registration number

Delivers complaint settlement result

Delivers complaint settlement result *

Delivers extension of time notice **

In accordance with the FSA Circular (SE OJK) No. 2/SEOJK.07/2014 and updated through Circular OJK (SE OJK) No. 17/SEOJK.07/2018, BNI will provide information on the settlement of customer complaints through telephone, email, letter or short message service (SMS). If the customer feels that the settlement solution provided by BNI does not meet their expectations, then they can escalate the complaint through the Alternative Dispute Resolution Institution stipulated in the List of Alternative Dispute Resolution Institutions determined by the Financial Services Authority.

BNI Contact Center




BNI CONTACT CENTER INNOVATION 2019

1. BNI Call Virtual Asisstant Continuing the spirit of BNItuDigital we strive to always

provide the best service to customers by completing digital services through the BNI Call Application which is the first banking Contact Center application in Indonesia based on Artificial Intelligence (AI) which is equipped with Voice Command features and Natural Language Processing (NLP). Continuing to improve the BNI Call Application, the BNI Contact Center has added transaction features to complete the application in addition to providing BNI product and service information as well as the latest general information needed. In the first year of implementation, this application succeeded in making operational cost savings of Rp4 billion.

In order to support BNI’s commitment to provide excellent service for people with disabilities by implementing strategic policies and disability-friendly financial inclusive programs, the BNI Contact Center participated in the 2019 International Disability Day celebration held by the Ministry of Social Affairs of the Republic of Indonesia on 2 and 3 December 2019. At the event, 2 (two) BNI Contact Center officers with disabilities took part in introducing the use of the disability-friendly BNI Call Application to the general public.




2. Handling complaints through Social Media

Efforts to add non-branch channel services, BNI Social Media management by the BNI Contact Center is able to make this service an inexpensive and fast alternative choice for interacting with banks. Requests for information and handling complaints through Social Media namely Facebook, Twitter and Instagram are served directly by BNI Contact Center staff so as to speed up the resolution of customer complaints.

3. Online Request Management (ORM) for Merchant Services

In an effort to expedite the resolution of merchant complaints, in 2019 BNI Contact Center implemented an Online Request Management (ORM) in Merchant services to facilitate monitoring and maintain SLA complaint resolution.

4. Accelerating SLA Settlement of Customer Complaints

Through synergic cooperation between divisions, BNI Contact Center accelerated SLA from 14 days to 10 days related to the resolution of customer complaints through simplification of work processes.

5. Implementation of the Allert Dashboard The implementation of the Allert Dashboard is one of

BNI Contact Center’s concrete actions to provide the best service to customers by maintaining easy access and reliable service availability at all times.

STRATEGY AND POLICY 2019

In order to improve service quality, the Bank continues to innovate keep abreast with the fast progress in digital banking. To anticipates the progress, BNI organizes various renewal programs on service standard, enhancing frontliner competencies and simplifying service processes, which is accompanied by appropriate risk mitigation so that BNI services become faster, easier and more accurate. Throughout 2019, BNI has initiated several work programs such as: Standardization of Overseas Branch Office Services, Standardization of “D-Branch” Outlet Service, Affiliate Wealth Manager Certification Program, Super Frontliner Program and BNI Teller Service Quality Development Program.

In addition, BNI also implements 3 (three) strategies with the aim of producing quality and customer centric service standards and being able to be the foundation in accelerating business achievement in all BNI customer touch points, as follows:1. Services as “Business Accelerator”, which makes

service as a competitive advantage in accelerating the achievement of BNI’s business both in the consumer banking and business banking sectors.

2. Digital Services, namely digital-based services include:a. Digital Mindset, instilling digital mindset to officers in

charge of dealing with customers.b. Analytical Data Optimization, optimizing “Big Data”

with the aim of achieving business and service targets.

c. Process Improvement, namely business process improvement and service automation.

BNI Contact Center




3. Beyond Services, namely services that provide added value to customers include:a. The services provided exceed customer

expectations.b. The services provided are above the industry

average.c. The services provided are able to provide new

experiences to customers.

Various programs are initiated in order to provide services that are not only oriented towards satisfaction and provide solutions for customers but also have a function and role in creating sustainable business opportunities that support the achievement of profit for the Bank. BNI has prepared Branch Office frontliners to spearhead BNI’s business and services through several programs including: Bancassurance Program, Emerald Segment Upgrade Program, Property Investment through Griya Program, Education Capital Market Investment Program and Flexi Credit Card and Credit Card Programs.

BNI also continues to run the BNI Professional Image program, in order to form the image of every employee with character and ethics as a professional that reflects the identity of BNI’s employee as well as the Bank’s identity. This program is a strategic step to improve the Bank’s image (corporate identity) through attractive looking employees

(professional style) with good communication skill, having ethics when interacting with customers and stakeholders (business etiquette) and having good understanding about the use of technology and wisdom in using social media (digital intellectual).

STRATEGY AND WORK PLAN 2020

In 2020, there is a strategic plan to be realized by BNI Contanct Center, namely:• DevelopmentofBNIVirtualAssistant• WhatsappBusinessDevelopment• ImplementationofOmniChannelatBNIContact

As one of the Bank’s strategic steps in sustainable business, BNI is committed to always maintaining and improving service quality. For this reason, BNI continues to improve through various innovations to create products and services according to customer needs, which in turn will achieve customer satisfaction and loyalty.




Service Quality Unit

Various innovations supported by the spirit and culture of serving at each touch point are made in order to make BNI more modern, personalized, and more dynamic through digitalized products and services. Able to move faster, more reliable, agile, and flexible so that it can serve all levels of society, at any time, in any place, without limits on the value of transactions and accessibility.

BNI wants to strengthen the Company’s vision to become a financial institution that excels in service and performance. Personalizing services and memorable experiences to customers is one of BNI’s strategic steps in improving business quality that results in improved company performance.

PERFORMANCE 2019

1. CAMPAIGN SERVICE – BEYOND SERVICE Through the Service Month program implemented in

each Regional Office, BNI wishes to continue serving wholeheartedly and to provide exciting and memorable experiences for customers every day. This is a form of BNI’s commitment in creating a culture of service at every touch point through the best service, done without having to wait for Customer Day.

Through the role of all frontliners in all BNI Branch Offices from Sabang to Merauke, BNI comes with a faster, easier and personalize service. The impression and good service from the BNI frontliners is the key in creating a customer satisfaction that leads to trust and loyalty. Loyal customers are strategic assets for companies that are able to provide added value in the long run.

The Service Month is one of BNI’s annual campaign programs as well as momentum for BNI to position the company as a bank that is always present in the lives of customers with features, convenience, and various other value-added financial solutions.

2. SERVICE AS BUSINESS ACCELERATOR Various programs and innovations are carried out to

prioritize services as a driving force for business. Service As Business Accelerator, a service that is not only

oriented to the needs and satisfaction of customers but also focuses on the function and role of services in creating sustainable business opportunities that have an impact on the achievement of company revenue.a) Fun Referral Program The program to improve the performance of BNI

outlets in each Regional Office is carried out through a synergy between BNI and its subsidiaries (dhi. BNI Life). This program is carried out to increase fee-based income through the ability of Frontliner officers to provide solutions to customers’ needs in using insurance.

b) Education Cash Management Program (E-Camp) In line with the Bank’s Business Plan (RBB), BNI

continues to make improvements to be able to grow the banking transactional business as an effort to increase non-interest income. E-Camp is one of the programs developed to improve the competence of Frontliner officers as a financial advisor who is able to explore needs and provide solutions to non-individual customers (institutions) in managing financial transactions (cash management).

Various programs and studies are made to prepare Branch Office frontliners as the company’s vanguard with advisory capabilities in supporting the company’s business improvement. The programs include WPPE certification for regular and Emerald Customer Service, updating service standards in accordance with customer needs trends and banking digitalization, as well as education programs and capability enhancements in each Regional Office involving service agent functions in each Regional Office.

In order to form the image of every employee with character and ethics as a professional who is able to reflect BNI’s identity as a global company, in 2019 BNI will continue to oversee the implementation of the BNI Professional Image program. This program is one of BNI’s efforts and strategic steps to improve the company’s image through the role and support




of employees. Every BNI employee is required to be able to look attractive (professional style), have good communication skills (communication skills), understand ethics in business (business etiquette) and have knowledge of the use of technology (digital intellectual).

3. DIGITAL SERVICE 2019 also saw the year for Service Quality Units

to support the implementation of digital services in all BNI Branch Offices or Outlets. Smart Digital System (SDS) as one of BNI’s strategic tools has been successfully implemented to support business processes and services at the Branch Office. Through SDS, service personnel become easier and faster in providing personalized services according to customer expectations.

BNI Orange Magz also supports the process of implementing BNI digital service as an application to facilitate customers opening accounts at Outlets/Branches by understanding product information and benefits through the QR Code.

Furthermore, there is an E-Roleplay application developed to support the process of enhancing the capabilities of Frontliner employees as one of the efforts of the Service Quality Unit in ensuring service quality standards at each BNI touch point are implemented properly.

BNI’S ACHIEVEMENT IN PROVIDING QUALITY SERVICE

In terms of service, BNI has also had a positive impact along with various efforts that have been made in improving the quality of service to customers. This can be seen from several achievements and awards from several independent rating institutions in the banking sector including:

1. The Best Government Bank in Service Excellence Monitor 2019 by Marketing Research Indonesia (MRI). BNI as a state bank and book bank IV in Indonesia succeeded in bearing this prestigious title for 2 years in a row.

2. Rank II of the Best Overall Performance in Service Excellence Monitor 2019 by Marketing Research Indonesia (MRI)

3. Conventional Banking SQA (Service Quality Award) 2019 as a Bank with a Diamond Grade that successfully obtained a Service Quality Index value of 4.14. A highest award by the Center for Customer Satisfaction & Loyalty (CCSL)

4. Regular SQA Digital Banking 2019 as a Bank with a Diamond Grade that successfully obtained a Service Quality Index value in digital services of 4.10.

WORK PLAN 2020

In 2020 the Service Quality Unit launched 3 (three) strategies in maintaining and improving services to be superior and highly competitive, namely:1. Service as Business Accelerator, as one of the strategies

that continues to prioritize service as a competitive advantage in accelerating the achievement of BNI’s business both in the consumer banking and business banking sectors.

2. Services in Branch Transformation, digital-based services that focus on: a) Internalization of Digital Mindset Forming culture and shifting paradigms for

employees to have a digital mindsetb) Optimization of Analytical Data Utilize and optimize data (Data Management) into

a strategic information that is useful in supporting Branch operations to achieve business targets.

c) Process Improvement Business process improvement and service

automation to support operations and business.3. Digital Service on Customer Centricity, the use of

information technology to support business processes and Branch Office operations to make it faster, easier, and more reliable and in accordance with customer expectations.

Performance Highlights 2019 Company ProfileManagement Report Management Discussion And Analysis



RiskManagementCapital & Practice

Risk Management Capital & Practice 366

Capital 368

Risk Management Practices 370




During 2019, the management of risk in BNI in general runs properly, as reflected in the results of the self assessment on Bank Soundness, which achieved a “healthy” predicate. This indicates that BNI is able to maintain the Risk Profile at the level of Low to Moderate, has Good Governance and Profitability and Capital in which BNI CAR increased from 18.5% in 2018 to 19.7% in 2019.

Risk Management Capital & Practice




CORE CAPITAL Capital is a source of financial support in the overall Bank’s operational activities. Capital functions as a buffer to absorb unexpected losses and as a safety net in a crisis condition. The amount of capital that must be provided relies highy on the risks faced by the Bank. A favourable capital adequacy can enhance the stakeholders’ confidence.

The Bank compiles a Capital Plan referring to a review and assessment of its required capital adequacy and combines it with a recent economic update review. The Capital Plan is drawn up by the Directors as a part of the Bank’s Business Plan and approved by the Board of Commissioners. The Bank always compares between financial targets and capital adequacy with associated risks through a capital planning process. Likewise, a business expansion is based on a capital adequacy and the Bank’s liquidity requirements. Those Capital needs are planned and examined regularly that is supported by analytical data.

The management policies regarding with capital are aimed at ensuring that Bank has a sound capital with a good capital structure to bolster its current business expansion development strategy and to maintaining its business continuity in the future. The capital management policy is also used as a guide to identify internal and external capital sources. Moreover, the capital policy is set to meet the regulator’s capital adequacy requirements and to ensure that the Bank’s capital structure is efficient.

In accordance with Financial Services Authority Regulation (POJK) No. 11/POJK.03/2016, the Bank’s capital consists of:

Core Capital (Tier 1)Core capital is the Bank’s capital comprising of: Core Capital (Common Equity Tier 1 - CET 1) and Supplementary Core Capital (Additional Tier 1). The main core capital includes paid in capital and reserve additional capital (a disclosed reserve). A supplementary capital reserves consist of additional factors (agio, contributed capital, general reserves, previous years income, current year net profit, excess adjustment due to financial statement translation, paid in capital fund, warrants issued as Bank shareholders’ incentives, share options, other comprehensive income and fixed assets revaluation and deduction factors (disagio, previous years losses, current year losses, negative adjustment due to financial statement translation, other comprehensive income, negative differences between regulatory provision and allowance for impairment losses of earning assets, negative differences on adjustment of fair value on financial instrument in the trading book and total adjustment based on accounting standard as well as non productive difference in translation of financial statements, other comprehensive income, less difference between Allowance for Asset Losses (PPA) on earning assets and Allowance for Losses Impairment Value (CKPN) of earning assets, less difference between the amount of adjustment to the valuation results of financial instruments in the Trading Book and the amount of adjustment based on financial accounting standards and non-productive regulatory provision.

Tier 2 CapitalSupplementary capital (maximum 100% of core capital). Supplementary capital includes capital instrument in the form of Stock or others which comply with regulations, agio/disagio originating from capital instrument issuance classified as a supplementary capital, general provision of earning assets, a maximum 1.25% of RWA for Credit Risk and Specific Reserve.

In 2019 BNI had a total core capital and supplementary capital of Rp111.67 trillion, higher than core capital and complementary capital in 2018 of Rp104.22 trillion.




CapitalTable 1.a BNI Capital Structure

(in million Rupiah)

CAPITAL COMPONENTS31 December 2019 31 December 2018

Individual Consolidated Individual Consolidated

I Tier 1 Capital 111,671,916 117,106,127 98,013,788 102,411,938

1 Modal Inti Utama/Common Equity Tier 1 (CET 1) 111,671,916 117,106,127 98,013,788 102,411,938

1.1 Paid-Up Capital (after Treasury Stock) 9,054,807 9,054,807 9,054,807 9,054,807

1.2 Disclosed Reserve *) 107,228,092 109,717,062 93,776,277 95,372,851

1.2.1 Additional Factors 107,702,930 110,768,702 96,876,604 99,314,270

1.2.1.1 Other Comprehensive Income 14,848,765 14,974,571 14,921,658 15,044,109

1.2.1.1.1 Excess in notes to financial statements 43,910 47,200 84,951 84,886

1.2.1.1.2 Potential profit from an increase in fair value of financial assets in ready for sale category

- - - -

1.2.1.1.3 Fixed assets revaluation surplus balance 14,804,855 14,927,371 14,836,707 14,959,223

1.2.1.2 Other disclosed reserves 92,854,165 95,794,131 81,954,946 84,270,161

1.2.1.2.1 Agio 14,568,468 14,568,468 14,568,468 14,568,468

1.2.1.2.2 General reserves 2,778,412 2,778,412 2,778,412 2,778,412

1.2.1.2.3 Past years profits 60,894,418 63,206,106 50,145,903 51,946,977

1.2.1.2.4 Current year profits 14,612,867 15,241,145 14,462,163 14,976,304

1.2.1.2.5 Paid-up capital funds - - - -

1.2.1.2.6 Others - - - -

1.2.2 Deduction Factors (474,838) (1,051,640) (3,100,327) (3,941,419)

1.2.2.1 Other comprehensive income (256,908) (832,627) (2,985,198) (3,826,108)

1.2.2.1.1 Deficit in notes to financial statements - - - -

1.2.2.1.2 Potential loss from a decrease in fair value of financial assets in ready for sale category

(256,908) (832,627) (2,985,198) (3,826,108)

1.2.2.2 Other disclosed reserves (217,930) (219,013) (115,129) (115,311)

1.2.2.2.1 Disagio - - - -

1.2.2.2.2 Past years losses - - - -

1.2.2.2.3 Current year loss - - - -

1.2.2.2.4 Deficit between Provisions of Asset Allowance (PPA) and Allowance for Impairment Losses (CKPN) of productive assets

- - - -

1.2.2.2.5 Deficit in the amount of adjustments to the fair value of financial instruments in the Trading Book

- - - -

1.2.2.2.6 PPA of non-productive assets that must be established

(217,930) (219,013) (115,129) (115,311)

1.2.2.2.7 Others - - - -

1.3 Non-Controlling Interests that can be calculated - 2,840 - 2,544

1.4 Common Equity Tier 1 Deduction Factors *) (4,610,983) (1,668,582) (4,817,296) (2,018,264)

1.4.1 Deferred tax calculation (1,083,442) (1,274,315) (1,514,755) (1,623,997)

1.4.2 Goodwill - - - -

1.4.3 All other intangible assets - - - -

1.4.4 Participation that is calculated as a deduction factor (3,527,541) (394,267) (3,302,541) (394,267)

1.4.5 Lack of capital in insurance subsidiary - - - - - -

1.4.6 Securitization exposures - - - -

1.4.7 Other common equity tier 1 deduction factors - - - -

1.4.7.1 Placement of funds in AT 1 instruments and/or Tier 2 at other banks

- - - -

1.4.7.1 Cross ownership in other entities that is obtained based on transfer by law, grant, or probate grant

- - - -

2 Additional Tier 1 Capital (AT 1) *) - - - -

2.1 Instruments that fulfill AT 1 requirement - - - -

2.2 Agio/Disagio - - - -

2.3 Additional Tier 1 Deduction Factors *) - - - -

2.3.1 Placement of funds in AT 1 instruments and/or Tier 2 at other banks - - - -

2.3.2 Cross ownership in other entities that is obtained based on transfer by law, grant, or probate grant

- - - -




II Tier 2 Capital 6,423,836 6,707,484 6,240,307 6,487,602

1 Capital instruments in the form of shares or other forms that fulfill Tier 2 requirements 73,333 73,333 93,333 93,333

2 Agio/Disagio - - - -

3 General reserves of PPA for productive assets that must be established (the highest is 1.25% of Credit Risk RWA)

6,350,503 6,634,150 6,146,973 6,394,269

4 Tier 2 Capital Deduction Factors - - - -

4.1 Sinking Fund - - - -

4.2 Placement of funds in Tier 2 instruments at other banks - - - -

4.3 Cross ownership in other entities that is obtained based on transfer by law, grant, or probate grant

- - - -

TOTAL CAPITAL 118,095,752 123,813,611 104,254,095 108,899,540

31 December 2019 31 December 2018 31 December 2019 31 December 2018

Individual Consolidated Individual Consolidated Individual Consolidated Individual Consolidated

Risk Weighted Assets Risk Weighted Assets

CREDIT RISK RWA 519,094,959 543,319,901 491,757,871 511,541,518 CET 1 Ratio (%) 18.66% 18.70% 17.40% 17.46%

MARKET RISK RWA 3,156,975 3,267,223 3,198,449 3,273,949 Tier 1 Ratio (%) 18.66% 18.70% 17.40% 17.46%

OPERATIONAL RISK RWA 76,231,925 79,593,563 68,483,648 71,631,769 Tier 2 Ratio (%) 1.07% 1.07% 1.11% 1.11%

TOTAL RWA 598,483,859 626,180,687 563,439,969 586,447,236 CAR Ratio (%) 19.73% 19.77% 18.50% 18.57%

CAR RATIO ACCORDING TO RISK PROFILE (%)

9,95% 9,95% 9,90% 9,90% CET 1 FOR BUFFER (%)

9.78% 9.82% 8.60% 8.67%

A capital adequacy is truly required to support business expansion and to maintain market share as well as to comply with Financial Services Authority (OJK)’s provision regarding minimum Capital Adequacy Ratio (CAR) in accordance with the Risk Profile and buffer capital.

Therefore, BNI strives to continue to strengthen capital by adding organic core capital, in this case, primarily from increasing retained earnings.

Capital adequacy is assessed through Capital Adequacy Ratio calculation (CAR) for Credit Risk, Market Risk and Operational Risk based on Risk Weighted Assets (RWA) in accordance with Pillar 1 of Basel II.

RWA for credit risk calculation method uses the Standardized Approach, RWA for Market Risk calculation uses the Standard Method whilst RWA for Operational Risk calculation uses the Basic Indicator Approach.

For risks that have not been calculated in the RWA include Credit Concentration Risk, Interest Rate Risk in the Banking Book, Liquidity Risk, Legal Risk, Strategic Risk, Compliance Risk and Reputation Risk are calculated in the Bank’s Risk Profile.

Based on the Financial Services Authority (OJK) Regulation No. 11/POJK.03/2016 on the Minimum Capital Requirement (CAR) for Commercial Banks, banks are required to provide a minimum capital in accordance with the Risk Profile. The established minimum capital is calculated using the risk profile rating as follows:

Risk Profile Score CAR

1 8%

2 9% sd <10%

3 10% sd <11%

4 dan 5 11% sd <14%

In addition to an obligation to provide a minimum capital requirement according to the Risk Profile, since January 2016 BNI is also required to form additional capital as a buffer according to criteria set by the Financial Services Authority (OJK). A supplementary buffer capital consists of the Capital Conservation Buffer, Countercyclical Buffer, and Capital Surcharge for Systemic Banks. BNI’s CAR Ratio as of 31 December 2019 at 19.7% has met the CAR requirements based on the Risk profile and additional buffer capital of 13.95%.




BASIS OF RISK MANAGEMENT IMPLEMENTATION

BNI’s Risk Management implementation refers to both national and international regulations, including Financial Services Authority Regulations (POJK), Financial Services Authority Circular Letters (SEOJK), Bank Indonesia Regulations (PBI), Bank Indonesia Circular Letters (SEBI), and Basel Committee on Banking documents Supervision (BCBS).

Several regulations related to Bank Risk Management are as follows:1. Risk Management Implementation.

a. Financial Services Authority Regulation No. 18/POJK.03/2016 dated 16 March 2016 concerning Risk Management Implementation for Commercial Banks.

b. Circular Letter of Financial Services Authority No. 34/SEOJK.03/2016 dated 1 September 2016 concerning the Risk Management Implementation for Commercial Banks.

2. Consolidated Risk Management with Subsidiaries Implementation.a. Financial Services Authority Regulation No. 38/

OJK.03/2017 dated 12 July 2017 concerning Application of Consolidated Risk Management for Banks Conducting Control on Subsidiary Companies.

b. Circular Letter of Financial Services Authority No. 43/SEOJK.03/2017 dated 19 July 2017 concerning Prudential Principles and Reports in the framework of Consolidated Risk Management Implementation for Banks Controlling on Subsidiary Companies.

3. Integrated Risk Management Implementation.a. Financial Services Authority Regulation No. 17/

POJK.03/2014 dated 18 November 2014 concerning Integrated Risk Management Implementation for Financial Conglomerates.

b. Circular Letter of Financial Services Authority No. 14/SEOJK.03/2015 dated 25 May 2015 concerning Integrated Risk Management for Financial Conglomerates Implementation.

4. Risk Management for Commercial Bank Products and Activities, including:a. Financial Services Authority Regulation No. 36/

POJK.03/2017 dated 12 July 2017 concerning Prudential Principles in Equity Investment Activities.

b. Financial Services Authority Regulation No. 38/POJK.03/2016 dated 1 December 2016 concerning Risk Management Implementation for Information Technology Usage by Commercial Banks.

c. Financial Services Authority Regulation No. 12/POJK.03/2018 dated 6 August 2018 concerning Digital Banking Services Accomplishment by Commercial Banks.

5. Internal Control System. Circular Letter of Financial Services Authority No. 35/

SEOJK.03/2017 dated 7 July 2017 concerning for Internal Control Systems Standard Guidelines for Commercial Banks.

Risk Management Practices




GENERAL RISK MANAGEMENT IMPLEMENTATION

In order to implement effectively Risk Management, both for BNI’s individual and Consolidated basis as well as integrated with Subsidiaries, BNI risk management implementation is as follows:1. Active surveillance by the Directors and Board of

Commissioners;2. Adequacy of risk management policies and procedures

as well as risk limits assignment;3. Adequacy of identification, measurement, monitoring,

and risk control process as well as a risk management information system; and

4. A comprehensive internal control system.

Directors and Board of Commissioners’ Active Surveillance Board of Directors’ active surveillance is conducted among others by preparing, approving, implementing and evaluating BNI’s risk management policies and procedures as well as its integrated risk management.

In performing its effective risk management function, Board of Directors is supported by a Risk Management Working Unit (RMWU) acting also as an Integrated Risk Management Working Unit (IRMWU). That surveillance is carried out through Board of Directors Meeting forum, Risk & Capital Committee Meeting (RCC), Risk Management Sub-Committee (RMC), Assets & Liabilities Sub-Committee (ALCO), Anti-Fraud Sub-Committee (AFC), Credit Policy Committee forum (CPC) and the Credit Procedure Committee (CPC) as well as Integrated Risk Management Committee.

In carrying out its functions to supervise the implementation of BNI Risk Management and Integrated Risk Management, BNI’s Board of Commissioners is supported by the Risk Monitoring Committee (KPR), Audit Committee, and Integrated Governance Committee.

Board of Commissioners’ active surveillance is conducted among others through General Risk Management Policy’sapproval and evaluation prepared by Directors. The Board of Commissioners periodically evaluates the implementation of risk management policies through the Directors and Commissioners Meeting forum as well as in Risk Monitoring Committee (RMC) meetings.

Risk Management Adequacy of Policies and Procedures as well as Risk Limits ArrangementRisk Management Policy is a written direction in implementing risk management and must be in line with the vision, mission and strategic plan. It also focuses on BNI’s business activities’ associated risks and prepared by considering risk appetite, risk tolerance and limit arrangement.

Risk Management Policies at BNI include:1. General Policy of Risk Management.2. Credit Risk Management Policy, Market Risk, Liquidity

Risk, Operational Risk, Compliance Risk, Legal Risk, Strategic Risk, and Reputation Risk.

3. General Policy of Integrated Risk Management and Capital

4. Guidelines for Internal Control Systems

In its implementation, Risk Management Procedure is a translation as well as implementation rules of the Risk Management Policy and is used as a reference for risk management implementation for each Risk Management Unit and is adequately documented. The detailed provisions of each procedure are organized in the Technical Guidelines.

Evaluation and/or BNI’s Risk Management Policies and Procedures update is regularly conducted or in the event of significant changes affecting BNI’s business activities.

As one of the risk control methods, BNI also has its owned risk limit. A risk limits is a threshold to determine the intensity level of risk mitigation to be carried out by management.

BNI’s risk limit arrangement includes limit per Risk (credit risk, market risk, and liquidity risk), limit per functional activity as well as overall limit. The Risk policies, procedures and limits are periodically reviewed with an approval up to Board of Directors level through committee meetings or circulars to the Directors in accordance with the level of authority.

Risk Management Practice




Adequacy of identification, measurement, monitoring, and risk control process as well as a risk management information systemBNI’s Risk Management process includes the stages of risk identification, measurement, monitor and control towards 8 (eight) types of risks on an ongoing basis against all risk factors that are material supported by Information System Risk Management can be described as follows:

Risk ControlRisk control focuses on risksthat can disrupt the Bank’s

business continuity. The riskcontrol process is adjusted tothe risk exposure and the risklevel and tolerance that will

be taken.

DisclosureSubmitting a risk report,which includes:1. Risk Management Reports to

Regulators and Management2. Risk Management

Information Report to the public kepada publik.

Risk MeasurementThe risk measurement process

is carried out in order toknow the magnitude of therisk exposure as a reference

for carrying out controlsand for the purposes of

calculating minimum capitaladequacy requirements.

Risk IdentificationRisk identification is

carried out proactively on all business activities

in order to analyze the source, the level of

possible risks, and the impact they have.

Risk MonitoringThe risk monitoring process is carried out toensure that risks have been managed properly,among others by:•monitoring compliance

with regulations•setting risk tolerance

and limits•stress testing results as

risk mitigation efforts•that have been carried

out.

Policies regarding the process of risk identification, measurement, monitor and control for 8 (eight) risk types (credit, market, liquidity, operational, legal, strategic, compliance and reputation risk) are assigned in the Risk Management Policy per risk type whilst BNI Financial Conglomeration’s Integrated Risk Management process is stipulated in the Integrated Risk Management General Policy (IRMGP).




Risk IdentificationRisk identification process is conducted proactively on all business activities in order to analyze the source and the likelihood of risks and their impacts. Key factors considered in the risk identification process are:1. Identify all risks regularly.2. Own a method or system to identify BNI’s all products

and business activities risks.3. Specifically identify new products and activities’ risks,

before those new products/activities are introduced or executed.

Risk MeasurementRisk measurement process is executed in order to find out risk exposure magnitude as a reference for risk control and Minimum Capital Adequacy Requirement calculation.

Risk measurement is conducted both quantitatively and/or qualitatively corresponding to Regulator’s assigned measurement or by using BNI’s internally developed method based on best practice in risk measurement. BNI’s risk measurement is also equipped with stress testing for credit, market and liquidity risk in order to anticipate extreme conditions.

Factors considered in risk measurement implementation are as follows:1. The risk measurement scope at least measures

sensitivity, tendency, individual risk factors, overall and per risk exposure by taking into account correlation, and all inherent risks in bank transactions and products.

2. Risk measurement methods can be executed quantitatively and/or qualitatively by using methods both assigned by regulators and internally developed.

3. The measurement method implementation is adjusted with the prevailing Regulator’s provisions.

4. The internal methods application in terms of credit, market and operational risk measurement must consider Regulator’s requirements amongst others requirements for usage, backtesting, validation, and documentation.

5. Risk measurement is executed by Risk Management Unit in coordination with Risk Management Working Unit.

6. BNI’s individual risk measurement is executed towards 8 (eight) types of risk, whereas there are 10 (ten) types of risk for BNI’s Financial Conglomerate risk measurement. BNI’s individual risk measurement is conducted on 3 (three) main risks namely credit, market and operational risk for reporting purposes of Minimum Capital Adequacy Requirement to the Regulator. Meanwhile, Integrated Minimum Capital Adequacy Requirement is executed by comparing Financial Services Institutions’ (FSI) total actual capital as a member of Financial Conglomerate with the minimum total capital that must be fulfilled by FSI which is a members of BNI Financial Conglomerate.

7. Risk measurement is carried out periodically where measurement results are reported to the Regulator as a part of BNI’s individual risk profile and CAR as well as Integrated Risk Profile and Integrated KPMM Report of BNI Financial Conglomerates.

Risk SurveilanceThe risk surveillance process is executed to ensure that risks have been managed properly, among others by monitoring the mitigation and risk limits that have been set.

Factors considered in risk monitoring execution are as follows:1. Risk monitoring includes amongst others surveillance

towards the risk exposures magnitude, risk tolerance, compliance limits, and stress testing results as well as implementation consistency on the assigned policies and procedures.

2. Risk survellance is conducted by both the Operational Working Unit and the Risk Management Working Unit.

3. Surveillance results are presented in reports that are periodically submitted to both external parties (Regulators) and internal (Management).

Risk surveillance is executed by both Operational Working Unit (risk taking unit) as the risk owner and Risk Control Unit of which the surveillance results are presented regularly includes Loan Portfolio Report, Market and Liquidity Risk Surveillance Report, Operational Risk Expense Report, Operational Risk Self Assessment Feedback Report, Internal Risk Report, Risk Profile Report, Bank Soundness Report, and Minimum Capital Adequacy Requirement (CAR) Report.





Risk ControlThe risk control process is conducted mainly for risk management that can disrupt BNI’s business continuity.

Factors that should be considered in risk control are as follows:1. Risk control system refers to the assigned policies and

procedures.2. Risk control process is adjusted to risk exposure and risk

appetite as well as risk tolerance.3. Hedging and risk mitigation mechanism is executed

by Operational Working Unit in collaboration with Risk Management Working Unit.

The risk control strategies that can be implemented include as follows:1. Risk Acceptance For certain types of risks that are not feasible to do

a prevention or a remedial intervention situation, then the existing potential risks will be accepted as a consequence of banks in utilizing business opportunities by considering that risk is still within the Bank’s limits/tolerance. Nevertheless, a strict control must be executed if this risk control strategy is applied.

2. Risk Avoidance Risk avoidance is carried out to prevent BNI from an

unacceptable risk experience or to prevent increasing risk exposure. Risk avoidance is selected if the potential profit of a business activity is smaller than the risk exposure that might occur.

3. Risk Transfer Within the risk transfer strategy, the risk is still inherent

in the business activity, but the risk is transferable to other parties. One of the most common of risk transfer methods is insurance or outsourcing services utilization.

4. Risk Mitigation Risk control will be optimal if efforts are made to reduce

existing risks. Risk mitigation is intended to minimize losses triggered by external factors and internal bank events. One alternative to push and reduce risk is by control enhancement and work systems and procedures improvement.

Risk Management Information SystemRisk Management information system must be able to bolster the identification, measurement, surveillance and risk control process implementation.

Several risk management applications have been prepared to support risk management process implementation that is well, accurately and on timely executed include Credit Risk Management System (CRMS), Internal Rating System, Scoring System, Operational Risk Tool (PERISKOP), and Market Risk Management Application.

BNI has prepared risk management solutions that are in line with the IT Strategic Plan, amongst others:1. To prepare a front end application for credit, market and

operational risk2. To set up data storage and information system.3. To prepare Capital Calculation Engine.

Prior to implement a new risk management information system, testing must be conducted to ensure that process and resulting output have gotten through developing, testing, and re-evaluating process that is effectively and accurately executed.




Comprehensive Internal Control SystemBNI’s internal control system is developed and implemented by using the Three Lines of Defense model consisting of:

Risk Taking Unitor 1st Line of Defense1st

2nd

3rd

Risk Control Unitor 2nd Line of Defense

Risk Control Unitor 2nd Line of Defense

Risk Owner, is responsible forthe risks taken, executed, andthe results (day to day riskmanagement and control)• Responsibleformanaging

and controlling risk inherent on day-to-day business activities or functions

• Identification,measurement,mitigation, monitoring, and reporting of risks inherent in business activities/functions in accordance with the risk strategies/policies/parameters set by the Risk Control Unit (2nd line of defense).

Risk Control, is responsiblefor preparing the Bank’s riskmanagement framework, policies,principles, and methodologies• Preparingproposalsofrisk

management strategies and policies, including risk appetite and risk limit

• Developingframework,policies, principles, tools, methodologies, and standards of risk management

• Actingasariskmonitoring/oversight unit, by carrying out aggregation and risk reporting in overall.

• Providingadviceorrecommendations to the Operational Work Unit as the Risk-Taking Unit (1st line of defense) in implementing risk policies according to the authority

• Escalatingimportantissues/decisions to the Senior Management/Board of Directorsand/ortheRiskManagement Sub Committee of the Risk and Capital Committee and/or the Integrated Risk Management Committee (Risk Management Committee).

RiskAssurance,isresponsiblefor independently assessingthe effectiveness of the riskmanagement implementation and internal control• Conductingindependentand

periodic internal audit on the implementation of risk management and internal control.

• Preparingrecommendationsof corrective actions and monitoring the implementation.

• ReportingtheauditresultstotheAuditCommitteeandkeystakeholders according to the authority.

Risk Owner as the first line of defense/Risk Taking Unit that manages day-to-day inherent risks in its business and functions. The Bank’s Risk Management Division, Governance of Policy Division and Compliance Division functions as the second line of defense/Risk Control Unit.

The Internal Audit Unit (SAI) acts as the third line of defense/Risk Assurance Unit which is responsible to the President Director and is assigned to assess the implementing process suitability between risk management and internal control systems with established policies and procedures as well as with the Regulator’s provisions.

BNI’s Internal Control System application has been carried out effectively and efficiently by implementing the separation of functions between the Risk Taking Unit and the Risk Control Unit as well as the Risk Assurance Unit.





IMPLEMENTATION OF SPECIAL RISK MANAGEMENT

Credit Risk

Credit Risk ManagementUncertainty and global economic slowdown impact towards economic conditions in Indonesia. It also has an impact on the performance and bank credit quality in general. Under these conditions BNI’s loan portfolio can grow quite aggressively amounting to 16.2% in 2019, above the average growth of commercial banks and state-owned banks. The ratio of non-performing loans (BNI’s Non Performing Loans) can be maintained in a reasonable range and slightly increased from 1.9% in 2018 to 2.3% in 2019.

To anticipate and control credit risk caused by debtors’ failure to fulfill their obligations, BNI implements an early warning system, a monitoring system to identify potential credit risk earlier and used as an indicator for further actions before credit falls into Non Performing Loan. BNI proactively continues to make efforts to improve the of low quality loans management among others by sharpening Credit Risk Review function and forming a Joint Effort Team with cross-division members to take steps to save and settle loans earlier and in an integrated manner in order to push NPL’s increasing rate.

To maintain the Bank’s ability to absorb potential risks and anticipate uncertain economic conditions, BNI gradually continues to increase the Bank’s ability to absorb potential losses due to poor credit quality by Coverage Ratio enhancement and currently BNI Coverage Ratio has reached 134%, slightly decreased from 153% in 2018.

As a part of process quality improvement efforts, BNI has implemented Credit Dicipline Program (CDP) as a guideline for all credit management tools in executing credit process so that it can be more effective and prudent, starting from pipeline preparation process, verification until credit surveillance.

In addition, to focus on quality expansion BNI also provides training and specialized credit staff provision in priority

industry sectors as well as expanding on corporate partners by using a skim learning model (supply chain financing).

BNI also strengthened credit administration unit by changing the paradigm from document administration function to credit risk management, which involves credit administration unit to minimize credit risk through well-organized document, and surveillance on guarantees binding process in notaries and insurance closures. In addition, the principle of “not complete no disburse” is applicable when no disbursement will be done if the credit administration requirements are not yet complete.

Governance and OrganizationTo accelerate the business expansion process in all small segment business units, marketing function and credit analysis process are executed by Relationship Managers under the business unit by conducting business and risk analysis as well as providing the necessary risk mitigation to proposed prospective debtors.

As for Medium and Corporate segments there are business processes differences compared to the Small segment. The credit process in this segment is carried out by Senior Relationship Managers and Relationship Managers in the business unit with the task of processing proposals from prospective debtors. Meanwhile, risk analysis and review of prospective debtors in the Corporate and Medium segments is conducted by Credit Risk Manager function under the Risk Unit.

Four eyes principles application along BNI’s credit process is implemented in the loan approval process executed by Credit Committee. It is a forum with credit decision officials having authorities to decide on the proposed credit in accordance with the specified limits. Credit Committee members consist of business unit officials and business risk units. The business unit and business risk unit act as the first line of defense (risk owner) to manage and control credit risk in the daily operational activities of the unit.

The Bank’s Risk Management Division (ERM) and Policy Governance Division (PGV) act as the second line of defense in charge of preparing the credit infrastructure such as credit policies and procedures preparation, limits settlement on the authority to decide on credit, preparing a rating and scoring system, monitoring the credit portfolio with the business unit as well as preparing other tools needed to support credit activities.




Internal Audit Unit (SAI) as the third line of defense actively participates to maintain the loan portfolio quality hrough an immediate post review by conducting an examination of several debtors as soon as the credit is disbursed. SAI also inspects debtors by sampling to maintain the quality of debtors who have obtained credit facilities. To ensure the credit process quality on an ongoing basis, an immediate post review function will be improved continously. Policies and ProceduresCredit Policies and Procedures are compiled as a basis to execute activities in the credit process so that credit quality can be maintained whilst considering the assigned business targets. BNI has a Bank Credit Policy (BCP) which is decided by the Credit Policy Committee (CPC) Forum and approved by Board of Commissioners. Subsequently the CPC is translated into Credit Company Guidelines which are decided by Credit Procedures Committee Forum (CPC).

Moreover, BNI also has a Credit Risk Management Policy that is derived in the form of Credit Risk Management Procedures. Credit policies and procedures and Credit Risk Management have been standardized into the Company

Guidelines. The current Company Guidelines are available in the form of online guidelines namely BNI e-PP (electronic Company Guidelines).

ProcessCredit risk management process is implemented throughout the entire credit process, starting from credit marketing until the credit is paid off. The process takes place continuously in a value chain activity that begins with a determination of strategy and planning, customer insight, portfolio planning, product development, credit processing, credit administration, intensive surveillance and portfolio optimization.

In credit operational activities within an individual customers scope, credit risk management process is carried out by both Business Unit and Business Risk Unit through phases of identification (including data truth verification), measurement (credit analysis tools usage), surveillance (through customer visits and regular customers’ rating reviews), as well as control (including through limits, covenants and mitigating factors assignment).

CREDIT RISK MANAGEMENT PROCESS

Strategic, Planning, & Budgeting

Customer Insight Product Dev.

Loan Origination/Acquisition

Relationship

Relationship

Analysis

CRD. Adm

Monitoring & Control

Monitoring Remedial

Portofolio Optimazition

Portofolio Analysis

Optomazition

Within the overall portfolio scope, monitoring and reporting of credit exposures is conducted regularly to Management amongst others through Loan Portfolio Report. In addition, credit concentrations were also monitored, both a concentration on certain economic sectors and segments. Periodically in the Risk Committee and Capital Committee Forum, the Risk Management Sub-Committee (KRK-RMC) evaluates the targets achievement, subsequent steps and coordination improvement and effectiveness of the assigned corrective measures.





Device and MethodIn order to support business process operations and credit risk management, BNI has several credit risk management tools at the level of individual and portfolio exposures. For credit processing in individual business banking segment exposures, BNI already has a rating model in the form of an internal rating system and a debtor scoring system for consumer segment to help debtor quality analysis in the credit process.

To keep the bank’s portfolio from certain debtors and economic sectors concentration, credit limits have been set based on risk appetite. Meanwhile, BNI has set LLL limits that so-called house limits with more prudent limits compared to LLL limits according to regulatory provisions in order to anticipate exceeding LLL.

To manage the loan portfolio composition, BNI has a Loan Exposure Limit (LEL) functioning to limit the risk concentration of loan exposure in each economic sector of each business segment, and serving as a guideline for loan expansion for one year. For industry risk assessment, BNI implements Industry Risk Rating (IRR) as well as financial ratio standards that are used as a factor in assessing the debtors quality from the industry side.

As a part of credit risk measurement and to anticipate changes in macro factors affecting banks, BNI regularly conducts credit risk stress testing to assess credit portfolios changes and their effects on banks and their ability to deal with these conditions.

To integrate documentation in the credit process, BNI has used the e-PAK application for corporate credit which assists end-to-end credit processes and its documentation executred by integrating several existing tools.

Establishment of Allowance for Impairment Losses (CKPN)Based on PSAK 55, banks are required to establish an allowance for impairment losses (CKPN) to anticipate a declining bank financial assets value. Impairment losses is a condition in which a bank financial asset’s the carrying value exceeds the recoverable value of that financial asset.

At the end of every month, BNI evaluates the impairment losses of all financial assets except for financial assets classified in a group whose fair value is measured through Profit (Loss) Report or Fair Value Through Profit and Loss. BNI evaluates whether there is objective evidence that the financial asset or group of financial assets is impaired.

Objective evidence is evidence of an adverse event occurrence as a result of one or more events that happened after the initial recognition of the asset, and the adverse event has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be estimated reliably. Objective evidence includes:1. Significant financial difficulties experienced by the issuer

or debtor.2. Breach of contract, namely default or delinquency

occurrence in the debtor obligations payment both principal, interest and penalties.

3. BNI with its economic or legal reasons relating to financial difficulties experienced by the borrower, provides relief (concessions) to the borrower that is not possible if the borrower does not experience financial difficulties.

4. It is possible that the borrower will enter bankruptcy or other financial reorganization.

5. Loss of an active market of financial assets due to financial difficulties, or

6. Observable data indicate that there is a measurable decrease in the estimated future cash flows of a group of financial assets since the initial recognition of the financial asset, even though the decrease cannot be identified individually for the financial assets in the group of financial assets.




BNI uses 2 (two) calculating methods of the CKPN formation namely Individual and Collective assessment.

Individual CKPN calculations are performed on a significant financial asset that has objective evidence of impairment losses, namely financial assets from the Corporate and Medium segments, as well as ownership of securities.

Individual CKPN is calculated by using the present value method of the estimated cash flows of a financial asset conducted directly by each debtor manager.

CKPN is collectively calculated by using historical loss data (Incurred Loss based on estimated Probability of Default [PD] and Loss Given Default [LGD] calculation) from each particular asset group).

Collective CKPN calculation is performed for all financial assets that:1. It is not be evaluated individually amongst others loans

from the Small segment, Consumer Loans, Credit Cards, Acceptances, Document Bills and Facilities.

2. There is no objective evidence of impairment losses of the evaluated financial assets namely loans in the corporate and medium business segments of which there is no objective evidence of impairment loss.

3. There is objective evidence of financial assets impairment that are individually evaluated but there is no impairment loss.

In this collective CKPN calculation, an asset is categorized as a matured (default) asset if the asset is recorded to have arrears for principal and/or interest payments for more than 180 (one hundred eighty) days, or has been written off.

BNI uses migration and roll rate analysis with a 5 (five) years data observation period for the PD and LGD Collective CKPN calculation. In order to implement IFRS-9 in all BNI units both domestic and overseas branches, BNI has prepare for its implementation by developing the impairment calculation methodology (CKPN) in accordance with IFRS-9. The CKPN calculation model according to IFRS-9 of overseas branches has been implemented in 3 (three) overseas branches since January 2018, while for BNI’s domestic branch will be implemented starting January 2020.





Net bills disclosures and details of impairment loss reserve both bank only and consolidations are made in these tables: Table 2.1.a, Table 2.1.b, Table 2.2.a, Table 2.2.b, Table 2.3.a, Table 2.3.b, Table2. 4.a, Table 2.4.b, Table 2.5.a, Table 2.5.b, Table 2.6.a, and Table 2.6.b

Table 2.1.a Disclosure of Net Receivables By Bank Regions individually (in million Rupiah)

No. PortfolioCategory

31 December 2019 31 December 2018

Net Receivables By Area Net Receivables By Area

Group A Group B Group C Group D Group E Total Group A Group B Group C Group D Group E Total

1 Receivables on Sovereigns

- 135 57 142,436,456 14,138,960 156,575,608 216 23 - 149,274,501 17,323,908 166,598,648

2 Receivables on Public Sector Entities

7,758,140 614,302 19,338,268 60,839,949 1,632,609 90,183,268 15,977,999 616,326 17,543,301 58,979,685 5,325,421 98,442,732

3 Receivables on MultilateralDevelopmentBanks andInternationalInstitutions

- - - - - - - - - - - -

4 Receivables on Banks

459,777 389,907 917,787 39,026,777 5,223,494 46,017,742 396,210 321,712 409,670 36,384,525 9,694,942 47,207,059

5 Loans Securedby ResidentialProperty

3,239,421 2,696,840 5,616,612 2,687,725 451 14,241,049 2,702,821 1,488,488 5,364,450 2,814,441 1,431 12,371,631

6 Loans Securedby CommercialReal Estate

1,314,805 1,487,012 2,201,788 11,967,079 - 16,970,684 1,438,963 1,454,535 2,118,773 6,819,885 - 11,832,156

7 Employee/Retiree Loans

90,724 53,024 145,138 66,859 4,993 360,738 142,171 98,614 211,797 99,918 3,356 555,856

8 Receivableson MicroBusiness,SmallBusiness,and RetailPortfolio

19,417,577 16,279,252 28,011,259 25,160,826 1,830 88,870,744 17,179,462 14,211,957 24,197,097 22,814,580 3,653 78,406,749

9 Receivables on Corporates

63,647,779 30,737,363 67,873,469 168,565,532 24,325,701 355,149,844 60,273,981 26,535,000 66,861,926 156,216,495 20,674,663 330,562,065

10 Past DueReceivables

1,555,470 274,729 1,239,771 2,775,033 269,623 6,114,626 840,965 313,485 1,238,703 1,333,608 260,204 3,986,966

11 Other Assets 3,041,932 1,882,210 3,791,733 38,506,792 240,176 47,462,843 3,007,578 1,853,422 3,740,312 38,180,316 148,482 46,930,109

12 Exposures atSharia Unit (if any)

- - - - - - - - - - - -

Total 100,525,625 54,414,774 129,135,882 492,033,028 45,837,837 821,947,146 101,960,366 46,893,562 121,686,029 472,917,954 53,436,060 796,893,971

Group A: Medan Region, Padang Region, Palembang Region, Banjarmasin Region.Group B: Makassar Region, Denpasar Region, Manado Region, Papua Region.Group C: Bandung Region, Semarang Region, Surabaya Region, Jogyakarta Region, Malang Region.Group D: Jakarta Senayan Region, Jakarta Kota Region, Jakarta BSD Region, Jakarta Kemayoran Region.Group E: Overseas Branch Offices Region




Table 2.1.b Disclosure of Net Receivables By Bank Regions, Consolidated with Subsidiaries (in million Rupiah)



Net Receivables By Area Net Receivables By Area

Group A Group B Group C Group D Group E Total Group A Group B Group C Group D Group E Total


- 135 57 192 216 23 - 149,262,106 17,323,908 166,586,253


7,758,140 614,302 19,339,532 27,711,974 15,986,417 616,326 18,215,004 58,245,130 5,325,421 98,388,298


- - - - - - - - - -


460,863 389,907 917,787 1,768,557 396,210 321,712 409,670 30,467,756 9,695,934 41,291,282


3,239,421 2,696,840 5,616,612 11,552,873 2,702,821 1,488,488 5,364,450 2,814,441 1,431 12,371,631

6 Loans Securedby CommercialReal Estate

1,314,805 1,487,012 2,201,788 5,003,605 1,438,963 1,454,535 2,118,773 6,819,885 - 11,832,156


92,481 53,024 145,702 291,207 146,893 98,748 227,092 79,766 3,356 555,855

8 Receivableson MicroBusiness,SmallBusiness,and RetailPortfolio

19,422,045 16,279,252 28,150,612 63,851,909 17,191,224 14,212,006 24,603,054 23,523,013 3,653 79,532,950


63,653,833 30,737,364 68,129,527 162,520,724 60,275,256 26,535,000 66,884,832 154,841,977 20,674,663 329,211,728


1,555,470 274,729 1,239,771 3,069,970 840,965 313,485 1,238,703 1,333,608 260,204 3,986,965

11 Other Assets 3,041,933 1,882,209 3,791,732 8,715,874 3,007,578 1,853,422 3,740,312 39,479,282 148,482 48,229,076

12 Exposures atSharia Unit (if any)

- - - - 6,785,972 2,034,110 9,427,275 22,916,238 - 41,163,595

Total 100,538,991 54,414,774 129,533,120 284,486,885 108,772,515 48,927,855 132,229,165 489,783,202 53,437,052 833,149,789






Table 2.2.a Disclosure of Net Receivables By Remaining Contract Period of Bank (in million Rupiah)



Net Receivables By Remaining Contract Period Net Receivables By Remaining Contract Period

≤1 year > 1 year to3 years

> 3 years to5 years >5 years Non-

Contractual Total ≤1 year > 1 year to3 years


Contractual Total


53,595,814 13,379,992 16,798,098 37,091,975 35,709,729 156,575,608 78,519,196 8,918,856 15,549,203 25,846,069 37,765,325 166,598,649


31,929,963 8,193,472 5,796,236 33,283,835 10,979,762 90,183,268 41,566,808 17,750,097 4,639,658 25,821,814 8,664,353 98,442,730


- - - - - - - - - - - -


28,042,011 4,059,316 978,843 443,801 12,493,771 46,017,742 28,909,127 7,190,210 1,299,090 662,155 9,146,476 47,207,058


77,681 849,464 1,453,914 11,859,989 - 14,241,048 62,952 698,522 1,661,168 9,948,990 - 12,371,632

6 Loans Secured by Commercial Real Estate

835,587 5,572,252 2,020,334 8,542,511 - 16,970,684 1,257,262 1,161,032 2,062,178 7,351,684 - 11,832,156


4,134 22,171 47,598 286,507 328 360,738 3,407 17,655 66,773 468,022 - 555,857

8 Receivables on Micro Business,Small Business, and Retail Portfolio

7,475,338 17,489,211 20,782,101 32,938,291 10,185,804 88,870,745 5,239,583 14,967,159 19,014,928 29,141,474 10,043,605 78,406,749


136,217,876 33,181,512 53,629,795 126,323,429 5,797,229 355,149,842 140,233,969 34,991,387 44,258,556 105,924,126 5,154,026 330,562,064


2,234,551 674,409 478,805 2,651,188 75,673 6,114,626 1,603,561 327,860 455,810 1,502,933 96,802 3,986,966

11 Other Assets - - - - 47,462,845 47,462,845 12 9 4 99 46,929,985 46,930,109

12 Exposures atSharia Unit

- - - - - - - - - - - -

Total 260,412,955 83,421,799 101,985,724 253,421,526 122,705,141 821,947,146 297,395,877 86,022,787 89,007,368 206,667,366 117,800,572 796,893,970




Table 2.2.b Disclosure of Net Receivables By Remaining Contract Period of Bank, Consolidated with Subsidiaries (in million Rupiah)



Net Receivables By Remaining Contract Period Net Receivables By Remaining Contract Period

≤1 year > 1 year to3 years


Contractual Total ≤1 year > 1 year to3 years


Contractual Total


53,595,814 13,379,992 16,798,098 37,091,975 35,677,296 156,543,175 78,519,196 8,918,856 15,549,203 25,846,069 37,752,928 166,586,252


31,929,963 8,193,841 5,797,499 33,285,221 10,479,947 89,686,472 41,763,904 18,021,713 4,834,070 25,844,270 7,924,340 98,388,297


- - - - - - - - - - - -


28,289,531 4,059,316 978,843 444,886 6,240,401 40,012,977 29,157,852 7,190,210 1,299,090 662,155 2,981,975 41,291,282


77,681 849,464 1,453,914 11,859,990 - 14,241,049 62,952 698,522 1,661,168 9,948,989 - 12,371,631


835,587 5,572,252 2,020,334 8,542,511 - 16,970,684 1,257,262 1,161,032 2,062,178 7,351,684 - 11,832,156


5,029 23,806 49,850 281,724 329 360,738 6,632 26,789 74,316 448,120 - 555,857

8 Receivables on Micro Business,Small Business, and Retail Portfolio

7,501,490 17,530,494 20,885,603 33,393,155 10,386,291 89,697,033 5,261,046 15,200,885 19,177,347 29,152,315 10,741,357 79,532,950


136,336,388 33,222,291 53,755,506 127,067,097 4,439,968 354,821,250 140,233,969 35,007,264 44,265,584 105,925,401 3,779,507 329,211,726


2,234,551 674,409 478,805 2,651,188 75,673 6,114,626 1,603,561 327,860 455,810 1,502,933 96,802 3,986,966

11 Other Assets - - - - 49,256,412 49,256,412 12 9 4 99 48,228,951 48,229,075

12 Exposures atSharia Unit

- - - - - - 10,164,429 6,492,453 7,031,388 - 17,475,327 41,163,597

Total 260,806,034 83,505,865 102,218,452 254,617,747 116,556,317 817,704,416 308,030,815 93,045,593 96,410,158 206,682,035 128,981,187 833,149,789





Table 2.3.a Disclosure of Net Receivables By Economic Sector, Bank Only (in million Rupiah)

No. Economic Sector Receivables onSovereigns

Receivables onPublic Sector

Entities

Receivables onMultilateral

Development Banksand International

Institutions

Receivables onBanks

Loans Secured byResidential Property

Loans Secured byCommercial Real

Estate

Employee or RetireeLoans

Receivables on MicroBusiness, Small

Business, and RetailPortfolio

Receivables onCorporates Past Due Receivables Other Assets Exposures at Sharia

Unit

31 December 2019

1 Agriculture, Hunting, Forestry - 6,136,652 - - - - - 5,467,415 41,957,528 75,633 - -

2 Fisheries - 93,645 - - - - - 545,390 887,467 6,294 - -

3 Mining and Excavation - 1,754,348 - - - - - 43,480 9,026,679 751,446 - -

4 Processing Industry - 20,449,317 - - - - - 3,706,607 74,923,995 1,040,159 - -

5 Electricity, Gas, and Water - 10,217,001 - - - - - 45,026 18,728,663 2,376 - -

6 Construction - 9,568,261 - - - - - 433,006 28,621,337 113,244 - -

7 Wholesale and Retail 8,394,411 9,858 - - - 1,902 - 15,637,516 52,779,815 869,804 - -

8 Provision of Accommodation and Provisions of Food and Beverage

- - - - - - - 1,893,461 14,342,356 337,867 - -

9 Transportation, Warehousing, and Communication - 5,820,823 - - - - - 484,341 22,174,390 296,776 - -

10 Financial Intermediary 3,709,757 5,025,863 - 45,954,038 - - - 15,380 2,015,876 1,043 - -

11 Real Estate, Rental and Corporate Services - 853,092 - - - 15,247,785 - 1,302,990 23,296,707 1,564,263 - -

12 Government Administration, Defense, and Mandatory Social Security

73,679,809 56,214 - - - - - 1,702 38,951 - - -

13 Education Services - - - - - 311 - 65,747 1,126,801 195 - -

14 Health Services and Social Activities - 4,849 - 63,704 - - - 311,509 3,197,279 2,240 - -

15 Community Service, Socio-Culture, Entertainment and Other Individuals

- 23,840 - - - - - 1,408,493 3,436,953 28,068 - -

16 Individual Services Serving Households - - - - - - - 24,876 33,195 54 - -

17 International Bodies and Other Extra-International Bodies - - - - - - - - 4,377 - - -

18 Activities with Limitations that are not yet clear - - - - - - - - - - - -

19 Non-Business Field - - - - 11,947,655 1,696,526 354,642 52,478,838 9,639,758 693,521 - -

20 Others 70,791,632 30,169,505 - - 2,293,394 24,160 6,096 5,004,967 48,917,715 331,644 47,462,844 -

Total 156,575,609 90,183,268 - 46,017,742 14,241,049 16,970,684 360,738 88,870,744 355,149,842 6,114,627 47,462,844 -

31 December 2018

1 Agriculture, Hunting, Forestry - 6,413,117 - - - 1,578 - 4,329,138 35,886,346 20,125 - -

2 Fisheries - 77,772 - - - 50 - 457,321 1,007,874 2,714 - -


4 Processing Industry - 20,294,567 - - - 88 - 3,063,889 71,474,919 987,039 - -

5 Electricity, Gas, and Water - 13,847,497 - - - - - 40,085 10,451,611 - - -

6 Construction - 6,827,942 - - - - - 352,225 25,325,024 230,439 - -



- - - - - - - 1,387,927 12,887,842 80,697 - -



11 Real Estate, Rental and Corporate Services - 1,029,426 - - - 9,893,363 - 1,166,521 23,591,184 71,256 - -


63,753,603 103,091 - - - - - 2,814 12,699 - - -

13 Education Services - - - 492 - 351 - 56,749 1,033,281 - - -

14 Health Services and Social Activities - 12,626 - - - - - 219,678 1,734,631 5,618 - -


- 554,790 - - - - - 887,280 5,040,707 9,449 - -





20 Others 66,641,568 25,048,772 - - 1,925,595 11,805 8,600 4,283,926 37,088,827 312,683 46,930,109 -

Total 166,598,648 98,442,731 - 47,207,060 12,371,631 11,832,157 555,856 78,406,749 330,562,065 3,986,965 46,930,109 -




Table 2.3.a Disclosure of Net Receivables By Economic Sector, Bank Only (in million Rupiah)



Entities



Institutions

Receivables onBanks



Estate





Unit

31 December 2019


2 Fisheries - 93,645 - - - - - 545,390 887,467 6,294 - -


4 Processing Industry - 20,449,317 - - - - - 3,706,607 74,923,995 1,040,159 - -


6 Construction - 9,568,261 - - - - - 433,006 28,621,337 113,244 - -



- - - - - - - 1,893,461 14,342,356 337,867 - -



11 Real Estate, Rental and Corporate Services - 853,092 - - - 15,247,785 - 1,302,990 23,296,707 1,564,263 - -


73,679,809 56,214 - - - - - 1,702 38,951 - - -


14 Health Services and Social Activities - 4,849 - 63,704 - - - 311,509 3,197,279 2,240 - -


- 23,840 - - - - - 1,408,493 3,436,953 28,068 - -





20 Others 70,791,632 30,169,505 - - 2,293,394 24,160 6,096 5,004,967 48,917,715 331,644 47,462,844 -

Total 156,575,609 90,183,268 - 46,017,742 14,241,049 16,970,684 360,738 88,870,744 355,149,842 6,114,627 47,462,844 -

31 December 2018

1 Agriculture, Hunting, Forestry - 6,413,117 - - - 1,578 - 4,329,138 35,886,346 20,125 - -

2 Fisheries - 77,772 - - - 50 - 457,321 1,007,874 2,714 - -


4 Processing Industry - 20,294,567 - - - 88 - 3,063,889 71,474,919 987,039 - -

5 Electricity, Gas, and Water - 13,847,497 - - - - - 40,085 10,451,611 - - -

6 Construction - 6,827,942 - - - - - 352,225 25,325,024 230,439 - -



- - - - - - - 1,387,927 12,887,842 80,697 - -



11 Real Estate, Rental and Corporate Services - 1,029,426 - - - 9,893,363 - 1,166,521 23,591,184 71,256 - -


63,753,603 103,091 - - - - - 2,814 12,699 - - -

13 Education Services - - - 492 - 351 - 56,749 1,033,281 - - -

14 Health Services and Social Activities - 12,626 - - - - - 219,678 1,734,631 5,618 - -


- 554,790 - - - - - 887,280 5,040,707 9,449 - -





20 Others 66,641,568 25,048,772 - - 1,925,595 11,805 8,600 4,283,926 37,088,827 312,683 46,930,109 -

Total 166,598,648 98,442,731 - 47,207,060 12,371,631 11,832,157 555,856 78,406,749 330,562,065 3,986,965 46,930,109 -





Table 2.3.b Disclosure of Net Receivables By Bank Economic Sector, Consolidated with Subsidiaries (in million Rupiah)



Entities



Institutions

Receivables onBanks



Estate





Unit

31 December 2019


2 Fisheries - 93,645 - - - - - 547,826 889,249 6,294 - -


4 Processing Industry - 19,949,503 - - - - 9 3,750,731 75,101,275 1,040,159 - -


6 Construction - 9,568,261 - - - - - 477,480 28,844,939 113,244 - -



- - - - - - - 1,896,608 14,343,557 337,867 - -


10 Financial Intermediary 3,709,757 5,028,882 - 39,949,273 - - 6,621 168,766 2,048,788 1,043 - -

11 Real Estate, Rental and Corporate Services - 853,092 - - - 15,247,785 6 1,363,904 23,435,055 1,564,263 - -


73,679,809 56,214 - - - - - 2,792 38,951 - - -


14 Health Services and Social Activities - 4,849 - 63,704 - - 768 313,385 3,198,326 2,240 - -


- 23,840 - - - - - 1,409,315 3,446,127 28,068 - -



18 Activities with Limitations that are not yet clear - - - - - - - 200,489 - - 1,021,574 -


20 Others 70,791,631 30,169,504 - - 2,293,394 24,160 6,638 5,020,811 48,917,714 331,644 48,234,838 -

Total 156,543,176 89,686,472 - 40,012,977 14,241,049 16,970,684 360,738 89,697,033 354,821,249 6,114,627 49,256,411 -

31 December 2018

1 Agriculture, Hunting, Forestry - 6,412,595 - - - 1,577 - 4,329,138 35,886,345 20,126 - 612,121

2 Fisheries - 77,772 - - - 50 - 457,321 1,007,874 2,714 - 29,074

3 Mining and Excavation - 9,494,673 - - - - - 47,688 4,547,346 511,140 - 268,878

4 Processing Industry - 20,293,614 - - - 88 - 3,064,988 71,474,919 987,039 - 1,676,912

5 Electricity, Gas, and Water - 13,847,497 - - - - - 40,085 10,451,611 - - 1,286,500

6 Construction - 6,824,117 - - - - 1,075 387,033 24,736,079 230,439 - 1,637,684

7 Wholesale and Retail 12,599,313 441,622 - - - 3,650 5,520 14,479,784 49,400,857 783,542 - 2,427,390


- - - - - - - 1,387,927 12,887,842 80,697 - 570,107

9 Transportation, Warehousing, and Communication - 4,486,642 - - - - 1,982 430,582 25,378,171 216,848 - 973,483

10 Financial Intermediary 23,591,767 9,773,956 - 41,290,791 - - 3,555 210,423 15,382,455 3,940 - 1,597,976

11 Real Estate, Rental and Corporate Services - 1,025,256 - - - 9,893,363 3,903 1,190,206 23,591,183 71,256 - 871,750


63,753,603 103,091 - - - - - 2,814 12,699 - - -

13 Education Services - - - 492 - 351 - 56,749 1,033,281 - - 813,502

14 Health Services and Social Activities - 5,391 - - - - 3,545 243,643 1,558,746 5,618 - 740,984


- 553,300 - - - - 1,615 895,827 5,040,707 9,449 - 171,172

16 Individual Services Serving Households - - - - - - - 35,574 5,488 158 - 6,640



19 Non-Business Field - - - - 10,446,036 1,921,272 526,061 47,989,243 9,724,309 751,317 - 14,184,667

20 Others 66,641,568 25,048,772 - - 1,925,595 11,805 8,600 4,283,926 37,088,826 312,683 48,229,075 13,294,756

Total 166,586,251 98,388,298 - 41,291,283 12,371,631 11,832,156 555,856 79,532,951 329,211,726 3,986,966 48,229,075 41,163,596





Table 2.4.a Disclosure of Receivables and Provisioning By Bank Regions, Bank Only (in million Rupiah)

No. Description

Tuesday, December 31, 2019

Area

Group A Group B Group C Group D Group E Total

1 Receivables 96,334,183 51,099,973 125,544,547 426,161,553 43,995,666 743,135,922

2 Impaired receivables

a. Not Yet Due 6,859,843 107,527 11,724,579 451,019,993 41,750,166 511,462,108

b. Already Due 790,942 548,746 2,537,537 7,410,767 - 11,287,992

3 Allowances for Impairment Losses (CKPN) - Individual 592,436 248,018 3,272,178 3,514,723 - 7,627,355

4 Allowances for Impairment Losses (CKPN) - Collective 1,761,829 1,362,804 2,602,257 3,860,769 114,887 9,702,546

5 Written-off receivables 1,416,874 1,902,952 3,195,863 2,872,555 - 9,388,244


No. Description


Area


1 Receivables 98,155,349 43,655,370 117,396,466 404,107,153 51,798,417 715,112,755

2 Impaired receivables - - - - -

a. Not Yet Due 445,040 110,308 841,695 1,035,228 192,008 2,624,279

b. Already Due 1,661,201 573,301 2,827,508 1,268,148 - 6,330,158

3 Allowances for Impairment Losses (CKPN) - Individual 999,044 30,907 1,111,630 3,575,653 192,900 5,910,133


5 Written-off receivables 2,160,119 724,520 2,582,245 1,972,159 8,325 7,447,368




Table 2.4.b Disclosure of Receivables and Provisioning By Bank Regions, Consolidated with Subsidiaries (in million Rupiah)

No. Description


Area


1 Receivables 96,347,549 51,099,973 125,941,785 427,667,584 43,997,434 745,054,325

2 Impaired receivables - - - - - -

a. Not Yet Due 6,859,843 107,527 11,724,579 451,019,993 41,750,166 511,462,108

b. Already Due 790,942 548,746 2,537,537 7,410,767 - 11,287,991

3 Allowances for Impairment Losses (CKPN) - Individual 592,436 248,018 3,272,178 3,514,723 - 7,627,356


5 Written-off receivables 1,416,874 1,902,952 3,195,863 2,872,555 - 9,388,244


No. Description


Area


1 Receivables 105,029,308 45,708,191 128,029,762 419,889,251 51,799,409 750,455,921

2 Impaired receivables - - - - -

a. Not Yet Due 6,187,265 2,843,171 9,160,563 25,730,920 192,008 44,113,927

b. Already Due 1,663,693 574,616 2,833,934 1,306,795 - 6,379,038

3 Allowances for Impairment Losses (CKPN) - Individual 999,044 54,228 1,116,557 3,710,876 192,900 6,073,605


5 Written-off receivables 2,430,270 803,736 2,873,707 3,019,615 8,325 9,135,653





Table 2.5.a Disclosure of Receivables and Provisioning By Bank Economic Sector, Bank Only (in million Rupiah)

No. Economic Sector Receivables

Impaired receivables Allowances forImpairment

Losses (CKPN) -Individual

Allowances forImpairment

Losses (CKPN) -Collective

Written-offNot Yet Due Already Due Receivables

Not Yet Due Already Due

31 December 2019

1 Agriculture, Hunting, Forestry 53,869,025 53,722,701 146,324 141,667 684,831 962,980

2 Fisheries 1,555,144 1,537,695 17,449 529 55,202 16,861

3 Mining and Excavation 11,697,066 10,867,945 829,120 114,645 116,320 1,256,192

4 Processing Industry 104,806,836 101,934,336 2,872,500 4,628,495 1,011,511 1,056,191

5 Electricity, Gas, and Water 28,979,310 28,961,919 17,391 61,225 169,414 26,494

6 Construction 39,030,357 38,761,365 268,992 234,973 464,647 314,412

7 Wholesale and Retail 79,504,302 77,328,794 2,175,508 858,874 2,432,348 3,012,459


16,967,114 16,472,019 495,095 278,958 333,294 280,860

9 Transportation, Warehousing, and Communication

29,098,781 28,606,102 492,680 339,487 269,800 800,489

10 Financial Intermediary 45,015,575 7,818,485 3,137 124,062 92,866 12,705

11 Real Estate, Rental and Corporate Services 42,925,890 40,768,039 2,157,850 548,751 567,809 208,563


72,942,008 10,434,093 - - 72,055 -

13 Education Services 1,192,989 1,192,548 441 - 19,834 468

14 Health Services and Social Activities 3,586,648 3,578,952 7,696 969 54,297 2,406


4,988,015 4,899,433 88,583 29,624 154,733 289,260

16 Individual Services Serving Households 58,249 58,052 196 - 1,272 818

17 International Bodies and Other Extra-International Bodies

4,371 4,371 - - 97 -

18 Activities with Limitations that are not yet clear

- - - - - 1,238

19 Non-Business Field 78,033,282 78,791,289 1,627,017 1,423 1,828,307 22,729

20 Others 128,880,960 5,723,970 88,013 263,673 1,373,909 1,123,119

Total 743,135,922 511,462,108 11,287,992 7,627,355 9,702,546 9,388,244











31 December 2018

1 Agriculture, Hunting, Forestry 46,696,455 2,837 54,564 110,655 421,847 266,701

2 Fisheries 1,562,693 - 7,425 2,159 41,568 89,310

3 Mining and Excavation 15,400,192 386,987 934,133 1,470,616 123,183 1,066,573

4 Processing Industry 99,031,758 611,292 2,459,450 2,537,988 2,336,860 1,393,207

5 Electricity, Gas, and Water 23,245,121 - - 7,181 109,591 357

6 Construction 32,799,978 208,685 106,224 70,861 376,006 184,013

7 Wholesale and Retail 78,788,575 594,660 1,169,106 548,663 2,079,214 1,973,421


14,545,319 20,293 156,292 48,079 318,368 264,690


30,454,446 209,023 22,281 151,249 327,620 120,634

10 Financial Intermediary 81,568,922 10 12,908 58,786 211,109 64,195

11 Real Estate, Rental and Corporate Services 36,371,174 5,653 260,936 288,364 705,259 258,865


63,120,974 - - - 43,501 223

13 Education Services 1,089,572 - - - 15,626 4,688

14 Health Services and Social Activities 1,976,778 5,002 5,526 - 34,389 8,482


6,527,606 - 37,044 644 113,653 106,151

16 Individual Services Serving Households 41,908 - 433 - 1,397 271


2,982 - - - 61 -


- - - - - 8,145

19 Non-Business Field 72,614,129 577,290 987,249 121,529 1,438,117 1,637,441

20 Others 109,274,173 2,547 116,586 493,359 409,222 -

Total 715,112,755 2,624,279 6,330,157 5,910,133 9,106,591 7,447,367





Table 2.5.b Disclosure of Receivables and Provisioning By Bank Economic Sector, Consolidated with Subsidiaries (in million Rupiah)








31 December 2019

1 Agriculture, Hunting, Forestry 53,901,382 53,722,701 146,324 141,667 684,831 962,980

2 Fisheries 1,559,363 1,537,695 17,449 529 55,202 16,861

3 Mining and Excavation 11,847,598 10,867,945 829,120 114,645 116,320 1,256,192


5 Electricity, Gas, and Water 29,034,224 28,961,919 17,391 61,225 169,414 26,494

6 Construction 39,298,434 38,761,365 268,992 234,973 464,647 314,412



16,971,462 16,472,019 495,095 278,958 333,294 280,860


29,466,584 28,606,102 492,680 339,487 269,800 800,489


11 Real Estate, Rental and Corporate Services 43,125,158 40,768,039 2,157,850 548,751 567,809 208,563


72,943,098 10,434,093 - - 72,055 -

13 Education Services 1,195,081 1,192,548 441 - 19,834 468

14 Health Services and Social Activities 3,590,341 3,578,952 7,696 969 54,297 2,406


4,998,011 4,899,433 88,583 29,624 154,733 289,260



4,371 4,371 - - 97 -


- - - - - 1,238

19 Non-Business Field 78,033,282 78,791,289 1,627,017 1,423 1,828,307 22,729

20 Others 128,897,342 5,723,970 88,012 263,674 1,373,909 1,123,119

Total 745,054,325 511,462,108 11,287,991 7,627,356 9,702,546 9,388,244











31 December 2018

1 Agriculture, Hunting, Forestry 47,316,011 620,967 57,175 110,655 435,720 312,888

2 Fisheries 1,592,195 29,391 7,535 2,159 42,133 91,298

3 Mining and Excavation 15,671,991 658,436 934,483 1,470,616 129,625 1,070,438


5 Electricity, Gas, and Water 24,531,877 1,286,757 - 8,651 122,419 3,709

6 Construction 33,840,516 1,858,487 114,817 70,861 410,671 241,464



15,117,014 591,872 156,408 48,079 325,127 268,172


31,313,596 1,250,970 24,357 210,932 346,864 126,484


11 Real Estate, Rental and Corporate Services 37,357,749 909,237 264,226 294,069 741,615 285,236


63,120,974 - - - 43,501 223

13 Education Services 1,904,588 814,995 21 710 23,121 5,609

14 Health Services and Social Activities 2,546,220 756,004 5,536 8,836 40,795 10,519


6,706,961 172,206 37,417 644 116,502 112,913



2,982 - - - 61 -


- - - - - 11,760

19 Non-Business Field 86,977,640 14,956,669 994,563 135,406 1,677,277 2,371,494

20 Others 123,136,744 13,144,833 116,882 493,359 422,669 434,680

Total 750,455,921 44,113,927 6,379,038 6,073,605 9,740,659 9,135,653





Table 2.6.a Disclosure of Detailed Changes in Allowances for Impairment Losses (CKPN) Bank Only (in million Rupiah)

No. Description31 December 2019 31 December 2018

Individual CKPN Collective CKPN Individual CKPN Collective CKPN

1 Beginning Balance of CKPN 5,910,132 9,106,594 4,419,430 10,299,301

2 Establishment (Recovery) of CKPN in the current period (Net) 4,440,366 4,017,988 2,782,977 4,576,268

2.a Establishment of CKPN in the current period 4,398,461 3,840,884 2,675,373 4,123,217

2.b Recovery of CKPN in the current period 41,905 177,103 107,604 453,050

3 CKPN used for written off receivables in the current period (2,699,207) (2,878,289) (1,353,692) (6,093,701)

4 Other establishment (recovery) in the current period 35,674 (621,447) 61,418 324,726

Ending Balance of CKPN 7,686,965 9,624,846 5,910,133 9,106,594

Table 2.6.b Disclosure of Detailed Changes in Allowances for Impairment Losses (CKPN),Bank Consolidated with Subsidiaries (in million Rupiah)

No. Description31 December 2019 31 December 2018

Individual CKPN Collective CKPN Individual CKPN Collective CKPN

1 Beginning Balance of CKPN 5,910,132 9,953,928 4,419,429 10,898,677

2 Establishment (Recovery) of CKPN in the current period (Net) 4,443,516 4,728,217 2,788,725 5,255,832

2.a Establishment of CKPN in the current period 4,401,611 4,436,570 2,681,121 4,707,292

2.b Recovery of CKPN in the current period 41,905 291,647 107,604 548,540

3 CKPN used for written off receivables in the current period (2,699,207) (3,322,128) (1,353,692) (6,480,881)

4 Other establishment (recovery) in the current period 32,524 (653,216) 55,670 280,300

Ending Balance of CKPN 7,686,965 10,706,801 5,910,132 9,953,928

Credit Risk Measurement with a Standard Approach

The use of Ratings from External Rating AgenciesIn accordance with the Circular Letter of Financial Services Authority (SEOJK) No. 42/SEOJK.03/2016 dated September 28, 2016, BNI uses an External Ranking in the Risk Weighted Assets (RWA) Calculation as follows:1. The rating of a bank only applies to that bank, so even if

it is within one business group the rating of a company cannot be used to determine the risk weighting of other companies.

2. Domestic ratings (Pefindo, Fitch Indonesia and ICRA Indonesia) are only used for risk weight of bills in the Rupiah currency assignment whilst international ratings (Moody’s, S&P and Fitch) are used for assigning risk weight of bills in foreign currencies.

3. Risk weighting assignment for securities claims is based on the rating of the intended securities (issue rating). In the event that the securities have no rating, the risk weight assignment is based on the risk weighting of the

bill without rating. The assignment of the risk weighting for claims in forms other than securities, based on the debtor rating (issue rating). In the case of bills in the form of non-rated securities, the risk weight assignment is based on the risk weighting of non-rating bills.

4. A short-term rating is used for risk weighting assignment of securities that have a short tenor and are issued by a party included in the scope of Claims on Banks or Claims on Corporations. In the event that a short-term bill does not have a short-term rating, the assignment of risk weight uses the long-term rating.

5. If an exposure has more than one eligible rating, then the rank providing the second lowest risk weight is used. In this case if there are only two ranks, then the lowest rank is used.




Portfolio with Ratings ClassificationThe risk weights assignment based on the rating exposure as mentioned above only applies to the following portfolio categories:1. Claims to the Government of other Countries.2. Claims on Public Sector Entities.3. Claims on Multilateral Development Banks and International Institutions.4. Claims to Banks (Long and Short Term).5. Claims to Corporations (Long and Short-Term).

Credit risk exposure composition per Risk Weight as of December 31, 2019 (%) based on the latest rating issued by rating agencies.

Bobot Risiko 0%Bobot Risiko 20%Bobot Risiko 25%Bobot Risiko 35%Bobot Risiko 40%Bobot Risiko 45%Bobot Risiko 50%Bobot Risiko 75%Bobot Risiko 100%Bobot Risiko 150%Others

BNI Individual

48.9%1.0% 21.0%

5.1%

0.3%

1.2%

11.7%

10.8%51.8%

19.8%

0.9%

4.8%

0.3%

1.1%

11.1%

10.2%

BNI Konsolidasi

Applied Rating AgenciesList of recognized rating agencies and ratings are as follows:1. Fitch Ratings2. Moody’s Investor Service3. Standard and Poor’s4. PT Fitch Ratings Indonesia5. PT ICRA Indonesia6. PT Pemeringkat Efek Indonesia





Table 3.1.a Pengungkapan Tagihan Bersih berdasarkan PortfolioCategory dan Skala Peringkat Bank secara Individual (in million Rupiah)


Net Receivables

Rating Agency Long-Term Rating Short-Term Rating

No Rating Total

Standards andPoor’s AAA AA+ to AA- A+ to A- BBB+ to BBB- BB+ to BB- B+ to B- Less than B- A-1 A-2 A-3 Less than A-3

Fitch Rating AAA AA+ to AA- A+ to A- BBB+ to BBB- BB+ to BB- B+ to B- Less than B- F1+ to F1 F2 F3 Less than F3

Moody’s Aaa Aa1 to Aa3 A1 to A3 Baa1 to Baa3 Ba1 to Ba3 B1 to B3 Less than B3 P-1 P-2 P-3 Less than P-3

PT. Fitch Ratings Indonesia AAA (idn) AA+(idn) to AA-

(idn) A+(idn) to A-(idn) BBB+(idn) to BBB-(idn)

BB+(idn) to BB-(idn) B+(idn) to B-(idn) Less than B-(idn) F1+(idn) to

F1(idn) F2(idn) F3(idn) Less than F3 (idn)

PT. ICRA Indonesia [Idr]AAA [Idr]AA+ to [Idr]AA- [Idr]A+ to [Idr]A- [Idr]BBB+ to [Idr]

BBB-[Idr]BB+ to [Idr]

BB- [Idr]B+ to [Idr]B- Less than [Idr]B- [Idr]A1+ to [Idr]A1 [Idr]A2+ to [Idr]A2 [Idr]A3+ to [Idr]A3 Less than [idr] A3

PT. Pemeringkat Efek Indonesia idAAA idAA+ to idAA- idA+ to idA- idBBB+ to idBBB- idBB+ to idBB- idB+ to idB- Less than idB- idA1 idA2 idA3 to idA4 Less than idA4

31 December 2019

1 Receivables on Sovereigns 6,829,813 1,483,123 862,399 147,294,164 106,110 - - - - - - - 156,575,609


14,000,537 5,432,112 11,536,992 398,315 314,001 - - - - - - 58,450,652 90,132,609

3 Receivables on MultilateralDevelopment Banks and International Institutions

- - - - - - - - - - - - -

4 Receivables on Banks 6,237,258 3,194,455 1,633,398 1,443,460 160,343 - - - - - - 33,348,828 46,017,742

5 Loans Secured by Residential Property

- - - - - - - - - - - 14,241,049 14,241,049


- - - - - - - - - - - 16,970,684 16,970,684

7 Employee or Retiree Loans - - - - - - - - - - - 360,738 360,738

8 Receivables on Micro Business, Small Business, and Retail Portfolio

- - - - - - - - - - - 88,870,744 88,870,744

9 Receivables on Corporates - 711,438 232,669 658,900 2,663,628 593,857 - - - - - 350,183,554 355,044,046

10 Past Due Receivables 73,413 7 - 67,037 128,992 182 - - - - - 5,844,997 6,114,627

11 Other Assets - - - - - - - - - - - 47,495,626 47,495,626

12 Exposures at Sharia Unit - - - - - - - - - - - - -

Total 27,141,021 10,821,135 14,265,458 149,861,876 3,373,074 594,039 - - - - - 615,766,872 821,823,474

31 December 2018



1,583,783 25,383 4,232 812,223 484,784 - - - - - - 95,532,327 98,442,732


- - - - - - - - - - - - -

4 Receivables on Banks 9,862,518 3,064,041 1,065,843 970,432 184,853 - - - - - - 32,059,374 47,207,061


- - - - - - - - - - - 12,371,631 12,371,631


- - - - - - - - - - - 11,832,156 11,832,156



- - - - - - - - - - - 78,406,749 78,406,749

9 Receivables on Corporates 4,084 108,881 57,885 366,831 3,530,117 621,750 - - - - - 325,872,516 330,562,064

10 Past Due Receivables 74,050 - - 61,900 122,642 252 - - - - - 3,728,122 3,986,966

11 Other Assets - - - - - - - - - - - 46,930,109 46,930,109


Total 18,969,301 4,985,738 1,827,414 157,878,659 5,322,018 622,002 - - - - - 607,288,840 796,893,972




Table 3.1.a Pengungkapan Tagihan Bersih berdasarkan PortfolioCategory dan Skala Peringkat Bank secara Individual (in million Rupiah)


Net Receivables


No Rating Total












31 December 2019



14,000,537 5,432,112 11,536,992 398,315 314,001 - - - - - - 58,450,652 90,132,609


- - - - - - - - - - - - -



- - - - - - - - - - - 14,241,049 14,241,049


- - - - - - - - - - - 16,970,684 16,970,684



- - - - - - - - - - - 88,870,744 88,870,744



11 Other Assets - - - - - - - - - - - 47,495,626 47,495,626


Total 27,141,021 10,821,135 14,265,458 149,861,876 3,373,074 594,039 - - - - - 615,766,872 821,823,474

31 December 2018



1,583,783 25,383 4,232 812,223 484,784 - - - - - - 95,532,327 98,442,732


- - - - - - - - - - - - -



- - - - - - - - - - - 12,371,631 12,371,631


- - - - - - - - - - - 11,832,156 11,832,156



- - - - - - - - - - - 78,406,749 78,406,749



11 Other Assets - - - - - - - - - - - 46,930,109 46,930,109


Total 18,969,301 4,985,738 1,827,414 157,878,659 5,322,018 622,002 - - - - - 607,288,840 796,893,972





Table 3.1.b Tagihan Bersih Berdasarkan PortfolioCategory dan Skala Peringkat Bank secara Konsolidasi dengan Perusahaan Anak (in million Rupiah)


Net Receivables


No Rating Total












31 December 2019



14,000,537 5,432,112 11,536,992 398,315 314,001 - - - - - - 57,953,854 89,635,810


- - - - - - - - - - - - -



- - - - - - - - - - - 14,241,049 14,241,049


- - - - - - - - - - - 16,970,684 16,970,684



- - - - - - - - - - - 89,697,033 89,697,033



11 Other Assets - - - - - - - - - - - 49,289,194 49,289,194


Total 27,141,021 10,821,135 14,265,458 149,861,876 3,340,642 594,039 - - - - - 611,556,574 817,580,744

31 December 2018



1,583,783 25,383 4,232 812,223 484,784 - - - - - - 95,477,892 98,388,296


- - - - - - - - - - - - -



- - - - - - - - - - - 12,371,631 12,371,631


- - - - - - - - - - - 11,832,156 11,832,156



- - - - - - - - - - - 79,532,951 79,532,951



11 Other Assets - - - - - - - - - - - 48,229,075 48,229,075

12 Exposures at Sharia Unit - - - - - - - - - - - 41,163,596 41,163,596

Total 18,969,301 4,985,738 1,827,414 157,878,659 5,309,621 622,002 - - - - - 643,557,055 833,149,789





Counterparty Credit Risk

Counterparty Credit RiskCounterparty credit risk is a part of credit risk. Counterparty credit risk is the risk due to the counterparty’s failure before the final settlement of cash flows on the transaction. It is influenced by both business conditions and factors in fair value or market value, for example in derivative, repo or reverse repo transactions.

Types of risk mitigation instruments from counterparty credit risk received by banks include:1. Cash deposited by the bank2. Demand deposits, savings, or deposits issued by banks3. Indonesian government securities and State Sharia

Securities

Each counterparty has a different limit and to determine the limit amount of each counterparty, the Counterparty Limit Application Package (CLAP) is used. The counterparty limits assessment is carried out by the Corporate Credit Risk Division and is periodically reviewed or adjusted to the

needs that are influenced by the business dynamics and the risk level of each counterparty.

For capital adequacy calculation by considering the RWA calculation for the Standard approach, an additional calculation of RWA for credit risk from the Counterparty Risk has been prepared by including the CVA (Credit Valuation Adjustment) component.

1. Derivative Transactions Derivative transactions executed by banks are generally

Forward, Cross Currency Swap (CCS), and Interest Rate Swap (IRS) transactions. The Bank’s customers who will conduct derivative transactions must have a transaction limit assigned by the Business Unit and Risk Unit. The derivative transaction policy also determines the minimum marginal deposit to be deposited by the customer according to the type and inherent risk in the derivative transaction. Disclosure of counterparty’s credit risk of derivative transactions is presented in Table 3.2.a Opponent’s Credit Risk: Derivative Transactions.

Table 3.2.a Counterparty Credit Risk: Derivative Transactions (in million Rupiah)

No UnderlyingVariables

31 December 2019

Notional AmountDerivative

ReceivablesDerivativeLiabilities

Net ReceivablesBefore MRK MRK Net Receivables

After MRK≤1 year >1 year - ≤5years >5 years

BANK ONLY

1 Interest Rates 15,988,683 - - 208,662 - 208,662 - 208,662

2 Exchange Rate 749,837 902,363 - 7,588,421 - 7,588,421 - 7,588,421

3 Others 201,568 - - 142,209 - 142,209 - 142,209

TOTAL 16,940,088 902,363 - 7,939,292 - 7,939,292 - 7,939,292

BANK CONSOLIDATED

1 Interest Rates 15,988,683 - - 208,662 - 208,662 - 208,662

2 Exchange Rate 749,837 902,363 - 7,588,421 - 7,588,421 - 7,588,421

3 Units - - - - - - - -

4 Gold - - - - - - - -

5 Metals Other than Gold - - - - - - - -

6 Others 201,568 - - 142,209 - 142,209 - 142,209

TOTAL 16,940,088 902,363 - 7,939,292 - 7,939,292 - 7,939,292




No UnderlyingVariables

31 December 2018

Notional AmountDerivative

ReceivablesDerivativeLiabilities

Net ReceivablesBefore MRK MRK Net Receivables

After MRK≤1 year >1 year - ≤5years >5 years

BANK ONLY

1 Interest Rates 19,996,408 16,991 - 156,187 - 240,131 - 240,131

2 Exchange Rate 8,879,650 16,788,650 - 424,098 - 624,912 - 624,912

3 Others 558,306 329,213 - 24,963 - 47,006 - 47,006

TOTAL 29,434,364 17,134,854 - 605,248 - 912,049 - 912,049

BANK CONSOLIDATED

1 Interest Rates 19,996,408 16,991 - 156,187 - 240,131 - 240,131

2 Exchange Rate 8,879,650 16,788,650 - 424,098 - 624,912 - 624,912

3 Units - - - - - - - -

4 Gold - - - - - - - -

5 Metals Other than Gold - - - - - - - -

6 Others 558,306 329,213 - 24,963 - 47,006 - 47,006

TOTAL 29,434,364 17,134,854 - 605,248 - 912,049 - 912,049

2. Repo and Reverse Repo Transactions BNI only conducts Repo and Reverse Repo transactions with the underlying assets of the Republic of Indonesia

Government Securities (Government Securities).

Table 3.2.b.1 Repo Transactions Bank Only (in million Rupiah)

No. Portfolio Category


Fair ValueSB

Repo’s NetReceivablesLiabilities

NetReceivables RWA Fair Value

SB


NetReceivables RWA

1 Receivables on Sovereigns - - - - - - - -


- - - - - - - -

3 Receivables on Multilateral Development Banks and International Institutions

- - - - - - - -

4 Receivables on Banks 2,256,570 - 2,227,619 - 20,759,642 - 21,063,665 -


- - - - - - - -

6 Receivables on Corporates - - - - - - - -

7 Exposures at Sharia Unit - - - - - - - -

TOTAL 2,256,570 - 2,227,619 - 20,759,642 - 21,063,665 -





Table 3.2.b.2 Repo TransactionBank Consolidated with Subsidiaries (in million Rupiah)



Fair ValueSB


NetReceivables RWA Fair Value

SB


NetReceivables RWA

1 Receivables on Sovereigns - - - - - - - -


- - - - - - - -


- - - - - - - -

4 Receivables on Banks 2,256,570 - 2,227,619 - 20,759,642 - 21,063,665 -


- - - - - - - -

6 Receivables on Corporates - - - - - - - -

7 Exposures at Sharia Unit - - - - - - - -

Total 2,256,570 - 2,227,619 - 20,759,642 - 21,063,665 -

Table 3.2.c.1 Reverse Repo TransactionsBank Only (in million Rupiah)


31 December 2019

Net Receivables CRM Value Receivables Net of CRM RWA after CRM

1 Receivables on Sovereigns 411,442 - 4,314 -

2 Receivables on Public Sector Entities - - - -

3 Receivables on Multilateral Development Banks and International Institutions - - - -

4 Receivables on Banks - - - -

5 Receivables on Micro Business, Small Business, and Retail Portfolio - - - -

6 Receivables on Corporates - - - -

7 Exposures at Sharia Unit (if any) - - - -

Total 411,442 - 4,314 -


31 December 2018


1 Receivables on Sovereigns - - - -







Total - - - -




Table 3.2.c.2 Reverse Repo TransactionsBank Consolidated with Subsidiaries (in million Rupiah)


31 December 2019


1 Receivables on Sovereigns 411,442 - 4,314 -







Total 411,442 - 4,314 -


31 December 2018


1 Receivables on Sovereigns - - - -







Total - - - -

Credit Risk Mitigation by Using Standard Approaches

Credit Risk Mitigation Application by Using Standard ApproachThe main types of collateral received for credit risk mitigation are objects financed by the Bank. Meanwhile, as a supplement, the Bank can receive additional collateral. The types of primary and additional collateral can be grouped into:1. Collateral, can be in the form of physical assets (land,

buildings, machinery, equipment, etc.) and financial assets (cash collateral, marginal deposits, gold, receivables, debentures and other securities). In credit risk mitigation techniques, physical assets are not counted as credit risk mitigation techniques.

2. Guarantees, received from the Government of the Republic of Indonesia, Correspondent Banks, and Insurance Companies. In credit risk mitigation techniques, guarantees that are counted are only guarantees issued by parties included within the scope of the category of Claims To the Government of Indonesia, Claims to Government of Other Countries,

Claims to Banks and guarantee/insurance institutions by taking into account the fulfillment of warranty requirements and guarantee issuers.

3. Credit insurance, issued by insurance companies by considering the insurance policy requirements fulfillment, insurance issuers and portfolio categories for insurance recipient.

BNI regulates policies, procedures and processes to assess and manage collateral based on the type of exposure and financing scheme. The collateral adequacy assessment received has considered the cash equivalent value existence. For credit exposure (loan), collateral valuation must be conducted periodically at least every 24 months by an independent appraiser, or carried out by an internal appraisal staff who is independent in the credit granting process.





In addition to mitigation techniques in the form of collateral, BNI also uses guarantees/collateral and credit insurance. Analysis towards main parties providing guarantees/collateral is a part of credit worthiness analysis and credit risk mitigation. The guarantee providers include: (1) Government of the Republic of Indonesia’s guarantees to SOE’s in the electricity sector for financing in the form of KMK subsidized bailouts and syndicated KI, (2) Guarantees provided by Credit Insurance Companies which are State-Owned Enterprises for financing of Kredit Usaha Rakyat distributed by BNI.

4.1.a Net Receivables By Risk Weight After Calculating Credit Risk Mitigation ImpactBank Only (in million rupiah)

No Portfolio Category

31 December 2019

Net Receivables After Calculating Credit Risk Mitigation ImpactRWA Capital Expense

0% 20% 25% 35% 40% 45% 50% 75% 100% 150% Others

A Balance Sheet Exposures

1 Receivables on Sovereigns 154,640,012 820,785 - - - - 525,530 - - - 426,922 34,154

2 Receivables on Public Sector Entities - 19,432,650 - - - - 58,976,376 - 314,001 - 33,642,503 2,691,400


- - - - - - - - - - - -

4 Receivables on Banks - 11,875,434 - - - - 16,155,805 - - - 10,435,883 834,871

5 Loans Secured by Residential Property - 2,002,395 2,474,892 9,763,761 - - - - - - 4,433,984 354,719

6 Loans Secured by Commercial Real Estate - - - - - - - - 16,970,684 - 16,876,871 1,350,150

7 Employee/Retiree Loans - - - - - - 360,738 - - - 180,369 14,430


- - - - - - - 88,057,904 - - 45,925,022 3,674,002

9 Receivables on Corporates - 711,438 - - - - 232,669 - 334,250,759 593,857 333,125,519 26,650,042

10 Past Due Receivables - - - - - - - - 194,856 5,919,771 9,013,241 721,059

11 Other Assets 14,922,677 - - - - - - - 30,948,415 1,591,752 33,336,043 2,666,883

12 Exposures at Sharia Unit (if any) - - - - - - - - - - - - -

Total Balance Sheet Exposures 169,562,689 34,842,702 2,474,892 9,763,761 - - 76,251,118 88,057,904 382,678,715 8,105,379 - 487,396,356 38,991,709

B Commitment/Contingency Liabilities Exposure in Administrative Account Transactions

1 Receivables on Sovereigns 145,407 - - - - - - - - - - -

2 Receivables on Public Sector Entities - - - - - - 10,963,444 - - - 5,481,722 438,538


- - - - - - - - - - - -

4 Receivables on Banks - 355,040 - - - - 8,850,867 - - - 4,496,441 359,715

5 Loans Secured by Residential Property - - - - - - - - - - - -

6 Loans Secured by Commercial Real Estate - - - - - - - - - - - -

7 Employee/Retiree Loans - - - - - - - - - - - -


- - - - - - - 284,348 - - 213,261 17,061

9 Receivables on Corporates - - - - - - - - 19,032,526 - 19,016,493 1,521,319

10 Past Due Receivables - - - - - - - - - - - -


Total Administrative Account Transactions Exposures 145,407 355,040 - - - - 19,814,311 284,348 19,032,526 - - 29,207,917 2,336,633

C Counterparty Credit Risk

1 Receivables on Sovereigns 443,874,76 - - - - - - - - - - -

2 Receivables on Public Sector Entities - - - - - - 496,796,61 - - - 248,398 19,872


- - - - - - - - - - - -

4 Receivables on Banks 2,227,619,11 6,552,977,42 - - - - - - - - 1,310,595 104,848


- - - - - - - 528,492,57 - - 396,369 31,710

6 Receivables on Corporates - - - - - - - - 328,592,94 - 328,593 26,287


Total Counterparty Credit Risk Exposure 2,671,494 6,552,977 - - - - 496,797 528,493 328,593 - - 2,283,956 182,716




In addition to mitigation techniques in the form of collateral, BNI also uses guarantees/collateral and credit insurance. Analysis towards main parties providing guarantees/collateral is a part of credit worthiness analysis and credit risk mitigation. The guarantee providers include: (1) Government of the Republic of Indonesia’s guarantees to SOE’s in the electricity sector for financing in the form of KMK subsidized bailouts and syndicated KI, (2) Guarantees provided by Credit Insurance Companies which are State-Owned Enterprises for financing of Kredit Usaha Rakyat distributed by BNI.

4.1.a Net Receivables By Risk Weight After Calculating Credit Risk Mitigation ImpactBank Only (in million rupiah)


31 December 2019


0% 20% 25% 35% 40% 45% 50% 75% 100% 150% Others


1 Receivables on Sovereigns 154,640,012 820,785 - - - - 525,530 - - - 426,922 34,154



- - - - - - - - - - - -

4 Receivables on Banks - 11,875,434 - - - - 16,155,805 - - - 10,435,883 834,871





- - - - - - - 88,057,904 - - 45,925,022 3,674,002



11 Other Assets 14,922,677 - - - - - - - 30,948,415 1,591,752 33,336,043 2,666,883







- - - - - - - - - - - -






- - - - - - - 284,348 - - 213,261 17,061






1 Receivables on Sovereigns 443,874,76 - - - - - - - - - - -

2 Receivables on Public Sector Entities - - - - - - 496,796,61 - - - 248,398 19,872


- - - - - - - - - - - -

4 Receivables on Banks 2,227,619,11 6,552,977,42 - - - - - - - - 1,310,595 104,848


- - - - - - - 528,492,57 - - 396,369 31,710

6 Receivables on Corporates - - - - - - - - 328,592,94 - 328,593 26,287








31 December 2018


0% 20% 25% 35% 40% 45% 50% 75% 100% 150% Others


1 Receivables on Sovereigns 164,648,163 699,454 - - - - 660,465 - 163,703 - 633,826 50,706



- - - - - - - - - - - -

4 Receivables on Banks - 14,840,780 - - - - 17,861,520 - 184,853 - 12,083,768 966,701


6 Loans Secured by Commercial Real Estate - - - - - - - - 11,832,156 - 11,832,156 946,572



- - - - - - - 78,152,952 - - 58,614,714 4,689,177



11 Other Assets 13,681,005 - - - - - - - 31,672,568 1,576,289 34,037,001 2,722,960







- - - - - - - - - - - -

4 Receivables on Banks - 16 - - - - 8,404,115 - - - 4,202,061 336,165





- - - - - - - 253,797 - - 190,348 15,228




Total Administrative Account Transactions Exposures 414,466 16 - - - - 22,734,146 253,797 18,853,000 - - 30,410,424 2,432,834



2 Receivables on Public Sector Entities - - - - - - 95,201 - - - 47,600 3,808


- - - - - - - - - - - -

4 Receivables on Banks 21,063,665 72,208 - - - - 576,601 - - - 302,742 24,219


- - - - - - - - - - - -

6 Receivables on Corporates - - - - - - - - 83,416 - 83,416 6,673


Total Counterparty Credit Risk Exposure 21,076,062 72,208 - - - - 671,802 - 83,416 - - 433,759 34,701





31 December 2018


0% 20% 25% 35% 40% 45% 50% 75% 100% 150% Others





- - - - - - - - - - - -



6 Loans Secured by Commercial Real Estate - - - - - - - - 11,832,156 - 11,832,156 946,572



- - - - - - - 78,152,952 - - 58,614,714 4,689,177



11 Other Assets 13,681,005 - - - - - - - 31,672,568 1,576,289 34,037,001 2,722,960







- - - - - - - - - - - -






- - - - - - - 253,797 - - 190,348 15,228









- - - - - - - - - - - -



- - - - - - - - - - - -








4.1.b Tagihan Bersih berdasarkan Bobot Risiko setelah Memperhitungkan Dampak Mitigasi Risiko Kredit BankSecara Konsolidasi dengan Perusahaan Anak (in million Rupiah)


31 December 2019


0% 20% 25% 35% 40% 45% 50% 75% 100% 150% Others


1 Receivables on Sovereigns 154,640,012 820,785 - - - - 525,530 - 15,759,826 - 426,922 34,154

2 Receivables on Public Sector Entities 210,000 19,432,650 - - - - 58,976,376 - 5,447,672 - 33,642,503 2,691,400


- - - - - - - - - - - -

4 Receivables on Banks 412 11,875,434 - - - - 16,155,805 - 358,978 - 10,709,989 856,799

5 Loans Secured by Residential Property - 2,002,395 2,474,892 9,763,761 - - - - 12,543,114 - 4,433,984 354,719


7 Employee/Retiree Loans - - - - - - 360,738 - 26,309 - 180,369 14,430


25,490 - - - - - - 88,057,904 3,022,520 - 46,941,109 3,755,289

9 Receivables on Corporates 289,667 711,438 - - - - 232,669 - 345,560,212 593,857 333,125,519 26,650,042


11 Other Assets 14,922,677 - - - - - - - 32,104,646 1,591,752 35,543,931 2,843,515







- - - - - - - - - - - -






- - - - - - - 284,348 17,773 - 213,261 17,061









- - - - - - - - - - - -

4 Receivables on Banks 2,227,619 6,552,977 - - - - - - - - 1,310,595 104,848


- - - - - - - 528,493 - - 396,369 31,710









31 December 2018


0% 20% 25% 35% 40% 45% 50% 75% 100% 150% Others





- - - - - - - - - - - -



6 Loans Secured by Commercial Real Estate - 119,292 - - - - - - 11,832,156 - 11,856,014 948,481

7 Employee/Retiree Loans - 30,513 - - - - 555,856 - - - 284,031 22,722


- 2,461,746 - - - - - 78,152,952 - - 59,107,063 4,728,565



11 Other Assets 13,681,005 - - - - - - - 31,672,568 1,576,289 34,037,002 2,722,960







- - - - - - - - - - - -






- - - - - - - 268,928 - - 201,696 16,136









- - - - - - - - - - - -



- - - - - - - - - - - -








4.2.a Net Receivables and Credit Risk Mitigation TechniqueBank Only (in million Rupiah)


31 December 2019

Net Receivables

Portion Secured ByPortion

UnsecuredCollateral Guarantee Credit Insurance Others


1 Receivables on Sovereigns 155,986,327 - - - - 155,986,327

2 Receivables on Public Sector Entities 78,723,027 14,859 - - - 78,708,168

3 Receivables on Multilateral Development Banks andInternational Institutions

- - - - - -

4 Receivables on Banks 28,031,240 34,213 - - - 27,997,027

5 Loans Secured by Residential Property 14,241,049 7,604 - - - 14,233,444

6 Loans Secured by Commercial Real Estate 16,970,684 93,813 - - - 16,876,871

7 Employee/Retiree Loans 360,738 - - - - 360,738

8 Receivables on Micro Business, Small Business, andRetail Portfolio

88,057,904 10,161,112 - - - 77,896,792

9 Receivables on Corporates 335,788,723 2,269,892 - - - 333,518,831

10 Past Due Receivables 6,114,627 40,848 - - - 6,073,779

11 Other Assets 47,462,844 - - - - 47,462,844

12 Exposures at Sharia Unit (if any) - - - - - -

Total Balance Sheet Exposures 771,737,162 12,622,341 - - - 759,114,821

B Commitm ent/Contingency Liabilities Exposure in Administrative Account Transactions

1 Receivables on Sovereigns 145,407 - - - - 145,407

2 Receivables on Public Sector Entities 10,963,444 - - - - 10,963,444


- - - - - -

4 Receivables on Banks 9,205,906 - - - - 9,205,906

5 Loans Secured by Residential Property - - - - - -

6 Loans Secured by Commercial Real Estate - - - - - -

7 Employee/Retiree Loans - - - - - -


284,348 - - - - 284,348

9 Receivables on Corporates 19,032,526 - - - - 19,032,526

10 Past Due Receivables - - - - - -


Total Administrative Account Transactions Exposures 39,631,631 - - - - 39,631,631


1 Receivables on Sovereigns 443,875 407,128 - - - 36,747

2 Receivables on Public Sector Entities 496,797 - - - - 496,797


- - - - - -

4 Receivables on Banks 8,780,597 - - - - 8,780,597


528,493 - - - - 528,493

6 Receivables on Corporates 328,593 - - - - 328,593


Total Counterparty Credit Risk Exposure 10,578,353 407,128 - - - 10,171,225





31 December 2018

Net Receivables




1 Receivables on Sovereigns 166,171,785 - - - 166,171,785

2 Receivables on Public Sector Entities 84,058,266 19,268 - - 84,038,998


- - - - -

4 Receivables on Banks 32,887,152 2,261 - - 32,884,891

5 Loans Secured by Residential Property 12,371,631 1,675 - - 12,369,956

6 Loans Secured by Commercial Real Estate 11,832,156 76,374 - - 11,755,782

7 Employee/Retiree Loans 555,856 19 - - 555,837


78,152,952 10,000,802 - - 68,152,150

9 Receivables on Corporates 311,639,669 1,054,311 - - 310,585,358

10 Past Due Receivables 3,986,966 49,439 - - 3,937,527

11 Other Assets 46,929,862 - - - 46,929,862




1 Receivables on Sovereigns 414,466 - - - 414,466

2 Receivables on Public Sector Entities 14,330,032 - - - 14,330,032


- - - - -

4 Receivables on Banks 8,404,131 - - - 8,404,131

5 Loans Secured by Residential Property - - - - -

6 Loans Secured by Commercial Real Estate - - - - -

7 Employee/Retiree Loans - - - - -


253,797 - - - 253,797

9 Receivables on Corporates 18,853,000 - - - 18,853,000

10 Past Due Receivables - - - - -




1 Receivables on Sovereigns 12,397 12,397 - - -

2 Receivables on Public Sector Entities 95,201 95,201 - - -


- - - - -

4 Receivables on Banks 21,712,474 5,915,777 - - 15,796,697


- - - - -

6 Receivables on Corporates 83,416 83,416 - - -


Total Counterparty Credit Risk Exposure 21,903,488 6,106,791 - - - 15,796,697





4.2.b Net Receivables and Credit Risk Mitigation TechniqueBank Consolidated with Subsidiaries (in million Rupiah)


31 December 2019

Net Receivables







- - - - -




7 Employee/Retiree Loans 360,738 - - - 360,738


89,412,685 10,161,112 - - 79,251,573



11 Other Assets 49,256,412 - - - 49,256,412







- - - - -






284,348 - - - 284,348





C Commitm ent/Contingency Liabilities Exposure in Administrative Account Transactions

1 Receivables on Sovereigns 443,875 407,128 - - 36,747

2 Receivables on Public Sector Entities 496,797 - - - 496,797


- - - - -



528,493 - - - 528,493

6 Receivables on Corporates 328,593 - - - 328,593


Total Counterparty Credit Risk Exposure 10,578,353 407,128 - - - 10,171,225





31 December 2018

Net Receivables







- - - - -




7 Employee/Retiree Loans 586,369 19 - - 586,350


80,614,697 10,000,802 - 27,261,590 43,352,305



11 Other Assets 46,929,862 - - - 46,929,862


Total Balance Sheet Exposures 788,726,213 11,204,149 - 27,261,590 - 750,260,474





- - - - -






268,928 - - - 268,928





C Commitm ent/Contingency Liabilities Exposure in Administrative Account Transactions

1 Receivables on Sovereigns 12,397 12,397 - - -

2 Receivables on Public Sector Entities 95,201 95,201 - - -


- - - - -

4 Receivables on Banks 21,712,474 5,915,777 - - 15,796,697


- - - - -

6 Receivables on Corporates 83,416 83,416 - - -


Total Counterparty Credit Risk Exposure 21,903,488 6,106,791 - - - 15,796,697





Asset SecuritizationBNI’s securitization activities are only limited to ownership, however as of December 31, 2019, there was no asset securitization exposure.

RWA for Credit Risk Calculation using Standard ApproachRWA for Credit Risk Calculation by Standard Approach - Bank individually is presented in Table 6.1.1, Table 6.1.2, Table 6.1.3, and Table 6.1.7.

RWA for Credit Risk Calculation by Standard Approach - Consolidated Banks are included in Table 6.2.1, Table 6.2.2, Table 6.2.3, Table 6.2.6 and Table 6.2.7.

1. Asset Exposure in Balance Sheet

Table 6.1.1 Asset Exposure in Balance SheetBank Only (in million Rupiah)



Net Receivables

RWA before CRM

RWA after CRM

Net Receivables

RWA before CRM

RWA after CRM

1 Receivables on Sovereigns 155,986,327 426,922 426,922 166,171,785 633,826 633,826

2 Receivables on Public Sector Entities 78,723,027 33,688,719 33,681,290 84,058,265 41,768,392 41,779,141

3 Receivables on Multilateral Development Banks and InternationalInstitutions

- - - - - -

4 Receivables on Banks 28,031,240 10,452,989 10,435,883 32,887,152 12,083,768 12,082,638

5 Loans Secured by Residential Property 14,241,049 4,436,519 4,433,984 12,371,631 3,821,272 3,820,713

6 Loans Secured by Commercial Real Estate 16,970,684 16,970,684 16,876,871 11,832,156 11,832,156 11,755,782

7 Employee or Retiree Loans 360,738 180,369 180,369 555,856 277,928 277,919

8 Receivables on Micro Business, Small Business, and Retail Portfolio 88,057,904 66,043,428 45,925,022 78,152,952 58,614,714 45,158,820

9 Receivables on Corporates 335,788,723 335,400,166 333,130,274 311,639,668 311,817,209 310,776,919

10 Past Due Receivables 6,114,627 9,074,512 9,013,241 3,986,966 5,905,448 5,831,289

11 Other Assets 47,462,844 33,336,043 33,336,043 46,929,862 36,784,124 34,037,001

Total 771,737,162 510,010,351 487,439,899 748,586,293 483,538,837 466,154,048

6.2.1 Asset Exposure in Balance SheetBank Consolidated with Subsidiaries (in million Rupiah)



Net Receivables

RWA before CRM

RWA after CRM

Net Receivables

RWA before CRM

RWA after CRM

1 Receivables on Sovereigns 155,986,327 426,922 426,922 166,171,785 633,826 633,826



- - - - - -


5 Loans Secured by Residential Property 14,241,049 4,436,519 4,433,984 12,371,631 3,821,272 3,820,713

6 Loans Secured by Commercial Real Estate 16,970,684 16,970,684 16,876,871 11,832,156 11,832,156 11,755,782

7 Employee or Retiree Loans 360,738 180,369 180,369 555,856 277,928 277,919


89,412,685 67,059,514 46,941,109 78,152,952 58,614,714 45,158,820


10 Past Due Receivables 6,114,627 9,074,512 9,013,241 3,986,966 5,905,448 5,831,289

11 Other Assets 49,256,412 - 35,543,931 46,929,862 36,784,124 34,037,001

Total 775,433,723 513,464,889,24 490,894,437 748,586,295 483,538,837 466,154,048




Commitment/Contingency Liabilities Exposure in Administrative Account Transactions

Table 6.1.2 Commitment/Contingency Liabilities Exposure in Administrative Account TransactionsBank Only (in million Rupiah)



Net Receivables

RWA before CRM

RWA after CRM

Net Receivables

RWA before CRM

RWA after CRM

1 Receivables on Sovereigns 145,407 - - 414,466 - -



- - - - - -


5 Loans Secured by Residential Property - - - - - -

6 Loans Secured by Commercial Real Estate - - - - - -

7 Employee or Retiree Loans - - - - - -

8 Receivables on Micro Business, Small Business, and Retail Portfolio 284,348 213,261 213,261 253,797 190,348 190,348



Total 39,631,631 29,223,950 29,207,917 42,255,426 30,393,605 30,410,424

Table 6.2.2 Commitment/Contingency Liabilities Exposure in Administrative Account TransactionsBank Consolidated with Subsidiaries (in million Rupiah)


Saturday, June 30, 19 Saturday, June 30, 18

Net Receivables

RWA before CRM

RWA after CRM

Net Receivables

RWA before CRM

RWA after CRM


2 Receivables on Public Sector Entities 10,963,444 5,481,722 5,481,722 - - -


- - - 8,760,711 4,380,355 4,380,355


5 Loans Secured by Residential Property - - - 18,606,766 18,606,766 18,603,185

6 Loans Secured by Commercial Real Estate - - - 400,354 300,266 300,266

7 Employee or Retiree Loans - - - - - -

8 Receivables on Micro Business, Small Business, and Retail Portfolio 284,348 213,261 213,261 - - -

9 Receivables on Corporates 19,032,526 19,032,526 19,016,493 - - -


Total 39,631,631 29,223,950 29,207,917 41,351,152 29,827,069 29,823,488





2. Exposures Causing Credit Risk Due To the Counterparty’s Failure (Counterparty Credit Risk)

Table 6.1.3 Exposure Rising Credit Risk Due to Counterparty Credit RiskBank Only (in million Rupiah)



Net Receivables

RWA before CRM

RWA after CRM

Net Receivables

RWA before CRM

RWA after CRM


2 Receivables on Public Sector Entities 496,797 248,398 248,398 95,201 47,600 47,600


- - - - - -

4 Receivables on Banks 8,780,597 1,310,595 1,310,595 21,712,474 302,742 302,742


6 Receivables on Corporates 328,593 328,593 328,593 83,416 83,417 83,417

Total 10,578,353 2,283,956 2,283,956 21,903,488 433,759 433,759

6.2.3 Exposure Rising Credit Risk Due to Counterparty Credit RiskBank Consolidated with Subsidiaries (in million Rupiah)



Net Receivables

RWA before CRM

RWA after CRM

Net Receivables

RWA before CRM

RWA after CRM


2 Receivables on Public Sector Entities 496,797 248,398 248,398 95,201 47,600 47,600


- - - - - -

4 Receivables on Banks 8,780,597 1,310,595 1,310,595 21,712,474 302,742 302,742


6 Receivables on Corporates 328,593 328,593 328,593 83,416 83,416 83,416

Total 10,578,353 2,283,956 2,283,956 21,903,488 433,758 433,758

3. Exposures Causing Crisit Risk Due To Settlement Risk As of December 31, 2019 and December 31, 2018, there was no Credit Risks due to Settlement Failure (settlement risk)

4. Securitization Exposures

Table 6.1.5 RWA Calculation of Credit Risk with Standardized Approach: Securitization ExposuresBank Only (in million Rupiah)

No. Type of Transactions


Capital ReducingFactors

RWA afterCRM


RWA afterCRM

1 Supporting Credit Facilities Meeting the Requirements - - - -

2 Supporting Credit Facilities Not Meeting the Requirements - - - -

3 Liquidity Facilities Meeting the Requirements - -

4 Liquidity Facilities Not Meeting the Requirements - - - -

5 Purchase of Asset-Backed Securities Meeting the Requirements - - - -

6 Purchase of Asset-Backed Securities Not Meeting the Requirements - - - -

7 Securitization Exposure not Covered in Bank Indonesia provisions on Prudential Principles in Asset Securitization Activities for Commercial Banks

48,430 307,604

Total - 48,430 - 307,604




6.2.5 RWA Calculation of Credit Risk with Standardized Approach: Securitization ExposuresBank Consolidated with Subsidiaries (in million Rupiah)

No. Type of Transactions



RWA afterCRM


RWA afterCRM

1 Supporting Credit Facilities Meeting the Requirements - - - -

2 Supporting Credit Facilities Not Meeting the Requirements - - - -

3 Liquidity Facilities Meeting the Requirements - -

4 Liquidity Facilities Not Meeting the Requirements - - - -

5 Purchase of Asset-Backed Securities Meeting the Requirements - - - -

6 Purchase of Asset-Backed Securities Not Meeting the Requirements - - - -

7 Securitization Exposure not Covered in Bank Indonesia provisions on Prudential Principles in Asset Securitization Activities for Commercial Banks

48,430 307,604

Total - 48,430 - 307,604

5. Exposures at Shariah Business Unit As of December 31, 2019 and December 31, 2018 the Bank had no exposure in the sharia business unit.

6. Total Credit Risk Measurement

6.1.7 Total Credit Risk MeasurementBank Only (in million Rupiah)

Type of Transactions 31 December 2019 31 December 2018

TOTAL CREDIT RISK RWA 516,647,817 491,757,871

TOTAL CAPITAL REDUCING FACTORS - (3,302,541)

6.2.7 Total Credit Risk MeasurementBank Consolidated with Subsidiaries (in million Rupiah)

Type of Transactions 31 December 2019 31 December 2018

TOTAL CREDIT RISK RWA 540,872,758 511,541,518

TOTAL CAPITAL REDUCING FACTORS - (394,267)





Market RiskMost of the Trading Book’s Market Risk is sourced from Treasury business activities both Domestic and Overseas Branch Offices. Meanwhile the Banking Book’s Market Risk, specifically the Interest Rate Risk in Banking Book and Net Open Position (PDN) is sourced from all company activities. BNI always monitors and manages market risks continuously and closely.

Governance and OrganizationTo achieve an effective and independent market risk management, Treasury business activities are divided into 3 (three) areas, namely front office, middle office, and back office. Front office acts as a business unit seeks to achieve business targets by executing business activities and dealing with customers. However, as a part of internal control system, front office also functions as the first line of defense that will try to limit and anticipate market risks due to changes in exchange rates and interest rates in accordance with predetermined limits. In conducting its activities, Treasury business is limited by Risk Appetite and Limit proposed by the Bank’s Risk Management Division to the Risk Committee and Capital, Risk Management Sub-Committee. Treasury transaction limit is proposed by the Policy Governance Division through the Credit Procedure Committee (CPC) whilst the counterparty limit is assigned by Business Risk Unit.

The Bank’s Risk Management Division as the second line of defense conducts surveillance function towards market and compliance with risk limits for market, authority and counterpart risk. It also validates fixing prices, checking the fairness of prices for treasury transactions and investigating off-market events and reviewing limit usage. Furthermore, to complement the existing market risk management function, BNI also has a Middle Office that monitors, controls and reports risks on Treasury transactions.

The back office function is under Operations Division carrying out activities for confirmation, accounting and Treasury transactions settlement.

Policies and ProceduresIn order to support business targets whilst mantaining prudence principles, BNI has owned its Company Guidelines for Treasury and International Business. Moreover, to achieve an effective Market Risk management, BNI refers to the Company Guidelines for Market Risk Management. The Company Guidelines contain procedures and methodology as well as market risk management models which are prepared and reviewed as well as validated periodically by the Bank’s Risk Management Division.

ProcessMarket risk identification, measurement, surveillance and control are executed by units that are independent from business unit. Market Risk identification is mainly conducted for every new product or activity. BNI measures Market Risk by using the Standard and Internal Methods. The Standard Method is used to calculate the Minimum Capital Adequacy Requirement (CAR) for Market Risk whilst the daily Market Risk management uses the Internal (Value at Risk) Method.

Portfolio coverage is calculated within CAR by using the Standard Method is a trading book portfolio for interest rate risk as well as trading and banking book portfolios for domestic exchange rate risk and overseas branch offices.

The Bank’s individual market risk exposures and consolidated with its Subsidiaries using the standard methods are listed in table 7.1 as follows:




7.1. Market Risk By Using Standardized MethodBank Only and Consolidated (in million Rupiah)

No Type of Risks


Bank Consolidation Bank Consolidation

Capital Expense RWA Capital

Expense RWA Capital Expense RWA Capital

Expense RWA

1 Risiko Suku Bunga 22,356 279,455 29,210 365,127 17,279 215,983 22,498 281,225

a. Risiko Spesifik - - 4,515 56,436 - - 3,884 48,552

b. Risiko Umum 22,356 279,455 24,695 308,692 17,279 215,983 18,614 232,673

2 Risiko Nilai Tukar 230,203 2,877,540 232,168 2,902,094 230,201 2,877,514 228,629 2,857,863

3 Risiko Ekuitas - - - - - 2,393 29,908

4 Risiko Komoditas - - - - - - -

5 Risiko Option - - - 8,396 104,952 8,396 104,952

Total 252,559 3,156,995 261,378 3,267,221 255,876 3,198,449 261,916 3,273,949

Domestic market value exposures (Risk at Risk) and Overseas Branch Offices are daily monitored and submitted to Management on a weekly and monthly basis. The price valuation policy currently used for actively traded instruments is mark-to-market whilst the valuation method for less actively traded instruments uses fair prices from independent sources.

The Bank’s individual and consolidated market risk exposures use the internal model (value at risk) are listed in table 7.2 as follows:

Table 7.2. Market Risk using Internal Method (Value at Risk/VaR) (in million Rupiah)

No Type of Risks


Average VaR

Maximum VaR

Minimum VaR

End of PeriodVaR

Average VaR

Maximum VaR

Minimum VaR

End of PeriodVaR

1 Interest Rate Risk 282,902 311,498 170,469 259,176 275,195 389,567 232,498 296,025

2 Exchange Rate Risk 8,954 31,260 3,498 4,736 9,712 20,602 5,109 9,112

3 Option Risk - - - - - - - -

Total 291,856 342,758 173,967 263,912 284,907 410,169 237,607 305,137

VaR Composition per Type of Risks per December 31, 2019dalam persentase

Interest Rate RiskExchange Rate Risk

2%

98%

2019





Risks in the overall banking book portfolio are periodically monitored in accordance with the measurement methods set by the regulator, namely monitoring the Net Open Position (NOP) for exchange rate risk and interest rate risk in the banking book that are submitted to management through Risk and Capital Committee Forum and Asset & Liability Sub-Committee (KRK-ALCO).

Disclosure Reports of interest rate risk exposure in the Banking Book (IRRBB) individually and consolidated are presented in tables 7.3 and 7.4.

Table 7.3.a. Perhitungan Risiko Suku Bunga dalam Banking Book Bank Secara IndividuPosisi: December 2019

in million Rupiah Δ EVE Δ NII

Period of time T T-1 T T-1

Parallel Up 7,313,802 6,758,106 366,226 -1,306,207

Parallel Down -9,153,688 -9,076,317 -366,226 1,305,207

Steepener 3,748,799 3,574,368

Flattener -3,288,601 -3,528,695

Short Rate Up 2,993,644 2,563,072

Short Rate Down -2,595,184 -2,549,961

Absolute Negative Maximum Value 7,313,802 6,758,106 366,226 1,306,207

Tier 1 Capital (for Δ EVE) or Projected Income (for Δ NII) 111,535,713 108,244,404 38,769,367 37,602,175

Maximum amount divided by Tier 1 capital (for ΔΔ EVE) or Projected Income (for ΔΔ NII)

6.56% 6.24% 0.94% 3.47%

Table 7.3.b. Application of Risk Management for Interest Rate Risk in the Banking BookBank OnlyPosition: December 2019

Qualitative Analysis

1 Interest Rate Risk in the Banking Book, hereinafter abbreviated as IRRBB, represents current and future risks against the Bank’s capital and profitability, arising from interest rate movements in the market which have an impact on the Banking Book position.

The IRRBB includes gap risk arising from the term structure of the banking book instruments; the risk basis that describes the impact of the relative changes in interest rates of financial instruments that are valued using different interest rate curves; option risk arising from financial derivative positions or from the element of option risk inherent in financial instruments.

2 The Bank manages IRRBB exposure using economic value and earnings based measures. In the application of segregation of duty, the Treasury Division acts as a unit that functions to manage interest rate risk and the Risk Management Division acts as a unit in monitoring interest rate risks that arise.

For the purpose of controlling and mitigating interest rate risk in the banking book, the Bank has determined both quantitative control in the form of the application of limits and risk appetite. The Bank also conducts qualitative risk control such as management strategies, risk transfers through the Funds Transfer Pricing (FTP) mechanism and also a hedging strategy.

3 The IRRBB calculation is done quarterly and subsequently becomes part of the Risk Profile, Bank Soundness Self Assessment, Quantitative Information on Risk Exposure, and Disclosure of Risk Management Practices.

To measure IRRBB exposure, the Bank uses economic value and earnings as a basis for measurement methods. Measurement of economic value of equity, hereinafter referred to as EVE, measures changes in the economic value of assets, liabilities and administrative accounts (off balance sheet) of the Bank caused by interest rate movements. For now, the Bank measures changes in EVE as the maximum decrease of the economic value of banking books in the six standard interest scenarios defined by the Basel Committee on Banking Supervision (BCBS) and OJK as stated in SEOJK IRRBB no SEOJK/12/2018.

The measurement of bank earnings (earning-based measure) looks at the estimated changes in net interest income, hereinafter abbreviated as NII (net interest income) which is caused by the movement of interest rates in the market for a certain period. For this reason, the Bank measures the change in NII (IINII) as a maximum decrease from NII if there is a scenario of an increase or decrease in interest rates in parallel as defined by the Basel Committee on Banking Supervision (BCBS) and SEOJK IRRBB no SEOJK/12/2018, compared to planning Bank finance for a period of 12 months.





4 In measuring EVE, BNI uses the standardized approach of SEOJK IRRBB no SEOJK/12/2018, where the interest rate shock scenario used includes:1) Parallel shock up;2) Parallel shock down;3) Steepener shock, with a combination of short rates down and long rates up;4) Flattener shock with a combination of short rates up and long rates down;5) Short shock up rates; and6) Short down shock rates.

In measuring NII, the Bank uses the standardized approach of SEOJK IRRBB no SEOJK/12/2018, where the interest rate shock scenario used includes:1) Parallel shock up;2) Parallel shock down;

Going forward, in controlling risk, BNI will also evaluate IRRBB exposure by using an internal stress scenario to measure EVE and NII.

5 There are no methodological differences or modeling assumptions in the framework of the calculations used in the internal management system. In other words, the Bank uses the Standardized Approach as a reference in the calculation of IRRBB as for internal management purposes.

6 The Bank currently has a hedging instrument in the form of an Interest Rate Swap (IRS) to offset potential losses if there is potential loss on AFS securities. The Bank also conducts daily MTM on the IRS instrument.

7 a For the EVE method, the bank calculates all cash flows from the principal and interest payments which include the commercial margin (client rate) discounted by the risk free rate at the reporting date;

b The Bank uses a portfolio replication model and/or uniform slotting method in determining the slotting and repricing maturities for Non-Maturity Deposits (NMDs) by taking into account the caps and provisions for the average time period as stated in the IRRBB SEOJK .

The bank has interest rate exposure from Non-Maturity Deposits (NMDs) positions that come from wholesale and retail customers. To manage this interest rate risk, BNI carries out a two-stage modeling in accordance with the terms of the SEOJK IRRBB. In the first stage, BNI analyzes the change in volume to determine the portion of NMD that is stable in the sense that it has a small possibility for customers to withdraw. In the second stage, BNI measures the proportion of core deposits from stable NMD that customers will not withdraw even if there is a large market interest change while the Bank does not adjust the intended NMD interest.

The main dimensions affecting the maturity of core NMDs are deposit interest elasticity against changes in market interest rates, volatility in deposit volumes and other factors including customer behaviour and macroeconomics.

By taking into account the limitations of NMD modelling that apply to the Standardized Approach, the Bank determines the distribution and average maturity of repricing maturity by using a replicating portfolio approach and/or uniform slotting method, depending on the availability and reliability of data for each relevant NMD category, currently consists of wholesale NMD, transactional retail NMD and non-transactional retail NMD. Modelling parameters are based on historical observations, statistical analysis and management judgment.

c The Bank carries out risk modelling or estimation to determine the prepayment rate of fixed interest loans and early withdrawal rates for time deposits, if this risk is not adequately mitigated, for example by imposing a fine.

In estimating prepayment rates, the Bank uses statistical methods based on historical data in analysing accelerated loan repayment rates. Some key dimensions that affect customer repayment rates include: market interest rates, lending rates, nominal loans, and several other factors.

On the other hand, to estimate the early withdrawal rate, the Bank uses the Exponential Weighted Moving Average (EWMA) method. This model assumes that the results of tomorrow’s projections are influenced by current and past data. Some main dimensions that affect the level of customer withdrawals include: deposit rates, nominal deposits and several other factors.

d There are no other assumptions used by BNI other than the assumptions set by the FSA Circular on IRRBB.

e BNI calculates the IRRBB for each material currency and then aggregates it. The aggregation methodology is done by simple addition.

Quantitative Analysis

1 The average term for adjusting interest rates (repricing maturity) for Rupiah includes: - Wholesale for 1.47 years- Transactional Retail for 2.39 years- Non-Transactional Retail for 1.61 years

The average time period for interest rate adjustment (repricing maturity) for USD includes: - Wholesale for 1.59 years- Transactional Retail for 1.34 years- Non-Transactional Retail for 1.81 years






2 The longest period of interest rate adjustment (repricing maturity) for Rupiah includes: - Wholesale for a period of 5 years- Transactional Retail for a period of 5 years- Non-Transactional Retail for a period of 5 years

The longest period of repricing maturity for USD is: - Wholesale for a period of 5 years- Transactional Retail for a period of 5 years- Non-Transactional Retail for a period of 5 years

Table 7.4.a. Perhitungan Risiko Suku Bunga dalam Banking Book Bank Secara Konsolidasi dengan Perusahaan AnakPosition: December 2019

in million Rupiah Δ EVE Δ NII

Period of time T T-1 T T-1

Parallel Up 9,636,616 8,933,653 480,535 -1,498,909

Parallel Down -12,262,494 -11,994,002 -480,535 1,497,909

Steepener 4,987,771 4,747,904

Flattener -4,098,007 -4,303,292

Short Rate Up 3,919,059 3,420,265

Short Rate Down -3,579,170 -3,463,586

Absolute Negative Maximum Value 9,636,616 8,933,653 480,535 1,498,909

Tier 1 Capital (for Δ EVE) or Projected Income (for Δ NII) 113,655,494 113,655,494 42,229,972 40,764,319

Maximum amount divided by Tier 1 capital (for ΔΔ EVE) or Projected Income (for ΔΔ NII)

8.48% 7.86% 1.14% 3.68%

Table 7.4.b. Application of Risk Management for Interest Rate Risk in the Banking BookConsolidated with SubsidiariesPosition: December 2019


1 Interest Rate Risk in the Banking Book, hereinafter abbreviated as IRRBB, represents current and future risks against capital and profitability of the Bank and Subsidiary Companies due to the movement of interest rates in the market which affects the position of the Banking Book.

Included in the IRRBB is the gap risk arising from the term structure of the banking book instruments; the risk basis that describes the impact of the relative changes in interest rates of financial instruments that are valued using different interest rate curves; option risk arising from financial derivative positions or from the element of option risk inherent in financial instruments.

2 BNI and its Subsidiaries manage IRRBB exposures using the economic value approach and earnings-based measures. As a segregation of duty application, there is a separation between the unit that manages interest rate risk and the unit that monitors interest rate risk that arises.

For the purpose of controlling and mitigating interest rate risk in the banking book, BNI and its Subsidiaries set controls both quantitatively in the form of the application of limits and risk appetite. BNI and its Subsidiaries also carry out qualitative risk control such as management strategies, risk transfers through the Funds Transfer Pricing (FTP) mechanism and also a hedging strategy.





3 The IRRBB calculation is done quarterly which and then become part of the Risk Profile, Bank Soundness Self-Assessment, Quantitative Risk Exposure Information, and Disclosure of Risk Management Practices.

In measuring the IRRBB exposure, BNI and its Subsidiaries use economic values and earnings as the basis for the measurement method. Measurement of the economic value of equity, hereinafter referred to as EVE, measures changes in the economic value of assets, liabilities and administrative accounts (off balance sheet) of the Bank and Subsidiaries due to movements in interest rates. For now, the Bank and Subsidiaries measure changes in EVE as the maximum reduction of the economic value of banking books in the six standard interest scenarios defined by the Basel Committee on Banking Supervision (BCBS) and OJK as stated in SEOJK IRRBB no SEOJK/12/2018.

The measurement of bank earnings refers to the estimated changes in net interest income, hereinafter abbreviated as NII (net interest income) which is caused by the movement of interest rates in the market for a certain period. For this, the Bank and Subsidiaries measure the change in NII as a maximum decrease from NII if there is a scenario of an increase or decrease in interest rates in parallel as defined by the Basel Committee on Banking Supervision (BCBS) and SEOJK IRRBB no SEOJK/12/2018, compared to financial planning Bank and Subsidiaries for a period of 12 months.

4 In measuring EVE, BNI and its Subsidiaries use the standardized approach of SEOJK IRRBB no SEOJK/12/2018, where the interest rate shock scenario used includes:1) parallel shock up;2) parallel shock up;3) steepener shock, with a combination of short rates down and long rates up;4) flattener shock, with a combination of short rates up and long rates down;5) short shock up rates; and6) short down shock rates.

In measuring NII, the Bank and Subsidiaries use the standardized approach SEOJK IRRBB no SEOJK/12/2018, where the interest rate shock scenario used includes:1) parallel shock up;2) parallel shock down;

In the future, to control risk, BNI and its Subsidiaries will also evaluate IRRBB exposures by using internal stress scenarios to measure EVE and NII.

5 There are no methodological differences or modeling assumptions in the framework of the calculations used in the internal management system. In other words, the Bank and Subsidiary Companies use the Standardized Approach as a reference in the calculation of IRRBB as for internal management purposes.

6 The Bank currently has a hedging instrument in the form of an Interest Rate Swap (IRS) to offset potential losses that arise if there are potential losses on AFS securities. The Bank also conducts daily MTM on the IRS instrument.

7 a Regarding the EVE method, BNI and its Subsidiaries calculate all cash flows from the principal and interest payments which include the commercial margin (client rate) discounted by the risk free rate at the reporting date;

b The Bank uses a portfolio replication model and/or uniform slotting method in determining the slotting and repricing maturities for NMDs by taking into account the caps and provisions for the average time period as stated in the IRRBB SEOJK.

The bank has interest rate exposure from Non-Maturity Deposits (NMDs) positions that come from wholesale and retail customers. To manage this interest rate risk, BNI carries out a two-stage modeling in accordance with the terms of the SEOJK IRRBB. In the first stage, BNI analyzes the change in volume to determine the portion of NMD that is stable in the sense that it has a small possibility for customers to withdraw. In the second stage, BNI measures the proportion of core deposits from stable NMD that customers will not withdraw even if there is a large market interest change while the Bank does not adjust the intended NMD interest.

The main dimensions affecting the maturity of core NMDs are deposit interest elasticity against changes in market interest rates, volatility in deposit volumes and other factors including customer behaviour and macroeconomics.

By taking into account the limitations of NMD modelling that apply to the Standardized Approach, the Bank determines the distribution and average maturity of repricing maturity by using a replicating portfolio approach and/or uniform slotting method, depending on the availability and reliability of data for each relevant NMD category, currently consists of wholesale NMD, transactional retail NMD and non-transactional retail NMD. Modelling parameters are based on historical observations, statistical analysis and management judgment.






c The Bank and Subsidiaries carry out risk modelling or estimation to determine the prepayment rate of fixed interest loans and early withdrawal rates for time deposits, if this risk is not adequately mitigated, for example by imposing a fine.

In estimating prepayment rates, the Bank and Subsidiaries use statistical methods based on historical data in analysing accelerated loan repayment rates. Some key dimensions that affect customer repayment rates include: market interest rates, lending rates, nominal loans, and several other factors.

On the other hand, to estimate the early withdrawal rate, the Bank and Subsidiaries use the Exponential Weighted Moving Average (EWMA) method. This model assumes that the results of tomorrow’s projections are influenced by current and past data. Some main dimensions that affect the level of customer withdrawals include: deposit rates, nominal deposits and several other factors.

d There are no other assumptions used by BNI and Subsidiaries other than the assumptions set by the FSA Circular on IRRBB.

e BNI and subsidiaries calculate the IRRBB for each material currency and then aggregates it. The aggregation methodology is done by simple addition.

Quantitative Analysis

1 The average term for adjusting interest rates (repricing maturity) for Rupiah includes: - Wholesale for 1.47 years- Transactional Retail for 2.39 years- Non-Transactional Retail for 1.61 years

The average time period for interest rate adjustment (repricing maturity) for USD includes: - Wholesale for 1.59 years- Transactional Retail for 1.81 years- Non-Transactional Retail for 1.34 years

2 The longest period of interest rate adjustment (repricing maturity) for Rupiah includes: - Wholesale for a period of 5 years- Transactional Retail for a period of 5 years- Non-Transactional Retail for a period of 5 years

The longest period of repricing maturity for USD is: - Wholesale for a period of 5 years- Transactional Retail for a period of 5 years- Non-Transactional Retail for a period of 5 years

Device and MethodTo support business processes and in line with market risk management, BNI has owned market risk management tools. The Bank also obtain market data from Reuters, Bloomberg and other independent sources. Some limits that have been set to manage potential Market Risk losses in the Treasury Division and Overseas Branch Offices include the following:1. Value at Risk Limit (VaR Limit) is the maximum potential loss that might occur at a certain time in the future with a certain

confidence level.2. Stress Value at Risk Limit (Stress VaR Limit) is a market risk measurement adjusted with abnormal conditions in the market

or maximum potential losses when the market is abnormal.3. Budget Loss Limit is used to limit the realization of losses in business activities.4. Management Action Trigger (MAT) is a limitation to take action on the risk of changes in the value of the loss (early warning

signal). MAT completes the loss limit in the form of a certain percentage of the loss limit.5. Purchase of securities limit is used to limit the concentration of corporate securities purchases based on rating and type of

currency.6. Asset and liability repricing gap Limit (Interest Rate Risk in Banking Book) to limit interest rate risk in the banking book.7. Nominal open position limit is the maximum nominal open position that a dealer can do.8. The overall PDN internal limit (absolute), i.e. the maximum PDN management limit.




BNI’s measures to strengthen market risk management to face changes in economic conditions throughout 2019 include monitor closely the movement of market factors having potential to impact on banks, including exchange rates, interest rates, stock prices, and commodity prices. To find out the potential impact on the bank, periodic and incidental Scenario Analysis and Stress Testing have been carried out. Stress Testing periodically uses scenarios referring to regulatory provisions and the Bank’s internal scenario. Meanwhile, incidental stress testing and Scenario Analysis adjust the conditions of macroeconomic and market factors at that time. Each Overseas Branch Office also conducts Stress Testing in accordance with internal and local regulatory requirements. The results of the stress testing are used to prepare a contingency plan so that risks that occur can still be limited and well managed.

Liquidity RiskLiquidity risk relates to the possibility of banks being unable to meet short-term obligations to depositors, investors and creditors, as well as to fulfill of minimum statutory reserves which among others are due to limited access to funding or inability to liquidate assets held at reasonable prices.

Liquidity risk management aims to minimize possibility of the Bank’s inability to obtain cash flow funding sources, and build the strength of structural liquidity of the bank’s balance sheet to support sustainable long-term growth.

Governance and OrganizationLiquidity Risk Management is executed by the Bank’s Risk Management Division (RMD), Treasury Division (TRS), and Overseas Branch Offices. Liquidity Risk Policies and Procedures are compiled by the ERM Division, subsequently implemented by the TRS Division and all Foreign Branch Offices which are realized in the liquidity strategies management. The RMD Division also monitors liquidity management implementation that is carried out by the TRS Division.

Policies and ProceduresRMD Division prepares a Liquidity Risk Policy in the form of Guidelines for the Implementation of Liquidity Risk Management, which is further elaborated into the Liquidity Risk Management Procedure containing guidelines for liquidity risk management implementation including:1. Availability of Liquid Equipment: Cash, Statutory

Reserves (GWM), Secondary Reserve, Tertiary Reserve, Early Warning Indicators, Contingency Plans for Head Office Liquidity and Overseas Branch Offices.

2. Liquidity Risk Measurement: Liquidity Ratio Cash Flow Projection, Maturity Profile, Liquidity Coverage Ratio, Stress testing

3. Liquidity Risk Monitoring 4. Liquidity Risk Control.5. Liquidity Limit Assignment: BNI Wide Cash Limit,

Secondary Reserve Ideal (SR Ideal) limit, Maturity Profile limit and Foreign Currency Credit limit based on Foreign Currency Liquidity Availability.

ProcessIn managing liquidity, in addition to managing primary reserves (cash and reserve requirement), BNI also maintains secondary reserves to ensure liquidity at a safe level. As a secondary reserve, BNI maintains and maintains a tertiary reserve. Limit assignment and surveillance namely the BNI Wide Cash Limit limit, the Ideal Secondary Reserve (SR Ideal) limit, the Maturity Profile limit, and the limitation of Foreign Currency Loans based on the Availability of Funds are conducted periodically by the ERM Division. Whereas the availability of the entire reserve is monitored daily, weekly and monthly by the TRS Division and the ERM Division.

Device and MethodIn managing liquidity risk, BNI uses daily cash flow projections and monthly maturity profiles, either contractual or behavioral in order to determine appropriate and accurate strategies to anticipate future bank liquidity conditions. Disclosure of the Bank’s Rupiah and Foreign Exchange Maturity Profile individually and consolidated is presented in tables 9.1.a and b, tables 9.2.a and b.





Table 9.1.a Rupiah Maturity Profile 2019Bank Only (in million Rupiah)


31 December 2019

Balance

Maturity Dates

≤1 month >1 month to 3months

>3 month to 6months

>6 month to 12 months >12 months

I BALANCE SHEET

A. Assets

1. Cash 14,019,665 14,019,665 - - - -

2. Placement with Bank Indonesia 41,921,507 41,621,507 300,000 - - -

3. Placement with other banks 5,073,733 4,611,729 270,000 100,000 - 92,004

4. Marketable Securities 58,823,685 482,608 1,887,831 709,773 5,063,639 50,679,834

5. Loans Provided 418,919,504 59,225,379 30,288,017 35,486,741 34,220,515 259,698,852

6. Other Receivables 13,691,262 2,484,104 3,631,561 2,625,563 2,648,927 2,301,107

7. Others 28,588,375 774,574 - 782,967 - 27,030,834

Total Assets 581,037,731 123,219,566 36,377,409 39,705,044 41,933,081 339,802,631

B. Liabilities

1. Third Party Fund 473,933,724 121,068,048 56,032,808 10,092,037 5,712,058 281,028,773

2. Liabilities with Bank Indonesia 7,354 - - - - 7,354

3. Liabilities with other banks 4,957,478 2,178,946 143,406 631,421 2,003,013 692

4. Securities Issued 3,099,253 - - - - 3,099,253

5. Received Loans 76 - - - - 76

6. Other Liabilities 3,205,628 658,073 1,621,392 473,751 15,355 437,057

7. Others 12,057,309 229,614 161,932 29,166 16,508 11,620,089

Total Liabilities 497,260,822 124,134,681 57,959,538 11,226,375 7,746,934 296,193,294

Differences of Asset and Liabilities in Balance Sheet 83,806,851 (885,173) (21,582,129) 28,478,669 34,186,147 43,609,337

II ADMINISTRATIVE ACCOUNTS

A. Administrative Account Receivables

1. Commitment 12,141,114 5,783,179 1,140,355 2,710,440 2,507,140 -

2. Contingency 7,883,161 7,883,161 - - - -

Total Administrative Account Receivables 20,024,275 13,666,340 1,140,355 2,710,440 2,507,140 -

B. Administrative Account Liabilities

1. Commitment 65,189,021 20,450,636 5,831,137 7,032,842 5,442,346 26,432,060

2. Contingency 34,762,049 6,883,349 3,463,322 7,182,828 3,998,175 13,234,375

Total Administrative Account Liabilities 99,951,070 27,333,985 9,294,459 14,215,670 9,440,521 39,666,435

Differences of Receivables and Liabilities in Administrative Accounts

(79,926,795) (13,667,645) (8,154,104) (11,505,230) (6,933,381) (39,666,435)

Differences [(IA-IB)+(IIA-IIB)] 3,880,056 (14,552,818) (29,736,233) 16,973,439 27,252,766 3,942,902

Cumulative Differences (14,552,818) (44,289,051) (27,315,612) (62,846) 3,880,056





31 December 2018

Balance

Maturity Dates


>3 month to 6months


I BALANCE SHEET

A. Assets

1. Cash 12,968,368 12,968,368 - - - -

2. Placement with Bank Indonesia 51,957,966 48,357,966 - 600,000 3,000,000 -

3. Placement with other banks 3,783,777 2,407,670 30,000 640,000 606,107 100,000

4. Marketable Securities 68,145,535 2,107,751 3,786,085 3,090,902 3,413,345 55,747,452

5. Loans Provided 387,462,488 54,480,165 29,270,170 41,280,930 29,913,124 232,518,099

6. Other Receivables 11,914,819 3,564,905 4,063,344 3,484,191 779,393 22,986

7. Others 25,218,315 2,307,458 349,980 184,869 40,421 22,335,587

Total Assets 561,451,268 126,194,283 37,499,579 49,280,892 37,752,390 310,724,124

B. Liabilities

1. Third Party Fund 454,173,557 146,662,838 54,046,207 6,607,940 3,530,836 243,325,736


3. Liabilities with other banks 1,985,712 989,112 85,199 190,376 719,665 1,360


5. Received Loans 5,894 - - - - 5,894

6. Other Liabilities 18,681,840 17,181,723 632,074 404,971 463,072 -

7. Others 10,584,288 249,798 150,344 18,382 9,822 10,155,942


Differences of Asset and Liabilities in Balance Sheet 72,386,191 (38,889,188) (17,414,245) 42,059,223 33,028,995 53,601,406



1. Commitment 19,493,440 13,662,126 2,145,251 1,648,170 2,037,893 -

2. Contingency 5,745,560 5,745,560 - - - -



1. Commitment 68,685,369 23,611,526 5,887,726 5,665,923 6,200,481 27,319,713

2. Contingency 33,696,127 8,859,815 5,304,010 3,691,626 5,393,569 10,447,107



(77,142,495) (13,063,655) (9,046,485) (7,709,379) (9,556,157) (37,766,820)

Differences [(IA-IB)+(IIA-IIB)] (4,756,304) (51,952,842) (26,460,730) 34,349,844 23,472,838 15,834,586

Cumulative Differences (51,952,842) (78,413,572) (44,063,728) (20,590,890) (4,756,304)





Table 9.1.b. Rupiah Maturity Profile 2019Bank Consolidated with Subsidiaries (in million Rupiah)


31 December 2019

Balance

Maturity Dates


>3 month to 6months


I BALANCE SHEET

A. Assets

1. Cash 14,367,432 14,367,432 - - - -

2. Placement with Bank Indonesia 49,693,762 48,018,762 375,000 775,000 525,000 -

3. Placement with other banks 6,218,634 5,611,729 414,000 100,000 - 92,905


5. Loans Provided 420,316,734 60,622,609 30,288,017 35,486,741 34,220,515 259,698,852

6. Other Receivables 13,691,262 2,484,104 3,631,561 2,625,563 2,648,927 2,301,107

7. Others 30,007,876 1,931,371 - 1,045,671 - 27,030,834

Total Assets 615,956,617 140,229,548 40,482,561 41,280,386 43,826,959 350,137,163

B. Liabilities

1. Third Party Fund 485,276,078 126,592,286 56,329,664 10,304,191 6,220,285 285,829,652


3. Liabilities with other banks 5,105,828 2,327,296 143,406 631,421 2,003,013 692


5. Received Loans 1,152,623 - - - - 1,152,623

6. Other Liabilities 3,205,628 658,073 1,621,392 473,751 15,355 437,057

7. Others 24,695,788 229,614 661,932 529,166 1,654,987 21,620,089


Differences of Asset and Liabilities in Balance Sheet 93,428,301 10,422,279 (18,273,833) 29,341,857 33,933,319 38,004,679



1. Commitment 12,141,114 5,783,179 1,140,355 2,710,440 2,507,140 -

2. Contingency 7,963,430 7,963,430 - - - -



1. Commitment 66,573,611 21,835,226 5,831,137 7,032,842 5,442,346 26,432,060

2. Contingency 34,817,545 6,934,999 3,463,322 7,182,828 3,998,175 13,238,221



(81,286,612) (15,023,616) (8,154,104) (11,505,230) (6,933,381) (39,670,281)

Differences [(IA-IB)+(IIA-IIB)] 12,141,689 (4,601,337) (26,427,937) 17,836,627 26,999,938 (1,665,602)

Cumulative Differences (4,601,337) (31,029,274) (13,192,647) 13,807,291 12,141,689





31 December 2018

Balance

Maturity Dates


>3 month to 6months


I BALANCE SHEET

A. Assets

1. Cash 13,282,120 13,281,943 - - - 177

2. Placement with Bank Indonesia 56,166,075 52,166,075 - 750,000 3,200,000 50,000

3. Placement with other banks 4,669,055 2,807,670 30,000 840,000 806,107 185,278


5. Loans Provided 388,420,315 54,480,165 29,270,170 41,280,930 29,986,969 233,402,081


7. Others 40,555,770 3,307,458 5,549,980 834,869 909,232 29,954,231

Total Assets 602,345,349 134,877,619 45,199,579 52,821,952 42,127,577 327,318,622

B. Liabilities

1. Third Party Fund 461,609,124 150,100,296 54,179,620 6,680,990 3,718,883 246,929,335


3. Liabilities with other banks 2,094,971 1,014,112 110,199 215,376 744,665 10,619


5. Received Loans 763,257 - - - - 763,257

6. Other Liabilities 18,733,977 17,181,723 632,074 404,971 463,072 52,137

7. Others 22,986,962 452,472 350,344 18,382 9,822 22,155,942


Differences of Asset and Liabilities in Balance Sheet 92,534,852 (33,870,984) (10,072,658) 45,502,233 37,191,136 53,785,126



1. Commitment 19,493,440 13,662,126 2,145,251 1,648,170 2,037,893 -

2. Contingency 5,817,015 5,817,015 - - - -



1. Commitment 69,863,569 24,773,211 5,887,726 5,665,923 6,200,481 27,336,228

2. Contingency 33,753,856 8,913,561 5,304,010 3,691,626 5,393,569 10,451,090



(78,306,969) (14,207,631) (9,046,485) (7,709,379) (9,556,157) (37,787,318)

Differences [(IA-IB)+(IIA-IIB)] 14,227,883 (48,078,615) (19,119,143) 37,792,854 27,634,979 15,997,808

Cumulative Differences (48,078,615) (67,197,758) (29,404,904) (1,769,925) 14,227,883





Table 9.2.a. Foreign Currency Maturity Profile 2019Bank Only (in million Rupiah)


31 December 2019

Balance

Maturity Dates


>3 month to 6months


I BALANCE SHEET

A. Assets

1. Cash 903,013 903,013 - - - -

2. Placement with Bank Indonesia 26,946,589 26,946,589 - - - -

3. Placement with other banks 16,471,859 15,541,732 930,128 - - -

4. Marketable Securities 29,884,703 2,195,184 1,212,970 - 93,637 26,382,912

5. Loans Provided 87,950,747 4,351,053 4,813,188 4,092,617 4,309,197 70,384,692

6. Other Receivables 6,150,721 2,628,897 1,389,541 1,799,519 332,764 -

7. Others - - - - - -

Total Assets 168,307,632 52,566,468 8,345,826 5,892,136 4,735,598 96,767,604

B. Liabilities

1. Third Party Fund 97,141,973 40,598,356 14,788,597 4,484,325 882,386 36,388,309

2. Liabilities with Bank Indonesia 462,993 3,371 - - 459,622 -

3. Liabilities with other banks 6,463,444 4,210,203 1,212,262 913,163 127,816 -

4. Securities Issued - - - - - -

5. Received Loans 55,948,415 1,388,250 6,038,888 6,579,597 2,221,200 39,720,481

6. Other Liabilities 4,522,269 2,409,519 820,442 1,232,974 59,334 -

7. Others 1,817,969 9,093 113,281 14,230 - 1,681,365


Differences of Asset and Liabilities in Balance Sheet 1,920,627 3,917,734 (14,627,643) (7,332,153) 985,241 18,977,449



1. Commitment 27,901,963 21,486,291 3,399,200 2,198,211 818,262 -

2. Contingency 15,665,404 15,665,404 - - - -

Total Administrative Account Receivables 43,567,367 37,151,695 3,399,200 2,198,211 818,262 -


1. Commitment 40,558,582 20,424,959 7,160,427 7,103,495 4,051,538 1,818,163

2. Contingency 23,041,708 2,111,299 1,450,055 2,205,707 6,721,101 10,553,546



(20,032,924) 14,615,436 (5,211,282) (7,110,991) (9,954,377) (12,371,709)

Differences [(IA-IB)+(IIA-IIB)] (18,112,297) 18,533,170 (19,838,925) (14,443,145) (8,969,136) 6,605,740

Cumulative Differences 18,533,170 (1,305,756) (15,748,901) (24,718,037) (18,112,297)





31 December 2018

Balance

Maturity Dates


>3 month to 6months


I BALANCE SHEET

A. Assets

1. Cash 712,636 712,636 - - - -


3. Placement with other banks 14,467,347 14,046,948 43,140 377,259 - -

4. Marketable Securities 44,323,826 7,080,798 6,455,728 1,835,132 13,345 28,938,822

5. Loans Provided 82,110,633 12,362,659 4,090,779 8,962,047 1,778,864 54,916,284


7. Others 219,506 219,506 - - - -

Total Assets 163,309,125 50,620,393 12,769,210 13,402,692 2,658,546 83,858,284

B. Liabilities

1. Third Party Fund 90,485,986 40,234,515 10,164,100 4,902,732 990,653 34,193,986


3. Liabilities with other banks 11,430,961 8,521,556 1,824,664 1,019,427 65,314 -


5. Received Loans 51,191,754 4,727,066 2,126,888 5,505,067 13,236,848 25,595,886

6. Other Liabilities 7,518,708 5,277,197 1,134,697 946,650 156,986 3,178

7. Others 1,462,825 259,545 356,106 94,577 20,046 732,551


Differences of Asset and Liabilities in Balance Sheet 921,854 (8,404,044) (2,837,246) 934,240 (12,103,779) 23,332,683



1. Commitment 49,897,895 41,377,904 1,480,076 5,287,152 1,752,764 -

2. Contingency 15,874,588 15,874,588 - - - -



1. Commitment 65,209,103 31,644,342 14,248,682 13,455,007 4,276,698 1,584,374

2. Contingency 28,013,612 2,687,478 1,845,788 2,807,652 8,555,338 12,117,356



(27,450,231) 22,920,671 (14,614,394) (10,975,506) (11,079,272) (13,701,730)







Table 9.2.b. Foreign Currency Maturity Profile 2019Bank Consolidated with Subsidiaries (in million Rupiah)


31 December 2019

Balance

Maturity Dates


>3 month to 6months


I BALANCE SHEET

A. Assets

1. Cash 994,271 994,271 - - - -


3. Placement with other banks 16,530,241 15,600,114 930,128 - - -

4. Marketable Securities 30,216,028 2,526,509 1,212,970 - 93,637 26,382,912

5. Loans Provided 87,950,747 4,351,053 4,813,188 4,092,617 4,309,197 70,384,692

6. Other Receivables 6,150,721 2,628,897 1,389,541 1,799,519 332,764 -

7. Others - - - - - -

Total Assets 169,245,067 53,503,903 8,345,826 5,892,136 4,735,598 96,767,604

B. Liabilities

1. Third Party Fund 97,264,547 40,598,356 14,788,597 4,484,325 882,386 36,510,883


3. Liabilities with other banks 6,435,084 4,181,843 1,212,262 913,163 127,816 -


5. Received Loans 55,948,415 1,388,250 6,038,888 6,579,597 2,221,200 39,720,481

6. Other Liabilities 4,522,269 2,409,519 820,442 1,232,974 59,334 -

7. Others 1,882,293 9,093 113,281 14,230 - 1,745,689


Differences of Asset and Liabilities in Balance Sheet 2,749,049 4,913,471 (14,627,643) (7,332,153) 1,004,824 18,790,551



1. Commitment 27,901,963 21,486,291 3,399,200 2,198,211 818,262 -

2. Contingency 15,665,404 15,665,404 - - - -

Total Administrative Account Receivables 43,567,367 37,151,695 3,399,200 2,198,211 818,262 -


1. Commitment 40,562,504 20,428,881 7,160,427 7,103,495 4,051,538 1,818,163

2. Contingency 23,041,708 2,111,299 1,450,055 2,205,707 6,721,101 10,553,546



(20,036,846) 14,611,514 (5,211,282) (7,110,991) (9,954,377) (12,371,709)


Cumulative Differences 19,524,985 (313,941) (14,757,086) (23,706,639) (17,287,797)





31 December 2018

Balance

Maturity Dates


>3 month to 6months


I BALANCE SHEET

A. Assets

1. Cash 761,726 761,726 - - - -


3. Placement with other banks 14,499,233 14,056,948 45,026 397,259 - -

4. Marketable Securities 44,731,281 7,285,698 6,635,728 1,835,132 13,345 28,961,377

5. Loans Provided 82,110,633 12,362,659 4,090,779 8,962,047 1,778,864 54,916,284


7. Others 819,973 819,973 - - - -

Total Assets 164,744,308 51,831,135 12,951,096 13,422,692 2,658,546 83,880,839

B. Liabilities

1. Third Party Fund 90,563,077 40,263,343 10,165,830 4,903,812 991,458 34,238,634


3. Liabilities with other banks 11,168,610 8,259,205 1,824,664 1,019,427 65,314 -


5. Received Loans 51,191,754 4,727,066 2,126,888 5,505,067 13,236,848 25,595,886

6. Other Liabilities 7,518,708 5,277,197 1,134,697 946,650 156,986 3,178

7. Others 1,512,056 259,545 356,106 94,577 20,046 781,782


Differences of Asset and Liabilities in Balance Sheet 2,493,066 (6,959,779) (2,657,090) 953,160 (12,104,584) 23,261,359



1. Commitment 49,897,895 41,377,904 1,480,076 5,287,152 1,752,764 -

2. Contingency 15,874,588 15,874,588 - - - -



1. Commitment 65,213,393 31,645,789 14,251,525 13,455,007 4,276,698 1,584,374

2. Contingency 28,013,612 2,687,478 1,845,788 2,807,652 8,555,338 12,117,356



(27,454,521) 22,919,224 (14,617,237) (10,975,506) (11,079,272) (13,701,730)







The maturity profile calculation is in accordance with the the regulator’s provisions and does not include the maturity profile of subsidiaries engaged in insurance. One of the strengths of BNI risk monitoring process is the availability of information on the Bank’s liquidity profile. This information is available in the LDAP Executive Information Management (EIS) application, which can provide information on the development of funds and loans on a daily basis so that a daily cash flow profile and monthly maturity profile can be generated which can be used as a system for monitoring and managing bank liquidity risk.

Early Warning IndicatorEarly warning indicators are set out in Secondary Reserve indicators under normal conditions, moderate conditions or tight conditions for both Rupiah and foreign currencies, including trends in the BI 7 Days Reverse Repo Rate, JIBOR, LIBOR, average interest rates of Competitors’ Bank Deposits or Credit Default Swap (CDS) spreads that rise significantly according to specified limits, trends in foreign exchange reserves dropping significantly in accordance with established limits, trends in dominant customer funds that tend to decrease significantly corresponding to established limits, and etc. The ideal SR assignment in moderate or tight conditions can be considered if one of the conditions/indicators or parameters is exceeded.

An assignment is conducted by the ERM Division based on the indicators above and data obtained from the TRS Division as a business unit. Moreover, the assignment will apply a moderate or tight Liquidity Contingency Plan (LCP) of SR Ideal. The indicators above can be reviewed periodically according to the development of external and internal conditions in line with national, regional and global economic developments.

Liquidity Stress TestingTo determine the liquidity resilience in a crisis period, periodic liquidity stress testing has been executed. Stress testing scenarios are performed by using specific scenarios in banks (Idiosyncratic Scenarios) and stress scenarios in the market (Market Wide Scenarios). Specific scenarios for banks (Idiosyncratic Scenario) use the assumption that banks are in liquidity problems due to loss of investor/depositor confidence in banks.

While the stress scenario on the market (Market Wide Scenario) uses an assumption that there is a disruption to the market/financial system as a whole which results in bank operations disruption.

The stress testing results of this scenario will be used for a liquidity funding plan so that risks can still be limited and managed properly.

Liquidity Adequacy RatioIn order to improve short-term liquidity resilience, the bank manages Liquidity Coverage Ratio (LCR) by maintaining adequate High Quality Liquid Assets (HQLA) to meet liquidity needs over the next 30 (thirty) days in a stress scenario that enable banks to maintain the liquidity adequacy ratio is always more than 100% both individually (bank only) or consolidated with subsidiaries.

Moreover, the Bank manages the Net Stable Funding ratio (NSFR) to know the long-term liquidity security. NSFR aims to reduce liquidity risk related to funding sources for a longer period by requiring the Bank to fund its activities with adequate sources of stable funds in order to mitigate the risk of funding difficulties in the future. Banks manage the NSFR ratio according to regulatory provisions, both individually (bank only) and consolidation with subsidiaries, which is at least 100%. Operational RiskIn tandem with the increasing diversity and complexity of products and banking activities offered to customers, rapid systems development and supporting technologies as well as increasing customer expectations for services provided by banks, operational risk management is paramount importance.

Governance and OrganizationOperational risk management governance has been implemented by BNI of which all business and supporting units both inside and outside of the country play the role of Risk Owner or Risk Taker, acting as the first line of defense. The implementation is supported by the second line of defense carried out by the Bank’s Risk Management Division, Compliance Division, and the Policy Governance Division as the Risk Control Unit and the third line of defense, namely the Internal Audit Unit as the Risk Assurance Unit.




Policies and ProceduresThe Bank’s Risk Management Division already has Guidelines for Operational Risk Management Implementation to support the operational risk management applixation in all units both at home and abroad, namely:1. Domestic Operational Risk Management Policy2. Operational Risk Management Policy for Overseas

Branches

The policy is explained in more detail in the Standard Operating Procedure or Procedure as well as prudent technical transaction and operational guidelines to execute daily business activities such as:1. Domestic Operational Risk Management Procedures2. Procedure for Operational Risk Self Assessment (SA)

Implementation3. Operational Risk Management Procedure for Overseas

Branches4. Operational Risk Self Assessment Manual for Overseas

Branches5. Procedure for a Loss Event Database (LED)

Implementation6. Procedure for Key Risk Indicators (KRI) Implementation7. Guidelines for Bookkeeping Operational Risk Expense

Accounts (BRO)

ProcessBNI’s operational risk management comprises of 5 (five) main sustainable processes, namely identification, assessment, measurement, surveillance and control.1. Risk Identification The operational risk identification mechanism is

conducted by applying a Macro Process Mapping Assessment to the work processes/activities of each unit to capture potential operational risks that are conducted by using the interview method (one on one meeting).

2. Risk Assessment It is conducted by each unit of risk owners through

operational risk self assessment methods including assessing the impact, frequency and causes of risk and its solutions.

3. Risk Measurement Corresponding to the Regulator’s rules, the operational

risk measurement currently uses the Basic Indicator Approach.

Table 8.1.a Disclosure of Operational Risk QuantitativeBank Only (in million Rupiah)

No Approach Used

31-Dec-19 31-Dec-18

Gross Income (Average

Last 3 Years)Capital Expense RWA



1 Basic Indicator Approach 40,657,027 6,098,554 76,231,925 36,524,612 5,478,692 68,483,648

Total 40,657,027 6,098,554 76,231,925 36,524,612 5,478,692 68,483,648

Table 8.1.b Disclosure of Operational Risk QuantitativeBank Consolidated with Subsidiaries (in million Rupiah)

No Approach Used

31-Dec-19 31-Dec-18





1 Basic Indicator Approach 42,449,900 6,367,485 79,593,563 3,8203,610 5,730,541 71,631,769

Total 42,449,900 6,367,485 79,593,563 38,203,610 5,730,541 71,631,769





4. Risk Monitoring It was executed by all units as the first line of defense

against major risks when activities are ongoing. Meanwhile, the Bank’s Risk Management Division conducts evaluations and reports/feedback on risk assessments based on the self-assessment results and the realization of operational risk losses incurred, including:a. Feedback report for all divisions/units/regions/

branchesb. Monthly Report on Operational Risk Surveillance for

Directorsc. Operational Risk Profile Report

5. Risk Management The operational risk mitigation mechanism is reflected

in the internal control process by implementing 4 (four) mitigation strategies, namely avoid, reduce,

transfer and receive, with the aim of minimizing losses due to malfunctioning internal processes, human factors, systems and technology, as well as external events. The four mitigation strategies are contained in Operational Risk mitigation procedures which include control procedures of control, transaction settlement, accounting, asset and custodian storage, product supply and fraud prevention.

Device and MethodTo assist the operational risk management process executed by every BNI work unit. It has developed a web-based operational risk management tool, named PERISKOP (Operational Risk Tool). PERISKOP has a very important role, namely to socialize Risk Culture and increase Risk Awareness because there are 3 (three) main processes in managing operational risk using this tool, namely Self Assessment, Loss Event Database and Key Risk Indicator.

PERISCOPE

Self AssessmentModule

Self Assessment (SA) is a series of activities carried out independently by each unit (risk owner) in order to identify potential operational risks contained in the unit, seek the causes, measure potential losses (impacts and frequency) that may arise and find solutions to overcome them. The results of the SA provide an overview of the potential risks faced by the unit for the next 6 (six) months based on historical data from the previous 6 (six) months as well as the inherent risk.

Loss Event Database Module

It is a database of all financial losses including actual loss and near miss from the event until the completion due to operational risks occurring in all units in the Bank. Loss data collected through the LED module, in addition to being used for a better operational risk management and similar cases prevention, it is also used as a basis for the RWA for operational risk calculation in order to calculate capital requirements to cover operational risk by using the Revised Standardized Approach method.

Key Risk IndicatorModule

Key Risk indicators are a measure to identify potential operational risk losses inherent in products and activities early and provide an early warning signal if they exceed a certain threshold that has been previously assigned to monitor operational risk exposures and the Bank’s control effectiveness.

Business Continuity ManagementDisruptions or disasters due to natural factors, human actions, or systems can occur in BNI’s critical business functions causing BNI’s business activities and services disruption.

To anticipate this event, BNI has implemented Business Continuity Management (BCM) in all units both in domestic and abroad, which is expected to minimize operational risks in the event of an emergency or disaster.

These tools development is in line with Regulator’s regulations requiring banks to conduct risk control processes to manage risks that could endanger the banks’ business continuity as well as in line with the requirements in Basel II documents which require Banks to have business continuity management and contingency plans to ensure the Bank’s ability to continue operating and limit losses in the event of a disruption to its business activities. In addition to Regulator and Basel II regulations, for Overseas Branch Offices, BCM is implemented by complying with BCM regulations in the local country.




Governance and OrganizationIn disaster conditions, BNI has prepared a specific organization namely a Crisis Management Team (CMT) and Emergency Task Force (ETF) comprising of Senior Executive/Highest Management Unit as the coordinator with the highest level of authority. The CMT will be active if the Executive Management Team (EMT) as the highest leader of the CMT declares a declaration of the condition of the disaster status.

BNI already has the infrastructure required to implement BCM such as the Disaster Recovery Center (DRC), Dual Data Center (DDC), Alternative Locations of the BCM Building and the Command Center, which is routinely managed for readiness.

Policies and ProceduresCorrespoding to the Business Continuity Management (BCM) implementation, BNI has determined:1. Domestic Business Continuity Management (BCM)

Policy.2. Domestic Business Continuity Management (BCM)

Procedures.3. Business Continuity Management (BCM) Policy for

Overseas Branches.4. Business Continuity Management (BCM) Procedure for

Overseas Branches.5. Crisis Management Protocol (CMP) Policy.6. Business Continuity Management (BCM) Building

Governance Procedures.

ProcessEvery step of Recovery and Restoration Strategy implemented is monitored and reported to the Crisis Management Team (CMT) until conditions are declared normal again. To ensure the level of readiness and evaluation of Business Continuity Management (BCM), BNI executes system tests on critical divisions/units every 3 (three) months, conducts site visits and simulates disaster management for BCM implementation in all operational units which is conducted routinely every year to find out the readiness level of each unit, in terms of organization and BCM infrastructure. The routine evaluation and testing results can be seen from the systematic and directed handling to face disasters whether caused by humans, nature, or by the system so that BNI’s operational activities at the disaster site remains run to a certain degree even though some of the facilities and infrastructure supporting business activities have been disrupted.

Legal Risk

Governance and OrganizationLegal risk management is carried out by the Legal Division under an active supervision from the Director of Human Capital and Compliance. In conducting legal risk management, the Legal Division works closely with the Legal Management Unit or staff who handle legal functions contained in the Division/Unit/Regional Office or other organizational units where the Legal Field Work Unit is intended to function as a ‘legal watch’, which provide analysis/legal advice to organizational units and/or employees at every organizational level to minimize the possibility of negative impacts from weaknesses in the legal aspects, absence and/or changes in legislation and litigation processes. In legal risk management, the Legal Division works closely with the Bank’s Risk Management Division to regularly assess and monitor the implementation of Legal Risk Management.

Policies and ProceduresLegal risk management implementation orefers to the Company’s Guidelines for Legal Risk Management and other policies relating to legal risk management.

In order to produce an appropriate Legal Risk Management policy, the Legal Division and the Bank’s Risk Management Division conduct periodic evaluation and update legal risk control policies and procedures periodically, in accordance with the prevailing laws and regulations.

ProcessBNI implements a legal risk management policy to carry out its Legal Risk mangement control in a process flow consisting of:1. To identify legal risks regularly and continuously. The

process of legal risk identification is conducted by analyzing all sources of legal risk that are at least carried out against the legal risks of BNI’s products and business activities as well as the legal risks of new products and activities through legal risk management control process before being introduced or carried out.

2. To execute Legal Risk measurements by using a comparative parameter between the case value being faced against BNI’s capital, indicators of litigation factors, engagement weakness factors and factors of absence or changes in legislation in Legal Risks identification. Legal Risk measurement results are reflected in the Legal Risk Profile.





3. Legal Risk surveillance by evaluating legal risk exposures that are inherent especially those that are material or having an impact on BNI’s capital. The surveillance results which include legal risk exposures evaluations are compiled in a Legal Risk Management Information System (Legal Risk SIM) providing periodic legal risk exposure reports (monthly, quarterly and annually) including the necessary follow-up.

4. The process of Legal Risk control is mainly used for activities that could endanger BNI’s business continuity. Legal Risk control process, carried out among others by:a. To conduct an assessment in the form of a juridical

study in the event that there are new products and/or new activities or there are additions/changes to the features of BNI products.

b. To provide legal advice and/or legal assistance in the event that there is a Legal Risk in its operational activities.

c. To conduct periodic reviews of the standard format of the agreement, especially the credit agreement, to ensure compliance with the laws and regulations and other applicable provisions.

d. To conduct periodic reviews of the standard format of the agreement, especially the credit agreement, to ensure compliance with the laws and regulations and other applicable provisions.

e. To conduct intensive monitoring of legal issues, especially lawsuits on the basis of Acts Against the Law involving the Bank as a Defendant or Defendant.

Strategic Risk

Governance and OrganizationStrategic Risk Management is carried out by the Strategic Planning Division, under the active supervision of the Director of Finance.

Strategic Risk Management is carried out through a series of strategic planning processes in the form of planning and budgeting which includes aligning corporate strategy with unit strategies and cascading bank wide targets into unit targets as outlined in the planning document.

Strategic planning documents include:1. Corporate Plan, compiled once in 5 (five) years2. General Directors’ Policy (KUD), compiled once a year3. Bank Business Plan (RBB), compiled once a year4. Business Plan, compiled once a year

The mechanism of strategic planning document preparation begins with Corporate Plan preparation as a assigned targets reference and the Board of Directors General Policy strategy which will be used as a guide in preparing the Bank’s Business Plan.

Furthermore, Board of Directors’ General Policy and the Bank’s Business Plan will be a reference for the Operational Planning preparation of as outlined in the Business Plan for Divisions, Regions and Branches/Centers. Regional Business Plans will be a reference in the preparation of Branch/Center Business Plans. Through this mechanism, it can be ensured that the strategy alignment process is maintained starting from the corporate level to the lowest unit (branch).

The Corporate Plan documents must be reviewed annually to adjust the business environment changes in.

The Board of Directors’ General Policy Documents and Bank Business Plans, Business Plan Units were reviewed in Semester I even be done and can in a shorter period of time if there are significant environmental changes.

Policies and ProceduresThe implementation of strategic risk management refers to the Guidelines for the Implementation of Strategic Risk Management, as well as Policies and Procedures including Procedures for Product Development and New Activities.

ProcessIn implementing Strategic Risk control function, BNI implements a strategic risk management policy in a process flow consisting of:1. To identify Strategic Risk regularly and continuously. The

process of identifying strategic risk is done by identifying strategic risk factors inherent in every functional activity that has a potential to harm BNI, for example due to inappropriate policies, lack of responsiveness towards changes that occur, implementation of policies that are not according to plan, or because of its implementation not according to a predetermined schedule.




2. To conduct Strategic Risk measurements using 4 (four) parameters, namely: strategy suitability with business environment conditions, high risk and low risk strategy, bank’s business position towards competitors and achievie the Bank’s Business Plan (RBB) realization. The detailed strategic risk profile assessment is outlined in the strategic risk profile report based on the BNI Risk Profile Assessment Policy and Procedure. Monitoring Strategic Risk, among others, by observing the experience of losses in the past caused by strategic risk and/or deviations in the implementation of the strategic plan.

3. To monitor Strategic Risk, among others, by observing the experience of losses in the past caused by strategic risk and/or deviations in the implementation of the strategic plan.

For the bank wide scope, BNI has established a working unit that analyzes and monitors realization vs. targets in this case the Strategic Planning Division for the strategy and the Budgeting and Financial Control Division for financial targets.

As for the scope of the Division/Unit, a supporting unit and/or other certain other units are appointed to analyze and monitor the realization vs. the target implementationof the Division/Unit/Unit strategy periodically.

The mechanism to monitor the achievement of a predetermined business plan is carried out by comparing the targets to business realization with the following conditions:a. Bankwide performance and strategy monitoring is

conducted monthlyb. Division performance monitoring is carried out on a

quarterly basisc. Monitoring the company performance and all units

is carried out semesterly in the Business Meeting forum at the Head Office and Regional Offices.

4. The Strategic Risk control process is carried out by comparing actual results with expected results to ensure that the risks taken are still within tolerance limits and report significant deviations to the Directors. The risk control system is approved and regularly reviewed by the Board of Directors to ensure its suitability on an ongoing basis.

The strategic risk control mechanism is executed on the results of monitoring the following factors:a. Achievement of BNI’s performance compared to

the proportional targets and the current year target monthly in the Board of Directors’ meeting (Radisi) that can take strategic actions to manage strategic risk..

b. Business Plan Realization Strategies for each Division/Unit so that problems can be identified in the implementation of strategies and work programs to be immediately corrected so that the financial targets that have been set can be achieved quarterly.

c. Realization vs. target of the Bank’s Business Plan is reported to the Financial Services Authority (OJK) on a quarterly basis

d. The company’s performance achievement and all units is done semiannually in the Business Meeting forum at the Head Office and Regional Offices.

The Board of Directors always monitors the realization of the implementation of strategies and achievement of targets listed in the Bank’s Business Plan (RBB) on a regular basis. If there is a strategy implementation and RBB achievement that is not on target, the Board of Directors requests the relevant unit to make improvements.

Compliance Risk

Governance and OrganizationCompliance Risk Management is carried out by the Compliance Division (KPN), which is under the active supervision of the Human Capital and Compliance Director.

Policies and ProceduresThe Compliance Risk Management implementation refers to the Guidelines for Compliance Risk Management Implementation and other related Policies and Procedures including Compliance Policies, Anti-Fraud Policies, and Anti-Money Laundering and Prevention of Terrorism Financing Procedures.

ProcessIn order to contribute to the healthy and sustainable growth of BNI’s business, the Compliance Division assists the Director of Human Capital and Compliance Director to implement the compliance function and conducting compliance risk management processes including Compliance Risk Management, including:1. Identification of compliance risk, carried out to recognize

all types of inherent risks in every functional activity that has the potential to harm BNI, namely factors that can increase compliance risk exposure such as:





a. The type and complexity of BNI’s business activities, including new products and activities.

b. The amount (volume) and materiality of BNI’s non-compliance with internal policies and procedures, regulations and/or regulations as well as sound business ethics and practices.

2. Compliance Risk Measurement is cvonducted by using indicators/parameters in the form of:a. The type and significance of violations committed;b. Frequency of violations of regulations (BNI

compliance track record);c. Violations of certain financial transaction provisions.

As part of compliance risk measurement, indicators/parameters as well as the amount of weights and ratios used to measure compliance risk profiles are determined by the Compliance Division by considering input from the Board of Directors, Bank Risk Management Division (ERM) and other Units as well as Regulator provisions.

Detailed compliance risk profile assessment is outlined in the compliance risk profile report based on the BNI Risk Profile Assessment Procedure. Compliance Risk Assessment is carried out by conducting an assessment or testing of compliance with policies that will/have been applied, new products/activities, as well as compliance opinions on transactions to be carried out by BNI.

3. Compliance Risk Surveillance, including monitoring and reporting Compliance Risk to the Board of Directors at any time when Compliance Risk occurs or periodically to:a. Maximum Lending Limitb. Net Open Position.c. Minimum Mandatory Giro in rupiah and foreign

exchange.d. Establishment of Allowance for Earning Assets.e. N on-performing loans.f. Minimum Capital Adequacy Ratio.g. Report obligations to external parties.h. Implementation of bank commitments to external

parties.i. Level of Compliance Risk.j. Bank Composite Risk Rating.

4. Compliance Risk Control is carried out by taking actions that are ex-ante (preventive) to ensure that policies, regulations, systems and procedures, as well as business activities carried out by BNI are in accordance with the provisions of the Financial Services Authority

(OJK) and Bank Indonesia (BI) and the applicable laws and regulations, and ensure BNI’s compliance with commitments made by the Bank to Regulators (dhi. OJK and BI) and/or other authorized supervisory authorities. Compliance Risk Control is not only carried out on existing organizational units in the country but also includes existing organizational units abroad. BNI must ensure that it has an adequate level of compliance with statutory regulations in the country’s BNI branch offices.

Reputation Risk

Governance and OrganizationReputation risk management is executed by the Corporate Communication and Secretariat Division (KMP) which is under the active supervision of President Director. Surveillance of news (news management) and crisis management of communications and monitoring of opinions/comments on news media or social media is conducted by Corporate Communications Division. Meanwhle, the management of customer complaints is carried out in collaboration with the BNI Contact Center (BCC).

Policies and ProceduresThe implementation of reputation risk management refers to the Guidelines for Reputation Risk Management Implementation and other related Policies and Procedures.

ProcessThe Corporate Communication and Secretariat Division assists the President Director in executing the functions and processes of reputation risk management, among others through the following processes:1. Reputation Risk identification is carried out from several

data/or information sources including mass media reporting, BNI’s website and analysis of social media networks, customer complaints through customer service or through mass media and social media, and customer satisfaction survey questionnaires.

BNI must record and administer every event related to Reputation Risk, including the amount of potential losses caused by the incident referred to in a data administration. Recording and administering the data are arranged in a statistical data that can be used to project potential losses in a certain period and activity. Each group of data and/or information is handled differently according to the impact of reputational risk that it causes.




2. Measurement of Reputation Risk, carried out by using indicators as follows:a. Frequency, Materiality and Negative News Exposure

towards BNI. The frequency, type of media, and materiality of

negative reporting towards BNI, including bank management, by taking measurements and indicators as follows:i. The frequency and scale of negative coverage of

BNI and Subsidiaries in print and online media.ii. Materialization of negative coverage was

assessed based on BNI’s follow-up to response to negative coverage.

b. The Customer Complaints’ frequency and materiality, their measurements and indicators are:i. Frequency of customer complaints.ii. Settlement of Customer Complaints.iii. Materiality of customer complaints.

c. Frequency and materiality of Business Ethics Violations/generally accepted business norms, measurements and indicators, amongst others:i. The frequency and scale of negative reporting

related to Financial Information Transparency.ii. The frequency and scale of negative reporting

related to BNI business cooperation with other stakeholders.

3. Reputation Risk Surveillance, on a bank wide basis, is conducted by the Corporate Communication and Secretariat Division (KMP), by reporting existing Reputation Risks to the Directors both incidentally at the incident time and periodically including necessary follow-up actions.

Surveillance of news management and communications crisis management as well as monitoring of opinions/comments on news media or social media as well as the selection of strategies to respond to opinions emerging in social media are executed in coordination with the Corporate & Secretariat Communication Division (KMP). Meanwhile, customer complaints is conducted in collaboration with the BNI Contact Center (BCC).

Daily, weekly, monthly, quarterly and yearly basis of evaluation for BNI’s reputational risks, set forth in the Media Monitoring Report.

4. Reputation Risk Control BNI immediately follows up and overcomes customer

complaints and lawsuits that can increase Reputation Risk exposure and has also developed mechanisms to execute effective reputation risk control measures.

Generally, reputation risk management is conducted through 2 (two) ways, namely:a. To prevent events driving a reputation risk.b. To restore BNI’s reputation post to an event creating

reputation risk. Mitigation of Reputation Risk and events creating

Reputation Risk are executed by considering the materiality of the problem and the costs. Nevertheless, the Reputation Risk may be accepted as long as it is still in accordance with the level of Risk to be taken.

Some risk control efforts are by:a. To standardize public relations’ competence/media

relations staff in the Corporate Communications Division, branch offices/regional offices in order to have the ability and sensitivity to respond developing issues and opinions.

b. To establish Service Level Agreement (SLA) as a speed standard for responding to customer complaints. Reputation Risk Management during crises is conducted through an establiashment of Crisis Contingency Plan standards that are implemented when crises occur from mild to severe scale. The Crisis Contingency Plan consists of:i. Problem or chronological reviewii. Information flowiii. Personal incharge assignmentiv. Authority and spokesperson establishmentv. Crisis management activities schedule vi. Alternative communication strategiesvii. Evaluation

INTEGRATED RISK MANAGEMENT IN BNI’S FINANCIAL CONGLOMERATION

BNI’s Business Group Structure

1. BNI Legal Entity Based on the share ownership composition, 60% of the

shares are owned by the Government of the Republic of Indonesia whilst the remaining 40% are owned by the public, both individual, institutional, domestic and foreign shareholders. Ownership by the Government of the Republic of Indonesia is represented by SOEs, while for foreign public ownership is through foreign institutions. Domestic ownership includes mutual funds, pension funds, foundations, companies, insurance, other domestic institutions and individual ownership.





2. Ultimate Shareholders The majority ownership of BNI shares is the Ministry

of BUMN as a representation of the Government of the Republic of Indonesia in the General Meeting of Shareholders with 60% ownership.

3. Sister Company Cfm article 4 POJK No. 17/POJK.03/2014 dated 18

November 2014, sister companies are several Financial Services Institutions (LJK) which are institutionally separated and/or legally but are owned and/or controlled by the same controlling shareholder.

BNI’s main controlling shareholder is the Government of the Republic of Indonesia that also acts as the majority owner of other BUMN companies engaged in the Financial Services Institution industry. However, based

on POJK, the relationship between LJK which is owned and controlled directly by the Central Government of the Republic of Indonesia is excluded from the notion of a Financial Conglomerate, so that Himbara banks are not sister companies of BNI.

4. Subsidiary Companies BNI has capital placements in 5 (five) Subsidiary

Companies with majority ownership and as a controlling entity, and 5 (five) financial service institutions with minority ownership and not as controlling, and 1 (one) grandchild. The BNI Financial Conglomerate Holding Organs are as follows:

Multifinance

99.99% 75.00%

99.9%

60.00% 99.94% 100%

Life Syariah Remittance

AssetManagement

1.93%Pemeringkat Efek

1994

PT Sarana Bersama Pengembangan Indonesia

8.00%Investasi

1981

2.50%Lembaga

Penyelesaian Efek 1988

1.00%Jasa Keuangan

2003

0.52%Jasa Keuangan

2004

Sekuritas

In accordance with POJK No. 17/POJK.03/2014 concerning Integrated Risk Management for Financial Conglomerates (KK) Implementation, Financial Services Institutions (LJK) included in the COW include types of LJK bank, insurance and reinsurance companies, securities companies and/or financing companies, including grandchild companies.

The structure of the BNI Financial Conglomerate is determined to consider the suitability of the Subsidiary’s business types with the provisions of the OJK and to consider the significance of BNI’s inclusion in each of the LJK Subsidiaries of KK KK members.




BNI’s Financial Conglomerate Structure comprises of:1. Main Entity: PT Bank Negara Indonesia Persero Tbk.2. LJK members of the Financial Conglomerate:

a. PT BNI Multifinanceb. PT BNI Sekuritasc. PT BNI Life Insuranced. PT BNI Syariahe. PT BNI Asset Management

Based on the composition of BNI share ownership in LJK KK KK members as of December 31, 2019, BNI ownership in each LJK KK KK member, namely:1. BNI Multifinance 99.99%2. BNI Securities 75.00%3. BNI Life 60.00%4. BNI Syariah 99.94%5. BNI Asset Management 99.90%

The following is BNI’s Financial Conglomerate Structure:

75.00%Sekuritas

Sekuritas99.99%

Pembiayaan

Multifinance99.90%

Perbankan Syariah

Syariah60.00%

Asuransi Jiwa

Life

99.9%PT BNI Asset Management

AssetManagement

MAIN ENTITY

Transactions between Banks with Related Parties Within BNI’s Financial Conglomeration

1. Financial Relations To assess material financial relationships in an intra-group relationship between LJK in BNI KK, measured based on the

value of BNI’s financial transactions with LJK members of BNI KK as well as amongst LJK members in KK BNI, including transactions: investment, bank guarantees, loans, securities, and demand deposits. The contribution of intra-group transaction value between LJK to total transactions is as follows:

Table 46. Keterkaitan Transaksi Keuangan LJK dalam KK BNI

EntityInter-Group Connection (%)

BNI BNI Sy BNIL BNI MF BNIS BNI AM

BNI 22.44% 2.33% 3.65% 0.58% 26.82%

BNI Sy 0.13% 1.82% 0.001%

BNIL 0.52% 0.05% 0.02% 0.01%

BNI MF 0.04% 0.01% 0.04% 0.002%

BNIS 32.88% 8.42%

BNI AM 0.23%





2. Equity capital Based on POJK No. 36/POJK.03/2017 dated 12 July 2017 concerning Prudential Principles in Equity Participation Activities,

Equity Participation is bank funds investment in the form of shares in companies engaged in finance, including investment in mandatory convertible bonds (mandatory convertible bonds) or certain types of transactions that result in the Bank owning or will own shares in a company engaged in finance.

The Value of Equity Participation between LJK in the BNI Financial Conglomerate as of December 31, 2019 is as follows:

No. Name of FSI placing capital (investor)

Name of FSI receivingcapital (investee)

Time of Capital Placement 1)

Portion of CapitalPlacement 2)

Value Share of CapitalPlacement 1) to the total 3)

(%)

1 BNI BNI SekuritasMar 1996

75.00% 6.59%Jul 2019

2 BNI BNI Life Insurance Agt 2012 60.00% 11.53%

3 BNI BNI SyariahSep 2014

99.94%73.14%

Dec 2017

4 BNI BNI Multifinance Jun 2016 99.99% 8.73%

5 BNI Life BNI SyariahNov 2010

0.59% 0.01%Sep 2014

Total Capital Participation 100.00%The methodology for Equity Participation calculation between LJKs in the BNI Financial Conglomeration uses Cost Method.Notes:1) Effective date, month and year of capital investment commencement 2) Percentage of equity participation (ownership) in investee companies per report position3) Share Value of Equity Participation to total per report position

3. Financial Support between LJK within the BNI Financial Conglomerate

No.Name of FSI

depositing the Provision of Fund

Name of FSI receiving the

Provision of FundTypes of Provision of Fund

Share of Fund Provision Value

(%)

1 BNI BNI Syariah Equity Participation, Bank Guarantees, Securities, Increase Third Party Fund, Supply Chain Financing, Hajj Fund Management

22.29%

2 BNI BNI Multifinance Equity Participation, Bank Guarantees, Provision of Working Capotal Loan

3.63%

3 BNI BNI Life Equity Participation, Bank Guarantees, Corporate Card 2.32%

4 BNI BNI Sekuritas Equity Participation, Bank Guarantees, Corporate Card 1.30%

5 BNI BNI Asset Management

Management of Investment Assets of BNI Pension Fund, Mutual Fund Sales

26.63%

6 BNI Syariah BNI Service-level Agreement 0.13%

7 BNI Multifinance BNI Operating Lease, Finance Lease 0.04%

8 BNI Sekuritas BNI Bond Brokerage Collaboration 32.65%

9 BNI Asset Management

BNI Investment of BNI DPLK 0.23%

10 BNI Life BNI Syariah Employee Health Insurance, Flexi Umroh, In Branch Marketing, Telemarketing

0.51%

11 BNI Life BNI Asset Management

Employee Health Insurance, Mutual Funds 0.01%

12 BNI Life BNI Sekuritas Employee Health Insurance, Bond Transactions 0.00%

13 BNI Life BNI Multifinance Asuransi Kesehatan Pegawai 0.05%

14 BNI Multifinance BNI Asset Management

Operating Lease 0.00%

15 BNI Multifinance BNI Sekuritas Vehicle Operating Lease and Trading Platform 0.00%

16 BNI Multifinance BNI Life Operating Lease 0.01%

17 BNI Syariah BNI Sekuritas Securities 1.84%

18 BNI Syariah BNI Asset Management

Securities 0.00%

19 BNI Sekuritas BNI Asset Management

Brokerage Transactions, Mutual Funds 8.36%

Total Provision of Fund 100.00%




INTEGRATED RISK MANAGEMENT IMPLEMENTATION

BNI’s Financial Conglomerates needs to pay attention to all inherent risks in Financial Conglomerates that can affect the business continuity.1. Types of Risk in BNI’s Financial Conglomeration. In

implementing Integrated Risk Management, BNI as the Main Entity and all LJK members of the BNI’s Financial Conglomerate are required to manage 10 (ten) types of Risk, namely:a. Credit Risk. Risk due to the debtor and/or other parties’ failure to

fulfill obligations to the Financial Conglomerate.b. Market Risk. Risk arising from adverse movement in market

variables from the portfolio held by the Financial Conglomerate.

c. Liquidity Risk. Risks that arises due to inability of the Financial

Conglomerate to meet obligations due from cash flow funding sources and/or from high quality liquid assets that can be pledged, without disrupting the financial activities and conditions of the Financial Conglomerate.

d. Operational Risk. Risks resulting from inadequate and/or

malfunctioning internal processes, human error, system failures, and/or external events affecting the Financial Conglomerate operations.

e. Legal Risk. Risk due to lawsuits and/or weaknesses in juridical

aspects. The weaknesses in the juridical aspects are due to the lack of knowledge/understanding of laws and/or laws and regulations, the absence of supporting legislation or the agreement weaknesses such as non-fulfillment of conditions for the validity of agreements and binding of imperfect collateral.

f. Strategic Risk. Risk arising due to inaccuracy in making and/or

implementing a strategic decision and failure to anticipate changes in the business environment.

g. Compliance Risk. Risk arise that is due to not complying with and/or

not implementing the provisions and regulations.

h. Reputation Risk. The risk due to stakeholder’s declining confidence

due to negative perceptions both from the Financial Services Institution in the Financial Conglomerate and for the Financial Conglomerate as a whole.

i. Risk of Intra-Group Transactions. Risk arises that is due to dependency of an entity

directly or indirectly to other entities in a Financial Conglomerate to fulfil an obligations of a written or unwritten agreement, followed by both a fund transfer and/or not a fund transfer.

j. Insurance Risk. Risk due to insurance companies’ failure to

meet obligations to policyholders as a result of an inadequacy of the risk selection process (underwriting), determination of premiums (pricing), the use of reinsurance, and/or claim handling.

2. BNI Financial Conglomerate’s Potential Losses To find out the potential losses faced by the BNI

Financial Conglomerate, it executed through an Integrated Risk Profile assessment. Based on the results of the Integrated Risk Profile Self Assessment of 10 types of Risks as at 31 December 2019, the risk rating of the BNI Financial Conglomerate is 2 (low to moderate), meaning that the possible losses faced by the Financial Conglomerate are classified as low over a certain period of time in the future.

3. Risk Mitigation BNI as the Main Entity conducts integrated risk control,

especially risks that could endanger the business continuity of the Financial Conglomerate.

Integrated Risk control methods are conducted among others by:a. Risk limits Setting, namely:

• OverallRiskLimit(integratedlimitofBNIFinancial Conglomeration).

• Limitforeachtypeofrisk.• RiskLimitforeachLJKmemberoftheBNI

Financial Conglomerate having Risk exposure.b. Approval or escalation mechanism in case of

exceeding the Risk Limit as a whole.c. Feedback/corrective action mechanism for the

results of monitoring the Integrated Risk Profile.



Performance Highlights 2019 Company ProfileManagement Report Management Discussion and Analysis

Implementation of Good Corporate Governance 450

Structure and Mechanism Good Corporate Governance 464

General Meeting of Shareholders 468

Board of Commissioners 488

Independent Commissioner 505

Board of Directors 509

Policy on Diversity in the Composition of Members of the Board of Commissioners and Board of Directors 526

Good Corporate Governance Assessment 532

Remuneration Board of Commissioners and Board of Directors 542

Meeting of The Board of Commissioners and Directors 550

Affiliation Relationship 582

Information on Main and Controlling Shareholder 584

Organs and Committees under The Board of Commissioners 586

Committees Under the Board of Directors 635

Internal Audit Unit 656

Integrated Internal Audit Unit (SKAIT) 668

Corporate Secretary 669

Investor Relations Function 676

Compliance Function 677

External Auditor Function 684

Risk Management 687

Internal Control System 713

Significant Cases 718

Access to Company’s Information and Data 725

Anti-Money Laundering (APU) and Prevention of Terrorism Funding (PPT) Program 737

Transparency of Procedures for Customer Complaints and Settlement of Disputes with Customers 774

Implementation of Corporate Governance Aspects and Principles in Accordance with Financial Services Authority Regulations 787

Corporate Governance




Implementation of Good Corporate Governance

BNI is committed to implementing prudential banking principles and

consistently prioritizing ethics and integrity in managing the Bank with

the aim of encouraging performance improvement, providing guarantees

for the fulfillment of the rights of stakeholders, and increasing compliance

with laws and regulations. generally accepted in the banking industry.




BNI believes that the implementation of Good Corporate Governance is of the strong pillars supporting the Company in facing many challenges, including the disruption in the era of digital economy. For BNI, the implementation of GCG is more than merely an obligation, but is a need and foundation in carrying out business activities and to maintain transparency and accountability in the management of the Bank to all stakeholders.

The implementation of Corporate Governance in BNI has gained recognition from external parties. In 2019, the Indonesia Institute for Corporate Governance (IICG), during the 2019 Indonesian Most Trusted Companies Award, again awarded BNI with the title of “Most Trusted Company”. In addition, the Indonesia Institute for Directorate (IICD) in the 11th IICD Corporate Governance and Award 2019 gave 2 awards related to the implementation of Governance in BNI, namely the Top 50 Big Cap Issuers and The Best state Owned Enterprise.

BNI’s full commitment as a listed company or Issuer that continuously improve and increase the effectiveness of its Corporate Governance internalization strategy also gained appreciation from IDX Channel Innovation Award 2019 by awarding the best good corporate governance.

ImPlemeNTaTIoN of GooD CorPoraTe GoverNaNCe

Good Corporate Governance (GCG) is a mechanism or system that directs and controls the Company in order to meet the expectations of its stakeholders, in line with applicable laws and regulations, as well as compliance with business ethics norms which applies universally and values that are upheld by the Bank’s management and employees. This mechanism influences the establishment and achievement of the Bank’s objectives, the monitoring and evaluation of business risks, optimalization of performance improvement efforts and the determination and development of work cultures in the Bank’s environment. Therefore, the understanding that improving the quality of effective implementation of corporate governance in a sustainable manner is very important.

As a trusted institution, BNI is committed to applying prudential banking and consistently prioritizing ethics and integrity in the management of the Bank aiming at

increasing the Bank’s performance, ensuring the fulfillment of stakeholders rights, as well as increasing compliance with laws and regulations that generally apply to the banking industry and Capital market. Continuously developing GCG, in line with best practices, more than merely encouraging the ompany to provide risk management and conCtrol systems that can guarantee accountability commensurate with the business risks they face, but also provide adequate protection and fair treatment to all shareholders and other stakeholders by maximally increasing shareholder value.

The effectiveness of GCG implementation can be seen from the alignment of 3 (three) aspects of governance system, namely governance structure, governance process and governance outcome. Governance Structure is related to the adequacy of the structure and infrastructure of Corporate Governance so that the process of applying the principles of Good Governance produces outcomes that are in line with the expectations of the Company’s Stakeholders. The structure of the Governance organ includes the Board of Commissioners, the Board of Directors, Committees and Work Units. While those included in the governance infrastructure include policies and procedures, management information systems as well as the main duties and functions of each organizational structure.

Governance Process is the effectiveness of the process of implementing good Corporate Governance principles that are supported by sufficient Corporate Governance structures and infrastructure in order to produce outcomes in line with the expectations of the Bank’s Stakeholders.

Governance Outcome is the quality of outcomes that meet the expectations of the Bank’s Stakeholders which are the results of the process of implementing good Governance principles which are supported by sufficient structure and infrastructure of Corporate Governance. Thus, Governance Outcome is the result of implementing Governance Process and adequate support from Governance Structure. The existence of problems in Governance Structure raises weaknesses in Governance Process. On the other hand, the existence of weaknesses in Governance Process has an impact on Governance Outcome




The Board of Commissioners, the Board of Directors and all employees are committed to implementing high standards in the application of GCG principles. These principles become the guidelines in making responsible decision, avoiding conflicts of interest, optimizing performance, and increasing accountability. All BNI personnel will also continue to improve the quality of the implementation of GCG principles in all aspects of business activities including integrated subsidiary companies.

In line with the development of best practices in the implementation of Good Corporate Governance, both in the banking industry and the financial services industry, as a state-owned bank registered in the capital market, BNI understands that implementing and developing GCG provides BNI WNI with enormous benefits. The implementation and development of GCG, give BNI the guidelines in carrying out its business activities so that it is always aligned with the goals and needs of each stakeholder. The harmonious relation between stakeholders and BNI will foster mutual trust and conducive attitudes within the Bank that will lead to an increase in the quality of work and professionalism in all BNI employee.

The implementation of good corporate governance is built on solid integrity, therefore, good governance principles can be implemented at every level of the organization, and carried out in each BNI’s activity so that all banking operations can run consistently and continuously. The governance implementation in BNI is based on the basic principles of GCG, which are Transparency, Accountability, Accountability, Independence, Equality and also Fairness. The implementation of these principles within BNI’s environment has been agreed by the Board of Commissioners, Board of Directors, management ranks, and all BNI personnel in order to create a Company that is constantly growing and competitive globally, as well as strong and persevere in running the business wheel.

The implementation of BNI’s GCG principles can be described as follows:

GCG Principles Description

Transparency 1. The Bank discloses information in a timely, adequate, clear, accurate, and comparable manner, and it can be accessed by interested parties (stakeholders) in accordance with their rights.2. The Bank discloses information that includes but is not limited to vision, mission, business objectives, bank strategy, financial conditions, composition and compensation of the management, controlling shareholders, executive officers, risk management, internal monitoring and control system, compliance status, systems and implementation of good corporate governance, as well as information and material facts that can influence investors’ decisions.3. The principle of openness is still with due observance to bank secrecy, the confidentiality of positions, and personal rights in accordance with the applicable regulations.4. Bank policies shall be written and communicated to stakeholders and those entitled to obtain information about the policy.

accountability 1. The Bank sets the business objectives and strategies to be accountable to the stakeholders.2. The Bank sets a check and balance system in the management of the Bank.3. The Bank has a performance measure from all organizational organs based on the agreed dimensions and in line with company values (Corporate Culture Values), business goals, and Bank strategies as well as has a reward and punishment system.4. The Bank shall believe that all organizational organs of the Bank have competencies in accordance with their responsibilities and understand their roles in the implementation of good corporate governance.

responsibility 1. The Bank avoids unnatural domination by any stakeholders, is not affected by unilateral interests, and is free fromΩ conflict of interest.2. The Bank makes decisions objectively and is free from any pressures from any parties.

fairness and equality 1. The Bank shall pay attention to the interests of all stakeholders based on the principle of fairness and equal treatment.2. The Bank also provides opportunities to all stakeholders to give inputs and express opinion for the Bank’s interests, as well as to open access to information in accordance with the principle of transparency.





leGal BasIs for The ImPlemeNTaTIoN of CorPoraTe GoverNaNCe

So that corporate governance can be applied in accordance with standards and measurables, the Company always refers to relevant regulations, corporate governance guidelines issued by national and international institutions, and best practices that apply in Indonesia and internationally. However, BNI places compliance and implementation of regulations, guidelines, standards and best practices in corporate governance not only as fulfilling obligations, but rather as part of the company’s strategy and culture that is continually maintained and refined.

The foundation for the implementation of BNI’s corporate governance refers to the following provisions and guidelines:1. Law No. 7 of 1992 on Banking as amended by Law No.

10 of 1998;2. Law No. 40 of 2007 on Limited Liability Companies;3. Financial Services Authority Regulation (POJK) No. 55/

POJK.03/2016 on the Implementation of Governance for Commercial Banks;

4. POJK No. 18/POJK.03/2014 on the Implementation of Integrated Governance for Financial Conglomerates;

5. POJK No. 21/POJK.04/2014 on the Implementation of Guidelines for Public Corporate Governance;

6. POJK No. 29/POJK.04/2016 on the Annual Report of Issuers or Public Companies;

7. POJK No. 4/POJK.03/2016 on Rating of Soundness of Commercial Banks;

8. POJK No. 8/POJK.04/2015 on Issuer or Public Company Website;

9. POJK No. 31/POJK.04/2015 on Disclosure of Material Information or Facts by Issuers or Public Companies;

10. SEOJK No. 30/SEOJK.04/2016 on Form and Content of Annual Reports of Issuers or Public Companies;

11. SEOJK No. 13/SEOJK.03/2017 on the Implementation of Governance for Commercial Banks;

12. SEOJK No. 15/SEOJK.03/2015 on the Implementation of Integrated Governance for Financial Conglomerates;

13. SEOJK No. 32/SEOJK.04/ 2015 on Open Corporate Governance;

14. SEOJK No. 30/SEOJK.04/2016 on the Form and Content of Issuers or Public Companies’ Annual Reports;

15. Various guidelines for implementing GCG, include the Corporate Governance Principles developed by the Organization for Economic Cooperation and Development (OECD), the ASEAN Corporate

Governance Scorecard, and the Principles for Enhancing Corporate Governance published by the Basel Committee on Banking Supervision.

The PurPose of ImPlemeNTING GooD CorPoraTe GoverNaNCe

The implementation of Good Corporate Governance (GCG) within the Bank aims to:1. Improve BNI’s corporate value by implementing GCG

principles which consist of Transparency, Accountability, Responsibility, Independence and Fairness and Equity in conducting its business so that BNI has strong competitiveness, both at national and regional levels.

1. Encourage all BNI organs to always emphasize the GCG culture in every decision making based on applicable values and norms as well as a high level of compliance with applicable laws and regulations.

2. Improving BNI’s performance through the Company’s efficiency programs created by the implementation of GCG culture in every BNI organ.

3. Increase investor confidence and place BNI as the first choice for investment.

relaTIoNshIP BeTweeN GooD CorPoraTe GoverNaNCe aND ComPaNy PerformaNCe

The continuous implementation of corporate governance has proven to have a positive impact on BNI’s performance. This is indicated by BNI’s various achievements throughout 2019 which produced satisfactory results in terms of financial, operational performance, and awards achieved. Improved GCG implementation is directly proportional to the increase of BNI’s overall performance. Recognition of external parties in the forms of various awards, either related to BNI’s performance, information disclosure, or GCG implementation, has been obtained, including:

1. 2nd Place in the category of Listed Financial SOE in the 2019 Annual Report Award.

2. The Best State Owned Enterprise and Top 50 Public Listed Companies in the 11th IICD Corporate Governance and Award in 2019 held by the Indonesiaan Institute for Corporate Directorship (IICD).




3. The Most Trusted Company Based on the Corporate Governance Index (CGPI) in the 2019 Good Corporate Governance Award organized by the Indonesian Institute for Corporate Governance (IICG).

4. The Best Good Corporate Governance in the 2019 IDX Channel Innovation Awards organized by IDX Channel.

In addition to these achievements, BNI also managed to record good financial performance in 2019 as follows:1. Interest and Sharia income increased 8,1% to Rp58,5

billion. 2. Loans disbursed increased 8,4% to Rp539,9 billion.

3. Customer Deposits increase 6,1% to Rp615 billion. 4. Gross NPL decreased 2,3% in 2019 5. Total Asset decreased 4,6% to Rp845,6 billion. 6. Net profit increased 13,1% to Rp124,8 billion. 7. Net profit increased 2,8% to Rp15,5 billion.

DeveloPmeNT IN GCG ImPlemeNTaTIoN

year activities

2001 BNI is committed to implementing Good Corporate Governance. The commitment was pioneered by the Commissioners and Directors of BNI with the signing of the Joint Decree of the Commissioners and Directors No. KEP/001/DK and KP/001/DIR dated January 3, 2001, on the Implementation of Good Corporate Governance Principles as stated in the Corporate Governance Handbook of PT Bank Negara Indonesia (Persero) Tbk. which was then used as a guideline for Directors and Commissioners to manage BNI.

2002 As part of its commitment to continuously improve the corporate governance implementation, BNI carried out thefollowing activities.• EstablishComplianceUnitandAntiMoneyLaunderingUnitundertheresponsibilityoftheLegalandCompliance Division.• EstablishRemunerationandNominationCommitteethathasrolesandresponsibilitiesinpreparingperformance evaluation criteria for each member of the Board of Commissioners and Board of Directors as well as evaluate the structure, system, and implementation of compensation for the Board of Directors and advise changes to the Board of Commissioners if requested.• Establishanassessmentcentertoimprovetheselectionprocess/systemoftop-levelleadershippositions.• Improvethebankinginformationsystem.• TheCommissionerestablishedtheAuditCommitteeCharterasaguideforAuditCommitteemembersincarrying out their duties.

2003 BNI continued to improve its corporate governance, both in terms of commitment and compliance with its implementation. Each employee was required to sign a statement of compliance with the Behavioral Code of Conduct. One of the efforts to improve governance was carried out in 2003, BNI established an Executive Committee, with duties to assist the Board of Directors in a certain sector, which is:• Asset&LiabilityCommittee(ALCO)• RiskManagementCommittee• CreditPolicyCommittee• HumanResourcesCommittee• TechnologyManagementCommittee

2004 Important achievements in implementing corporate governance throughout 2004 were as follows:

• BNI’smanagementapprovedtheestablishmentoftheGoodCorporateGovernanceCommitteewithdutiestoassisttheBoardofDirectors in evaluating and optimizing policy effectiveness and implementation of corporate governance in BNI’s work environment.

• BNIwasconsideredasoneoffivepubliccompanieswithgoodcorporategovernancepracticesaspersurveysconductedbyStandard&Poor’sGovernanceServicesaswellasCorporateGovernanceandFinancialReportingCenters(CGFRC),whichisheadquarteredinSingapore.

• ManagementimplementedtheZeroFraudprogramtofostersoundandresponsiblebankingpractices,riskawareness,andinherentsupervisionofdeviantbehaviour.Throughthisprogram,BNIrewardedworkunitsthathavesucceededinachievingZeroFraudintheiroperations and on the other hand, sanctioned work units that fail to prevent Fraud.

• BNIestablishedaWorkEthicsTeamthatworksundertheHumanResourcesCommittee.Periodically,thisteamevaluatestheprogress of work ethics in BNI’s work environment.

BNI increased stakeholders’ access to all information that has a material impact on BNI, including quarterly financial statements, annual reports, information on the use of corporate action proceeds, information that can influence investors’ investment decisions, resolutions of the General Meeting of Shareholders, and Other important events concerning BNI, both through BNI website, reports to Bapepam, Stock Exchange, mass media, public exposure, or analyst meeting.

2005 BNI’s commitment to improving governance was proven by the establishment of a GCG Monitoring organizationalunit through Decision Letter of Board of Directors No. KP/174/DIR/R, dated April 26, 2005

2006 The signing of “Commitment Statement to Implement Good Corporate Governance” by all Board of Directors, Board of Commissioners, and Division Heads at the Company’s Work Meeting, which was then followed by all employees at all levels of the organization and updated annually.





year activities

2007 The signing of “Commitment Statement to Implement Good Corporate Governance” by all Board of Directors, Board of Commissioners, and Division Heads at the Company’s Work Meeting, which was then followed by all employees at all levels of the organization and updated annually.

2008 Regarding the implementation of Know Your Customer Principles (PMN) and the implementation of Anti-Money Laundering Law (TPPU Law), the Compliance Division in collaboration with the Information Technology Division developed and continued to refine the system that is integrated with iCONS system to identify suspicious financial transactions.

2009 BNI managed to improve performance which resulted in a profit increase of up to 103% compared to that of the previous year. This was inseparable from the consistent implementation of GCG by all BNI people.

2010 Launched the Whistleblowing System (WBS) in an integrated manner so that transparency is maintained and its implementation is understood by all BNI employees. Improvement of the code of conduct of BNI’s employee aimed at improving BNI’s employee quality. BNI’s participation in rating/ranking of GCG implementation, which was carried out by independent rating agencies, which are Center for Good Corporate Governance of Universitas Gadjah Mada (CGCG UGM), The Indonesian Institute for Corporate Directorship (IICD).

2011 BNI won various awards from various national and international institutions. Some major awards among others were:• 2011SOE’sBestoftheBestCompany• TheMostAdmiredASEANEntrepreneurEconomicsChallengesAward2011• TheMostTrustedCompanyoftheIndonesianInstituteforCorporateGovernance(IICG)• RegardingGCGimplementation,BNIwonseveralawards,including:• BNIwontheCorporateGovernanceAward2011fromTheIndonesianInstituteforCorporateGovernance.• BNI’sinformationtechnologygovernancewasrecognizedforitsreliabilitybyreceivingITGovernanceAwardfrom the SOE Ministry.

2012 • TheselfassessmentresultsinaccordancewithBankIndonesiaregulationsin2011and2012showedastabletrendwithExcellentcomposite predicate.

• EstablishmentofAnti-FraudCommittees,whichwasestablishedbasedonDecisionLetterofBoardofDirectorsNumberKP/508/DIR/Rdated November 9, 2012, on the Establishment of Anti-Fraud Committee (KAF). In carrying out its duties and responsibilities, KAF was assisted by the Ethics Management unit under the Compliance Division, in which one of its functions was as data liaison and to report to other Divisions/Units and external parties related to Anti-Fraud Strategies and to manage Fraud related databases existing in BNI.

2013 BNI won the following awards:• TheMostTrustedCompanyBasedonInvestorsandAnalyst’sAssessmentSurveyin2013GoodCorporateGovernanceAward.• TheMostTrustedCompanyBasedonCorporateGovernanceIndex(CGPI)inthe2013GoodCorporateGovernanceAward.• AwardedasTheBestBankinIndonesiainDevelopingGoodCorporateGovernance(GCG)fromAsiamoneyMagazine.

2014 • BNIcontinuedtomakeimprovementsandupdatestoimprovecorporategovernance.• BNIalsocontinuedtosupporteconomicandenvironmentalgrowthbyorganizingKampoengBNIprogram,PKBL, CSR activities organized by BNI Syariah, and commitment to One Billion Indonesian Trees (OBIT) program, which had planted more than 7 million trees in the past 7 years.

2015 BNI won the award as:The Best State-Owned Enterprise and Top 50 Public Listed Companies in the Good Corporate Governance Award eventheld by The Indonesian Institute for Corporate Directorship (IICD).

2016 BNI won the following awards:• TheBestState-OwnedEnterpriseandTop50PublicListedCompaniesintheGoodCorporateGovernanceAward organized by the Indonesia Institute for Corporate Directorship (IICD).• TheMostTrustedCompanyBasedonCorporateGovernanceIndex(CGPI)inthe2018GoodCorporateGovernance Award.

2017 BNI won the following awards:• 1st Winner in the Category of Listed Financial SOE at the 2016 Annual Report Award.• TheBestState-OwnedEnterpriseandTop50PublicListedCompaniesintheGoodCorporateGovernanceAward organized by the Indonesia Institute for Corporate Directorship (IICD).• TheMostTrustedCompanyBasedonCorporateGovernanceIndex(CGPI)inthe2017GoodCorporateGovernance Award.

2018 BNI won the following awards:• 1st Winner in the Category of Listed Financial SOE at the 2016 Annual Report Award.• TheBestState-OwnedEnterpriseandTop50PublicListedCompaniesintheGoodCorporateGovernanceAward organized by the Indonesia Institute for Corporate Directorship (IICD).• TheMostTrustedCompanyBasedonCorporateGovernanceIndex(CGPI)inthe2017GoodCorporateGovernance Award.

2019 BNI’s hard efforts to maintain the implementation of GCG in accordance with best practices, provisions and standards bring BNI as:• TheBestStateOwnedEnterpriseandTop50PublicListedCompaniesintheGoodCorporateGovernanceAwardheldbythe

Indonesian Institute for Corporate Directorship (IICD).• MostTrustedBasedonCorporateGovernanceIndex(CGPI)onGoodCorporateGovernance.• TheBestGoodCorporateGovernanceIssuerfromIDXChannel. In addition, BNI also digitalized the Board of Directors’ meeting and the implementation of GCG commitments to all BNI people.

In an effort to improve the implementation of GCG, BNI also actively collaborates with external IICD institutions in order to improve the implementation of GCG in BNI.




Throughout 2019, BNI has implemented GCG as follows:

January1. Submission of GCG Self Assessment in December 2018

to OJK.2. Awarding “Employees with Integrity” by the Board of

Directors to employees who actively participated in reporting gratuities at BNI during 2018.

3. Updating the Company Guidelines (PP) on Gratification Control on Procedures for Reporting Gratuities online through the Compliance Information Management System (CIMS) portal.

february1. Submission of TKT Self Assessment for the position of

December 2019 to OJK.2. Implementation of the Compliance Forum on February

12, 2019 with the theme “Gratification Control to Create a Culture of Compliance”, with speakers from the Corruption Eradication Commission (KPK), BOC, BOD, all GMs, CEOs, Directors of Subsidiary Companies and employee representatives, including participants from outside BNI, which consists of representatives from partners, vendors, professional service providers, debtors and customers.

3. Gratification Control Socialization delivered by GM of the Compliance Division on February 18, 2019 during the Notary Integrity Pact / PPAT of Jabodetabek Partnerships organized by the ADK Division.

march1. Submission of Notification of the Annual General

Meeting of Shareholders for Fiscal Year 2018 on March 22, 2019.

2. Submission of requests to all Commissioners and Directors, Divisions / Units / Units and Regional Offices not to give / receive souvenirs within BNI’s internal environment in every supervision activity of employees, Directors and Commissioners both from the Head Office to Regional Offices / Branch Offices and from Regional Offices to the Branch Office on March 14, 2019.

3. Submission of a Report on the Implementation of the Corporate Secretary function to the Board of Directors which is copied to the Board of Commissioners in accordance with the provisions stipulated in POJK No. 35 / POJK.04 / 2014.

april1. Publication of Annual GMS Announcement for Fiscal

Year 2018 in the Investor Daily and The Jakarta Post on April 2, 2019, the company’s website and the OJK and IDX reporting portal.

2. Summons for the Annual GMS for Fiscal Year 2018 published in the Investor Daily and The Jakarta Post on April 18, 2019, the Company’s website and the OJK and IDX reporting portals. The Summons of the Annual GMS for Fiscal Year 2018 has included the details of each agenda of the GMS, in accordance with the Recommendations of the Indonesian Corporate Governance Roadmap and POJK on the Planning and Organizing of the Public Company GMS.

3. Publication of 2018 Annual GMS material on the company’s website since 18 April 2019.

4. Submission of the 2018 Fiscal Year Annual Report to the Financial Services Authority, the Indonesia Stock Exchange, Bank Indonesia, and other stakeholders.

5. Request the Board of Directors to all BNI employees not to accept gratuities in any form, on April 8, 2019.

6. Implementation of GCG Socialization at the Jakarta City Regional Office on April 8, 2019.

7. Implementation of GCG Socialization at the Jakarta Senayan Regional Office on April 9, 2019.

8. Implementation of GCG Socialization in the MCM Division on April 16, 2019.

may1. Annual GMS for Fiscal Year 2018 on May 13, 2019.2. Dissemination of Gratification Prohibition regarding Eid

Al-Fitr to all BNI employees.3. Publication of Summary of Annual GMS Minutes for

Fiscal Year 2018 as well as Announcement of Schedule and Procedure for Cash Dividend Distribution for Fiscal Year 2018 in 2 (two) newspapers, namely Investor Daily and The Jakarta Post on May 15, 2019 in order to comply with POJK provisions concerning Planning and Organizing of the GMS of Public Companies.

4. Socialization of Gratification Control through Compliance Reminder on the Prohibition of Giving / Receiving Souvenirs / souvenirs in the Ministry of Business Services in May 2019.

5. Anti Gratification Publication related to Idul Fitri on Bisnis Indonesia daily on May 24, 2019 and the company’s website.

6. The signing of the Board of Directors Integrity Pact as a Commitment to the Implementation of Good Corporate Governance as outlined in Director’s Decree No. DIR / 265 dated May 28, 2019.





June1. Payment of Cash Dividend for Fiscal Year 2018 is

conducted in accordance with the provisions, which is exactly 1 (one) month since the date of the GMS or after the announcement of the summary of the minutes of the GMS, which is June 14, 2019.

2. Watching Video Together (NOVISA) about gratification control at the Compliance Forum held in May - June 2019.

July1. Submission of GCG Self Assessment for the position of

June 2019 to OJK.2. Socialization of GCG in Subsidiaries on July 26, 2019.3. Notification to OJK regarding the 2019 Extraordinary

GMS Plans and Agenda on July 16, 2019,4. Publication of the Announcement of Extraordinary GMS

2019 in the Investor Daily and The Jakarta Post on July 24, 2019, as well as the Company’s website and OJK and IDX reporting portals.

august1. Conducting the Compliance Forum on `awareness of

gratificationunderthethemeof“Let’sProtectOurself&Family From Gratuities”, on August 1, 2019 by inviting speakers of the Director of Gratification of the KPK, as participants are the spouses of Commissioners, Directors and Division Heads

2. Submission of TKT Self Assessment to OJK for the position of June 2019.

3. Summons for the Extraordinary GMS 2019 published in the Investor Daily and The Jakarta Post on August 8, 2019, the company’s website and the OJK and IDX reporting portals. The Summons for the 2019 Extraordinary General Meeting of Shareholders has included the detail explanations of each agenda item in accordance with the Recommendations for the Indonesian Corporate Governance Roadmap and POJK POJK regarding the Plans and Organizing of the Open Company General Meeting of Shareholders.

4. Publication of 2019 Extraordinary GMS material on the company’s website since 8 August 2019.

5. Implementation of Public Expose on August 27, 2019.6. Received an award as an issuer with best corporate

governance in the 2019 IDX Channel Innovation Award.

september1. Publication of the Summary of Minutes of Extraordinary

GMS 2019 in 2 (two) newspapers, namely Investor Daily and The Jakarta Post on September 3, 2019 in order to comply with the POJK provisions on the Planning and Organizing of Public Company GMS.

2. Publication of the minutes of the Extraordinary GMS 2019 on the OJK / IDX reporting portal on 3 September 2019

october1. Implementation of GCG Socialization in KMP Division on

October 9, 2019..2. Implementation of digitalization in the implementation

of Board of Directors Meetings, so that it can better fulfill the principles of corporate governance, including digitizing schedules, absenteeism of attendance of Directors and submitting material for directors meetings.

November1. Completion of GCG Commitments by all BNI personnel

online through the DigiHC facility.2. Gratification Control Socialization delivered by the

Compliance Division on November 6, 2019 in the signing of the Notary Integrity Pact / PPAT Partner in Jabodetabek.

December1. In the IICD Award, BNI received 2 (two) awards, namely:

The Best State Owned Enterprise and Top 50 Public Listed Companies.

2. Participate in the ASEAN Corporate Governance Scorecard Research on BNI, and BNI scores 95.61.

3. 3. Implementation of the Corporate Governance Perception Index (CGPI) by The Indonesian Institute for Corporate Governance (IICG) where BNI was awarded, namely: The Most Trusted Company Based on Corporate Governance Index with a score of 89.74.

4. 4. BNI always strives to improve the implementation of GCG in BNI’s work environment, especially for milineal employees. This was done with a comic book competition about the principles of corporate governance.

5. Review on Integrated Corporate Governance Guidelines involving BNI and all subsidiary companies.

6. Anti-Gratification Publication related to Christmas Day at Investor Daily on December 17, 2019 and the Company’s website.




ImProvING The QualITy of GooD CorPoraTe GoverNaNCe ImPlemeNTaTIoN

BNI continues to create, develop and improve itself in accordance with the principles of Corporate Governance in order to improve the quality of the implementation of Corporate Governance at BNI. For this reason, it is necessary to develop a Roadmap that maps aspects of Corporate Governance as well as creating programs related to Corporate Governance in BNI in order to support the practice of implementing Corporate Governance. BNI always evaluates the implementation of Corporate Governance on an ongoing basis, so that the implementation of Corporate Governance will always increase. Evaluation of Corporate Governance is conducted with the aim of improving the quality of the implementation of Corporate Governance within the Bank environment, among others by: 1. Review of guidelines / policies related to Corporate

Governance both for BNI, and integrated in the BNI financial conglomerate to be adjusted to the latest regulatory provisions, guidelines and best practices.

2. Preparation of new initiatives related to the implementation of Corporate Governance, including updating new provisions to the Directors and Board of Commissioners, the GCG campaign program, and so on.

3. Enhancing the Compliance Principle through the Compliance Index including improving the scoring method.

4. Preparation of reports related to Corporate Governance, including Corporate Governance Reports, Integrated Corporate Governance Reports, Corporate Secretary Reports, and other related reports.

5. GCG related External Complaint Facilities to en-courage awareness of BNI Personnel to always be-have in accordance with GCG principles as a culture. BNI also involves the participation of society/public as supervisors of GCG implementation in BNI, among others, by providing facilities for the general public to submit complaints regarding GCG violations committed by BNI employees through PO Box GCG BNI JKP 10000 and [email protected], and Whistle Blow-ing System (WBS) reporting facilities including by telephone, email, post office box, fax and SMS.

People who feel to have been harmed by the actions of BNI Personnel or are aware of the actions of BNI employees that deviate from GCG principles can inform through these two facilities by clearly stating the identity of BNI employee/personnel who commits a violation and the unit where such BNI employee/ personnel carry out

the duties. People who feel aggrieved by the actions of BNI personnel or are aware of the actions of BNI employees that deviate from the principles of Corporate Governance can inform through the two facilities, namely GCG and WBS.

Complaints received through the BNI JKP 10000 BNI GCG Box and [email protected], in addition to helping the process of resolving problems faced by the par-ties that submit complaints / information, can also be input and evaluation for BNI to make continuous improvements, as well as improve the quality of GCG implementation in BNI so as to reduce the occurrence of deviations or violations of GCG principles by BNI employees.

In 2019, BNI recorded 7 (seven) complaint reports / requests for information. Any complaints / requests for information not related to GCG, it has been for-warded to the relevant units for resolution.

awareness

GCG DIssemINaTIoNThroughout 2019, the GCG related dissemination was carried out either at the Head Office or Regional Offices. The dissemination explained about GCG principles, examples of implementation, up to the latest provisions related to GCG. With this dissemination, it is expected that BNI Personnel will have the determination and shared commitment to realize GCG implementation in BNI.

New employee Induction ProgramNew employees are the embryos of BNI personnel who will learn, grow, and develop in BNI. As a shoot or embryo, a briefing on corporate values is very important. In the briefing, GCG values and Code of Ethics will be embed, in which later it is expected that these will be useful in their BNI career. The briefing is carried out by the GCG Team, in collaboration with BNI Corporate University, which provides specific times related to GCG and Code of Ethics for new employees.

Governance CommitmentIn order to realize the commitment to uphold the implementation of GCG, once a year, BNI employees sign a Governance Commitment. Every employee from various levels of position must understand and send Commitment Commitment. Replenishment of commitments is done through DigiHC, which is a communication platform and human capital information that is accessed via mobile phones, mobile phones, tablets, and other similar gadgets.





suBmIT

d. Not using company information and data for personal, other party’s, or giving to other parties where it is prohibited based on internal and external conditions, such as insider trading, misuse of company data, etc.

e. Acting fairly and equally in fulfilling stakeholder rights and encouraging all business partners to promote ethical, healthy and transparent business practices.

f. Make maximum efforts to prevent the possibility of fraud and not do or tolerate all forms of fraud that occur in the work environment.

g. Willing to report anything suspected as a fraud or violation (which occurs within the environment and / or using BNI facilities) through the reporting media at BNI.

h. Using social media in a professional manner, not in conflict with morality, protecting the good name and confidentiality of the company and subject to applicable laws and regulations.

This program is carried out by BNI personnel to emphasize the importance of values in this commitment. The aforementioned Governance Commitments include, among others, BNI personnels are committed to:a. Carry out duties and work properly and correctly, and

full of responsibility, in accordance with the principles of Good Corporate Governance, Principle 46, BNI Code of Ethics, internal company regulations and applicable laws and regulations and the principle of sound bank management.

b. Refrain from giving, promising and / or receiving compensation in any form to or from customers, debtors, vendors, partners, business partners and or other parties, both external and internal.

c. Avoiding any kind of possible conflict of interest in carrying out the task.




i. Willing to be imposed sanctions if in carrying out the duties and responsibilities as a BNI employee proven not to carry out the commitment as mentioned above.

Internalization BNI understands that Corporate Culture provides a contribution in the form of attitude. These attitudes will shape the personality of each individual in a company, therefore, a collection of attitudes will form an interaction between individuals and their integrity, that will further bring out the characters that will exist in a company. Internalization of Corporate Culture, which includes application of the principles of Corporate Governance in BNI is carried out through various tools, facilitating the process of adopting values that can later be applied in carrying out daily work. The tools used, among others, are in the forms of:

1. Reading BNI’s 46 Principles and Code of Conduct on each quality day, conducted once a month in each unit as well as in the morning briefing.

2. Self-education method through GCG and Corporate Culture e-learning facilitates BNI personnel to learn GCG.

3. Distribution of posters and e-leaflets of anti-gratification and GCG enforcement in each unit and BNI Forum so that employees are aware at all times.

4. Ease of access to the Code of Conduct and Corporate Culture through BNI website that can be accessed anytime and anywhere.

5. The opinion competition of GCG comic with the intent and purpose to raise awareness of all BNI people always adheres to and implements corporate governance commitments.

6. Anti-Gratification and Anti-Fraud Comics





externalizationGCG externalization is closely related to the principles of transparency and fairness, where the principle of openness always observes the provisions of the Bank and professional confidentiality as well as treats stakeholders and the community with fair treatment and equal opportunity according to its proportions. BNI implements GCG externalization to stakeholders and wide communities through various means as follows:1. Gms GMS is a communication means of the stakeholders

to the Company and a form of implementation of GCG principles because at the GMS, the form of responsibilities the Company’s Management are described from various aspects. A more detailed explanation of GMS can be found in the GMS Section of Corporate Governance chapter in this Annual Report. Shareholders Rights and Ownership Functions Shareholder’ rights are always protected and facilitated, in BNI, shareholders’ rights are demonstrated through dividends, the right to ask questions at the GMS, the right to obtain information, and the right to approve/not approve GMS resolutions via voting at GMS.

2. Disclosure and Transparency As a form of transparency pillar of GCG principles, BNI

continues to strive to provide disclosure of information to stakeholders and the general public through various means including through the Annual Report, BNI website, mass media, IDX website, as well as notification to the regulator by hardcopy and electronic reporting facility. Considering BNI’s status as an issuer, information disclosure is considered crucial as a public company’s communication media; information disclosure is carried out by referring to the applicable capital market regulations.

3. equal Treatment All BNI shareholders, including minority shareholders

and foreign shareholders, are treated equally. All shareholders are given equal opportunities to obtain information. BNI applies this treatment to provide information related to Corporate Actions and information disclosure as regulated by the capital market regulations. Everyone is given equal opportunities to obtain information and express criticism/advice to the Bank. Information, criticism, and/or suggestions can be accessed through BNI website and BNI Call 1500046.

4. Creating a Positive Bank Image A sound GCG practice by all of the company’s internal

parties and stakeholders can improve the company’s image to a wider public in the long term, so that the trust to the bank will always be maintained. In this digital age, BNI seeks to utilize a variety of tools to enhance the positive image of the bank through various media such as through print media (newspapers, tabloids, magazines), electronic media (radio and television) and cyber media (website, twitter, instagram, email, news portals, facebook, blogs, and other social media). Utilizing the media to support GCG practices is carried out to disseminate anti gratification, GCG awareness, service excellent, WBS, and so forth.





The optimization of the supervisory function on the duties and responsibilities of each employee is carried out in each unit by the direct supervisor, elements of the unit leadership, and the Internal Audit Unit.

Preparation and monitoring of Key Performance Indicators (KP). Unit leaders have an active role in the KPI monitoring process.

Branch Performance Reward, which is a reward for branches with an assessment of the performance of operations, business, and improvement efforts.

Know Your Employee (KYE) as an effort to supervise employees. Direct supervisors must supervise employees under their supervision to ensure that fraud does not occur by paying attention to whether there are indications that need further attention (irregularities).

monitoring the Implementation ofGood Corporate Governance




The implementation of Good Corporate Governance (GCG) in BNI basically follows the roadmap that has been developed, through 3 (three) main process groups (structure, process and outcome), as well as referring to GCG principles.

GCG Principles

Transparency | Accountability | Responsibility | Independency | Fairness

Main Organs

Supporting Organ

Out

put

Gov

erna

nce

Pro

cess

Gov

erna

nce

Str

uctu

reP

rinci

ples

GMS

Committees under BOC

Enterprises RiskManagement

Committees under BOD

Internal Audit Compliance Unit

Corporate Policies and Reporting Process Flow

GCG Implementation

Awareness Internalisation

Performance Growth and Increase in Assesment Score of GCG (CGPI, ACGS, SA, KPKU)

Assessment Externalization Monitoring/Evaluation

Corporate Secretary

BOC

BOD

GoverNaNCe orGaN sTruCTure

Broadly speaking, the governance structure at BNI consists of the main organs and supporting organs. The main organs consist of the General Meeting of Shareholders, the Board of Commissioners, and the Board of Directors which are supported by supporting organs, namely committees under the Board of Commissioners, Committees under the Board of Directors, Risk Management Work Unit, Internal Audit Work Unit, Compliance Unit and Secretary. In order to improve performance, protect stakeholder expectations and improve compliance with applicable laws and regulations, according to the Bank’s Articles of Association, BNI’s Board of Commissioners performs a supervisory function to ensure that the management of the Company is carried out by the Directors in accordance with applicable laws and regulations. While the BNI Directors carry out management and management functions professionally and avoid potential conflicts of interest.

The implementation and development of Good Corporate Governance within BNI and its subsidiaries is not only a form of compliance with the statutory provisions stipulated by regulators, but has become an irreplaceable need for every company in managing their company. With the implementation and development of GCG, BNI already has a solid and sufficient foundation to become a resilient and growing company.

Structure and Mechanism Good Corporate Governance




General Meeting of Shareholders

BOD

Eject & Dismisses

Check & Balances

BOCSecretary

Audit Committee

Risk Monitoring Committee

IndependentAuditor

ComplianceDivision

Internal Audit Unit

CorporateSecretary

Risk Management Division

Policy Governance Division

GCG Unit

Credit Committee

Integrated Risk Management Committee

Performance Management Committee

Technology Management Committee

Procedure and Credit Policy Committee

Human Capital Committee

Risk&CapitalManagement Committee

Risk Management Sub-Committee

(RMC)

Asset&LiabilitySub-Committee (ALCO)

Anti-Fraud Sub-Committee

Product Committee

Nomination&Remuneration

Committee

Integrated Corporate Governance Committee

Integrated Compliance

Function

Integrated Internal Audit

Function

Integrated Risk Management

Function

Management Function of Subsidiaries

GCG Unit

Reports to

Review Compliance report to reportReview InternalAudit reports

Review RiskManagement reports

BOC

structure of Governance organ




GoverNaNCe sofT sTruCTure

The process of GCG implementation by company organs in executing the functions and duties is supported by various policies/guidelines called GCG infrastructure. GCG infrastructure owned by BNI, among others, are:

1. The Bank’s Articles of Association No. 52 dated May 22, 2018, which have been received and recorded in the Legal Entity Administration System of the Ministry of Law and Human Rights of the Republic of Indonesia under the number AHU- 0012962.AH.01.02 Tahun 2018 dated June 25, 2018.

2. BNI’s Code of Ethics as BNI Employees’ Code of Conduct.

3. Board Manual of the Board of Commissioners, whose update has been validated by Board of Commissioners’ Decision Letter No. KEP/0049/DK/2017 dated October 26, 2017.

4. Board Manual of the Board of Directors, whose update has been validated by Board of Directors’ Decisions Letter No. KP/228/DIR/R dated June 29, 2018.

5. The Integrated Governance Guidelines, which have been approved by the Board of Commissioners through the Board of Directors’ Decision Letter No. DIR/796 dated 12 December 2018 and Decision Letter of Board of Commissioners No. DIR/140 dated 13 December 2018.

6. Guidelines of Integrated Risk Management, which has been approved by the Board of Commissioners through the Board of Commissioners’ Letter No. DK/27 dated March 8, 2016 and stipulated in e-PP No. IN/239/ERM/001 dated April 28, 2016.

7. Guidelines of Conflict of Interest, which has been set forth in the Online Company Manual (e-PP) No. IN/695/KMP/001 dated October 29, 2014.

8. Guidelines of Corporate Secretary, which has been validated by the Board of Directors’ Decision Letter No. KP/356/DIR/R dated September 2, 2016.

9. Company Guidelines for Securities Transactions which are Prohibited and not Prohibited for Insiders.

10. Audit Committee Charter, which has been approved by the Board of Commissioners through the Board of Commissioners’ Decision Letter No. KEP/009/DK/2016 dated April 14, 2016.

11. Risk Monitoring Committee Charter, which has been approved by the Board of Commissioners through the Board of Commissioners’ Decisions Letter No. KEP/024/ DK/2016 dated July 21, 2016.

12. Remuneration and Nomination Committee Charter, which has been validated through the Board of Commissioners’ Decision Letter No. KEP 027/DK /2015 dated September 21, 2015.

13. Integrated Governance Committee Charter and Work Conduct, which has been approved by the Board of Commissioners through the Board of Commissioners’ Decisions Letter No. KEP/006/DK/2015 dated June 22, 2015.

14. Corporate Governance Handbook No. KEP/001/DK and KP/001/Dir dated January 3, 2001, on the Implementation of Governance Principles.

15. BNI Anti-Money Laundering and Countering Financing of Terrorism(AML&CFT)PolicyStatement.

16. Related Company Manual for Procurement Procedures stipulated in e-PP.

17. Whistle Blowing System Policy, which has been validated through Joint Decision Letter of the Board of Directors and Board of Commissioners No. KEP/019/DK/2010 and No. KP/279/DIR dated December 1, 2010.

18. Risk and Capital Committee (KRK) Charter, which has been approved by the Board of Directors through the Board of Directors’ Decisions Letter No. KP/483/DIR/R dated December 21, 2016.

19. Integrated Risk Management Committee (KMRT) Charter, which has been approved by the Board of Directors through the Board of Directors’ Decisions Letter No. KP/193/DIR/R dated May 26, 2015.

20. Credit Policy and Procedure Committee Charter, in which there is a Sub-Committee of Credit Procedure (KPP), which has been approved by the Board of Directors through the Board of Directors’ Decision Letter No. KP/253/DIR/R dated June 1, 2016.

Structure and Mechanism Good Corporate Governance




21. Performance Management Committee Charter, which has been approved by the Board of Directors through the Board of Directors’ Decision Letter No. KP/466/DIR/R dated October 5, 2012, on BNI’s Performance Management Committee (PMC).

22. Product Committee Charter, which has been approved by the Board of Directors through the Board of Directors’ Decision Letter No. KP/448/ DIR/R dated September 20, 2012, on BNI’s Product Committee (PRC).

23. Technology Management Committee Charter, which has been approved by the Board of Directors through the Board of Directors’ Decision Letter No. KP/201/DIR/R dated June 14, 2011, which has been updated through Memo of the Planning Division No. REN/2/234/R dated May 4, 2016, on Amendment to Committee Membership.

24. Guidelines for GCG monitoring activities and Self Assessment Report as stipulated in e-PP No. IN/462/KMP/001 dated October 22, 2015.

25. Guidelines for Investor Relations activities as stipulated in e-PP No. IN/41/KMP/001 dated January 26, 2015.

26. Guidelines for Preparation of Bank’s Business Plan as stipulated in e-PP No. IN/92/REN/001 dated March 17, 2014.

27. Guidelines for Accounting Policy Management as stipulated in e-PP No. IN/406/PKU/001 dated August 24, 2016.

28. Employment Guidelines for Performance Assessment as stipulated in e-PP No. IN/99/HCT/001 dated February 29, 2016.

29. Employment Guidelines for Employee Code of Conduct No. IN/648/HCT/001 dated October 10, 2014.

GooD CorPoraTe GoverNaNCe meChaNIsm

Good Corporate Governance mechanism is the process of implementing the principles of Governance supported by the adequacy of the structure and infrastructure of bank governance, so as to produce outcomes that are in line with stakeholder expectations. In the implementation of Governance, it is not enough just to rely on the pillars of governance structure, but it needs a clear soft structure in the mechanism process. The process of implementing corporate governance is inherent in the structure of corporate governance as seen from the Organizational Structure of Bank Governance.




GMS is the highest organ of a limited liability company, which has the right and authority that are not owned by the Board of Directors and Board of Commissioners within the limits specified in the Law and or Articles of Association. Thus, GMS is the highest organ in the Bank. GMS is a crucial organ in the Bank with roles to determine the direction and objectives of the Bank as stipulated in the Bank’s Articles of Association. Moreover, the GMS also determines important matters related to the Bank. Based on the Bank’s Articles of Association, BNI’s GMS consists of Annual GMS and other GMS, usually called as Extraordinary GMS (EMGS), which can be held any time as deemed necessary.

Furthermore, the GMS also determines important matters related to the Bank.

leGal BasIs for orGaNIZING Gms

BNI organizes Annual GMS and Extraordinary GMS by referring to the following requirements:1. The Bank’s Articles of Association.2. Law No. 40 of 2007 on Limited Liability Company.3. Law No. 19 of 2003 on State-Owned Enterprises.4. Financial Services Authority Regulation No. 10/

POJK.04/2017 on Amendment to Financial Services Authority Regulation No. 32/POJK.04/2014, on Planning and Organizing GMS for Public Company.

5. State-Owned Enterprise Minister Regulation No. PER-02/ MBU/02/2015 on the Requirements and Procedures for Appointment and Dismissal of Members of the Board of Commissioners and Board of Supervisors of State-Owned Enterprises.

6. State-Owned Enterprise Minister Regulation No. PER-03/ MBU/02/2015 on the Requirements, Procedures for Appointment and Dismissal of Members of Board of Directors of State-Owned Enterprises.

ComPaNy shareholDers

Shareholders are individuals or legal entities that legally own one or more of the Company’s shares and are authorized to exercise the rights granted by law on shares. Company shares are shares in name consisting of:1. Dwiwarna Series A Shares which are specifically owned

by the Republic of Indonesia, and2. Series B Shares and Series C Shares are ordinary shares

owned by the Republic of Indonesia and the public.

INformaTIoN of share owNershIP of 5% or more

Ownership of the Company’s shares which reaches 5% or more of the issued and fully paid shares belongs to the Republic of Indonesia, which in this case is represented by the Ministry of State Owned Enterprises, namely 60.00% or a total of 11,189,193,875 (eleven billion one hundred and eight fifty nine million one hundred ninety three thousand eight hundred seventy five) shares.

The rIGhTs aND auThorITIes of shareholDer

Unless stipulated otherwise in the Articles of Association, Shareholders of Dwiwarna A Series, B Series, and C Series have the same rights and every 1 (one) share gives 1 (one) voting right, namely as follow:1. The right to attend, express opinions, and vote in GMS

based on shares.2. The opportunity to propose an agenda at the GMS.3. The opportunity to grant power to another party in the

event that the shareholder is unable to attend the GMS.4. The right to obtain meeting materials immediately after

the GMS notification. 5. In the GMS forum, they are entitled to obtain information

relating to the Company from the Board of Directors and/or the Board of Commissioners, as long as it relates to the meeting agenda and does not conflict with the Company’s interests.

General Meeting of shareholders




6. The opportunity to vote in agreement, disagreement, or abstain from any proposed resolution of the GMS agenda.

7. The right to obtain information about the company in a timely, correct, and orderly manner, except for confidential matters.

8. The right to receive a share of the company’s profits designated for Shareholders in the form of dividends and other profit sharing, that is proportional to the number of shares held.

9. The right to obtain a complete explanation and accurate information about procedures that shall be fulfilled with regard to GMS implementation.

10. The opportunity to see shareholder register and special register.

Based on the Articles of Association, Dwiwarna A Series Shares are shares specially held by the State of the Republic of Indonesia, which give the holders the following privileges:1. The right to approve in GMS on the following matters:

a. Approval for an amendment to the Articles of Association.

b. Approval for changes to equity.c. Approval for appointment and dismissal of members

of Board of Directors and Board of Commissioners.d. Approval for merger, consolidation, acquisition, split,

and dissolution.e. Approval for the remuneration of members of Board

of Directors and Board of Commissioners.f. Approval for asset transfer based on Articles of

Association that requires GMS approval.g. Approval for participation and reduction of the

percentage of equity participation in other companies based on the Articles of Association that requires GMS approval.

h. Approval for the use of profits.i. Approval for investment and long-term financing that

is not operations in nature based on the Articles of Association that requires GMS approval.

2. The right to propose candidates for members the Board of Directors and candidates for members of the Board of Commissioners.

3. The right to propose GMS agenda.4. The right to request and access company data and

documents with the mechanism of the use of such rights in accordance with the provisions in the Articles of Association and laws and regulations.

PolICy of relaTIoNshIP wITh shareholDers

In order to implement good governance principles, especially in the aspect of openness, the Company always strives to ensure the company’s transparency on financial and non-financial information in a fair and timely manner, to all shareholders, including minority shareholders and foreign shareholders.

In order to realize such transparency of information, the Corporate Secretary has an active role in the implementation of the bank’s information disclosure to shareholders as stipulated in Article 5 of FSA Regulation No. 35/POJK.04/2014 on Corporate Secretary of Issuer or Public Company; the Corporate Secretary serves as a liaison between the Bank and shareholders, including the Financial Services Authority and other stakeholders.

To foster intensive, systematic, and planned a relationship with Shareholders, the Bank has internal company policies as stipulated in the Company Regulations No. IN/794/KMP/001 dated December 23, 2014.




a. The Bank’s general conditions in briefb. GMS agendac. Mechanism of decision-making related to GMS

agenda, andd. Procedures for using shareholders rights to raise

questions and/or share opinions.

Chairperson of The meetingBased on Article 24 paragraph (1.1) of the Bank’s Articles of Association, the Chairperson of the GMS is a member of the Board of Commissioners appointed by the Board of Commissioners.

Procedure for Question and answer and Giving response1. Only the shareholders and/or their proxies who have

registered for the GMS have the rights to ask questions and/or give responses.

2. Question and/or response forms are submitted to shareholders or their proxies at the time of GMS registration.

3. After the Chairperson of the GMS or the party appointed by the Chairperson of the GMS delivers a proposal regarding matters to be decided at the GMS, the Chairperson of the GMS will provide an opportunity to the Bank’s shareholders or their proxies to ask questions and/or give responses before a vote is held on the related matter.

4. For Shareholders or their proxies who wish to raise questions and/or give responses, the Chairperson of the GMS invites shareholders/their proxies to submit questions and/or responses to the Chairperson of the GMS in writing by putting down the names and number of shares owned or represented. Questions and/or responses submitted shall relate directly to the GMS agenda being discussed.

voting ProcedureThe voting procedure and the vote counting mechanism are explained in the GMS Rules which are distributed to shareholders and read out by the Chairperson of the Meeting before the GMS begins. The RUPS Rules of Procedure have been published on the Company’s Website since the date of the summons.

The voting procedure at the Company’s RUPS is as follows:1. In the GMS, each share gives the right to the owner to

cast 1 (one) vote.

Gms ImPlemeNTaTIoN

Gms agenda material1. GMS Agenda Material is a document containing the

composition of Meeting Agenda accompanied by the legal basis and explanations related to the GMS Agenda.

2. The Bank provides GMS agenda material that can be accessed by Shareholders from the date of the GMS Notice to the GMS implementation.

3. GMS Agenda Material is available at the Bank’s Head Office and can be accessed on the Bank’s Website, both in Indonesian and in English.

4. In the event of Changes in the Management of the Bank, curriculum vitae of candidate member of the Board of Commissioners and Board of Directors of Public SOE that will be proposed to be appointed at the GMS, is available and announced at the time of the GMS, before making decisions regarding the appointment of the candidate to be member of Board of Commissioners and Board of Directors. This is as stipulated in the Minister of State-Owned Enterprises Regulation No. PER-02/MBU/02/2015 on the Requirements and Procedures for Appointment and Dismissal of Members of Board of Commissioners and Board of Supervisors of State-Owned Enterprises, and State-Owned Enterprise Minister Regulation No. PER-03/MBU/02/2015 on the Requirements, Procedures for Appointment and Dismissal of Members of Board of Directors of State-Owned Enterprises.

Gms Conduct1. GMS conduct is carried out by referring to Financial

Services Authority Regulation No. 10/POJK.04/2017 on Amendment to Financial Services Authority Regulation No. 32/POJK.04/2014 on Planning and Organizing General Meeting of Shareholders of Public Companies.

2. The GMS Conduct is distributed to shareholders/their proxies at the time of registration.

3. The GMS Conduct regulates, among others, meeting participants who have the right to attend the GMS, Meeting Chairperson, Language used in the GMS, meeting quorum and decision making, mechanism of questioning and responding, mechanism of decision making, and voting procedures.

4. The principles of the GMS conduct are read out before the GMS begins.

5. In accordance with the provisions of the GMS Conduct as stipulated in the Bank’s Articles of Association, at the opening of the GMS, the Chairperson of the GMS provides an explanation to the shareholders on:





2. In voting, the votes cast by the Shareholders are valid for all shares owned and the shareholders are not entitled to give power to more than one power of attorney for a portion of the number of shares they have with a different vote. These provisions are excluded for:a. Custodian Bank or Securities Company as Custodian

representing its customers who are owners of the Bank’s shareholders.

b. Investment Managers who represent the interests of the Mutual Funds they manage.

3. All GMS resolutions are taken based on deliberation to reach consensus.

4. In the event that a resolution based on deliberation for consensus is not reached, then the GMS resolution is taken based on the agreed votes.

5. Shareholders or their Proxies who disagree or abstain from the proposed GMS resolution will be invited by the Chairperson of the GMS to raise their hands and submit the voting cards to the Meeting officers to count the votes. Shareholders and/or their Proxies who do not raise their hands are declared agree.

6. After the votes are counted and reported by the Notary, the Chairperson of the GMS will announce the voting results.

7. Shareholders with voting rights who are present at the GMS but not casting vote (abstain) are considered to cast the same vote as the majority vote of the voting Shareholders.

Whereas the vote counting procedure is carried out through the following process:1. The Notary calculates the vote with the assistance of the

Share Registrar Bureau by counting the disagree voting cards or abstain votes submitted by the Shareholders/their Proxies through the Meeting officers.

2. The voting calculation is carried out by scanning the barcode on the said Sound Card with a barcode scanner.

3. Abstain votes are added to the Agree votes or to the Disagree votes, whichever is higher.

4. After that, the Chairperson of the GMS will ask the Notary to report the voting calculation results. If the number of votes meets the specified quorum, then a GMS resolution can be adopted.

method used in Decision making Resolutions of the Meeting are held by deliberation to reach consensus. If deliberations for consensus are not reached, then a vote will be held. Voting is done with the calculation of the ballots

Involvement of Independent Parties in GmsIn the implementation of the GMS, the Company engages Independent and professional parties to support the reasonableness and validity of the GMS’s conduct and decisions. The Independent Parties are:

1. Notary A Notary is a public official who is authorized to make an

authentic deed and has other authorities as referred to in the Law on the position of a notary that is registered with the Financial Services Authority as a capital market supporting profession. Notary plays a role in examining the validity of supporting documents and paying attention to the formalities requirements for the GMS implementation in order not to conflict with the laws and regulations and articles of association.

2. share registrar Bureau Share Registrar Bureau is a Party based on a contract

with the Bank/Issuer records the securities ownership and distribution of rights relating to the securities. The Share Registrar Bureau assists the Bank/Issuer in convening the GMS, which among others includes:a. Preparing proxies from minority shareholdersb. Publishing Written Confirmation for Meetings (KTUR)c. Validating shareholders who are entitled to attend

the GMS and register themd. Calculating shareholders presence in connection with

the GMS quorume. Providing voting card for shareholders.f. Helping Notary in calculating votes using a barcode

scanner.

3. Public accountant firm The Public Accountant Firm is present as the party

that audits the Bank’s Financial Statements and Annual Report on the Implementation of Partnership and Community Development Program.




ComPaNy’s efforTs To ImProve shareholDers aTTeNDaNCe IN The Gms

As an effort of the Company to facilitate Shareholders to exercise their rights and authority at the GMS, the Company carries out the following efforts:1. The Company announces and summons the GMS in a timely manner, in Indonesian and English, which is published in 2

(two) national circulation newspapers, company websites, and the Indonesia Stock Exchange website.2. In the Announcement and Summon of the GMS, the Company clearly describes the authorized shareholders to attend/

represent and vote in the GMS, who are the Company’s Shareholders whose names are registered in the Bank’s Shareholders Register or Shareholders in securities accounts at the Indonesian Central Securities Depository on the Summoning Day.

3. On the website, the Company provides contacts that shareholders can use to communicate in connection with the holding of the GMS.

4. The company provides services to shareholders who need information and/or will ask questions related to the GMS plan and/or GMS agenda through either direct meetings or correspondence via email.

sTaGe of The ImPlemeNTaTIoN of aNNual Gms aND eXTraorDINary aGm 2019

annual Gms extraordinary Gms

Day / Date Monday, May 13, 2019 Friday, August 30, 2019

Time 14:40 WIB until 16:11 WIB 14:40 WIB until 15.20 WIB

Venue Grha BNI Multipurpose Room 25th FloorJl. Jenderal Sudirman Kavling 1, Jakarta 10220

Ballroom Menara BNI 6th FloorJl. Pejompongan Raya No. 7, Bendungan Hilir, Jakarta

Agenda 1. Approval of the Annual Report and Ratification of the Consolidated Financial Statements of the Company, Approval of the Report on the Supervisory Duties of the Board of Commissioners and Ratification of the Annual ReportontheImplementationofthePartnership&Community Development Program for Fiscal Year 2018, as well as granting full release and discharge (volledig acquit et de charge) to the Board of Directors and Board of Commissioners of the Company for the management and supervision actions that have been carried out during the 2018 Financial Year.

2. Approval for the use of the Company’s Net Profit for Fiscal Year 2018.

3. Determination of remuneration (salary / honorarium, facilities and benefits) for Fiscal Year 2019 and tantiem for Fiscal Year 2018 for the Directors and Board of Commissioners of the Company.

4. Determination of the Public Accountant Office to audit the Company’s Financial Statements and Annual Report ontheImplementationofthePartnership&CommunityDevelopment Program for Fiscal Year 2019.

5. Approval for the Update of the Company’s Action Plan.6. Changes to the Nomenclature of the Directors.7. Changes in the composition of the Company’s

Management.

The Sixth Agenda on Changes to the Nomenclature of the Board of Directors is part of the Seventh Agenda on Changes to the Composition of the Company’s Management.

1. Evaluation / Exposure of the Company’s Performance up to Semester I of 2019

2. Changes in the composition of the Company’s Management.

Attendance The GMS was attended by 15,979,441,651 shares, including Dwiwarna A Series Shares, which have valid voting rights, or equivalent to 85.69% of the total number of shares with valid voting rights issued by the Company until the day of the Meeting, which is 18,648 .656,458 shares.

The EGMS was attended by 15,883,641,514 shares including the Dwiwarna Series A Shares which have valid voting rights or equivalent to 85.17% of the total number of shares with valid voting rights issued by the Company until the day of the Meeting, amounting to 18,648,656,458 shares.





annual Gms extraordinary Gms

Chair of the Meeting

The meeting was chaired by Mr. Ari Kuncoro (President Commissioner / Independent Commissioner) based on the Company’s Board of Commissioners Letter No. DK / 40 dated May 2, 2019.

The meeting was chaired by Mr. Ari Kuncoro as the President Commissioner / Independent Commissioner based on the Board of Commissioners Letter Number: DK / 91 dated 15 August 2019.

Profile of Prospective Directors and Board of Commissioners

In the Meeting Agenda of the Change of Management of the Company, profiles / biographies of candidates for Directors and / or Board of Commissioners proposed at the Meeting are read out before the Question and Answer and Decision Making Session.

In the Agenda of the Change of Meeting of the Company Management, profiles / biographies of candidates for Directors and / or Board of Commissioners proposed in the Meeting were read out before the Question and Answer and Decision Making Session.

Question and answer

In the Meeting, shareholders / their proxies are given the opportunity to ask questions and / or provide opinions regarding each meeting agenda item.

Details of questions / responses are explained in the Results section of the GMS Resolution

The First Agenda is in the form of performance evaluation / exposure in the form of a report, no question and answer session is held. Whereas for the Second Meeting Agenda, shareholders / their proxies are given the opportunity to raise questions and / or provide opinions on the agenda of the meeting. There was no questioner at the second Meeting Agenda.

Decision Making Mechanism

Resolutions of the Meeting are held by deliberation to reach consensus. If deliberations for consensus are not reached, then a vote will be held. Voting is done with a voting card whose calculations are done electronically.

Meeting resolution is only for the Second Meeting Agenda on Changes in the Composition of the Company’s Management. All resolutions shall be made based on deliberation or discussion leading to mutual consensus. In the event that a resolution to be made based on deliberation and/or discussion is not reached, such resolution shall be made based on assenting votes. The voting is performed by vote cards and electronic counting.

Independent Parties to Count and/or Validate the Vote

Company has appointed independent parties to calculate and/or validate the vote: Fathiah Helmi, SH as Public Notary and PT Datindo Entrycom.

Company has appointed independent parties to calculate and/or validate the vote: Fathiah Helmi, SH as Public Notary and PT Datindo Entrycom.

Minutes/Resolution of the Meeting

The course of the meeting has been outlined in the Deed of Minutes of the Extraordinary General Meeting of Shareholders of the Company (Persero) PT Bank Negara Indonesia (Persero) Tbk abbreviated as PT Bank Negara Indonesia (Persero) Tbk No. 23 May 13, 2019 made by Notary Fathiah Helmi, SH. Minutes of Meeting can be accessed through the Company’s website.

The course of the meeting has been outlined in the Deed of Minutes of the Extraordinary General Meeting of Shareholders of the Company (Persero) PT Bank Negara Indonesia (Persero) Tbk abbreviated as PT Bank Negara Indonesia (Persero) Tbk No. 55 August 30, 2019 made by Notary Fathiah Helmi, SH. Minutes of Meeting can be accessed through the Company’s website.

ImPlemeNTaTIoN of Gms 2019

Throughout 2019, BNI held 2 (two) GMS, namely the Annual GMS for Fiscal Year 2018 on 13 May 2019 and the Extraordinary GMS of 2019 on 30 August 2019. The GMS was held in accordance with the Company’s Articles of Association and the provisions of implementation GMS of Public Companies as stipulated in OJK Regulation No. 10/POJK.04/2017 concerning Amendments to OJK Regulation No. 32/POJK.04/ 2014 dated 8 December 2014 concerning Plans and Organizing of a Public Company GMS.

ComPaNy Gms

aNNual Gms13 may 2019

eo Gms30 auGusT 2019




fulfIllmeNT of Gms ImPlemeNTaTIoN ProvIsIoNs

stage Notification to fsa

announcement of Gms

summon to Gms

Implementation of the Gms

summary of Gms minutes minutes of Gms

Provisions The Company submits a notification to the Financial Services Authority no later than 5 (five) days before the announcement of the GMS

The Company is required to make a GMS Announcement to shareholders no later than 14 (fourteen) days before the GMS summons. Publication of GMS Announcement shall be made through 1 (one) Indonesian language daily newspaper, the Stock Exchange website, and the Public Company website in Indonesian and foreign languages.

The Company is required to make a Call to shareholders no later than 21 (twenty one) days before the GMS. Publication of GMS Summons is done in 1 (one) Indonesian language daily newspaper, the Stock Exchange website, and the Public Company website in Indonesian and foreign languages.

Annual GMS must be held no later than 6 (six) months after the fiscal year ends

The Company is required to make a summary of the minutes of the GMS. Publication of GMS Summary Summary shall be made no later than 2 (two) working days after the GMS is held in 1 (one) Indonesian language daily newspaper, the Stock Exchange website, and the Public Company website in Indonesian and foreign languages.

The Company is required to make minutes of rups and mandatory submitted to the Financial Services Authority no later than 30 (thirty) days after the GMS is held.

Annual GMS for Fiscal Year 2018(May 13, 2019)

Notification of the plan for holding an Annual GMS was submitted on March 26, 2019 to the OJK and the Indonesia Stock Exchange.

The announcement of the Annual General Meeting of Shareholders was held on April 2, 2019. Publications were made through Investor Daily and The Jakarta Post, and can be accessed through the Indonesia Stock Exchange website and the Company’s website in Indonesian and English.

The invitation to the Annual GMS was held on April 18, 2019.Publication is done through Investor Daily and The Jakarta Post, and can be accessed through the Indonesia Stock Exchange website and the Company’s website in Indonesian and English.

The Annual GMS was held on May 13, 2019.

Summary of Minutes of the Annual GMS was published on May 15, 2019 through Investor Daily and The Jakarta Post, and can be accessed through the Indonesia Stock Exchange website and the Company’s website in Indonesian and English.

The Company submits the GMS Minutes to the Financial Services Authority on June 12, 2019 in the form of a minutes of the GMS made by a notary, namely Deed of Minutes of Annual GMS No. 23 May 13 2019 made by Notary Fathiah Helmi, S.H. Minutes of the Company’s Annual GMS can be accessed through the Company’s website in Indonesian and English.





stage Notification to fsa

announcement of Gms

summon to Gms

Implementation of the Gms

summary of Gms minutes minutes of Gms

Extraordinary GMS 2019(August 30, 2019)

Notification of the plan for holding an Annual GMS was submitted on 30 January 2018 to OJK. Notification of Amendment Date of Annual General Meeting of Shareholders was notified on February 5, 2018

Announcement of Annual General Meeting of Shareholders was held on February 9, 2018, publication was made through Investor Daily and The Jakarta Post, and can be accessed through the Indonesia Stock Exchange website and the Company’s website in Indonesian and English.

The invitation to the Annual GMS was held on February 26, 2018. The Company made a rectification for the Annual General Meeting of Shareholders which was held on March 9, 2018. Publication is done through Investor Daily and The Jakarta Post, and can be accessed through the Indonesia Stock Exchange website and the Company’s website in Indonesian and English.

The Annual GMS was held on March 20, 2018 at 14.00 WB until finished, at Ballroom Hotel Shangri-La, Jakarta, located at Jalan Jenderal Sudirman Kavling 1. Jakarta, 10220.

The Summary of Minutes of the Annual GMS was published on March 22, 2018 through Investor Daily and The Jakarta Post, and can be accessed through the Indonesia Stock Exchange website and the Company’s website in Indonesian and English.

The Company submits the GMS Minutes to the Financial Services Authority on March 29, 2018 in the form of a minutes of the GMS made by a notary, namely Deed of Minutes of Annual GMS No. 37 March 20, 2018 made by Notary Fathiah Helmi, S.H. Minutes of the Company’s Annual GMS can be accessed through the Company’s website in Indonesian and English.

Compliance Complied Complied Complied Complied Complied Complied

GeNeral meeTING of shareholDers 2019

The following is an explanation of the Agenda, Decision, and Follow-up Resolutions of the Company’s General Meeting of Shareholders:

annual Gmsmay 13, 2019

agenda IApproval of the Annual Report and Ratification of the Consolidated Financial Statements of the Company, Approval of the Report on the Supervisory Duties of the Board of Commissioners and Ratification of the Annual Report on the ImplementationofthePartnership&Community Development Program for Fiscal Year 2018, as well as granting full release and discharge of responsibility (volledig acquit et de charge) to the Board Directors and Board of Commissioners Company for the management and supervision actions that have been carried out during the 2018 Financial Year.

resolution:1. Approve the Company’s Annual Report including the Supervisory Report that has been implemented

by the Board of Commissioners for the 2018 fiscal year, and ratify the Company’s Consolidated FinancialStatementsforthe2018fiscalyearthathavebeenauditedbythePurwantono,Sungkoro&SurjaPublicAccountantsFirm-memberoftheglobalnetworkErnst&YoungaccordingtoReportNo.00024/2.1032/AU.1/07/1008-1/1/I/2019 dated January 16, 2019 with a reasonable opinion in all material respects.

2. Ratify the Annual Report on the Implementation of the Partnership and Community Development Programfor2018,whichhasbeenauditedbyPurwantono,Sungkoro&SurjaPublicAccountantsFirm-memberofErnst&Young’sglobalnetworkaccordingtoReportNo.No.00302/2.1032/AU.2/10/1008-1/1/II/2019 dated February 26, 2019 with a reasonable opinion in all material respects.

3. Grant full release and discharge (volledig acquit et de charge) to all members of the Board of Directors and Board of Commissioners for management and supervision actions that have been carried out during fiscal year 2018, to the extent that such actions are not criminal and these actions are reflected in the Report Annual Report, Consolidated Financial Statements of the Company and Annual Report on the Implementation of Partnership and Community Development Program for fiscal year 2018.

In addition to the above decision, the Company has reported the following matters:1. Comply with the Financial Services Authority Regulation No. 51/POJK.03/2017 dated 18 July 2017

concerning the Implementation of Sustainable Finance for Financial Services Institutions, Issuers and Public Companies, the Company has communicated the Sustainable Financial Action Plan to Shareholders.

2. The Company has also submitted an explanation of the report on the Implementation of PSAK 71 - Financial Instruments which is the adoption of IFRS 9 - Financial Instruments which will be effective as of January 1, 2020.

3. In order to comply with the provisions of SOE Ministerial Regulation Number PER-12/MBU/2012 dated 24 August 2012 concerning Supporting Organs for the Board of Commissioners / BUMN Supervisory Board, the Company submitted a report on the changes in the composition of the Audit Committee, theRiskMonitoringCommittee,theNomination&RemunerationCommitteeandIntegratedCorporateGovernance Committee.

Number of shareholders who submit questions and / or provide responses4 (four) person.





voting resultIn Favour : 15,919,330,760 votes or 99.624% of all shares with voting rights present at the MeetingAgainst : 3,503,100 votes or 0.022% of all shares with voting rights present at the MeetingAbstain : 56,607,791 votes or 0.354% of all shares with voting rights present at the Meeting

follow upThe decision applies immediately.

agenda IIApproval of the use of the Company’s Net Income for Fiscal Year 2018.

resolution:1. Approve and determine the use of the Company’s Net Profit for the fiscal year 2018 in the amount of

Rp15,015,118,681,804.00 (fifteen trillion fifteen billion one hundred eighteen million six hundred eighty-one thousand eight hundred four Rupiah) hereinafter referred to as “Net Profit for the Fiscal Year 2018 “as follows:a. Specifically for dividends owned by the Government with ownership of 60% of shares or a value of

Rp2,252,267,799,961.51 (Two trillion two hundred fifty two billion two hundred sixty seven million seven hundred ninety nine thousand nine hundred sixty one Rupiah point fifty one cents) will be deposited to the State General Treasury account.

b. Granting authority and power to the Company’s Board of Directors with the right of substitution to determine the schedule and procedure for dividend distribution for the fiscal year 2018 in accordance with applicable regulations.

2. 75% or amounting to Rp11,261,339,011,353.00 (Eleven trillion two hundred sixty one billion three hundred thirty nine million eleven thousand three hundred fifty three Rupiah) will be used as Retained Earnings Balance.

Number of shareholders who submit questions and / or provide responsesNone.

voting resultIn Favour : 15,961,044,941 votes or 99.885% of all shares with voting rights present at the MeetingAgainst : 18,396,700 votes or 0.115% of all shares with voting rights present at the MeetingAbstain : 10 votes or 0.000% of all shares with voting rights present at the Meeting

follow-up:The meeting has decided to pay dividends from the Company’s net profit of Rp3,753,779,670,451.00 or in the amount of Rp201,289550 per share to be distributed to the Company’s Shareholders. The Schedule and Procedure for Distribution of Cash Dividends for Fiscal Year 2018 has been published in Investor Daily and The Jakarta Post, as well as the website of the Stock Exchange and OJK and the Company, on May 15, 2019. Payment of Cash Dividends for Fiscal Year 2018 will be carried out on June 14, 2019.

agenda IIIPenetapan remunerasi (gaji/honorarium, fasilitas dan tunjangan) Tahun Buku 2019 serta tantiem Tahun Buku 2018 bagi Direksi dan Dewan Komisaris Perseroan.

Decision:1. To grant authority and power to the Dwiwarna A Series Shareholders to determine the amount of

tantiem for the 2018 financial year, as well as determine salary / honorarium, benefits, facilities and other incentives for members of the Board of Commissioners for 2019.

2. Give authority and power to the Board of Commissioners by first obtaining written approval from Dwiwarna A Series Shareholders to determine the amount of tantiem for the 2018 fiscal year, as well as determine salaries / honorariums, benefits, facilities and other incentives for members of the Board of Directors for 2019.


voting resultIn Favour : 15,230,448,749 votes or 95.313% of all shares with voting rights present at the MeetingAgainst : 740,116,302 votes or 4.632% of all shares with voting rights present at the MeetingAbstain : 8,876,600 votes or 0.056% of all shares with voting rights present at the Meeting

follow-up:Letter from Dwiwarna A Series Shareholders No. S-481/MBU/D5/05/2019 dated May 31, 2019 concerning the Determination of the Income of the Directors and Board of Commissioners of PT Bank Negara Indonesia (Persero) Tbk, and the Board of Commissioners Letter to the Company’s Directors No. Board of Commissioners Letter No. DK/67 dated 20 June 2019 concerning the Determination of the Income of the Directors and Board of Commissioners of PT Bank Negara Indonesia (Persero) Tbk in 2019 as well as Tantiem for the Performance of Fiscal Year 2018






agenda IvAppointment of a Public Accounting Firm to audit the Company’s Financial Statements and Annual Report on the ImplementationofthePartnership&Community Development Program for Fiscal Year 2019.

resolution:Approve:1. AppointmentofPurwantono,Sungkoro&SurjaPublicAccountantFirm-memberofErnst&Young’s

global network as the Public Accounting Firm that will audit the Company’s Financial Statements and the Financial Statements for the Implementation of Partnership and Community Development Programs for 2019.

2. Granting power of attorney to the Board of Commissioners of the Company to determine the honorarium and other requirements for the Public Accountant Firm, and to appoint a Substitute Public AccountantOfficeinthecaseofPurwantono,Sungkoro&SurjaPublicAccountants-memberfirmErnst&Young’sglobalnetwork,forwhateverreasoncannotbecompletedtheauditoftheCompany’sFinancial Statements and the Financial Statements of the Implementation of the Partnership and Community Development Program for Fiscal Year 2019, including determining the honorarium and other requirements for the substitute Public Accounting Firm.


voting resultIn Favour : 14,852,164,975votes or 92,945% of all shares with voting rights present at the MeetingAgainst : 1,126,553,766 votes or 7,050% of all shares with voting rights present at the MeetingAbstain : 722,910 votes or 0,004% of all shares with voting rights present at the Meeting

follow-upGeneral audits of the Company’s Financial Statements and Financial Statements of the Implementation of the Partnership and Community Development Program for Fiscal Year 2019 have been published byPurwantono,Sungkoro&Surja’sPublicAccountantFirm-memberfirmoftheErnst&Youngglobalnetwork in January 2020.

agenda vApproval on Updating the Company’s Action Plan.

resolution:Approved the Udpdate of the 2018 Company Recovery Plan in order to comply with OJK Regulation No. 14 / POJK.03 / 2017.

Number of shareholders who submit questions and / or provide responses:1 (one) person.

voting resultIn Favour : 15,974,430,751 votes or 99.969% of all shares with voting rights present at the MeetingAgainst : 4,903,100 votes or 0.031% of all shares with voting rights present at the MeetingAbstain : 107,800 votes or 0.001% of all shares with voting rights present at the Meeting

follow-up:With the approval of the Recovery Plan, the following changes to the minimum reserve requirement (GWM) trigger are made:

Previously

Plan Indicatoraction

early warning Threshold

recovery Threshold regulatory minimum requirements

GWM (Daily) 5.00% 5.00% 5.00%

GWM (2 weekly) 6.50% 6,.50% 6.50%

To be

Plan Indicatoraction

early warning Threshold

recovery Threshold regulatory minimum requirements

GWM 6.50% 6.50% 6.50%





agenda vI and vIIChanges to the Nomenclature of the Directors and Changes in the Composition of the Company’s Management(The Sixth Agenda on Changes to the Nomenclature of the Board of Directors is part of the Seventh Agenda on Changes in the Composition of the Company’s Management).

resolution:a. Change in Nomenclature of Directors

1. Change the nomenclature of the position of members of the Board of Directors of the Company as follows:

No. Before after

1. Managing Director - Corporate Banking Managing Director - Corporate Banking

2. Managing.Director-SmallBusiness&Network

Managing Director - MSME (Micro, Small, Medium Enterprise) and Network

3. Managing Director - Retail Banking Managing Director - Consumer Banking

4. ManagingDirector-Treasury&International Banking

ManagingDirector-Treasury&International Banking

5. Managing Director - Compliance ManagingDirector-HumanCapital&Compliance

2. Transfer assignments from the names below as Members of the Company’s Board of Directors:

No. Name Before after

1. Mr. Putrama Wahju Setyawan

Managing Director - Corporate Banking

Managing Director – Corporate Banking

2. Mr. Catur Budi Harto Managing Director -SmallBusiness&Network

Managing Director - MSME (Micro, Business Small, Medium Enterprise) and Network

3. Mrs. Tambok P. Setyawati

Managing Director - Retail Banking

Managing Director - Consumer Banking

4. Mr. Rico Budidarmo Managing Director - Treasury &InternationalBanking


5. Mr. Endang Hidayatullah

Managing Director - Compliance

ManagingDirector-HumanCapital&Compliance which are appointed by each resolutions of the GMS of 2015 Financial Year, GMS of 2016 Financial Year, GMS of 2017 Financial Year, GMS of 2014 Financial Year, and GMS of 2017 Financial Year, with the tenure continuing his/her tenure as Directors based on each GMS resolutions.

3. With the change in the nomenclature of the position and the transfer of positions of members of the Board of Directors of the Company as referred to in number 1 and number 2, the composition of the Membership of the Board of Directors of the Company shall be as follows:

No. Position Name

1. President Director Achmad Baiquni

2. Vice President Director Herry Sidharta

3. Managing Director - Corporate Banking Putrama Wahju Setyawan

4. Managing Director - MSME (Micro, Small, Medium Enterprise) and Network

Catur Budi Harto

5. Managing Director - Consumer Banking Tambok P. Setyawati Simanjuntak

6. ManagingDirector-Treasury&International

Rico Rizal Budidarmo

7. Banking Managing Director - Human Capital&Compliance

Endang Hidayatullah

8. Managing Director - Information Technology&Operation

Dadang Setiabudi

9. Director - Risk Management Bob Tyasika Ananta

10. Managing Director - Institutional Relation Adi Sulistyowati

11. Managing Director - Finance (CFO) Anggoro Eko Cahyo






4. Granting power of attorney with the right of substitution to the Board of Directors of the Company to declare the resolutions of this GMS in the form of a notarial deed, and notify the notary or authorized officer, and make necessary adjustments or corrections if required by the competent authorities for the implementation of the contents of the decision meeting.

b. Change in Management of the Company1. Respectfully dismiss these names below as Members of the Company’s Board of Commissioners:

1) Mr. Wahyu Kuncoro as Deputy President Commissioner2) Mr. Bistok Simbolon as Commissioner

2. Appoint the names below as Members of the Company’s Board of Commissioners:1) Mr. Servant as Deputy President Commissioner2) Ms. Ratih Nurdiati as Commissioner

3. The term of office of the members of the Board of Commissioners appointed as referred to in number 2, is in accordance with the provisions of the Company’s Articles of Association, with due observance of the laws and regulations in the Capital Market and without prejudice to the right of the GMS to dismiss at any time.

4. With the dismissal and appointment of the members of the Company’s Board of Commissioners as referred to in number 1 and number 2, the composition of the Company’s Board of Commissioners shall be as follows:

No. Position Name

1. President Commissioner/Independent Commissioner

Ari Kuncoro

2. Vice President Commissioner Hambra

3. Commissioner Marwanto Harjowiryono

4. Commissioner Joni Swastanto

5. Commissioner Ratih Nurdiati

6. Independent Commissioner Sigit Widyawan

7. Independent Commissioner Ahmad Fikri Assegaf

8. Independent Commissioner Revrisond Baswir

9. Independent Commissioner Pataniari Siahaan

5. Members of the Board of Commissioners appointed as referred to in number 2 who still hold other positions prohibited by statutory regulations to be appointed with the position of Member of the Board of Commissioners of a State-Owned Enterprise, then the concerned must resign or be dismissed from his position .

6. To grant power of attorney with the right of substitution to the Board of Directors of the Company to declare the resolutions of this GMS in the form of a notarial deed and meet with a Notary or other authorized official and make necessary adjustments or corrections if required by the competent authorities for the purpose of implementing the contents of the meeting’s decision.

Number of shareholders who submit questions and / or provide responsesnone.

voting resultIn Favour : 11,908,277,492 votes or 74.522% of all shares with voting rights present at the MeetingAgainst : 4,059,860,728 votes or 25,407% of all shares with voting rights present at the MeetingAbstain : 11,303,431 votes or 0.071% of all shares with voting rights present at the Meeting

follow-up:Until this Annual Report was published, the appointment of Ms. Ratih Nurdiati as the Company’s Commissioner is still in the process of Fit and Proper Test at FSA. Changes to the Nomenclature of the Board of Directors have been stated in the Decree of the Board of Directors No. KP/230/DIR/R dated June 13, 2019 concerning Organizational Structuring of BNI’s Board of Directors.




eXTraorDINary Gmsaugust 30, 2019

agenda IEvaluation/Presentation of the Company Report up to the First Semester of 2019.

For the first agenda, which is the presentation of the Company’s performance, the meeting did not hold question and answer sessions or submission of responses and there was no decision making session.

agenda IIChange in the Composition of the Board of Directors and/or Board of Commissioners of the Company

resolution:a. Changes in the Composition of the Company’s Board of Commissioners

1. Agree to honorably dismiss Mr. Marwanto Harjowiryono as Commissioner of PT Bank Negara Indonesia (Persero), Tbk, as of the closing of the Meeting, with gratitude for the contribution of energy and thoughts given during his tenure as Commissioner of the Company.

2. To appoint Mr. Askolani as a Commissioner of the Company, with a term of office in accordance with the provisions of the Company’s Articles of Association and taking into account the laws and regulations in the Capital Market, without prejudice to the right of the General Meeting of Shareholders to dismiss at any time.

3. With the dismissal and appointment of the Members of the Board of Commissioners as referred to in numbers 1 and 2, the composition of the Company’s Board of Commissioners’ membership shall be as follows:

No. Position Name

1. President Commissioner/Independent Commissioner

Ari Kuncoro

2. Vice President Commissioner Hambra

3. Independent Commissioner Sigit Widyawan

4. Independent Commissioner Ahmad Fikri Assegaf

5. Independent Commissioner Revrisond Baswir

6. Independent Commissioner Pataniari Siahaan

7. Commissioner Askolani

8. Commissioner Joni Swastanto

9. Commissioner Ratih Nurdiati

4. The appointed members of the Board of Commissioners as referred to in number 2, can only carry out their duties as Commissioners after obtaining approval from the Financial Services Authority.

5. Members of the Board of Commissioners who are appointed as referred to in number 2 who still hold other positions that are prohibited by the legislation to be held concurrently with the position of a member of the Board of Commissioners in a State-Owned Enterprise, then the person concerned must resign or be dismissed from his position.

6. Approved to grant power of attorney with substitution rights to the Board of Directors of the Company to state the resolutions of the Meeting in the form of a Notarial Deed and to appear before a Notary or authorized official and make necessary adjustments or corrections if required by the competent authorities for the implementation of the Meeting’s decision.

b. Changes in the Composition of the Board of Directors1. Approved the respectful dismissal of Chess Budi Harto as Director of Micro, Small and Medium

Enterprises (MSME) and the Network of PT Bank Negara Indonesia (Persero) Tbk. as of the closing of this GMS, with thanks for the contribution of energy and thought given while serving as a member of the Company’s Board of Directors.

2. Agree on the transfer of duties of the names below:

No. Name Before after

1. Rico Rizal Budidarmo

Managing Director - Treasury &InternationalBanking

Managing Director - Risk Management

2. Bob Tyasika Ananta

Managing Director - Risk Management


3. Anggoro Eko Cahyo

Managing Director - Finance (CFO)


4. Tambok Parulian Setyawati


Managing Director - Micro, Small, Medium Enterprises&Networkywhichareappointed by each resolutions of the GMS of 2014 and of 2017 Financial Year, with the tenure continuing his/her tenure as Directors based on each GMS resolutions.





eXTraorDINary Gmsaugust 30, 2019

3. Approved the appointment of Mr. Ario Bimo as Finance Director, with a term of office in accordance with the provisions of the Company’s Articles of Association and taking into account the laws and regulations in the Capital Market sector, without prejudice to the right of the General Meeting of Shareholders to dismiss at any time.

4. With the dismissal, assignment and appointment of members of the Board of Directors as referred to in number 1, number 2 and number 3, the composition of the Company’s Board of Directors’ membership shall be as follows.

No. Position Name

1. President Director Achmad Baiquni

2. Vice President Director Herry Sidharta

3. Managing Director Finance Ario Bimo

4. Managing Director Risk Management Rico Rizal Budidarmo

5. Managing Director Treasury and International Banking

Bob Tyasika Ananta

6. Managing Director Consumer Business Anggoro Eko Cahyo

7. Managing Director Micro, Small and Medium Enterprises (MSMEs) and Network

Tambok P. Setyawati

8. Managing Director Information Technology and Operation

Dadang Setiabudi

9. Managing Director Human Capital and Compliance

Endang Hidayatullah

10. Managing Director Institutional Relation Adi Sulistyowati

11. Managing Director – Corporate Banking Putrama Wahju Setyawan

5. Appointed members of the Board of Directors as referred to in number 3, can only carry out their duties as members of the Board of Directors after obtaining approval from the Financial Services Authority.

6. Members of the Board of Directors who are appointed as referred to in number 3 who still hold positions in other positions that are prohibited by the legislation to be held concurrently with the positions of members of the Board of Directors of a State-Owned Enterprise, then the concerned must resign or be dismissed from his position.

7. Approve to grant power of attorney with the right of substitution to the Board of Directors of the Company to state the resolutions of the Meeting in the form of a Notarial Deed and to appear before a Notary or authorized officer and make necessary adjustments or corrections if required by the competent authorities for the purpose of carrying out the contents of the Meeting’s resolution.

Number of shareholders who submit questions and / or provide responsesnone.

voting resultIn Favour : 11,999,689,645 votes or 75,55% of all shares with voting rights present at the MeetingAgainst : 3,871,203,638 votes or 24.37% of all shares with voting rights present at the MeetingAbstain : 12,748,231 votes or 0.01% of all shares with voting rights present at the Meeting

follow upThe appointment of Mr. Askolanias the Commissioner and Mr. Ario Bimo as the Managing Director Finance of the Company has received FSA’s approval following the Fit and Proper Test. The Changes in the Nomenclature of the Board of Directors have been stated in the Decree of the Board of Directors No. KP/350/DIR/R dated September 4, 2019 concerning Organizational Structuring of BNI Directors.




aTTeNDaNCe of ComPaNy’s maNaGemeNT IN Gms

attendance of the Board of Commissioners at the annual Gms (13 may 2019)

No. Name Position attendance in Gms

1. Ari Kuncoro President Commissioner/ Independent Commissioner √

2. Wahyu Kuncoro Vice President Commissioner √

3. Pataniari Siahaan Independent Commissioner √

4. Revrisond Baswir Independent Commissioner √

5. Marwanto Harjowiryono Commissioner √

6. Joni Swastanto Commissioner √

7. Ahmad Fikri Assegaf Independent Commissioner √

8. Sigit Widyawan Independent Commissioner √

9. Bistok Simbolon Commissioner Absent

attendance of the Board of Directors at the annual Gms (13 may 2019)

No. Name Position attendance in Gms

1. Achmad Baiquni President Director √

2. Herry Sidharta Vice President Director √

3. Putrama Wahju Setyawan Managing Director Corporate Banking √

4. Catur Budi Harto ManagingDirectorSmallBusiness&Networks √

5. Tambok P. Setyawati Managing Director Retail Banking √

6. Rico Rizal Budidarmo ManagingDirectorTreasury&InternationalBanking √

7. Adi Sulistyowati Managing Director Institutional Relations √

8. Anggoro Eko Cahyo Managing Director Finance √

9. Bob Tyasika Ananta Managing Director Risk Management √

10. Dadang Setiabudi ManagingDirectorInformationTechnology&Operations

√

11. Endang Hidayatullah Managing Director Compliance √

attendance of the Board of Commissioners at the extraordinary General meeting of shareholders (30 august 2019)

No. Name Position attendance in eGms

1. Ari Kuncoro President Commissioner/ Independent Commissioner

√

2. Hambra* Vice President Commissioner √

3. Pataniari Siahaan Independent Commissioner √

4. Bapak Revrisond Baswir Independent Commissioner √

5. Bapak Joni Swastanto Commissioner √

6. Bapak Ahmad Fikri Assegaf Commissioner √

7. Bapak Sigit Widyawan Independent Commissioner √

8. Ratih Nurdiati* Independent Commissioner Absent

*) Undergoing FSA Fit and Proper Test.





attendance of the Board of Directors at extraordinary Gms (30 august 2019)

No. Name Position attendance in eGms

1. Achmad Baiquni President Director √

2. Herry Sidharta Vice President Director √

3. Putrama Wahju Setyawan Managing Director Corporate Banking √

4. Catur Budi Harto ManagingDirectorSmallBusiness&Networks √

5. Tambok P. Setyawati Managing Director Retail Banking √

6. Rico Rizal Budidarmo ManagingDirectorTreasury&InternationalBanking √

7. Adi Sulistyowati Managing Director Institutional Relations √

8. Anggoro Eko Cahyo Managing Director Finance √

9. Bob Tyasika Ananta Managing Director Risk Management √

10. Dadang Setiabudi ManagingDirectorInformationTechnology&Operations

√

11. Endang Hidayatullah Managing Director Compliance √

resoluTIoNs aND follows of The 2018 Gms

In 2018, BNI conducted 1 (one) GMS, namely the 2017 Annual General Meeting of Shareholders on March 20, 2018 with the following results and follow-up:

agenda I

resolution 1. Approve the Company’s Annual Report including the Supervisory Report that has been carried out by the Board of Commissioners for the fiscal year ending December 31, 2017, and ratified the Company’s Consolidated Financial Statements for the year ending December 31, 2017 that have been audited by the Public Accountant Office Purwantono,Sungkoro&Surja-memberfirmoftheErnst&YoungglobalnetworkaccordingtoReportNo.RPC-5575 / PSS / 2018 dated January 15, 2018 with a reasonable opinion in all material respects.

2. Ratified the Financial Statements of the Implementation of the Partnership and Community Development Program forthefiscalyearendingDecember31,2017,whichhasbeenauditedbyPurwantono,Sungkoro&Surja’sPublicAccountantsFirm-memberofErnst&Young’sglobalnetworkaccordingtoReportNo.RPC-5806/PSS/2018datedFebruary 26, 2018 with a fair opinion in all material respects..

3. Accept the Accountability Report on the Realization of the Use of Proceeds from the Public Offering of BNI Phase I Sustainable Bonds I in 2017 amounting to Rp3,000,000,000,000.00 (Three trillion Rupiah).

4. 4. Provide full release and discharge to all members of the Board of Directors and members of the Board of Commissioners (volledig acquit et de charge) of responsibility for management and supervision actions that have been carried out during the fiscal year ending December 31, 2017, to the extent that such actions are not acts criminal offenses, and such actions are reflected in the Annual Report, the Consolidated Financial Statements of the Company and the Financial Statements of the Implementation of the Partnership and Community Development Program for the fiscal year ending December 31, 2017.

voting result(Number of votes and Percentage)

In Favour : 16,294,383,042 votes or 99.78% of all shares with voting rights present at the MeetingAgainst : 9,994,200 votes or 0.06% of all shares with voting rights present at the MeetingAbstain : 25,507,400 votes or 0.16% of all shares with voting rights present at the Meeting

realization / follow-up Financial Statements and Annual Reports have been submitted to the Financial Services Authority and the Indonesia Stock Exchange on 18 January 2018 and 26 February 2018.

status Completed




agenda II

resolution Approve and determine the use of the Company’s Net Profit for the fiscal year ending December 31, 2017 in the amount of Rp13,616,475,751,928.00 (Thirteen trillion six hundred sixteen billion four hundred seventy-five million seven hundred fifty-one thousand nine hundred two twenty eight rupiah) henceforth referred to as “Net Profit for Fiscal Year 2017” as follows:1. Dividends of 25% or Rp3,404,118,937,982.00 (Three trillion four hundred four billion one hundred eighteen million

nine hundred thirty-seven thousand nine hundred eighty-two Rupiah) and a special dividend of 10% or Rp1,361,647 is added. 575,192.80 (One trillion three hundred sixty-one billion six hundred forty-seven million five hundred seventy-five thousand one hundred ninety-two point eighty cents Rupiah), so that the total dividend is 35% or Rp4,765,766,513,174.80 ( Four trillion seven hundred sixty five billion seven hundred sixty six million five hundred thirteen thousand one hundred seventy four point eighty cents Rupiah) is determined as cash dividends distributed to shareholders to be paid with the following conditions:a. Specifically the Government’s share of dividends on the ownership of 60% of shares will be deposited into the

State Treasury account.b. Grant authority and power to the Board of Directors of the Company with the right of substitution to determine

the schedule and procedure for the distribution of dividends for the 2017 fiscal year in accordance with applicable regulations.

2. 65% or Rp8,850,709,238,753.20 (Eight trillion eight hundred fifty billion seven hundred nine million two hundred thirty eight thousand seven hundred fifty three Rupiah point twenty cents) will be used as Retained Earnings Balance.


In Favour : 16,253,252,242 votes or 99.53% of all shares with voting rights present at the MeetingAgainst : 75,832,400 votes or 0.46% of all shares with voting rights present at the MeetingAbstain : 800,000 votes or 0.00% of all shares with voting rights present at the Meeting

realization / follow-up BNI has announced the Schedule and Procedure for Distribution of Cash Dividends for Fiscal Year 2017 on March 22, 2018 and has paid cash dividends to shareholders on April 20, 2018

status Completed

agenda III

resolution 1. Grant the authority and power to the Dwiwarna Series A Shareholders to determine the amount of tantiem for the 2017 fiscal year, as well as determine the salary / honorarium, benefits, facilities and other incentives for members of the Board of Commissioners for 2018.

2. Grant the authority and power of attorney to the Board of Commissioners by first obtaining written approval from the Dwiwarna Series A Shareholders to determine the amount of tantiem for the 2017 fiscal year, as well as to determine salaries / honorariums, benefits, facilities and other incentives for members of the Board of Directors for 2018.


In Favour : 15,711,499,429 votes or 96.21% of all shares with voting rights present at the MeetingAgainst : 606,898,813 votes or 3.72% of all shares with voting rights present at the MeetingAbstain : 11,486,400 votes or 0.07% of all shares with voting rights present at the Meeting

realization / follow-up • RUPSgrantauthorityandpowertotheDwiwarnaASeriesShareholderstodeterminetheamountoftantiemforthe2017 fiscal year, as well as determine salary / honorarium, benefits, facilities and other incentives for members of the Board of Commissioners for 2018, and

• TheGMSgrantedauthorityandpowertotheBoardofCommissionersbyfirstobtainingwrittenapprovalfromtheDwiwarna Series A Shareholder to determine the amount of tantiem for the 2017 fiscal year, as well as to determine salaries / honorariums, benefits, facilities and other incentives for members of the Board of Directors for 2018.

status Completed

agenda Iv

resolution 1. AppointPublicAccountantFirmPurwantono,Sungkoro&Surja-FirmamemberoftheErnst&Youngglobalnetwork,as a Public Accountant Office that will audit the Company’s Financial Statements and the Financial Statements for the Implementation of Partnership and Community Development Programs for Fiscal Year 2018.

2. Giving power of attorney to the Company’s Board of Commissioners to determine the honorarium and other requirements for the Public Accounting Firm, and to appoint a Substitute Public Accountant Office in the case of Purwantono,Sungkoro&SurjaPublicAccountantFirm-memberofErnst&Young’sglobalnetwork,forwhateverreason cannot be completed the audit of the Company’s Financial Statements and the Financial Statements of the Implementation of the Partnership and Community Development Program for Fiscal Year 2018, including determining the honorarium and other requirements for the substitute Public Accounting Firm.


In Favour : 15,640,575,837 votes or 95.78% of all shares with voting rights present at the MeetingAgainst : 688.508.805 votes or 4,22% of all shares with voting rights present at the MeetingAbstain : 800.000 votes or 0,00% of all shares with voting rights present at the Meeting

realization / follow-up Purwantono,Sungkoro&Surja(memberofErnstandYoung)PublicAccountantFirmshavecompletedtheCompany’saudit on January 24, 2019.

status Completed





agenda v

resolution Approved the Company’s Recovery Plan in order to meet POJK regulation No. 14 / POJK.03 / 2017.


In Favour: 16,305,925,487 votes or 99.85% of all shares with voting rights present at the MeetingAgainst : 23,159,155 votes or 0.14% of all shares with voting rights present at the MeetingAbstain : 800.000 votes or 0.00% of all shares with voting rights present at the Meeting

realization / follow-up The Company has implemented a Recovery Plan with due regard to OJK Regulation No. 14/POJK.03/2017 dated April 4, 2017 concerning the Action Plan (Recovery Plan) for Systemic Banks and fulfillment of obligations in the form of the Company’s Recovery Plan documents have received approval from the Ministry of SOEs.

status Completed

agenda vI

resolution 1. Approved to confirm the enactment of SOE State Minister Regulation Number: PER-02/MBU/7/2017 concerning the Second Amendment to SOE Ministerial Regulation Number: PER-09/MBU/07/2015 concerning Partnership Programs and Environmental Development Programs of State-Owned Enterprises and their amendments .

2. Giving power of attorney to the Board of Commissioners by first obtaining written approval from the Dwiwarna Series A Shareholder regarding the authority of the GMS as stipulated in SOE Ministerial Regulation Number: PER-09/MBU/07/2015 as amended lastly by SOE Ministerial Regulation Number: PER-02/MBU/7/2017, and the changes.


In Favour : 16,319,090,442 votes or 99,93% of all shares with voting rights present at the MeetingAgainst : 9,994,200 votes or 0,06% of all shares with voting rights present at the MeetingAbstain : 800,000 votes or 0.00% of all shares with voting rights present at the Meeting

realization / follow-up The Company has enacted the Minister of SOE Regulation Number: PER-02/MBU/7/2017 concerning the Second Amendment to the Minister of SOE Regulation Number: PER-09/MBU/07/2015 concerning the Partnership Program and the Environmental Management Program of State-Owned Enterprises in 2018 .

status Completed

agenda vII

resolution 1. Approve changes to the Company’s Articles of Association as long as they do not add to the rights of the Dwiwarna Series A Shareholders.

2. Agree to amend all provisions in the Articles of Association in connection with the changes referred to in item 1 of the above-mentioned decision.

3. To grant power and authority to the Directors of the Company with the right of substitution to take all necessary actions related to the decision of the agenda of this Meeting, including preparing and restating the entire Articles of Association of the Company in a Notarial Deed and submitting it to the authorized agency for approval and / or receipt of notification of changes to the Company’s Articles of Association, doing everything deemed necessary and useful for this purpose with none of which is excluded, including to make additions and / or changes in the Amendment to the Company’s Articles of Association if this is required by the competent authority.


In Favour : 12,014,624,743 votes or 73.57% of all shares with voting rights present at the MeetingAgainst : 4,301,745,199 votes or 26,34% of all shares with voting rights present at the MeetingAbstain : 13,514,700 votes or 0.08% of all shares with voting rights present at the Meeting

realization / follow-up Amendment to the Articles of Association set forth in Deed No. 52 dated May 22, 2018 made before Fathiah Helmi, SH, Notary in Jakarta, was approved by the Minister of Law and Human Rights of the Republic of Indonesia based on Decree No. AHU-0012962.AH.01.02. 2018 dated June 25, 2018 and the notice has been received and recorded in the Legal Entity Administration System database with a Letter of Notification of Amendment to Amendment to Articles of Association No. AHU-AH.01.03-0215738 and has been registered in Company Register No. AHU-0082015.AH.01.11.Tahun 2018 dated June 25, 2018

status Completed




agenda vIII

resolution 1. Respectfully dismiss these names below as members of the Company’s Board of Directors:a. Mr. Panji Irawan as Director;b. Mr. Imam Budi Sarjito as Director,

as of the closing of this Meeting with gratitude for the contribution of energy and thought given while serving as a member of the Company’s Board of Directors.

2. Change the nomenclature of the position of the Company’s Directors as follows:

No. Position To be

1. Managing Director Managing Director Corporate Banking

2. Managing Director Managing Director Retail Banking

3. Managing Director ManagingDirectorSmallBusiness&Networks

4. Managing Director ManagingDirectorTreasury&InternationalBanking

5. Managing Director Managing Director Finance

6. Managing Director ManagingDirectorInformationTechnology&Operations

7. Managing Director Managing Director Institutional Relations

8. Managing Director Managing Director Risk Management

9. Managing Director Managing Director Compliance

3. Transfer the assignments listed below as members of the Company’s Directors:

No. Name Previously To be

1. Putrama Wahju Setyawan

Managing Director Managing Director Corporate Banking

2. Catur Budi Harto Managing Director ManagingDirectorSmallBusiness&Networks

3. Rico Rizal Budidarmo Managing Director ManagingDirectorTreasury&InternationalBanking

4. Anggoro Eko Cahyo Managing Director Managing Director Finance

5. Adi Sulistyowati Managing Director Managing Director Institutional Relations

6. Bob Tyasika Ananta Managing Director Managing Director Risk Management

4. Appoint the names below as members of the Company’s Board of Directors:a. Ms. Tambok P.S. Simanjuntak as Director of Retail Bankingb. Mr. Endang Hidayatullah as Compliance Directorc. Mr. Dadang Setiabudi as Director of Information Technology and Operations.

The term of office of the appointed members of the Board of Directors expires until the closing of the 5th Annual GMS since the appointment concerned, namely the Annual GMS held in 2022, with due observance of the laws and regulations in the Capital Market and without prejudice to the right of the GMS to dismiss when -time.

5. To appoint Mr. Sigit Widyawan as the Independent Commissioner of the Company. The term of office of the Independent Commissioner appointed shall expire until the closing of the 5th Annual GMS

since the appointment concerned, namely the Annual GMS held in 2022, with due observance of the laws and regulations in the Capital Market and without prejudice to the right of the GMS to dismiss at any time .





agenda vIII

6. With the dismissal, change of nomenclature of position, assignment of duties and appointment of members of the Company’s Directors and Independent Commissioners, the composition of the Company’s Directors and Board of Commissioners shall be as follows:

Board of Directors

No. Name Position

1. Achmad Baiquni President Director

2. Herry Sidharta Vice President Director

3. Putrama Wahju Setyawan Managing Director Corporate Banking

4. Tambok P.S. Simanjuntak Managing Director Retail Banking

5. Catur Budi Harto ManagingDirectorSmallBusiness&Networks

6. Rico Rizal Budidarmo ManagingDirectorTreasury&InternationalBanking

7. Anggoro Eko Cahyo Managing Director Finance

8. Dadang Setiabudi ManagingDirectorInformationTechnology&

9. Adi Sulistyowati Managing Director Institutional Relations

10. Bob Tyasika Ananta Managing Director Risk Management

11. Endang Hidayatullah Managing Director Compliance

Board of Commissioners

No. Name Position

1. Ari Kuncoro President Commissioner/ Independent Commissioner

2. Wahyu Kuncoro Vice President Commissioner

3. Bistok Simbolon Commissioner

4. Marwanto Harjowiryono Commissioner

5. Revrisond Baswir Independent Commissioner

6. Joni Swastanto Commissioner

7. Pataniari Siahaan Independent Commissioner

8. Ahmad Fikri Assegaf Independent Commissioner

9. Sigit Widyawan Independent Commissioner

7. To grant power and authority to the Company’s Directors with the right of substitution to take all necessary actions related to the decisions of this agenda in accordance with applicable laws and regulations, including to state in a separate Notary Deed and notify the composition of the Directors and Board of Commissioners of the Company to the Ministry of Law and Human Rights, as well as requesting the Financial Services Authority to conduct a Fit&ProperTestofthecandidatesforDirectorsandtheBoardofCommissionersinaccordancewithapplicableregulations.


In Favour : 12,019,850,702 votes or 73.61% of all shares with voting rights present at the MeetingAgainst : 4,297,927,040 votes or 26.32% of all shares with voting rights present at the MeetingAbstain : 12,106,900 votes or 0.07% of all shares with voting rights present at the Meeting

realization / follow-up The appointed members of the Board of Commissioners and Directors of the Company have received approval from the Financial Services Authority. The appointment and composition of the Company’s Board of Commissioners and Directors has been stated in a separate notary deed and notified to the Ministry of Law and Human Rights.

status Completed




The Board of Commissioners is a Corporate Governance organ that has a duty of conducting supervision of the Bank’s policy and course of management in general, both regarding the Bank and the Bank’s business activities carried out by the Board of Directors and provide advice to the Board of Directors for the interest of BNI and in accordance with the purposes and objectives of the Bank.

leGal BasIs

The legal basis for the establishment and appointment of the Bank’s Board of Commissioners refers to several provisions, including Law of the Republic of Indonesia No. 40 of 2007 concerning Limited Liability Companies and other Legislation, specifically Financial Services Authority Regulation No. 33/POJK.04/2014 dated 8 December 2014 concerning the Board of Directors and the Board of Commissioners of Issuers or Public Companies and Financial Services Authority Regulation No. 55/POJK.03/2016 dated 7 December 2016 concerning Implementation of Governance for Commercial Banks.

sTruCTure aND ComPosITIoN of The BoarD of CommIssIoNers

1. The structure of the BNI Board of Commissioners consists of the President Commissioner, Deputy President Commissioner and Commissioner.

2. The composition of BNI’s Board of Commissioners consists of Non-Independent Commissioners and Independent Commissioners.

3. The Board of Commissioners is an assembly and therefore each member of the Board of Commissioners is prohibited from taking any action individually, but shall be based on Board of Commissioners resolution.

GuIDelINes aND ProCeDures for The BoarD of CommIssIoNers

The Guidelines and Procedures for the Board of Commissioners of BNI are stipulated in BNI Board of Commissioners Decree No. KEP/49/DK/2017 dated October 26, 2017, which basically regulates the following matters:1. Legal Basis; 2. Structure;3. Requirement for Members of the Board of

Commissioners,

4. Independent Commissioner;5. Duties, Authorities, Obligations and Responsibilities of

the Board of Commissioners; 6. Appointment and Dismissal of Members of the Board of

Commissioners; 7. Term of Office of the Board of Commissioners and

Vacant Position; 8. Board of Commissioners Meeting and Board of

Commissioners Meeting with the Board of Directors; 9. Division of Work and Working Time of the Board of

Commissioners;10. Secretariat of the Board of Commissioners and Secretary

of the Board of Commissioners;11. Corporate Values;12. Board of Commissioners’ Work Ethics and Prohibitions,13. Transparency.

DuTIes aND resPoNsIBIlITIes of The BoarD of CommIssIoNers

The Board of Commissioners has the duty and responsibility to supervise the management policies and courses in general, both regarding the Bank and the Bank’s business activities carried out by the Board of Directors and provide advice to the Board of Directors, including supervision of the implementation of the Company’s Long-Term Plan, Work Plan and Annual Budget of the Company, and provisions of the Articles of Association, Resolutions of the General Meeting of Shareholders (GMS), as well as the applicable laws and regulations for the interest of BNI and in accordance with the purposes and objectives of the Bank. The duties of the Bank’s Board of Commissioners are in line with the Law of the Republic of Indonesia No. 40 of 2007 concerning Limited Liability Companies and the Articles of Association of BNI.

In carrying out their duties, each member of the Board of Commissioners is obliged to:1. Comply with the Articles of Association and laws and

regulations, as well as the principles of professionalism, efficiency, transparency, independence, accountability, responsibility, as well as fairness and equality;

2. Have good faith, prudence and responsibility in carrying out their supervisory duties and providing advices to the Board of Directors for the interests of the Company and in accordance with the purpose and objectives of the Company.





In order to maintain objectivity and independency in performing the functions and duties of supervision, the Board of Commissioners is prohibited from involving in the decision-making for the Bank’s operational activities, except for:1. Provision of funds to related parties as stipulated in the

provisions on a legal lending limit of commercial banks; and

2. Other matters set forth in the Bank’s Articles of Association or Laws and Regulations.

The decision making of the Bank’s operational activities by the Board of Commissioners stated above is part of the Board of Commissioners’ supervisory duties, which does not eliminate the Board of Directors’ responsibilities for the Bank’s management activities.

BoarD of CommIssIoNers auThorITy

In accordance with the Bank’s Article of Association, the Board of Commissioners has the following authority:1. Examining books, letters, and other documents,

examining the cash for verification purposes and other securities, and examining the Bank’s assets;

2. Entering the yards, buildings, and offices used by the Bank;

3. Request explanation from the Board of Directors and/or other officials on any issues related to the Bank’s management;

4. Knowing all policies and actions that have been and will be carried out by the Board of Directors;

5. Requesting the Board of Directors and/or other officials under the Board of Directors, under the consent of the Board of Directors to attend the Board of Commissioners’ Meeting;

6. Appointing and dismissing a Secretary of the Board of Commissioners;

7. Temporarily dismissing a member of Board of Directors in accordance with the provisions stipulated in the Articles of Association;

8. Establishing an Audit Committee, Remuneration and Nomination Committee, Risk Monitoring Committee, and other committees if deemed necessary with due observance of the Bank’s capability;

9. Involving experts for certain matters and for a certain time period at the Bank’s expenses, whenever deemed necessary;

10. Performing Bank’s management in certain circumstances for a certain time period in accordance with the provisions stipulated in the Articles of Association;

11. Approving the appointment and dismissal of the Corporate Secretary and/or Head of the Internal Audit Unit;

12. Attending Meetings of the Board of Directors and providing insights on matters discussed;

13. Carrying out other supervisory authority as long as it is not in contrary to the laws and regulations, Articles of Association, and/or GMS resolutions.

BoarD of CommIssIoNers’ oBlIGaTIoNs

Board of Commissioners has the obligations to:1. Provide advice to the Board of Directors in conducting

the management of the Bank;2. Provide opinion and approval for the Bank’s Annual Work

Plan and Budget, as well as other work plans that are prepared by the Board of Directors, in accordance with the provisions of the Articles of Association;

3. Follow the Bank’s development, provide opinions and suggestions to the GMS on any matters deemed necessary for the management of the Bank;

4. Report to the Dwiwarna A Series Shareholders in the event of any declining tendency in the Bank’s performance;

5. Propose to the GMS the appointment of a Public Accountant Firm to audit the Bank’s books;

6. Examine and review the periodic report and Annual Report prepared by the Board of Directors, including signing the Annual Report;

7. Provide explanations, opinions, and suggestions to the GMS on the Annual Report, if requested;

8. Prepare Minutes of Board of Commissioners’ Meetings and keep a copy;

9. Report to the Bank on any personal and/or family share ownership in the Bank and any other Companies;

10. Provide a report on the supervisory duties that was performed in the previous fiscal year to the GMS;




11. Provide an explanation on all matters questioned or requested by Dwiwarna A Series Shareholders with due observance of the laws and regulations particularly those applicable in Capital Market sector;

12. Perform other obligations in the framework of supervisory and advisory duties as long as they do not violate the laws and regulations, Articles of Association, and/or GMS resolutions;

13. Grant approval in writing for legal acts performed by the Board of Directors as required in BNI’s Articles of Association with regard to the laws and regulations in the Capital Market sector: a. Release/transfer and/or pledge the Bank’s assets

with criteria and values exceeding certain amounts stipulated by the Board of Commissioners, except assets that are recorded as inventories, with due observance of the provisions in the capital market and banking sector;

b. Cooperate with other business entities or parties, in the form of joint operations (KSO), business cooperations (KSU), license agreements, Build, Operate, and Transfer (BOT), Build, Transfer, and Operate (BTO), Build, Operate, and Own (BOO), and other agreements that have the same nature, same time period, or value exceeding those set by the Board of Commissioners;

c. Establish and change the Bank’s logo;d. Establish an organizational structure 1 (one) level

below the Board of Directors;e. Undertake capital participation with specified value

as stipulated by the Board of Commissioners of other companies, subsidiaries, and joint ventures that are not in the framework of rescuing receivables with due observance of the provisions in Capital Market sector;

f. Establish subsidiary and/or joint venture company with certain value as stipulated by the Board of Commissioners with due observance of the provisions in Capital Market sector;

g. Propose the Bank’s representative as a candidate member of the Board of Directors and Board of Commissioners in a subsidiary that gives a significant contribution to the Bank, and/or has strategic value as stipulated by the Board of Commissioners;

h. Perform merger, consolidation, acquisition, spin-off, and liquidation of subsidiaries of joint-ventures with specified value as stipulated by the Board of Commissioners with due observance of the provisions in Capital Market sector;

i. Perform actions included in material transactions as stipulated by the laws and regulations in the capital market sector with certain values as determined by the Board of Commissioners, except such actions are included in material transactions excluded by the laws and regulations applicable in Capital Market sector;

j. Actions that are not stipulated in the RKAP;k. Actions to transfer include selling, releasing the right

to charge and/or not to charge again for:1) The principal of non-performing receivables

which has been written off in the framework of credit settlement, either partially or entirely;

2) The difference between the principal value of non-performing receivables that has been written off with transfer value including sales or with the value of disposal of right;

shall be carried out based on the Board of Directors’ policies that have been approved by the Board of Commissioners and in the amount of debt-canceled limit set by the GMS which shall remain in force until any new limit has been determined by the GMS.

The Board of Commissioners’ approval regarding letters a, b, e, f, g, and h above, with certain limits and/or criteria, is determined after obtaining the approval from the Dwiwarna Series A Shareholders. The determination of limits and/ or criteria by the Board of Commissioners for the matters referred to in letters a, b, e, f, g, and h above is done after obtaining the approval of the Dwiwarna Series A Shareholders.





DIvIsIoN of role aND resPoNsIBIlITIes of suPervIsIoN of eaCh memBers of The BoarD of CommIssIoNers

President Commissioners Duties1. Coordinating the implementation of duties of the Board of Commissioners;2. Chairing the Board of Commissioners’ Meeting;3. Signing written documents including correspondence with fellow Commissioners;4. Representing the Board of Commissioners in attending forum, meetings and events organized by the authorities,

Dwiwarna Series A Shareholders and other institutions;5. Representing the Board of Commissioners in chairing the General Meeting of Shareholders of the Company.

In addition to the duties and responsibilities as explained above, each member of the Bank’s Board of Commissioners has additional roles and responsibilities. The division of work of members of the BNI Board of Commissioners is, among others, carried out by determining the distribution of the positions of the members of the Board of Commissioners in Committees established by the Board of Commissioners to assist with the smooth running of their duties, namely the Audit Committee, the Risk Monitoring Committee, the Nomination and Remuneration Committee and the Integrated Governance Committee. The appointment of each member of the Board of Commissioners as a member of the committees is regulated in a Decree of the Board of Commissioners.

The appointment of members of the Board of Commissioners as members of the committees underwent changes as an adjustment to the needs and development of the latest conditions, including changes in the composition of the Board of Commissioners, where the latest changes in the composition of the Board of Commissioners as members of the committees during 2019 are as follows:

Name Position Period Distribution of Duties

Ari Kuncoro President Commissioner / Independent Commissioner

1 January 2019 - 31 December 2019 Chairman of the Nomination and Remuneration Committee

Wahyu Kuncoro*) Deputy President Commissioner

1 January 2019 - 13 May 2019 Member of the Nomination and Remuneration Committee

Revrisond Baswir Independent Commissioner 1 January 2019 - 31 December 20191 January 2019 - 31 December 20191 January 2019 - 31 December 2019

Member of the Nomination and Remuneration CommitteeChairman of the Risk Monitoring Committee

Pataniari Siahaan Independent Commissioner 1 January 2019 - 31 December 20191 January 2019 - 31 December 2019

Member of the Nomination and Remuneration CommitteeChairman of the Audit Committee

Joni Swastanto Commissioner 1 January 2019 - 31 December 20191 January 2019 - 31 December 2019

Member of the Nomination and Remuneration CommitteeMember of the Risk Monitoring Committee

Bistok Simbolon**) Commissioner 1 January 2019 - 13 May 20191 January 2019 - 13 May 2019

Member of the Nomination and Remuneration CommitteeMember of the Risk Monitoring Committee

Marwanto Harjowiryono***) 1 January 2019 - 30 August 2019

Member of the Nomination and Remuneration Committee

Ahmad Fikri Assegaf Independent Commissioner 1 January 2019 - 31 December 20191 January 2019 - 31 December 2019

Member of the Nomination and Remuneration CommitteeMember of the Audit Committee

Sigit Widyawan Independent Commissioner 1 January 2019 - 31 December 20191 January 2019 - 31 December 2019

Member of the Nomination and Remuneration CommitteeMember of the Audit Committee

Notes: *) Stopped serving as President Commissioner on 13 May 2019 **) Stopped serving as Commissioner on 13 May 2019***) Stopped serving as Commissioner on 30 August 2019.




CrITerIa of The BoarD of CommIssIoNers

Members of the Board of Commissioners shall be obliged to comply with the Law on Limited Liability Companies, legislation in the Capital Market and other applicable regulations and those related to the Company’s business activities.

Based on BNI’s Articles of Association, individuals who can be appointed as members of the Board of Commissioners are individuals who meet the requirements upon the appointment date and during their tenure:1. Having good character, morals, and integrity;2. Competent in carrying out legal actions;3. Within 5 (five) years before appointment and during his

tenure:a. Has not been declared bankrupt;b. Never become a member of Board of Directors and/

or Commissioners that was found guilty in causing a company to become bankrupt;

c. Never been convicted of any criminal offense that is detrimental to a country’s or financial sector’s financial position; and

d. Never become a member of the Board of Directors and/or Commissioners which during the terms of office:1) Did not hold an AGMS;2) His/her accountability as a member of the Board

of Directors and/or Commissioners was not accepted by the GMS or he/she did not submit his/her accountability as a member of the Board of Directors and/or Commissioners to the GMS; and

3) Had caused a company that obtained license, approval, or registration from the Financial Services Authority in not complying with its obligation to submit the annual report and/or financial report to the Financial Services Authority.

4. Having a commitment to comply with laws and regulations;

5. Having knowledge and / or expertise in the fields required by the Company;

6. Meet other requirements as regulated in applicable laws and regulations

7. Between members of the Board of Commissioners and between members of the Board of Commissioners and members of the Board of Directors are prohibited from having blood relations to the third degree, either in a straight line or sideways or in a relationship / relationship that arises due to marriage ties including in-laws or in-laws;

Terms of offICe of memBers of The BoarD of CommIssIoNers

The term of office of the Board of Commissioners is at most 2 (two) consecutive periods, with the following conditions:• MembersoftheBoardofCommissionersareappointed

for a term of office of the date as resolved by the GMS appointing them until the closing of the 5th (fifth) Annual GMS after the date of his/her appointment, on condition that they do not exceed 5 (five) years with regards to the laws and regulations in Capital Market, without prejudice to the right of GMS to dismiss him/her at anytime prior to the end of his/her terms of office.

• Aftertheendofhis/hertermsofoffice,thememberofthe Board of Commissioners may be reappointed for one term of office.

BoarD of CommIssIoNers aPPoINTmeNT ProCess

The appointment process of the candidates of BNI’s Board of Commissioners is carried out by referring to laws and regulations stipulating the appointment procedures of members of Board of Commissioners for Bank and SOE sectors, particularly:• State-OwnedEnterpriseMinisterRegulationsNo.

PER-02/MBU/02/2015 dated February 17, 2015, on the Requirements, Procedures for Appointment and Dismissal of Members of Board of Commissioners and Supervisory Board of State-Owned Enterprise;

• FinancialServicesAuthorityRegulationNo.27/POJK.03/2016 dated July 22, 2016, on Fit and Proper Test for Main Party of Financial Services Institution and Circular Letter of Financial Services Authority No. 39/SEOJK.03/2016 dated August 30, 2016 on Fit and Proper Test for Main Party of Financial Services Institution,

• TheprovisionsofappointmentofmembersofBoardof Commissioners stipulated in BNI’s Articles of Association.

Members of the Board of Commissioners are appointed by the GMS which are attended and approved by Dwiwarna A Series Shareholders and the meeting resolutions shall be approved by Dwiwarna A Series Shareholders with due observance to the provisions of the Articles of Association. GMS resolutions on appointment of members of Board of Commissioners also determines the effectiveness of the appointment. In the event that GMS does not adopt a resolution, then the appointment as member of the Board of Commissioners will be effective starting from the closing of the GMS. Submission of the proposal of candidate





member of Board of Commissioners to the GMS through Dwiwarna A Series Shareholders is carried out by observing the recommendations of the Nomination and Remuneration Committee.

The Financial Services Authority Regulation No. 27/POJK.03/2016 dated July 22, 2016, on Fit and Proper Test for the Main Party of Financial Services Institution, among others, regulates that candidate members of Board of Commissioners, who are included as BNI’s Main Party, which is a Financial Services Institution, must obtain approval from the Financial Services Authority before carrying out actions, duties, and functions as member of the Board of Commissioners. In order to provide such approval, the FSA conducts a fit and proper test to candidate members of the Board of Commissioners.

Members of the Board of Commissioners who have passed the fit and proper test without notes and have obtained approval from the Financial Services Authority shall indicate that such members of the Board of Commissioners have and fulfill the requirements of integrity, competency, and financial reputation in an adequate manner.

All members of BNI’s Board of Commissioners have passed the fit and proper test and received FSA approval to serve as members of BNI’s Board of Commissioners which can be seen in the table below:

Name Posiition organizer effective Date result


Financial Services Authority 14 March 2018 Passed

Wahyu Kuncoro*) Vice President Commissioner Financial Services Authority 25 January 201729 May 2017

Passed

Hambra**) Vice President Commissioner Financial Services Authority ---- -----

Revrisond Baswir Independent Commissioner Financial Services Authority 24 June 201525 January 2017

Passed

Pataniari Siahaan Commissioner Financial Services Authority 25 June 201525 January 2017

Passed

Bistok Simbolon***) Commissioner Financial Services Authority 10 May 2016 Passed

Joni Swastanto Financial Services Authority 20 April 2016 Passed

Marwanto Harjowiryono****)

Independent Commissioner Financial Services Authority 19 July 2017 Passed

Ahmad Fikri Assegaf Independent Commissioner Financial Services Authority 19 July 2017 Passed

Sigit Widyawan Commissioner Financial Services Authority 7 September 2018 Passed

Ratih Nurdiati Commissioner Financial Services Authority ---- ----

Askolani Commissioner Financial Services Authority 20 December 2019 Passed

Note:*) Terms of office as Vice President Commissioner of BNI ended on May 13, 2019**) Terms of office as Vice President Commissioner of BNI ended on November 18, 2019***) Terms of office as Commissioner of BNI ended on May 13, 2019****) Terms of office as Commissioner of BNI ended on August 30, 2019

All members of the Board of Commissioners are appointed in the GMS as set forth in the Minutes of the GMS. The basic information on the appointment of each member of the Board of Commissioners are as follows:

Name Postion legal Basis of appointment


GMS November 2, 2017

Wahyu Kuncoro *) Vice President Commissioner GMS March 10, 2016GMS 16 March 2017

Hambra **) Vice President Commissioner GMS May 13, 2019

Revrisond Baswir Independent Commissioner GMS March 17 2015GMS March 10, 2016




Name Postion legal Basis of appointment

Pataniari Siahaan Independent Commissioner GMS March 17 2015GMS March 10, 2016

Bistok Simbolon ***) Commissioner GMS January 12, 2016

Joni Swastanto Commissioner GMS March 16, 2017

Marwanto Harjowiryono ****) Commissioner GMS March 16, 2017

Ahmad Fikri Assegaf Independent Commissioner GMS March 16, 2017

Sigit Widyawan Independent Commissioner GMS March 20, 2017

Ratih Nurdiati Commissioner GMS May 13, 2019

Askolani Commissioner August 30, 2019

Note:* ) Terms of office as Vice President Commissioner of BNI ended on May 13, 2019**) Terms of office as Vice President Commissioner of BNI ended on November 18, 2019***) Terms of office as Commissioner of BNI ended on May 13, 2019****) Terms of office as Commissioner of BNI ended on August 30, 2019

orIeNTaTIoN aND INDuCTIoN ProGram for New CommIssIoNers

The orientation and induction program for new commissioners is carried out by handing out documents, presentations or providing explanations from the Board of Directors, Corporate Secretary, related Divisions or units, which generally include information/matters pertaining to:1. Vision, mission, the organizational structure of the bank, business activities and operational network;2. Annual Report, the Bank’s Work Plan and Budget (RKAP), and the Bank’s Business Plan (RBB), Bank’s Code of Ethics, BNI’s

Corporate Cultures, Boards of Commissioners Manual, Corporate Governance Handbook, and the Articles of Association.3. Good Corporate Governance (concurrent positions, share ownership, and independent commissioners);4. Board of Commissioners and Board of Directors’ duties, authority, and responsibilities, Board of Commissioners’ delegation

of authority and limits of authority in conducting supervisory duties on the bank based on the applicable laws and regulations;

5. Committees under the Board of Commissioners, which are established and directly responsible to the Board of Commissioners, Secretary of the Board of Commissioners, and Secretariat of the Board of Commissioners, which facilitates the duties of the Board of Commissioners;

6. Remuneration and facilities provided to members of the Board of Commissioners.

NumBer aND ComPosITIoN of The BoarD of CommIssIoNers

The number and composition of the Company’s Board of Commissioners underwent 4 (four) changes In 2019, as explained as follows:

Period 1 January 2019 – 13 may 2019During the period of 1 January 2019 – 13 May 2019, the Board of Commissioners consists of 9 (nine) persons, consisting of 1 (one) President Commissioner concurrently serving as Independent Commissioner, 1 (one) Vice President Commissioner, 4 (four) Independent Commissioners and 3 (three) Commissioners.

Name Position Domicile Date of appointment effective Date


Jakarta November 2, 2017 March 14, 2018

Wahyu Kuncoro*) Vice President Commissioner Jakarta March 10, 2016March 16, 2017

January 25, 2017May 29, 2017

Revrisond Baswir Independent Commissioner Jakarta March 17, 2015March 10, 2016

June 24, 2015January 25, 2017






Pataniari Siahaan Independent Commissioner Jakarta March 17, 2015March 10, 2016

June 25, 2015January 25, 2017

Bistok Simbolon*) Commissioner Jakarta January 12, 2016 May 10, 2016

Joni Swastanto Commissioner Jakarta March 10, 2016 April 20, 2016

Marwanto Harjowiryono Commissioner Jakarta March 16, 2017 July 19, 2017

Ahmad Fikri Assegaf Independent Commissioner Jakarta March 16, 2017 July 19, 2017

Sigit Widyawan Independent Commissioner Jakarta March 20, 2018 September 7, 2018

Note:*) Terms of office as Vice President Commissioner of BNI ended on May 13, 2019*) Terms of office as Commissioner of BNI ended on May 13, 2019

Period of 13 may 2019 – 30 august 2019During the period of 13 May 2019 – 30 August 2019, the Board of Commissioners consists of 9 (nine) persons, consisting of 1 (one) President Commissioner concurrently serving as Independent Commissioner, 1 (one) Vice President Commissioner, 4 (four) Independent Commissioners and 3 (three) Commissioners.




Hambra*) Vice President Commissioner Jakarta May 13, 2019 -

Revrisond Baswir Independent Commissioner Jakarta March 17, 2015March 10, 2016

June 24, 2015January 25, 2017

Pataniari Siahaan Independent Commissioner Jakarta March 17, 2015March 10, 2016

June 25, 2016January 25, 2017

Joni Swastanto Commissioner Jakarta March 10, 2016 April 20, 2016

Marwanto Harjowiryono**) Commissioner Jakarta March 16, 2017 July 19, 2017



Ratih Nurdiati*) Commissioner Jakarta March 13, 2019 -

Note:*) Serving as Vice President Commissioner of BNI since May 13, 2019**) Terms of office as Commissioner of BNI ended on August 30, 2019

Period of 30 august 2019 – 18 November 2019During the period of 30 August 2019 – 18 November 2019, the Board of Commissioners consists of 9 (nine) persons, consisting of 1 (one) President Commissioner concurrently serving as Independent Commissioner, 1 (one) Vice President Commissioner, 4 (four) Independent Commissioners and 3 (three) Commissioners.




Hambra*) Vice President Commissioner Jakarta May 13, 2019 -

Revrisond Baswir Commissioner Independent Commissioner

Jakarta March 17, 2015March 10, 2016

June 24, 2015January 25, 2017

Pataniari Siahaan CommissionerIndependent Commissioner

Jakarta March 17, 2015March 10,, 2016

June 25, 2016January 25, 2017

Joni Swastanto Commissioner Jakarta March 10 2016 April 20, 2016





Ahmad Fikri Assegaf Independent Commissioner Jakarta March16, 2017 July 19, 2017


Ratih Nurdiati**) Commissioner Jakarta May 13, 2019 -

Askolani***) Commissioner Jakarta August 30, 2019 December 20, 2019

Note: *) Serving as Vice President Commissioner since May 13 2019 and ending his terms of office as Commissioner of BNI on 18 November 2015 **) Serving as Commissioner since 13 May 2019 ***) Serving as Commissioner since 30 August 2019

Period of 18 November 2019 – 31 December 2019During the period of 18 November 2019 – 31 December 2019, the Board of Commissioners consists of 8 (eight) persons, consisting of 1 (one) President Commissioner concurrently serving as Independent Commissioner, 4 (four) Independent Commissioners and 3 (three) Commissioners.




Revrisond Baswir Commissioner Independent Commissioner


June 24 ,2015January 25, 2017

Pataniari Siahaan CommissionerIndependent Commissioner


June 25, 2016January 25, 2017

Joni Swastanto Commissioner Jakarta March10, 2016 April 20, 2016


Sigit Widyawan Independent Commissioner Jakarta March 20 ,2018 September 7, 2018

Ratih Nurdiati*) Commissioner Jakarta May 13, 2019 ---

Askolani**) Commissioner Jakarta August 30, 2019 December 20, 2019

Note: *) Serving as Commissioner since May 13 2019 **) Serving as Commissioner since 30 August 2019

CoNCurreNT PosITIoNs of BoarD of CommIssIoNers

The Board of Commissioners does not have concurrent positions that are prohibited based on the applicable laws and regulations. Board of Commissioners’ concurrent positions that are allowed based on the applicable Laws and Regulations are executed by the related members of Board of Commissioners by not ignoring the implementation of duties and responsibilities as members of the Bank’s Board of Commissioners.

Information about the concurrent positions of each member of the Bank’s Board of Commissioners, as follows:

Name

Directors in the state-owned enterprises,

regional-owned enterprises, Private-owned enterprises

management Board of political parties and / or candidates / members of

the DPr, DPD, DPrD level I, and DPrD level II and / or candidates for regional

head / deputy regional head

other positions in accordance with the

provisions in the legislation

other positions that can lead to a conflict of

interest

Ari Kuncoro No No No No

Wahyu Kuncoro *) No No No No

Hambra **) No No No No

Revrisond Baswir No No No No





Name

Directors in the state-owned enterprises,

regional-owned enterprises, Private-owned enterprises

management Board of political parties and / or candidates / members of

the DPr, DPD, DPrD level I, and DPrD level II and / or candidates for regional

head / deputy regional head

other positions in accordance with the

provisions in the legislation

other positions that can lead to a conflict of

interest

Pataniari Siahaan No No No No

Bistok Simbolom ***) No No No No

Joni Swastanto No No No No

Marwanto Harjowiryono ****) No No No No

Ahmad Fikri Assegaf No No No No

Sigit Widyawan No No No No

Ratih Nurdiati*) No No No No

Askolani No No No No

Note:*) Terms of office as Vice President Commissioner of BNI ended on May 13, 2019**) Terms of office as Vice President Commissioner of BNI ended on 18 November 2019***) Terms of office as Commissioner of BNI ended on 13 May 2019****) Terms of office as Commissioner of BNI ended on 30 August 2019

maNaGemeNT of CoNflICT of INTeresT of BoarD of CommIssIoNers

Conflict of Interest is a condition in which the Bank’s economic interests contradict personal economic interests. Regarding such matter, members of the Board of Commissioners are obliged to:1. Prioritize the Bank’s interests and not decrease the

Bank’s financial in the event of any conflict of interest;2. refrain from making decisions in situations and

conditions of conflict of interest;3. Disclose family relationship, financial relationship,

management relationship, ownership relationship with other members of Board of Commissioners and/or members of Board of Directors and/or the bank’s controlling shareholders and/or other parties in the framework of the Bank’s business;

4. Disclose decisions that shall be made in a condition with conflict of interest.

share owNershIP of BoarD of CommIssIoNersAs of 2019, all members of the Board of Commissioners do not own shares amounting to 5% or more of the paid-up capital, including types and number of shares in BNI, other Banks, Non-Bank Financial Institutions, and other Companies domiciled inside or outside the country.

ImPlemeNTaTIoN of DuTIes of The BoarD of CommIssIoNers

At the beginning of each year the Board of Commissioners prepares a Work Plan and Budget (RKA) for the Board of Commissioners submitted to the Board of Directors as a guideline in carrying out its duties, authorities and responsibilities. The preparation of the RKA is as required in:1. SOE Minister of State Regulation No. PER-01/MBU/2011

dated August 1, 2011 concerning the Implementation of Good Corporate Governance in State-Owned Enterprises as amended by State Minister of State-Owned Enterprises Regulation Number PER-09/MBU/2012 dated July 6, 2012 Article 12 paragraph (5) which regulates that the Board of Commissioners/Supervisory Board must prepare a work plan and annual budget of the Board of Commissioners / Supervisory Board which is an integral part and RKAP, and

2. Article 17 paragraph (2) of BNI’s Articles of Association which regulates that the Board of Commissioners must prepare a work program for the Board of Commissioners that is an inseparable part of the Company’s Annual Work Plan and Budget prepared by the Directors.




meChaNIsm of ImPlemeNTaTIoN of suPervIsory DuTIes of BoarD of CommIssIoNersBNI’s Board of Commissioners carries out its functions, duties and obligations through the following mechanisms:1. Through Board of Commissioners’ Meetings The Board of Commissioners’ Meetings that is carried

out internally by the Board of Commissioners, or by inviting Sectoral Director or Senior Executive Vice President related to the Meeting agenda, as well as the joint meeting between the Board of Commissioners and Board of Directors conducted on a regular basis.

2. Active roles of the Committees under the Board of Commissioners in assisting and supporting the duties of the Board of Commissioners, among others, are through the implementation of Committee meetings, evaluation, study or review of matters that become the duties of the Board of Commissioners.

3. Providing direction and opinion in writing to the Board of Directors as:a. Follow up on the resolutions of the Board of

Commissioners Meeting or the joint meeting of the Board of Commissioners and the Board of Directors

b. Responses to reports on the implementation of the Board of Directors duties or requests for approval, consultations or proposals submitted by the Board of Directors to the Board of Commissioners, as well as information on strategic and significant issues, based on the results of the evaluation and review of the Board of Commissioners on the written report on the implementation of the Directors’ duties to the Board of Commissioners.

4. Visiting the BNI work unit, as well as providing directives and opinions of the Board of Commissioners to the Directors based on the results of the Work visit.

realIZaTIoN of The BoarD of CommIssIoNers suPervIsIoN DuTIes

Throughout 2019, the Board of Commissioners has carried out its duties, obligations and responsibilities in order to supervise management policies and the management of the Bank in line with applicable laws and regulations, the Bank’s Articles of Association and Work Plans set at the beginning of the year, which are as follows:

1. Performing oversight functions of the Bank’s Business Plan (RBB), including:a. Directing, monitoring and evaluating the

implementation of the Bank’s strategic policies in 2019, including evaluating the Corporate Plan and

RBB as well as the 2019 financial performance every month;

b. Supervising the efforts to achieve the RBB, especially on the achievement of several important aspects of the business plan such as lending, improving asset quality, raising third party funds, productivity and efficiency;

c. Reviewing the Revised RBB of 2019-2022;d. Evaluating the realization of the Bank’s business

Plan (RBB) to be reported to the Financial Services Authority on each semester and submiting the RBB supervision report to the Financial Services Authority;

e. Reviewing and approving the RBB of 2020-2022.2. Evaluating BNI’s Consolidated Financial Performance on

monthly basis and submitting Performance Report to the Ministry of SOE on quarterly basis.

3. Reviewing financial information to be released by the Company.

4. Reviewing of the implementation of audit on the financial statements for fiscal year 2018 by the Public Accounting Firm (KAP) or other external parties.

5. Performing supervisory functions on the implementation of internal control at BNI, including by:a. Ensuring the implementation of internal control

systems at BNI has been running wellb. Ensuring that the Board of Directors monitor the

effectiveness of the implementation of the Internal Audit Work Unit (SKAI) or BNI Internal Audit Unit

c. Supervising the implementation of BNI Internal Audit Unit tasks, including:- Evaluating BNI’s internal control or Internal Audit

Unit;- Reviewing the audit plan and its implementation

as well as monitoring the follow-up of audit results from BNI’s Internal Audit Unit;

- Ensuring that the Board of Directors has followed up on audit findings and recommendations from BNI’s Internal Audit Unit, results of the supervision from the Financial Services Authority and/or other authority, findings from the Supreme Audit Agency, external auditors or the audit results from public accountants, among others by ensuring the Board of Directors follow up on audit findings both in writing and verbally;

- Reviewing the main results of the audit from the BNI Internal Audit Unit which is reported to the Financial Services Authority every semester.

6. Supervise, monitor and evaluate the Bank’s Sound Level for Semester II-2016 and Semester I-2017, and support the Board of Directors in taking the steps needed to maintain and / or improve the Bank’s Soundness.





7. Performing supervisory functions on BNI Risk Management and Integrated Risk Management, including:a. Evaluate the duties of the Board of Directors in

implementing Risk Management and provide direction for improvements in the implementation of Risk Management policies on a regular basis, so that the management of Bank activities and risks is carried out effectively;

b. Evaluate BNI’s Risk Management policy and Risk Management strategy;

c. Reviewing the Risk Profile on a quarterly basis, as well as periodically evaluating BNI’s position and risk development;

d. Ensuring that the Risk Management policies and processes are carried out effectively and integrated in the overall Risk Management process;

e. Evaluate and provide direction to improve the implementation of the Integrated Risk Management Policy periodically;

f. Give approval for the Integrated Risk Management Policy / Guidelines.

g. Ensuring the application of Integrated Risk Management in accordance with the characteristics and complexity of the business of the Financial Conglomerate and ensuring the implementation of Risk Management at each Financial Services Institution in the BNI Financial Conglomerate to support the implementation of Integrated Risk management effectively.

8. Performing supervisory functions over the implementation of compliance at BNI, including by:a. Evaluating the compliance function at BNI to

ensure that the compliance function at BNI has been carried out properly, as well as providing advice to the Directors to improve the quality of the implementation of the compliance function.

b. Reviewing the report on the implementation of the compliance function and the implementation of the Compliance Director’s duties which are submitted periodically by the Directors.

c. Monitor the implementation of the Anti Fraud Strategy, Anti Money Laundering and Preventing Terrorism Funding Program (APU-PPT), and Know Your Customer Principles.

9. With regard to the application of the principles and practices of the application of Good Corporate Governance (GCG):a. Ensuring the application of GCG principles and

practices at all levels of the BNI organization, as well as at Financial Services Institutions in the BNI Financial Conglomerate;

b. Overseeing the implementation of GCG in the BNI Financial Conglomerate, and evaluating / reviewing Integrated Governance Guidelines to improve it;

c. Encouraging the improvement of GCG practices by referring to the applicable laws and regulations and international best practices;

d. Reviewing the GCG implementation report submitted by the Board of Directors;

e. Monitoring the results of GCG self-assessment, as well as conducting self-assessment on the effectiveness of the GCG implementation by the Board of Commissioners including Committees under the Board of Commissioners every semester as required by the Financial Services Authority Regulations governing the implementation of GCG for Commercial Banks.

10. Monitor and evaluate the performance of subsidiaries, as well as the policies of the Board of Directors, related to creating synergies and strengthening the business of subsidiaries.

11. Evaluate, direct and monitor strategic plans, implementation of Information Technology and Bank policies related to BNI Information Technology.

12. Periodically reviewing progress reports on material matters.

13. Supervise the implementation of the prudent principle in granting credit facilities by the Board of Directors, including:a. Overseeing the implementation of credit and

financing plans as outlined in the RBB.b. Provide advice and opinions on the Board of

Directors’ decision regarding the granting of credit facilities above a certain amount that must be consulted with the Board of Commissioners.

c. Give approval for granting credit facilities to related parties which based on the applicable laws and regulations must obtain Board of Commissioners approval.

d. Conducting regular and periodic reviews of the development and follow-up of credits consulted with the Board of Commissioners.

e. Evaluate and approve credit policies and strategies in accordance with the obligations stipulated by the prevailing laws and regulations.

f. Conducting periodic reviews of the development and quality of the overall credit or financing portfolio, including Non-Performing Loans (NPLs).

14. Monitor and evaluate the development and management of Human Resources (HR) in particular with regard to the strategic function of Human Resources in supporting the achievement of the Bank’s performance.




15. Evaluate the implementation of the duties and responsibilities of the Sectoral Director on a regular basis, including the achievement of the work plan of the Sectoral Director, especially related to issues that are strategic and significant.

16. Reviewing the Performance of the Financial Institution Pension Fund (DPLK) as the DPLK Supervisory Board.

17. Monitor and regularly evaluate the implementation of remuneration policies and systems in BNI including the remuneration of the Directors and the Board of Commissioners and employees.

18. Give approval for matters that must obtain approval from the Board of Commissioners based on applicable laws and regulations and the Company’s Articles of Association, among others:a. BNI investment approval;b. Provision of credit to related parties;c. Approval on BNI Organizational Structuringd. Approval on the Revision of Bank BNI Business Plan

for 2019-2021e. Approval of BNI Bank Business Plan for 2020-2022f. Approval of BNI Corporate Plan 2019-2023g. Approval of BNI Recovery Plan Document h. Approval of Management of BNI Subsidiary

Companiesi. Approval of Company Policies or Guidelines based on

Financial Services Authority Regulations must obtain Board of Commissioners approval.

19. Submitting reports to the Ministry of SOEs, in the form of the Board of Commissioners’ response to BNI’s performance report every quarter, as a follow-up to the 2014 SOE Minister’s Letter to the BNI Board of Commissioners that in order to improve the effectiveness of supervision and guidance on BUMN performance, the Board of Commissioners is required to submit an opinion and responses to BNI’s performance reports for the quarterly period.

20. Organizing Board of Commissioners Meetings both internal meetings and by inviting members of the Board of Directors or related Sectoral Directors, as well as regular joint meetings between the Board of Commissioners and Directors to discuss certain aspects such as business, organizational, risk management, internal legal control and compliance, human resources, technology and others. The Board of Commissioners has held 38 (thirty eight) meetings of the Board of Commissioners and 12 (twelve) joint meetings between the Board of Commissioners and the Board of Directors.

21. Visiting Regional Offices or Branches to carry out supervisory functions.

DeCIsIoN of The BoarD of CommIssIoNers

In 2019, the Board of Commissioners of BNI has made a number of decisions in order to carry out the functions, duties and supervision of the management of the Bank as follows:1. Determination of Limit of Authority of the Board of

Directors which requiring written approval from the Board of Commissioners, Board of Commissioners and Series A Dwi Warna Shareholders, and Resolution of General Meeting of Shareholders.

2. Dismissal of Ms. Idayu Nilawati as the Secretary of the Nomination and Remuneration Committee.

3. Audit Committee Charter and the Audit Committee Code of Ethics of PT Bank Negara Indonesia (Persero) Tbk.

4. Confirming the dismissal of Mr. Bistok Simbolon as member of the Nomination and Remuneration Committee.

5. Confirming the dismissal of Mr. Bistok Simbolon as member of the Risk Monitoring Committee.

6. Confirming the dismissal of Mr. Wahyu Kuncoro as member of the Nomination and Remuneration Committee.

7. Confirming the Appointment of Brother Sigit Widyawan as member of the Risk Monitoring Committee

8. DeterminationofSalaryoftheBoardofDirectors&Honorarium of the Board of Commissioners in 2019 and Tantiem of the Board of Directors and Board of Commissioners for Work in 2018

9. Dismissal of Mr. Rizqullah as member of the Integrated Governance Committee.

10. Appointment of Mr. Max R Niode as a Member of the Integrated Governance Committee

11. Dismissal of Ms. Kartika Siwi as Independent Member of the Risk Monitoring Committee.

12. Appointment of Mr. Shahjehan Jimmy Azis as Independent Member of the Risk Monitoring Committee.

13. Confirming the dismissal of Mr. Marwanto Harjowiryono as Member of the Nomination and Remuneration Committee

14. Dismissal of Mr. Fahrudin as Secretary of the Board of Commissioners.

15. Appointment of Mr. Anas Puji Istanto as Secretary of the Board of Commissioners.

16. Extension of the Term of Office of Ms. Setyowati as Independent Member of the Integrated Governance Committee.





BoarD of CommIssIoNers ComPeTeNCy DeveloPmeNT

The Board of Commissioners’ competency development can be found in the Company Profile section of this Annual Report.

rIsK maNaGemeNT CerTIfICaTIoN

Name Position Certifitication


Level 2

Wahyu Kuncoro*) Deputy President Commissioner Level 1

Hambra**) Deputy President Commissioner Level 1

Revrisond Baswir Independent Commissioner Level 2

Pataniari Siahaan Independent Commissioner Level 2

Bistok Simbolon***) Commissioner Level 1

Joni Swastanto Commissioner Level 1

Marwanto Harjowirjono****) Commissioner Level 1

Ahmad Fikri Assegaf Independent Commissioner Level 2

Sigit Widyawan Independent Commissioner Level 2

Ratih Nurdiati*****) Commissioner Level 1

Askolani******) Commissioner Level 1

Notes: *) Ceased serving as Vice President Commissioner since May 13, 2019 **) Served as Vice President Commissioner since May 13, 2019 and has not been effective based on OJK Approval.

Ceased serving as Vice President Commissioner since November 18, 2019 ***) Ceased serving as Commissioner since May 13, 2019 ****) Ceased serving as Commissioner on August 30, 2019 *****) Served as Commissioner since May 13, 2019 and has not been effective based on OJK Approval ******) Served as Commissioner on August 30, 2019 and effectively served as Commissioner based on OJK Approval on December 20, 2019

BoarD of CommIssIoNers’ resIGNaTIoN aND DIsmIssal meChaNIsm

The mechanism for dismissal and resignation of the Board of Commissioners is based on BNI’s Articles of Association as follows:1. Members of the Board of Commissioners are appointed and dismissed by the GMS, where the GMS is attended by

Dwiwarna A Series shareholders and the Meeting’s resolution shall be approved by Dwiwarna A Series shareholders, by observing the provisions in the Articles of Association.

2. Members of the Board of Commissioners may at any time be dismissed based on the GMS resolution by stating the reasons. The reason for dismissal of the related member of the Board of Commissioners is carried out in the event that it is based on the fact that such member of the Board of Commissioners, among others:a. Fail to perform the duties properly;b. Violates the provisions of the Articles of Association and/or laws and regulations;c. Engages in action that harms the Company and/or State;d. Commits an action that violates ethics and/or properness that shall be respected as member of the Board of

Commissioners;e. Is found guilty by a Court decision that has had permanent legal force; orf. Resigns.

3. In addition to the aforementioned reasons for the dismissal of member of the Board of Commissioners, members of the Board of Commissioners may be dismissed by the GMS based on other reasons which are deemed appropriate by the GMS for the interests and objectives of the Company.




4. The decision to dismiss due to reasons as stated in point 2 letter a, b, c, and d is carried out after the relevant member is given opportunity to defend him/herself in the GMS.

5. Dismissal as referred to in letter c and e is a dishonorable discharge.

6. Among members of the Board of Commissioners and among members of the Board of Commissioners and members of the Board of Directors, there must be no blood relationship up to the third degree, either in a straight line or sideline, or a marriage relationship/family relationship arising from marital ties, including son/daughter-in-law or brother/sister-in-law ). In the event of such situation, the GMS has the authority to dismiss one of them.

7. A member of the Board of Commissioners has the right to resign from the position before the term of office ends by notifying in writing of the intention to the Company.

8. The Company must convene a GMS to resolve the resignation request of member of the Board of Commissioners no longer than 90 (sixty) days after receiving the resignation letter.

9. The Company must disclose the information to public and submit to FSA no later than 2 (two) business days after receiving such resignation request from the member of the Board of Commissioners as referred to in point 7 and the results of the GMS convention as referred to in point 8 above.

10. Before the resignation becomes effective, the relevant member of Board of Commissioners shall remain obligated to complete the duties and responsibilities in accordance with the Articles of Association and applicable Laws and Regulations.

11. The member of the Board of Commissioners who resigns as mentioned above can still be held accountable as member of the Board of Commissioners since the appointment until the approval date of the resignation at the GMS.

12. The release of the responsibilities of the resigning member of the Board of Commissioners is given after the Annual GMS releases him/her.

13. In the event that a member of Board of Commissioners resigns that causes the total number of Board of Commissioners to be less than 3 (three) people, then

such resignation becomes valid if it has been resolved by GMS and new member of Board of Commissioners has been appointed, therefore, the minimum requirements of the number of members of Board of Commissioners is satisfied.

14. The position of a member of the Board of Commissioners shall end in the event that:a. The resignation has become effective as referred to

in point 8 above. b. Pass away;c. The term of office ends;d. Terminated based on the GMS; ore. Declared bankrupt by a Commercial Court which

already has legal binding force; permanent or under-guarded based on a court decision;

f. No longer fulfills the requirements as a member of the Board of Commissioners based on Articles of Association and other laws and regulations.

15. Member of the Board of Commissioners who resigns before or after the term of office ends, unless due to death, shall still be responsible for actions whose accountability has not been received by the GMS.

ComPleTeNess of orGaNs of The BoarD of CommIssIoNers

In order to support the implementation of its duties, the Board of Commissioners is assisted by the Board of Commissioners’ organs consisting of Committees under the Board of Commissioners and the Secretariat of the Board of Commissioners. Based on the Regulation of the Minister of State Owned Enterprises No. PER-12/MBU/2012 dated 24 August 2012 concerning Supporting Organs for the Board of Commissioners/Board of Trustees of State-Owned Enterprises.

The supporting organs of the Board of Commissioners may consist of the Secretariat of the Board of Commissioners if necessary, Audit Committee, and other committees if necessary.





Committees under The Board of CommissionersCommittees under the Board of Commissioners consist of the Audit Committee (KA), the Risk Monitoring Committee (KPR), the Nomination and Remuneration Committee (KNR), and the Integrated Governance Committee (TKT). The establishment and implementation of Committees under the Board of Commissioners are carried out by observing the applicable laws and regulations, specifically the Financial Services Authority Regulations and the Minister of State-Owned Enterprises (BUMN) Regulations.

The Board of Commissioners establishes a guideline that regulates the procedures for appointment, dismissal, arrangement of duties and honorarium of members of the Committees under the Board of Commissioners which are continuously refined and updated in accordance with developments/ amendments in the applicable laws regulations and current conditions. The latest update was made in 2017, which was stipulated in the Decision Letter of the Board of Commissioners No. KEP/002/DK/2018 dated February 8, 2018, on “General Provisions for Appointment, Dismissal, Arrangement of Duties, and Honorarium of Members of Committees Under the Board of Commissioners” which basically includes the following `matters:a. Procedures for Appointment of Committee Membersb. The principal material that needs to be regulated in the

work agreement of the committee members who come from independent parties with BNI

c. Concurrent positions that regulate multiple positions which are permitted and which are prohibited for members of the Committee based on the applicable laws and regulations

d. The period of appointment/term of office of committee members

e. Division of duties and scope of duties of the Committeef. Committee members’ obligation to attend to the Companyg. Honorarium for Committee members who are from

independent partiesh. Evaluation/assessment of the performance of

Committee members who are from independent partiesi. Termination of Appointment of Committee membersj. Resignation of Committee members

work mechanism of Committees under The Board of CommissionersIn carrying out their duties, the Committees under the Board of Commissioners are guided by each Committee’s Charter. The committees under the Board of Commissioners carry out their duties in accordance with each Committee’s

Work Plan Program, which is established at the beginning of the year in order to assist the implementation of duties of the Board of Commissioners, by monitoring, reviewing, and providing advice or recommendations to the Board of Commissioners on matters relating to the functions and duties of the related committees through the following mechanism:a. The Committees conduct meetings either internally or by

inviting units and/or divisions and/or related unitsb. The Committees conduct a study/evaluation/review as

well as discussion/talk outside the meeting forum which if necessary a discussion is carried out with the related unit or divisions/units.

c. The results of a meeting or evaluation/review and discussion/talk outside the meeting forum are submitted by the Chair of the Committee to the Board of Commissioners as a report either in writing or in a meeting forum of the Board of Commissioners that discusses the related agenda.

d. Committees under the Board of Commissioners submit the realization report of work programs/activities every quarter to the Board of Commissioners.

Explanations and presentations on each Committee are given in separate chapters.

Performance assessment of Committees under Board of CommissionersThe Board of Commissioners is assisted by committees under the Board of Commissioners in carrying out their duties and responsibilities including the Audit Committee, the Nomination and Remuneration Committee, the Risk Monitoring Committee and the Integrated Governance Committee. In 2019, the Board of Commissioners considered that the committees had carried out their functions, duties and responsibilities as evident from:• TheachievementofallCommittees’WorkPlans/

Programs that have been set in early 2019, and• ImplementationofCommitteeMeetingsandthe

attendance of Committee members.

The programs / work plans of the committees are carried out through the mechanism of committee meetings, including by inviting the relevant Directorates or divisions / work units, and conducting in-depth reviews / evaluations by each committee outside the meeting forum, and the results of which are delivered in writing to the Board of Commissioners.




The Audit Committee has carried out its functions, duties and responsibilities including reviewing the financial information to be released by the Bank to the public and / or the Authority. The Audit Committee also reviews compliance with laws and regulations relating to the Bank’s activities, and evaluates the effectiveness of conducting audits / services provided by the Public Accounting Firm (KAP), including examining the independence and objectivity of KAP.

The Nomination and Remuneration Committee has also carried out its functions, duties and oversight responsibilities for the implementation of the nomination and remuneration policy at every level of the organization, starting from the Board of Commissioners, Directors and employees in accordance with applicable regulations.

The Risk Monitoring Committee has supported the Board of Commissioners in carrying out their duties and responsibilities related to the implementation of risk management in the Bank. Meanwhile, the Integrated Corporate Governance Committee oversees the consistency and sustainability of the implementation of integrated corporate governance in all groups of the Bank’s financial conglomerates.

Based on the realization of the completion of all programs / work plans, frequency, level of attendance of meetings and reports on the implementation of the activities of the committees under the Board of Commissioners, namely the Audit Committee, the Nomination and Remuneration Committee, the Risk Monitoring Committee and the Integrated Governance Committee, it can be concluded that each the committee has carried out its duties well.

assessment of Performance or evaluation of Independent members of The CommitteesThe committee chairperson evaluates the performance of committee members who come from independent parties every 6 (six) months and at any time. Evaluation of Performance Appraisal Indicators, including but not limited to competence and expertise, output quality, discipline and attendance of the relevant committee members in the company, as well as the implementation of duties and obligations in accordance with the committee’s charter and work procedures that apply to independent committee members under the Board commissioner.

The results of the evaluation and assessment referred to are submitted as recommendations to the Board of Commissioners to extend or continue or end the appointment of the relevant committee members to the company.

The Committee’s evaluation under the Board of Commissioners is carried out for Committee members from Independent Parties (not the Board of Commissioners). The assessment factors are:1. Tasks according to Committee Charter (weighting 25%)2. Competence and Skill (weight 30%)3. Output quality (30% weight)4. Attendance rate (15%)

mandatory attendance of Committee members who are from Independent PartyCommittee members who are from outside the company (independent members) have the obligation to regularly attend on the company’s working days and hours according to the days, number of days, and schedules set by the Board of Commissioners and/or the committee chair, among others, to attend Committee Meetings and carry out other duties, and must fill the attendance list at the Company in order to carry out duties other than attending committee meetings. If necessary, at the request of the Board of Commissioners and/or committee chair, Committee members who are from outside the company must also attend at the company or at Board of Commissioners’ Meetings or committee meetings, or at activities that must be attended by the Board of Commissioners in accordance with the requirements outside the frequency and such routine attendance schedule.

Explanations and exposures regarding each Committee are submitted in a separate sub-chapter in the Corporate Governance Section of this Annual Report.

secretariat of The Board of CommissionersThe Secretariat of the Board of Commissioners is led by a Secretary who is from outside the company assisted by the Secretariat staff of the Board of Commissioners. The implementation of functions and duties of the Secretariat of the Board of Commissioners and the Secretary of the Board of Commissioners is guided by SOE Minister Regulation that regulates the Supporting Organs of the Board of Commissioners/Board of Supervisors of State-Owned Enterprises.

Explanations and exposures of the Secretariat of the Board of Commissioners and the Secretary of the Board of Commissioners are presented in a separate sub-chapter.





CrITerIa of INDePeNDeNT CommIssIoNer

The composition of BNI’s Board of Commissioners has complied with the provisions of Financial Services Authority No. 55/POJK.03/2016 dated December 7, 2016, on Governance Implementation for Commercial Banks, regulating that the Independent Commissioner at the commercial bank must be 50% (fifty percent) of the total members of Board of Commissioners. The composition of BNI’s Commissioners per December 31, 2018, amounted to 8 (eight) persons consisting 5 (five) Independent Commissioners and 3 (three) Commissioners. Therefore, the composition of BNI’s Independent Commissioners is more than 50% of the total members of the Board of Commissioners. The number has complied with the Financial Services Authority.

The determination of BNI’s Independent Commissioner is carried out by observing and following the provisions governing the requirements and criteria of the Independent Commissioner in the applicable Laws and Regulations particularly:1. The Circular Letter of Financial Services Authority No.13/

SEOJK.03/2017 dated March 17, 2017 on Governance Implementation for Commercial Banks, which stipulates that Independent Commissioners are members of the Board of Commissioners who do not have financial relationship, management relationship, ownership relationship, and/or family relationship with members of the Board of Directors, other members of the Board of Commissioners, and/or controlling shareholders, or relationship with the Bank that can affect the ability to act independently. The definition of having financial relationship, management relationship, ownership relationship, and/or family relationship with members of the Board of Directors, other members of the Board of Commissioners, and/or controlling shareholders, or relationship with a bank that the ability to act independently is guided by the applicable Laws and Regulations, particularly the Circular Letter of Financial Services Authority on the Implementation of Governance for Commercial Banks.

2. Financial Services Authority Regulation (POJK) No. 33/POJK.04/2014 dated December 8, 2014, Article 1 paragraph (4) and Article 21 paragraph 2 regulating that:a. Independent Commissioner is a member

Independent Commissioner is a member of the Board of Commissioners from outside the issuer or public company requirements as an Independent Commissioner as referred to in POJK.

b. Independent Commissioner must meet the following requirements:- Not a person who works or has the authority and

responsibility to plan, lead, control, or supervise activities of the Issuer or Public Company within the last 6 (six) months, except for re-appointment as an Independent Commissioner of Issuer or Public Company in the next period;

- Does not have shares either directly or indirectly with the Issuer or Public Company;

- Has no Affiliation relationship with the Issuer or Public Company, members of the Board of Commissioners, members of the Board of Directors, or the main shareholders of the Issuer or Public Company; and

- Does not have a business relationship either directly or indirectly that is related to the business activities of the Issuer or Public Company.

3. Article 120 paragraph (1) and paragraph (2) of the Law on Limited Liability Company which states that:a. The Articles of Association of the Bank can regulate

the presence of 1 (one) Independent Commissioner and 1 (one) delegated commissioner.

b. Independent Commissioner is appointed based on GMS resolutions decision from parties with main shareholders, members of the Board of Directors, and/or other members of the Board of Commissioners.

4. Article 8 of Bank Indonesia Regulation No. 11/19/PBI/2009 dated June 4, 2009, on Risk Management Certion for Managers and Commercial Banks as amended by Bank Indonesia Regulation No. 12/7/PBI/2010 dated April 19, 2010, stating that each Independent Commissioner must have Level 2 Risk Management Certificate.

Independent Commissioner




sTaTemeNT of INDePeNDeNT CommIssIoNers

Each of the Bank’s Independent Commissioner has made an Independent Statement Letter, which has been submitted to the FSA as one of the requirements proper test at the FSA.


SURAT PERNYATAAN CALON KOMISARIS INDEPENDEN

Saya yang bertandatangan di bawah ini:

Nama : Ari Kuncoro

Jabatan : Calon Komisaris Utama/Komisaris Independen PT Bank Negara Indonesia (Persero) Tbk 1. Menyatakan bahwa saya merupakan pihak yang independen terhadap pemilik bank

atau Pemegang Saham Pengendali (PSP);

2. Menyatakan bahwa saya tidak memiliki hubungan keuangan, kepengurusan, kepemilikan saham, dan/atau hubungan keluarga dengan anggota Dewan Komisaris lainnya, anggota Direksi dan/atau PSP, atau hubungan lain yang dapat mempengaruhi kemampuan saya untuk bertindak independen.

Demikian surat pernyataan ini saya buat dengan sebenar-benarnya.

Mengetahui, Jakarta, 7 November 2017

Achmad Baiquni Ari Kuncoro Direktur Utama






Nama : Revrisond Baswir

Jabatan : Calon Anggota Dewan Komisaris Independen

Berkenaan dengan peralihan jabatan saya dari Komisaris menjadi Komisaris Independen PT. Bank Negara Indonesia (Persero) Tbk berdasarkan keputusan Rapat Umum Pemegang Saham Tahunan BNI tanggal 10 Maret 2016, saya menyatakan bersedia untuk mengundurkan diri sebagai anggota Komite Kebijakan Publik Kementerian Badan Usaha Milik Negara apabila peralihan jabatan tersebut disetujui oleh Otoritas Jasa Keuangan.


Yogjakarta, 28 April 2016

Revrisond Baswir



Nama : Pataniari Siahaan

Jabatan : Calon Komisaris Independen PT Bank Negara Indonesia (Persero) Tbk 1. Menyatakan bahwa saya merupakan pihak yang independen terhadap pemilik bank




Mengetahui Jakarta, 28 November 2016

Achmad Baiquni Pataniari Siahaan Direktur Utama






Nama : Ahmad Fikri Assegaf





Jakarta, 6 April 2017

Ahmad Fikri Assegaf



Nama : Sigit Widyawan





Mengetahui Jakarta, 25 Juni 2018

Achmad Baiquni Sigit Widyawan Direktur Utama




The Board of Directors is the Corporate Governance organ that is authorized and has full responsibility for the management of BNI and for BNI’s interests, in accordance with the purposes and objectives of the Company and represents the Company, both inside and outside the court in accordance with the provisions of the Articles of Association

In performing their duties, the Board of Directors shall devote their full energy, mind, attention, and dedication to perform their duties, obligations, and for the achievements of the Company’s objectives. Furthermore, members of Board of Directors shall comply with the Company’s Articles of Association and laws and regulations, as well asthe principles of professionalism, efficiency, transparency, independency, accountability, responsibility, and fairness. Each member of the Board of Directors shall perform the duties and responsibilities in good faith, with full responsibility and prudence, in accordance with the prevailing laws and regulations.

leGal BasIs

Based on Law No. 40 of 2007 on Limited Liability Company and Financial Services Authority Regulation No. 33/POJK.04/2014 on Board of Directors and Board of Commissioners of Issuers or Public Company, the Board of Directors has full authority over and is responsible for the Company including to represent the Company, either inside or outside court according to the provisions of the articles of associations.

GuIDelINes aND worK CoNDuCT of The BoarD of DIreCTors

Similar to the Board of Commissioners Charter, in order to improve the Board of Directors Charter and as an effort to implement GCG practices at BNI, an improvement was made to the Board of Directors Charter. The Guidelines of Work Conduct of the Board of Directors Charter have been ratified through BNI Board of Directors’ Decision Letter No. KP/228/ DIR/R dated June 29, 2018, therefore, the Board of Directors’ Decisions Letter No. KP/150/DIR/R dated April 11, 2016, had been revoked and declared invalid.

The Guidelines of Work Conduct of the Board of Directors regulate, among others, the Legal Basis, Structure, Requirements, Duties, Authority, and Responsibilities of the Board of Directors, Appointment and Dismissal of Members of the Board of Directors, Term of Office of Board of Directors, Establishment of Committees Under the Board of Directors, Board of Directors ‘Meetings, and Joint Meeting between the Board of Directors and the Board of Commissioners, Term of Office of the Board of Directors, Company Value, Board of Directors’ Ethics, Transparency, as well as Reporting and Responsibility.

In addition to a number of matters relating to work conduct as set out above, some of the main work guidelines of the Board of Directors that are regulated in the Guidelines of Work Conduct of the Board of Directors are described as follows.

DuTIes aND resPoNsIBIlITIes of The BoarD of DIreCTors

The Board of Directors has duties to perform all activities relating to the management and is responsible for the management of the Company for the Company’s interests in line with the Company’s purposes and objectives as well as to represent the Company inside or outside court on all matters and occurrences with certain limitations as stipulated by the laws and regulations, the Articles of Association, and/or GMS Resolutions.

sCoPe of worK, resPoNsIBIlITy, aND auThorITy of eaCh DIreCTor

The division of duties and authority of the Board of Directors, or in this case the Nomenclature of the Board of Directors, is amended and determined at the Annual GMS for Fiscal Year 2018 held on May 13, 2019 and the Extraordinary GMS for the year 2019 held on August 30, 2019, while the assignment of duties or respective sectoral Directors are determined based on Board of Directors’ Decree regarding Organizational Structure of BNI Directors.

In carrying out its duties and responsibilities, the Field Director has full authority over the SEVP, or the work unit under him and has the authority to act for and on behalf of the Board of Directors, as long as they do not deviate from:

Board of Directors




1. Resolution of General Meeting of Shareholders.2. The Company’s Articles of Association.3. Corporate Plan.4. General Policy of the Board of Directors (KUD), and5. Board of Directors’ specific policies stipulated in the Directors’ Meeting or in the Board of Directors’ Decree or in the other

written form.

As stipulated in Article 12 paragraph (20) of the Company’s Articles of Association, the distribution of duties and authority of each member of the Board of Directors is determined by the GMS. In the event that the GMS does not stipulate the distribution of duties and authority, the division of duties and authority among the Directors is determined based on the Board of Directors’ decision.

Throughout 2019, the division of duties and authority of the Board of Directors or in this case the Nomenclature of the Board of Directors was amended and determined at the 2018 Annual Fiscal Year General Meeting held on May 13, 2019 and the 2019 Extraordinary General Meeting of Shareholders held on August 30, 2019, while the assignment of duties or the respective sectors of the Directors are determined based on the Directors’ Decree concerning the Organizational Structure of the Directors of BNI.

Division of Duties and authorities of The Board of Directors for The Period of January 1, 2019 – may 13, 2019

No. Name Position sector

1. Achmad Baiquni President Director • InternalAuditUnit• CorporateSecretary&CommunicationDivision

2. Herry Sidharta Vice President Director • PolicyGovernanceDivision• SubsidiariesDevelopmentDivision

3. Anggoro Eko Cahyo Managing Director Finance • StrategicPlanningDivision• FinancialBudgeting&ControlDivision• Procurement&FixedAssetsDivision• DataManagementDivision

4. Putrama Wahju Setyawan Managing Director Corporate Banking • LocalCorporate&MultinationalCompany1Division• LocalCorporate&MultinationalCompany2Division• State-OwnedEnterprise&GovernmentInstitutionDivision• SyndicatedBusinessUnit

5. Catur Budi Harto Managing Director Small Business and Network

• SmallBusiness1Division• SmallBusiness2Division• ChannelManagementDivision• ServiceQualityUnit• BNIContactCenterUnit

6. Tambok P. Setyawati Managing Director Retail Banking • ConsumerProductManagementDivision• ConsumerSalesDistributionDivision• CardBusinessDivision• E-BankingDivision• MarketingCommunicationDivision

7. Rico Budidarmo ManagingDirectorTreasury&International

• TreasuryDivision• InternationalBankingDivision• PensionFundUnit

8. Endang Hidayatullah Managing Director Compliance • ComplianceDivision• LegalDivision• HumanCapitalDivision• BNICorporateUniversity

9. Dadang Setiabudi Managing Director Information Technology and Operation

• InformationTechnologySolutionsDivision• InformationTechnologyOperationDivision• BankingOperationDivision• E-ChannelUnit

10. Bob Tyasika Ananta Managing Director Risk Management • EnterpriseRiskManagementDivision• CorporateCreditRiskDivision• MiddleandSmallCreditRiskDivision• CreditAdministrationDivision• ConsumerLoanProcessing&CollectionDivision

11. Adi Sulistyowati Managing Director Institutional Relation

• InstitutionalRelationDivision• TransactionalBankingServicesDivision• WealthManagementDivision

Board of Directors





In carrying out its duties and responsibilities, the Board of Directors supervises the sevP in charge of the sector as follows:


1. Ronny Venir SEVP Medium Enterprises • SEVPMediumEnterprises• CustomerAnalysis&PortfolioManagementUnit

2. Yuddy Renaldy SEVP Remedial and Recovery Division*

• CorporateRemedialandRecoveryDivision• MiddleandSmallRemedialandRecoveryDivision

Annual GMS for Fiscal Year 2018 which was held on May 13, 2019 resolved on the changes to the nomenclature of the Board of Directors as follows

Change in Nomenclature of Directors

No. Previously after the Changes

1. Managing Director Corporate Banking Managing Director Corporate Banking

2. Managing Director Small Bussines and Network Managing Director Micro, Small, and Medium Enterprises (MSME) and Networks

3. Managing Director Retail Banking Managing Director Consumer Baking

4. ManagingDirectorTreasury&International ManagingDirectorTreasury&InternationalBanking

5. Managing Director Compliance Managing Director Human Capital and Compliance

Furthermore, referring to the Nomenclature, the GMS approved the assignment of members of the Board of Directors, as follows:

reassignment of members of the Board of Directors

No. Name Previous Position New Position

1. Putrama Wahju Setyawan Managing Director Corporate Banking Managing Director Corporate Business

2. Catur Budi Harto Managing Director Small Busines and Network

Managing Director Micro, Small and Medium Enterprises (MSME) Business and Networks

3. Tambok P. Setyawati Managing Director Retail Banking Managing Director Consumer Business

4. Rico Budidarmo ManagingDirectorTreasury&International ManagingDirectorTreasury&International

5. Endang Hidayatullah Managing Director Compliance Managing Director Human Capital and Compliance

with a term of office continuing the rest of their respective terms of office in accordance with the resolution of the GMS of the appointment concerned.

With the change in nomenclature of the position and reassignment of the members of the Board of Directors, the composition of the duties and responsibilities of the Board of Directors shall be as follows:




Division of Duties and authorities of The Board of Directors for The Period of 13 may 2019 - 30 august 2019


1. Achmad Baiquni President Director • InternalAuditUnit• DivisionofCorporateCommunicationandSecretariat

2. Herry Sidharta Vice President Director • DivisionofSubsidiaryDevelopment• AswellassupervisingtheSEVPRemedialandRecovery

Division, which supervising:• CorporateRemedialandRecoveryDivision• Medium&SmallBusinessesRemedialandRecoveryDivision

3. Anggoro Eko Cahyo Managing Director Finance • DivisionofStrategicPlanning• DivisionofBudgeting&FinancialControl• DivisionofAsset&ProcurementManagement• DivisionofDataManagement

4. Putrama Wahju Setyawan Managing Director Corporate Business

• DivisionofCorporate&MultinationalBusiness1• DivisionofCorporate&MultinationalBusiness2• ValueChainManagementUnit

5. Catur Budi Harto Managing Director Micro, Small and Medium Business and Network

• DivisionofMediumBusiness• DivisionofSmallBusiness1• DivisionofSmallBusiness2• AswellassupervisingtheSEVPNetwork,whichleads:• NetworkManagementDivision• CustomerServiceCenterUnit

6. Tambok P. Setyawati Managing Director Consumer Business

• ConsumerProductManagementDivision• ConsumerSalesDivision• CardBusinessDivision• E-BankingDivision• MarketingCommunicationDivision• WealthManagementDivision

7. Rico Budidarmo ManagingDirectorTreasury&International

• TreasuryDivision• InternationalDivision• FinancialInstitutionPensionFundUnit• InvestmentBankingDivision

8. Endang Hidayatullah Managing Director Human Capital and Compliance

• ComplianceDivision• LegalDivision• HumanCapitalManagementDivision• PolicyGovernanceDivision• BNICorporateUniversity


• InformationTechnologySecurity&SolutionsDivision• InformationTechnologyOperationsDivision• OperationsDivision• DigitalOperationsDivision• InformationSecurityUnit

10. Bob Tyasika Ananta Managing Director Risk Management • Bank’sRiskManagementDivision• CorporateCreditRiskDivision• MediumandSmallBusinessCreditRiskDivision• CreditAdministrationDivision• ConsumerCreditProcessing&CollectionDivision


• InstitutionalRelationsDivision• TransactionalBankingServicesDivision• DivisionofSOE&GovernmentInstitutions

Board of Directors




The Extraordinary General Meeting of Shareholders of 2019 held on 30 August 2019 resolved the change in the composition and transfer of assignment of members of the Board of Directors, as follows:

extraordinary Gms 2019

Dismissal appointment

Catur Budi Harto as Managing Director Micro, Small and Medium Enterprises (MSME)

Ario Bimo as Managing Director Finance

Transfer of Directors’ assignments

No. Name Previous Position New Position

1. Rico Budidarmo Managing Director Treasury and International

Managing Director Risk Management

2. Bob Tyasika Ananta Managing Director Risk Management Managing Director Treasury and International

3. Anggoro Eko Cahyo Managing Director Finance Managing Director Consumer Business

4. Tambok P. Setyawati Managing Director Consumer Business Managing Director Micro, Small and Medium Enterprises (MSME) and Network

Note: With the term of office continuing the remaining term of office in accordance with the GMS decision on the appointment.

With the dismissal, appointment and transfer of duties of the members of the Board of Directors, the division of duties and authority of the Board of Directors shall be as follows:

Division of Duties and authorities of The Board of Directors for The Period of 30 august 2019 - Now


1. Achmad Baiquni President Director • InternalAuditUnit• DivisionofCorporateCommunicationandSecretariat

2. Herry Sidharta Vice President Director • DivisionofSubsidiaryDevelopment• AswellassupervisingtheSEVPRemedialandRecovery

Division, which supervising:• CorporateRemedialandRecoveryDivision• Medium&SmallBusinessesRemedialandRecoveryDivision

3. Ario Bimo Managing Director Finance • DivisionofStrategicPlanning• DivisionofBudgeting&FinancialControl• DivisionofAsset&ProcurementManagement• DivisionofDataManagement

4. Putrama Wahju Setyawan Managing Director Corporate Business

• DivisionofCorporate&MultinationalBusiness1• DivisionofCorporate&MultinationalBusiness2• ValueChainManagementUnit

5. Anggoro Eko Cahyo Managing Director Consumer Business

• ConsumerProductManagementDivision• ConsumerSalesDivision• CardBusinessDivision• E-BankingDivision• MarketingCommunicationDivision• WealthManagementDivision

6. Tambok P. Setyawati Managing Director Micro, Small and Medium Business and Network

• DivisionofMediumBusiness• DivisionofSmallBusiness1• DivisionofSmallBusiness2• AswellassupervisingtheSEVPNetwork,whichleads:• NetworkManagementDivision• CustomerServiceCenterUnit





7. Rico Budidarmo Managing Director Risk Management • Bank’sRiskManagementDivision• CorporateCreditRiskDivision• MediumandSmallBusinessCreditRiskDivision• CreditAdministrationDivision• ConsumerCreditProcessing&CollectionDivision


• ComplianceDivision• LegalDivision• HumanCapitalManagementDivision• PolicyGovernanceDivision• BNICorporateUniversity


• InformationTechnologySecurity&SolutionsDivision• InformationTechnologyOperationsDivision• OperationsDivision• DigitalOperationsDivision• InformationSecurityUnit

10. Bob Tyasika Ananta ManagingDirectorTreasury&International

• TreasuryDivision• InternationalDivision• FinancialInstitutionPensionFundUnit• InvestmentBankingDivision


• InstitutionalRelationsDivision• TransactionalBankingServicesDivision• DivisionofSOE&GovernmentInstitutions

BoarD of DIreCTors auThorITy

In performing its duties, the Board of Directors has the authority to:1. Establish policies deemed appropriate in the

management of the Company;2. Arrange the transfer of power of the Board of Directors

to represent the Company inside and outside the court to a person or several persons who are specifically designated for such reason including the Company’s employee, either individually or jointly, and/or other entity;

3. Manage provisions on the Company’s employment affairs including determining salary, retirement, pension plan, and other income for the Company’s employees based on the applicable laws and regulations;

4. Appoint and dismiss Company’s employees based on the Company’s employment regulations and applicable laws and regulations;

5. Appoint and dismiss the Corporate Secretary and/or Head of Internal Audit Unit with the approval of the Board of Commissioners;

6. Write off bad debts based on provisions stipulated in the Articles of Association and subsequently report them to the Board of Commissioners, which shall subsequently be reported and accounted for in the Annual Report;

7. No longer collect interest receivables, fines, fees, and other receivables other than the principal that is carried

out in the framework of restructuring and/or settlement of receivables and other actions in order to settle the Company’s receivables, with the obligation to report to the Board of Commissioners, in which the provisions and procedures for reporting are determined by the Board of Commissioners.

8. Perform any actions and other activities regarding the management or ownership of the Company’s assets, bind the Company to other parties and/or other parties to the Company, as well as represent the Company inside or outside court in all matters and occurrences with limitations as stipulated under the laws and regulations, the Articles of Association, and/or GMS Resolutions.

BoarD of DIreCTors’ oBlIGaTIoNs

The Board of Directors has the obligation to:1. Promote and ensure the implementation of the

Company’s business and activities in accordance with its purposes and objectives as well as its business activities;

2. Establish in time the Company’s Long-Term Plan, the Company’s Annual Work Plan and Budget, and other work plans, and their amendments to be submitted to the Board of Commissioners for approval.

3. Prepare the Shareholders Register, Special Register, GMS Minutes, and Minutes of the Board of Directors’ meetings.

Board of Directors




4. Prepare Annual Report, which among others contains the Financial Statements, as a form of accountability of the Company’s management as well as the Company’s financial documents as referred to in Law on Company Documents;

5. Prepare Financial Statements in point 4 above based on the Financial Accounting Standards and submit them to Public Accountant to be audited;

6. Deliver the Annual Report after being reviewed by the Board of Commissioners within a maximum period of 5 (five) months after the Company’s fiscal year ends to the GMS for approval and ratification;

7. Provide explanation to the GMS on the Annual Report; 8. Deliver the Balance Sheet and Income Statement that

has been approved by the GMS to the Minister in charge of Law in accordance with the provisions of laws and regulations;

9. Prepare other reports mandated by the provisions of laws and regulations;

10. Maintain Shareholders Register, Special Register, GMS Minutes, Minutes of Board of Commissioners’ Meeting, and Minutes of Board of Directors’ Meeting, Annual Report, and Company’s financial documents as referred to in point 4 and point 5 above, and other Company’s documents.

11. Maintain the following matters in the Company’s domicile: Shareholders Register, Special Register, GMS Minutes, Minutes of Board of Commissioners’ Meeting, and Minutes of Board of Directors’ Meeting, Annual Report, and Company’s financial documents as well as other Company’s documents;

12. Procure and maintain the Company’s bookkeeping and administration according to norms applicable to a company;

13. Prepare an accounting system in accordance with the Financial Accounting Standards and based on the principles of internal control, especially the functions of handling, recording, storing, and supervising;

14. Provide periodic reports in the manner and time in accordance with the applicable provisions, as well as other reports anytime at the request of the Board of Commissioners and/or Shareholders of Dwiwarna SeriesA; by observing the laws and regulations particularly the regulations in Capital Market sector;

15. Prepare the Company’s organizational structure complete with the details and duties;

16. Provide explanation on all matters questioned or requested by members of the Board of Commissioners and Shareholders of Dwiwarna Series A, by observing the laws and regulations particularly in Capital Market sector.

17. Perform other obligations in accordance with the provisions stipulated in the Articles of Association and those of stipulated by the GMS.

DIreCTor IN CharGe of ComPlIaNCe fuNCTIoN

As the complexity of the Bank’s business activities as a bank and a public company increases, mitigation of risks that may be faced by the Bank is needed. To mitigate the risk of such business activities, various preventive (ex-ante) and curative (expost) efforts are necessary. As part of preventive (ex-ante) efforts, the Bank always adheres to various applicable banking rules to reduce or minimize the risk of the bank’s business activities.

In this regard, the Board of Directors has an obligation to grow and realize the implementation of Compliance Culture at all organizational levels and the Bank’s business activities.

In order to enforce the Bank’s compliance function, the Bank has a Director in charge of compliance function, in which its function is guided by the Financial Services Authority Regulation No. 46/ POJK.03/2017 on Implementation of Compliance Function of Commercial Bank and Board of Directors Work Conduct.

requirements for Director In Charge of Compliance function

In relation to its function, the candidate for Director in charge of compliance function shall fulfill the following requirements:

1. Candidate for Director in charge of compliance function must have sufficient integrity and knowledge on the provisions of the Financial Services Authority, Bank Indonesia, and applicable laws and regulations.

2. The Director in charge of Compliance Function must fulfill the independence requirement.

3. The “independence requirement” means not having financial, management, share ownership, and/or family relationship up to second degree with members of Board of Commissioners, Board of Directors, and/ or Controlling Shareholders or relationship with the Bank, which may affect the ability to act independently as stipulated in the provisions of Good Corporate Governance Implementation for Commercial banks.




structure1. The President Director and/or Vice President Director

are not permitted to hold concurrent positions as Director in charge of Compliance Function.

2. The Director in charge of Compliance Function is prohibited to be in charge of the following functions:• Businessandoperations• Riskmanagementrelatedtodecision-makingfor

the Bank’s business activities• Treasury• Financeandaccounting• Logisticandgoodsorservicesprocurement• Informationtechnology,and• Internalaudit.

3. Replacing Director who is in charge of compliance function:• IntheeventthattheDirectorinchargeof

Compliance function cannot carry out the office duties for more than 7 (seven) consecutive business days, the implementation of the relevant duties must be temporarily replaced by another Director until the Director in charge of Compliance function can carry out the duties again.

• IntheeventthattheDirectorinchargeofCompliance function is unable to remain in duty, resigns, or finishes the term of office, the Bank must immediately appoint a replacement Director in charge of Compliance function no later than 6 (six) months after the Director in charge of Compliance function is unable to remain in duty, resigns, or finishes the term of office.

• DuringtheprocessofreplacingtheDirectorincharge of Compliance function, the Bank must appoint or assign one of the other Directors to temporarily carry out the duties of the Director in charge of Compliance function.

• TheDirectorwhocarriesoutthetemporaryassignment as the Director in charge of Compliance function must fulfill the above conditions, it is excluded if there is no Director in the Bank who fulfills the conditions referred to.

• TemporarysubstitutionofthepositionofDirectorin charge of Compliance function as referred to must be reported to the Financial Services Authority.

Duties and responsibilities of The Director In Charge of Compliance functionThe duties and responsibilities of the Director in charge of Compliance function, shall at least include:1. Formulating strategies to encourage the creation of the

Bank’s Compliance Culture.2. Proposing compliance policies or compliance principles

to be stipulated by the Board of Directors.3. Establishing compliance systems and procedures to be

used to develop the Bank’s internal rules and guidelines.4. Ensuring that all policies, regulations, systems, and

procedures as well as business activities conducted by the Bank are in accordance with provisions of the Financial Services Authority, Bank Indonesia, and the applicable laws and regulations.

5. Minimizing the Bank’s Compliance Risk.6. Taking precautionary measures so that the policies and/

or decisions taken by the Bank’s Board of Directors do not deviate from the provisions of the Financial Services Authority, Bank Indonesia, and the applicable laws and regulations.

7. In the context of implementing the Anti Money Laundering (APU) and Prevention of Terrorism Funding (PPT) Program, the Compliance Director has at least the duties and responsibilities to:• Recommendstrategicwrittenpoliciesand

procedures on implementation of APU and PPT programs to the Board of Commissioners;

• Ensurethattherearediscussionsrelatedtomoneylaundering and/or terrorism financing in meetings of Board of Directors and Board of Commissioners;

• DeterminethenecessarystepstoensurethattheBank has complied with Bank Indonesia regulations on APU and PPT and other relevant laws and regulations;

• EnsurethecoverageoftheBoardofDirectors’activesupervision has been adequately fulfilled;

• MonitorandmaintaintheBank’scompliancewithallcommitments made by the Bank to Bank Indonesia, among others, commitments in Action Plan, Report on Data Updating Activity Plan, and Bank Indonesia monitoring results related to the implementation of APU and PPT Programs;

• MonitorthedutyimplementationoftheSpecialWork Unit and/or Bank officials responsible for the implementation of APU and PPT;

• RecommendthePresidentDirectoronofficialswho will lead the Special Work Unit or officials responsible for implementing APU and PPT Programs;

Board of Directors




• ApproveSuspiciousFinancialTransactionReport(LTKM);

• ProposeActionPlanReportandDataUpdatingPlanReport before being submitted to Bank Indonesia.

8. The in charge of Compliance Function must submit the reports to Bank Indonesia on the duty implementation that cover:• ComplianceWorkPlancontainedintheBank’s

Business Plan;• ComplianceReport;and• SpecialReportonpoliciesand/ordecisionsofthe

Board of Director in which according to the Director in charge of Compliance Function has deviated from Bank Indonesia regulations and/or the applicable laws and regulations, as part of the duties of the Director in charge of Compliance Function.

9. Reporting the implementation of duties and responsibilities to the President Director with copies to the Board of Commissioners at least in a quarterly manner.

10. Performing other duties related to Compliance Function.

CrITerIa aND Term of offICe of The BoarD of DIreCTors

Those who can be appointed as members of the Board of Directors are individuals who satisfy the following requirements upon appointment and during the term of office:1. has good character, morals, and integrity;2. proficient in performing legal actions;3. within 5 (five) years before appointment and during the

term of office:a. never been declared bankrupt;b. never become a member of Board of Directors and/or

a member of Board of Commissioners who is found guilty of causing a company to be declared bankrupt;

c. never been punished for committing a criminal act that is detrimental to state finances and/or related to the financial sector;

d. never been a member of Board of Directors and/or a member of Board of Commissioners who during the term of office:• HasevernotconvenedanannualGMS;• theaccountabilityasamemberofBoardofDirectors

and/or a member of Board of Commissioners has ever not been accepted by GMS or has ever not presented the accountability as a member of Board of Directors and/or a member of Board of Commissioners to GMS; and

• hasevercausedacompanythatobtainspermit,approval, or registration from FSA not fulfilling its obligation to submit its annual report and/or financial statements to FSA.

4. has a commitment to comply with the laws and regulations;

5. has knowledge and/or expertise in the field required by the Company; and

6. meets other requirements as stipulated in:a. Law on Limited Liability Company (UUPT);b. laws and regulations in Capital Market sector; andc. other applicable laws and regulations and those

related to the Company’s business activities.

The term of office of the Board of Directors is at most 2 (two) consecutive periods, under the following conditions:1. The members of the Board of Directors are appointed

for the period commencing from the date determined by the GMS that appoints them and ends at the closing of the 5th (fifth) Annual GMS after the appointment date, by observing the laws and regulations in Capital Market sector, but without reducing the right of the GMS to dismiss at any time the members of the Board of Directors before their term of office ends.

2. Dismissal is effective from the closing of the GMS, unless otherwise determined by the GMS.

3. After the term of office ends, the members of the Board of Directors may be reappointed by the GMS for 1 (one) term of office.




BoarD of DIreCTors NumBer aND ComPosITIoN

In 2019, the composition and number of members of the BNI Board of Directors changed several times. Changes also occur in the nomenclature of the position and the transfer of positions of members of the Board of Directors, with the aim of optimizing the performance of the Bank.

Period 1 January 2019 - 13 may 2019In this period, the Board of Directors consisted of 10 (ten) persons, namely 1 (one) President Director, 1 (one) Vice President Director, and 8 (eight) Directors.


Achmad Baiquni President Director Jakarta 17 March 2015 16 April 2015

Herry Sidharta Vice President Director Jakarta • 17March2015(appointedasDirector)

• 16March2017(reassignedasVice President Director)

22 May 2015

29 May 2017

RIco RIzal Budidarmo ManagingDirectorFinance&CreditRisk

Jakarta 17 March 2015 16 April 2015

Bob Tyasika Ananta ManagingDirectorPlanning&Operational


Adi Sulistyowati ManagingDirectorInstitutional&Transactional Banking Relations

Jakarta 17 March 2015 22 May 2015

Anggoro Eko Cahyo Managing Director Consumer Business


Imam Budi Sarjito ManagingDirectorCompliance&Corporate Risk


Panji Irawan ManagingDirectorTreasury&International

Jakarta 12 January 2016 11 April 2016

Putrama Wahju Setyawan Managing Director Medium Business Jakarta 10 March 2016 15 July 2016

Catur Budi Harto ManagingDirectorSmallBusiness&Network

Jakarta 16 March 2017 19 July 2017

Endang Hidayatullah Managing Director Compliance Jakarta 20 March 2018 5 Juli 2018

Board of Directors




Period of 13 may 2019 – 30 august 2019In this period, the Board of Directors consisted of 11 (ten) persons, namely 1 (one) President Director, 1 (one) Vice President Director, and 9 (nine) Directors.

Name Position Domicile appointment Date effective Date




22 May 2015

29 May 2017

Putrama Wahju Setyawan Managing Director Corporate Business


Catur Budi Harjo Managing Director Micro, Small and Medium Enterprises (MSME) Business and Networks


Tambok Parulian Setyawati Managing Director Consumer Business

Jakarta GMS 20 March 2018 5 July 2018

Rico Rizal Budidarmo Managing Director Treasury and International


Endang Hidayatullah Managing Director Human Capital and Compliance


Dadang Setiabudi Managing Director Information Technology and Operations


Bob Tyasika Ananta Managing Director Risk management Jakarta 17 March 2015 16 April 2015

Adi Sulistyowati Managing Director Institutional Relations


Anggoro Eko Cahyo Managing Director Finance Jakarta 17 March 2015 22 May 2015

Period of 30 august 2019 – 31 December 2019In this period, the Board of Directors consisted of 11 (ten) persons, namely 1 (one) President Director, 1 (one) Vice President Director, and 9 (nine) Directors.

Name Position Domicile appointment Date effective Date




22 May 2015

29 May 2017

Ario Bimo Managing Director Finance Jakarta 30 August 2019 26 November 2019

Rico Rizal Budidarmo Managing Director Risk Management Jakarta 17 March 2015 16 April 2015

Bob Tyasika Ananta Managing Director Treasury and International




Tambok P. Setyawati Managing Director Micro, Small and Medium Enterprises (MSMEs) and Networks




Endang Hidayatullah Director of Human Capital and Compliance




Putrama Wahju Setyawan Managing Director Corporate Business





leGal BasIs of aPPoINTmeNT of The BoarD of DIreCTors

In accordance with Article 11 paragraph (10) of the Company’s Articles of Association, members of the Board of Directors are appointed and terminated by the GMS. The appointment of each member of the Board of Directors can be described as follows:

No. Name Position legal Basis of appointment

1. Achmad Baiquni President Director GMS 17 March 2015

2. Herry Sidharta Vice President Director GMS 17 March 2015 then reassigned from previously Director to Vice President Director on GMS 16 March 2017 with terms of office continuing that of the position of Director appointed in GMS 17 March 2015.

3. Ario Bimo Managing Director Finance Extra Ordinary GMS 30 August 2019

4. Putrama Wahju Setyawan Managing Director Corporate Business GMS 10 March 2016

5. Anggoro Eko Cahyo Managing Director Consumer Business GMS 17 March 2015

6. Tambok P. Setyawati Managing Director Micro, Small and Medium Enterprises (MSMEs) and Networks

GMS 20 March 2018

7. Rico Budidarmo Managing Director Risk Management GMS 17 March 2015


GMS 20 March 2018

9. Dadang Setiabudi Managing Director Information Technology and Operations

GMS 20 March 2018

10. Bob Tyasika Ananta Managing Director Treasury and International

GMS 17 March 2015

11. Adi Sulistyowati Managing Director Institutional Relations GMS 17 March 2015

12. Catur Budi Harto* Managing Director Micro, Small and Medium Enterprises (MSMEs) and Networks **

GMS 16 March 2017

Note: *) Resigned on 30 August 2019**) Last position in the Company

assessmeNT of CaPaBIlITy aND ComPlIaNCe

Appointment of members of the Board of Directors is effective after obtaining approval from the Financial Services Authority for the Fit and Proper Test in accordance with the Financial Services Authority Regulation Number 27/POJK.03/2016 concerning Capability and Compliance Assessment for Main Parties of Financial Services Institutions and fulfilling applicable laws and regulations. To be able to take part in the Fit and Proper Test process, the Company submits an application for obtaining approval from prospective members of the Board of Directors to the Financial Services Authority.

Table of fit and Proper Test

No. Name Position assessor effective Date is Based on fsa letter

1. Achmad Baiquni President Director Financial Services Authority 16 April 2015

2.Herry Sidharta*

Managing Director Corporate Business Financial Services Authority 22 May 2015

3. Vice President Director Financial Services Authority 29 May 2017

4. Ario Bimo Managing Director Finance Financial Services Authority 26 November 2019

5. Putrama Wahju Setyawan Managing Director Corporate Business Financial Services Authority 15 July 2016

6. Tambok P.S. Simanjuntak Managing Director Micro, Small and Medium Enterprises (MSME) and Networks Financial Services Authority 5 July 2018

7. Rico Rizal Budidarmo Managing Director Risk Management Financial Services Authority 16 April 2015

Board of Directors




Table of fit and Proper Test

No. Name Position assessor effective Date is Based on fsa letter

8. Anggoro Eko Cahyo Managing Director Consumer Business Financial Services Authority 22 May 2015

9. Dadang Setiabudi ManagingDirectorInformationTechnology&Operations Financial Services Authority 5 July 2018

10. Adi Sulistyowati Managing Director Institutional Relations Financial Services Authority 22 May 2015

11. Bob Tyasika Ananta Managing Director Treasury and International Financial Services Authority 16 April 2015

12. Endang Hidayatullah Managing Director Human Capital and Compliance Financial Services Authority 5 July 2018

13. Catur Budi Harto** Managing Director Micro, Small and Medium Enterprises (MSME) and Networks *** Financial Services Authority 19 July 2017

Note: * Assigned from Director to Deputy President Director at the Annual General Meeting of Shareholders on March 16, 2017 ** Resigned on August 30, 2019 *** Last position in the Company

orIeNTaTIoN ProGram aND INDuCTIoN for New DIreCTors

The orientation and induction program for new members of the Board of Directors, including:1. Discussion on the Annual Report, the Company’s Work Plan and Budget (RKAP), and the Company’s Long-term Plan (RJPP),

Code of Ethics, Boards of Directors’ Guidelines for Work Conduct, Corporate Governance Handbook, and the Articles of Association.

2. Explanations relating to the delegated authority, internal and external audits, internal control systems and policies, as well as duties and roles of the Audit Committee and other committees under the Board of Directors and the Board of Commissioners.

3. Description on duties, authority, and responsibilities of the Board of Commissioners and Board of Directors.

These explanations are given by way of a presentation by the related Unit to the related members of the Board of Directors as well as by conducting visit to Regional/Branch Offices.

CoNCurreNT PosITIoN PolICy for BoD

No member of the Board of Directors of BNI assume concurrent position that are prohibited based on the prevailing laws and regulations. The concurrent positions of members of the Board of Directors that are allowed under the prevailing laws and regulations are carried out by the members of the Board of Commissioners concerned without neglecting the implementation of their duties and responsibilities as a member of the Board of Commissioners of the Bank.

The provisions on concurrent position of Board of Directors are stipulated in the following regulations.1. Based on SOE Minister Regulation Number PER-03/MBU/02/2015, members of Board of Directors are prohibited to hold

concurrent position as:• MembersofBoardofDirectorsatState-OwnedEnterprise,Regional-OwnedEnterprise,PrivateCompanies;and/or• MembersofBoardofCommissionersatState-OwnedEnterprise;and/or• Otherstructuralandfunctionalpositionsatcentraland/orregionalgovernmentinstitutions/agencies;• Administratorofpoliticalpartyand/ormember/prospectivememberoflegislature;and/orcandidateforregionalhead/

deputy head;• Positionthatmaycauseconflictofinterestand/orotherpositioninaccordancewiththeprovisionsinlawsand

regulations;• Standsasalegislatorcandidateorregionalhead/deputyheadcandidate.

2. Based on Financial Services Authority Regulation Number 55/POJK.03/2016, members of the Board of Directors are prohibited to hold concurrent position as members of Board of Directors, members of the Board of Commissioners, or Executive Officers at other bank, company, and/or institution. Nonetheless, it does not include concurrent position in the event that the Board of Directors is in charge of monitoring Bank’s placement at subsidiary, running functional duties as




members of the Board of Commissioners at non-bank subsidiary that is controlled by the Bank, as long as it does not cause the related Board of Directors to ignore the implementation of duties and responsibilities as members of the Bank’s Board of Directors.

3. Board of Directors’ concurrent position that is not included in the provisions above shall need to obtain approval from Board of Commissioners’ Meeting.

Name

members of Board of Directors at state- owned

enterprise, regional-owned enterprises, Private

Companies

administrator of political party and/or member/

candidate member of houseof representative, DPD, house

of representativelevel I, and house of

representative level II and/or candidate of regional head/

deputy head

other positions according to the

provisions in laws and regulations

other positions that may cause a conflict of

interest

Achmad Baiquni No No No No

Herry Sidharta No No No No

Ario Bimo No No No No

Rico Rizal Budidarmo No No No No

Bob Tyasika Ananta No No No No

Anggoro Eko Cahyo No No No No

Tambok Parulian Setyawati No No No No

Dadang Setiabudi No No No No

Adi Sulistyowati No No No No

Putrama Wahju Setyawan No No No No

maNaGemeNT of CoNflICT of INTeresT of The BoarD of DIreCTors

Management of the Board of Directors’ conflict of interest is stipulated in the Guidelines for Handling Conflict of Interest Number IN/695/KMP/ 001 dated October 29, 2014. Conflict of Interest is a condition in which the Company’s economic interests contradict the personal economic interests. Regarding the above matter, members of the Board of Directors:1. Must prioritize the Company’s economic interest over personal economic interest or family’s or other party’s.2. Must never use their position for personal interest or for other person’s or party’s interest that is in contrary to the

Company’s interest.3. Must complete a Special Register containing their and/or their family’s share ownership that reaches 5% (five percent) or

more on the Bank or other companies located inside and outside the country.4. Must disclose financial relationship and family relationship with other members of the Board of Commissioners, members

of the Board of Directors, and/or the Company’s controlling shareholders.5. Prohibited to take action that may harm the Company or reduce Company’s profit and must disclose conflict of interest in

any decision in the event that a conflict of interest occurs.6. Shall not participate in the discussion and decision- making that contains elements of conflict of interest.

share owNershIP of BoarD of DIreCTors

Members of the Bank’s Board of Directors have an obligation to report to the Financial Services Authority on ownership and any changes in the ownership of the Bank’s shares, either directly or indirectly, as stipulated in the Financial Services Authority Regulation No. 11/POJK.04/2017 on the Report of Ownership or Any Changes in Ownership of Public Company Shares. The reporting obligation is also regulated in Board of Directors’ Decisions Letter No. KP/228/DIR/R dated 29 June 2018 on Guidelines and Work Conduct of Board of Directors Charter, which are also published on the Bank’s website. In order to fulfill the principle of transparency in the implementation of Good Corporate Governance, with due regard to the Company’s Articles of Association, the Board of Directors must disclose ownership of shares both at BNI and at Banks and other Companies domiciled at home and abroad.

Board of Directors




Throughout 2019, the Bank had submitted reports of share ownership or any changes to the ownership of the Board of Directors and/or Board of Commissioners to the Financial Services Authority by referring to the Financial Services Authority Regulation No. 11/POJK.04/2017 on the Report of Ownership or Any Changes in Ownership of Public Company Shares. As of December 31, 2019, there were no members of the BNI Board of Directors who owned BNI shares reaching 5% or more of BNI’s paid-up capital, or in other banks or other companies domiciled both at home and abroad.

ImPlemeNTaTIoN of DuTIes aND resPoNsIBIlITIes of The BoarD of DIreCTors, 2019

During 2019, the Board of Directors carried out its management duties in accordance with the applicable laws and regulations as well as the Company’s Articles of Association, namely:1. Compilation of the Company’s plans, including the revised RBB 2020 - 2021.2. Meeting the Company’s performance targets.3. Asset and financial management, including equity participation in companies that are not listed on the exchange.4. Organizing Directors’ Meetings.5. Attending Board of Commissioners Meetings.6. Organizing a General Meeting of Shareholders.7. Supervision and improvement of internal business processes.8. Performing other tasks related to the management of the Company.

BoD DeCIsIoN IN 2019

No. subject

1 Structuring the Organization of the Treasury Division

2 ChangesinOrganizationalStructure,AdvisorsandManagementofUPZBAZNAZBNI

3 DecreeoftheORM&BCMApplicationDevelopmentandImplementationTeam

4 Task Force on CST Prototype Implementation

5 Establishment of the ITSP Compilation Team 2019-2023

6 Reorganize the Internal Audit Unit

7 Credit Quality Counterpart Team

8 Appointment as Member of the Bank Negara Indonesia Pension Fund Supervisory Board

9 Renewal of the composition of the Bank Negara Indonesia Pension Fund Supervisory Board

10 Organizational Structuring of the Division of Small Business Business 1 (BSL 1)

11 Establishment of Procurement Committee for Consultant Services Work

12 Establishment of BUMN BUMN 2019 Superior Performance Assessment Team (KPKU)

13 Qanun Implementation Task Force Team

14 The 2019 BNI Inacraft Committee

15 BNI Committee on the 2019 Ramadhan, Mudik and Lebaran Activities

16 PT BANK NEGARA INDONESIA (Persero) Tbk. Internal Audit Charter

17 Revamping the Organization of the Board of Directors of BNI

18 Decree on BNI Anniversary

19 Inauguration / Change of Position Regarding Organizational Change

20 Appointment as Sharia Supervisory Board of Financial Institutions Pension Fund of PT Bank Negara Indonesia (Persero) Tbk

21 RestructuringtheOrganisationofCustomerAnalysis&PortfolioManagementUnit(CAU)

22 Remedial and Recovery Task Force Team

23 Position Grade Determination

24 CreditPolicy&ProcedureCommitteeRestructuring

25 Establishment of Information Security Unit (ISU)




No. subject

26 Revamping the Organisation of Information Technology Solutions Division (STI)

27 Revamping the Organisation of the Information Technology Operations Division (OTI)

28 Adjustment of Position Grade

29 OJK Box (OBOX) Implementation Task Force Team

30 Temporary replacement (PGs)

31 Position Grade Determination

32 Authority to Decide Credit

33 Revamping the Organization of the Board of Directors of BNI

34 Revamping the Organization of of Digital Operations Division (DGO)

35 Revamping the Organization of the Division of Network Management

36 Revamping the Organization of Card Business Division (BSK)

37 Revamping the Organization of Operational Division

38 Organization Change

39 Digital Operational Division (DGO) Organizational Implementation Team

40 Appointment as Chairman of the Board of Trustees of Bank Negara Indonesia Pension Funds

41 Renewal of the composition of the Bank Negara Indonesia Pension Fund Supervisory Board

42 Decree for Roll Out Credit Quality

43 Revamping the Organization of E-Banking Division (EBK)

44 Decree for Regional Performance Task Force

45 Revamping the Organization of Data Management Division (DMA)

46 Revamping the Organization of the Consumer Product Management Division (PDM)

47 Management of the Jakarta BNI 46 Volleyball Team in Proliga Period 2019-2020

BoarD of DIreCTors’ ComPeTeNCe DeveloPmeNT

Board of Directors competence development can be seen the Company Profile section of this Annual Report.

rIsK maNaGemeNT CerTIfICaTIoN

All of BNI’s Board of Directors have passed Level 5 Risk Management Certification as it is one of the requirements to take fit and proper test, which is administered by the Financial Services Authority.

BoarD of DIreCTors resIGNaTIoN aND DIsmIssal meChaNIsm

The mechanism of resignation and dismissal of the Board of Directors is stipulated in the Company’s Articles of Association, which refers to Financial Services Authority Regulation No. 32/POJK.04/2014 and Financial Services Authority Regulation No. 33/POJK.04/2014, stating that:1. The GMS may dismiss members of the Board of Directors

at any time by stating the reasons.

2. The reason for dismissing member of the Board of Directors are made, in the event that based on fact, the related member of the Board of Directors:a. Does not perform/underperforms in fulfilling the

obligations that have been agreed upon in the management contract.

b. Does not perform the duties properly.c. Violates the provisions of Articles of Association and/

or laws and regulations.d. Engaged in action that harms the Company and/or

State.e. Commits action that violates ethics and/or

properness that must be upheld as Board of Directors.

f. Convicted by a Court decision that has permanent legal force.

g. Resigns.h. Other reasons considered appropriate by the GMS

for the interests and objectives of the Company.3. The decision for dismissal shall be made after the related

person has had the opportunity to defend him/herself, except for reasons as referred to in item 2 letter f and g.

4. Termination for reasons as referred to in item 2 letter d and f shall constitute dishonorable dismissal.

Board of Directors




5. A member of the Board of Directors may resign from his/ her post before the term of office expires. In this matter, the member of the Board of Directors who resigns must state such intention in writing to the Company.

6. BNI must convene GMS to resolve the resignation proposal of members of the Board of Commissioners no longer than 90 (sixty) days after receipt of the resignation letter.

7. Member of the Board of Directors who resigns before or after his/her term of office expires, unless due to death, shall still be responsible to submit accountability for actions that have not been received by the GMS.

8. Member of Board of Directors may be dismissed temporarily by the Board of Commissioners by stating the reasons in the event that such member acts in contrary to the Articles of Association or there is an indication of doing an action that harms the Company or neglects in performing obligations or there are compelling reasons for the Company by considering the following provisions:a. Such temporary dismissal shall be notified in writing

to the concerned member of the Board of Directors along with the reasons causing such action with a copy to the Board of Directors;

b. The notification as referred to in item 8 letter a shall be delivered no later than 2 (two) business days after the determination of such temporary dismissal;

c. The temporary dismissed member of the Board of Directors is not authorized to perform Company management in the Company’s interest in accordance with the Company’s purposes and objectives nor to represent the Company, either inside or outside court;

d. Within a period of no later than 90 (ninety) days after such temporary dismissal, the Board of Commissioners shall convene the GMS to withdraw or enforce such temporary dismissal resolution;

e. In the event that the time period to convene GMS as referred to in item 8 letter d has passed or the GMS cannot adopt a resolution, then such temporary dismissal shall become void;

f. The limitation of authority in item 8 letter c shall be effective since the decision of temporary dismissal by the Board of Commissioners until:- There is a GMS resolution that reinforces or

cancels the temporary dismissal in item 8 letter d; or

- The time period in item 8 letter d has passed;g. In the GMS as referred to in item 8 letter d, the

related member of the Board of Directors is given an opportunity to defend him/herself.

h. Such temporary dismissal cannot be extended or re-established for the same reasons, in the event that such temporary dismissal is declared void as referred to in item 9 letter e.

i. In the event that the GMS cancels a temporary dismissal or there are circumstances as referred to in item 8 letter e, then the related member of the Board of Directors must resume the duties properly.

j. In the event that the GMS reaffirms the temporary dismissal resolution, then the related member of the Board of Directors shall be dismissed going forward.

k. In the event that the temporary dismissed member of the Board of Directors is not present at the GMS after being summoned in writing, then the temporary dismissed member of the Board of Directors shall be deemed not to have exercised the right to defend him/herself in the GMS and has accepted the GMS resolution.

PerformaNCe assessmeNT of CommITTees uNDer The BoarD of DIreCTors

In carrying out its management duties, the Board of Directors establishes committees at Board of Directors’ level according to BNI’s business needs and regulatory requirements, which are expected to create operational effectiveness and efficiency, including:

• CreditCommittee• IntegratedRiskManagementCommittee• RiskandCapitalManagementCommittee• ProductCommittee• PerformanceManagementCommittee• TechnologyManagementCommittee• CreditPolicyandProcedureCommittee• HumanCapitalCommittee

The Board of Directors conducts appraisal on the performance of the Committees under the Board of Directors on regular basis. In the Board of Directors opinion, in general the Committees under the Board of Directors managed to show a satisfactory performance. The appraisal is based on the realization of the attainment of the duties of each committee in accordance with the Committee Charter, Competence and Skill and the Attendance Level of the Committee members’ meeting. BNI is in charge of BNI’s interests, in accordance with the aims and objectives of the Company and represents the Company, both within and in outside the court in accordance with the provisions of the Articles of Association.




Policy on Diversity in the Composition of members of the Board of Commissioners and Board of DirectorsPolICy oN The DIversITy of The ComPosITIoN of The BoarD of CommIssIoNers

BNI has a policy on the diversity in the composition of members of the Board of Commissioners by referring to the Appendix of OJK Circular No. 32/SEOJK.04/2015 dated November 27, 2015 concerning Guidelines for Public Company Governance. The regulation states that the composition of the Board of Commissioners is a combination of characteristics both in terms of the organs of the Board of Commissioners and individual members of the Board of Commissioners, in accordance with the needs of the Public Company. These characteristics can be reflected in the determination of expertise, knowledge, and experience needed in carrying out supervisory duties and providing advice by the Board of Commissioners of the Public Company. The composition that has taken into account the needs of the public company is a positive thing, especially related to decision making in the context of implementing the supervisory function carried out by considering a broader range of aspects.

In 2019, the diversity of the composition of the Board of Commissioners reflected in education, work experience, age and gender, can be seen as in the table below:

Name Position age Gender education experience expertise

Ari Kuncoro

President Commissioner / Independent Commissioner

57 Male • S1inEconomics• S2in

Development Economics

• S3inEconomics

• SecretaryofthePostgraduatePrograminEconomics, Faculty of Economics, University of Indonesia.

• DeputyDeanIforTeaching,EducationandCommunity Service, Faculty of Economics, University of Indonesia.

• VisitingProfessorofBrownUniversity• MembersoftheBankIndonesiaFinancialSystem

Stability Research Communication Forum.• EastAsianEconomistAssociationBoardof

Directors.• DeanofTriDharmaCollegeoftheFacultyof

Economics and Business, University of Indonesia.

Economy

Wahyu Kuncoro*) Vice President Commissioner

50 Male • S1inAgriculture• S1inEconomic• Mastersin

Management

• HeadofFundingandResourcesSectionoftheDirectorate General of SOE Development in the Ministry of Finance

• HeadofAgricultureProductionBusinessPlanningSub-Sector of the Ministry of SOE

• SecretaryoftheBoardofCommissionersofPTPerkebunan Nusantara VIII (Persero)

• HeadofPlantationBusinessIIBMinistryofSOE.• CommissionerofPTPerkebunanNusantaraXI

(Persero).• HeadofPrimaryIndustrialBusinessSectorIIIA

Ministry of SOE.• HeadofInfrastructureandLogisticsBusiness

Division I A Ministry of BUMN.• CommissionerofPTPerkebunanNusantaraXIII

(Persero).• DeputyAssistantforBusinessServicesIII

Ministry of SOE• AssistantDeputyBankingandInsurance,

Ministry of SOE.• DeputyforBusinessInfrastructure,Ministryof

SOE.• CommissionerofPTAngkasaPuraII(Persero).• ChairpersonofthePrabunaraEmployees

Cooperative of the SOE Ministry• MemberofSupervisoryOfficerofthePrabunara

Employees Cooperative of the SOE Ministry• DeputyofAgroandPharmaceuticalBusiness,

Ministry of SOE.• CommissionerofPTBankNegaraIndonesia

(Persero) Tbk• DeputyPresidentCommissionerofPTBank

Negara Indonesia (Persero) Tbk

Economic management





Hambra**) Vice President Commissioner

51 Male • S1inLaw• S2inBusiness

Law

• PresidentCommissionerofPTPGCandiBaru• CommissionerofPTPNXII(Persero)• CommissionerofPTAskes(Persero)• CommissionerofPTKAI(Persero)• CommissionerofPTJasaMarga(Persero)Tbk• CommissionerofPTPGNLNG• CommissionerofPTSemenIndonesia(Persero)

Tbk• CommissionerofPTPGN(Perseo)Tbk• DeputyforBusinessInfrastructureattheMinistry

of SOEs

Law

Revrisond Baswir Independent Commissioner

61 Male • S1Accounting• S2inBusiness

Administration• S3Economics

• LecturerinEconomicsandBusiness,GajahMadaUniversity

• P3PKResearcheratGajahMadaUniversity• ExpertStaffoftheIndonesianMinistryofHuman

Rights• PustepExpertStaffatGajahMadaUniversity• DPDRIExpertStaff.• HeadoftheCenterforCommunityEconomic

Studies at Gajah Mada University• MemberoftheMinistryofBUMN’sPublicPolicy

Committee• CommissionerandChairmanofthePTPNXIII

Pontianak Audit Committee.• CommissionerofPTPNVIII,Bandung.• CommissionerandChairmanofthePTPNXI

Surabaya Audit Committee.• CommissionerofPTBankNegaraIndonesia

(Persero) Tbk•I ndependentCommissionerofPTBankNegara

Indonesia (Persero) Tbk

Economic Accounting

Bistok Simbolon***)

Commissioner 63 Male • S1inLaw• S2Economic

Law

• HeadofDesignResearchSection3,ResearchSection II Legal Bureau and PPU of the Cabinet Secretariat

• HeadofPolitics,RegionalGovernment,andPolkam at PUU II Bureau of Cabinet Secretariat

• HeadofLegalAnalysisonAdministrativeAffairsof the Legal Bureau of the Cabinet Secretariat

• AssistantCabinetSecretaryoftheCabinetSecretariat

• HeadoftheLegalBureauoftheCabinetSecretariat

• HeadofthePolkam,Defense,RatificationandLegal Issues Bureau of the Cabinet Secretariat

• DeputySecretaryoftheCabinetforPolitical,Legal and Security Affairs of the Cabinet Secretariat

• CommissionerofPTIndustriKeretaApi(Persero).• PresidentCommissionerofPTIndustriKeretaApi

(Persero).• CommissionerofPertaminaGeothermalEnergy• DeputyCabinetSecretaryoftheCabinet

Secretariat• SpecialStafftotheCabinetSecretaryofthe

Cabinet Secretariat• CommissionerofPTBankNegaraIndonesia

(Persero) Tbk

Law





Pataniari Siahaan Independent Commissioner

73 Male • S1inCivilEngineering

• S1CivilEngineering, majoring in Transportation

• MastersinLegal Science

• DoctorateinLaw

• MemberofDPR/MPRRI.• DPR/MPRRI Member of Commission I of DPR-RI• DPR/MPRRI Member of Committee for Inter-Parliamentary

Cooperation of DPR RI• DPR/MPRRI Member of Billateral Cooperation Group

Indonesia-Australia of DPR-RI• DPR/MPRRI Member of Working Body of MPR-RI• DPR/MPRRI Member of Committee Ad Hoc I Working Body

of MPR RI• DPR/MPRRI Chairman of Commission A for Annual Assembly

of MPR RI• DPR/MPRRI Member of Commission III DPR RI• DPR/MPRRI Head of Legislation Body of DPR RI.• DPR/MPRRI Power of Attorney of DPR-RI for Constitutional

Court• DPR/MPRRI Head of MPR RI’s Decisions Socialization Team in

the Sector of State Constitution of RI• LecturerofLaw,UniversitasTrisakti.• ChairmanoftheCenterofConstitutionalStudies

and the Laws and Regulations, Faculty of Law, Universitas Trisakti

• EditorialBoardofPriorisLawJournal,FacultyofLaw, Universitas Trisakti

• CommissionerofPTBankNegaraIndonesia(Persero) Tbk

• IndependentCommissionerofPTBankNegaraIndonesia (Persero) Tbk

TechniqueLaw

Joni Swastanto Commissioner 63 Male • S1inEconomics• S2inEconomics• S3inEconomics

• HeadofBankIndonesiaSectionBandung• DeputyHeadofNon-ForeignExchangeBank

Supervision Division 2, Bank Indonesia• BankSupervisorSeniorBankSupervisionAffairs

3, Bank Indonesia• BankSupervisorsforBankSupervision3,Bank

Indonesia• HeadofForeignExchangeManagementAnalysis

Section, Bank Indonesia• HeadofMonetarySection,BankIndonesia• HeadoftheSurabayabranchofBankIndonesia• BankIndonesiaSeniorExecutiveBank

Supervisors Surabaya• DeputyDirectoroftheBankingSupervision

Department 3, Bank Indonesia• DirectoroftheBankingSupervisionDepartment

3, Bank Indonesia• DirectoroftheBankingLicensingandInformation

Department, Bank Indonesia• HeadofSemarangBankIndonesia

Representative.• HeadoftheDepartmentofBankingResearch

and Development Financial Services Authority• HeadoftheDepartmentofLicensingand

Banking Information of the Financial Services Authority

• PanelistsAdvisoroftheFinancialServicesAuthority

• DeputyCommissionerforStrategicManagement1B of the Financial Services Authority

• DeputyCommissionerforStrategicManagement2B of the Financial Services Authority


Economy

Policy on Diversity in the Composition of members of the Board of Commissioners and Board of Directors





Marwanto Harjowiryono****)

Commissioner 60 Male • S1inEconomics• S2Economics• S3Doctorate

in Economics / Public Policy

• HeadoftheMinistryofFinance’sStateBudget(APBN)

• HeadoftheCenterforStateRevenueAnalysisand Budget Financing at the Ministry of Finance

• HeadofMinistryofFinance’sOverseasCooperation Bureau

• Acting.HeadoftheCenterforInternationalFinancial Cooperation, Ministry of Finance

• HeadofthePublicRelationsBureauoftheMinistry of Finance

• MemberoftheNationalSocialSecurityBoard/DJSN

• DailyChiefExecutiveandDeputyChairoftheMinistry of Finance’s Bureaucratic Reform Team

• MinisterofFinanceExpertStaffforStateExpenditure.

• AsianDevelopmentBankManilaMemberofBudget Review Committee.

• AsianDevelopmentBankManilaChairofEthicCommittee

• ExecutiveDirectoroftheAsianDevelopmentBank Manila.

• CommissionerofPTPNXIII,PontianakKalimantan.

• CommissionerofPTSucofindo(Persero)• PresidentCommissionerofPTBahanaBusiness

Development Indonesia (Pera sero).• CommissionerofPTSemenIndonesia(Persero)

Tbk.• CommissionerofPTIndonesiaInfrastructure

Finance.• DirectorateGeneralofFiscalBalance(DJPK),

Ministry of Finance• DirectorGeneraloftheTreasury,Ministryof

Finance• CommissionerofPTBankNegaraIndonesia

(Persero) Tbk

Economy

Ahmad Fikri Assegaf


51 Male • S1inLaw• MastersinLaw

• CofounderofPTJustikaSiarPublika,Owner&Operator (www.hukum.online.com)

• FounderoftheIndonesianLanternSchoolofLaw• AdvisoryMemberoftheCapitalMarketLegal

Consultants Association• MemberoftheBoardofTrusteesofthe

Kemayoran Complex Management Center• FounderandSeniorPartnerAssegafHamzah&

Partners• IndependentCommissionerofPTBankNegara

Indonesia (Persero) Tbk

Law

Sigit Widyawan Independent Commissioner

54 Male • S1inEconomics• Mastersin

Accounting

• HeadofTaxationDivision-ConcreteProductDivision of PT Wijaya Karya (Persero)

• HeadofFinanceSectionofPTWijayaKaryaBeton

• RodaJatiGroupFinanceDirector• DirectorofPTRodaPembangunanJaya• IndependentCommissionerofPTJasamarga

(Persero) Tbk• CommissionerofPTBankNegaraIndonesia

(Persero) Tbk

Economic accounting

Finance

Ratih Nurdiati*****)

Commissioner 58 Female • S1inConstitutional Law

• S2CommercialLaw

• HeadoftheEconomyandIndustryBureauoftheSecretary of the Secretariat of the Republic of Indonesia Secretariat for Legal Affairs

• DeputyAssistantfortheIndustryofSmalland Medium Enterprises in Trade and Labor, Secretariat of the Republic of Indonesia Cabinet

• DeputyforEconomicAffairs,RICabinetSecretariat

• DeputyforMaritimeAffairsoftheIndonesianCabinet Secretariat

• DeputySecretaryoftheRICabinetSecretariat

Law





Askolani******) Commissioner 53 Male • S1inEconomics&DevelopmentStudies

• S2inEconomics

• HeadoftheStateBudgetPolicyCenter,Ministryof Finance’s Fiscal Policy Office

•DirectorateofPNPB,DirectorateGeneralofBudget, Ministry of Finance

• AlternateGovernoroftheOPECFundforIndonesia OPEC Fund for International Development

• GovernoroftheOPECFundforIndonesiaOPECFund for International Development (OFID), Austria

• CommissionerofPTPertaminaGas• CommissionerofPTAngkasaPuraI(Persero)• DirectorGeneraloftheDirectorateGeneralof

Budget of the Ministry of Finance• CommissionerofPTBankMandiri(Persero)Tbk

Economy

Note: *) The term of office as Deputy President Commissioner ended on May 13, 2019 **) Serving as Deputy Commissioner on 13 May 2019 and ceased serving as Vice President Commissioner of BNI since 18 November 2019 ***) The term of office as Commissioner ended on May 13, 2019 ****) The term of office Commissioner on 30 August 2019 *****) Serving as Commissioner since 13 May 2019******) Serving as Commissioner on 30 August 2019 and served effectively as Commissioner based on OJK approval on 20 December 2019

PolICy oN The DIversITy of The ComPosITIoN of The BoarD of DIreCTors

As with the diversity in the composition of the Board of Commissioners, BNI’s policy on the diversity in the composition of the Board of Directors refers to the recommendation from the Financial Services Authority as outlined in the Appendix of the Financial Services Authority Circular Letter No. 32/SEOJK.04/2015 concerning Guidelines for the Corporate Governance of Public Company. The regulation states that the composition of members of the Board of Directors takes into account the diversity of members of the Board of Directors. The diversity in the composition of members of the Board of Directors is a combination of the desired characteristics, both in terms of organs of the Board of Directors and individual members of the Board of Directors, in accordance with the needs of the Public Company. The combination is determined by taking into account the appropriate expertise, knowledge and experience in the division of duties and functions of the Board of Directors’ position in achieving the goals of the Public Company. Therefore, consideration of the combination of characteristics referred to will have an impact on the accuracy of the nominating process and the appointment of individual members of the Board of Directors or the Board of Directors collegially.

In accordance with Article 5 paragraph (4) letter c.2 of the Company’s Articles of Association, Dwiwarna A series Shareholders have the privilege of proposing candidates for members of the Company’s Board of Directors. Pursuant to Article 11 paragraph (10) of the Articles of Association, members of the Board of Directors are appointed and terminated by the GMS, where the GMS is attended by the Dwiwarna Series A Shareholders and the decision of the meeting must be approved by the Dwiwarna A Series Shareholders with regard to the provisions in the Articles of Association.

Based on the provisions of the Articles of Association, the determination of the composition of members of the Board of Directors that takes into account the diversity of expertise, knowledge and experience required as referred to in the Financial Services Authority Recommendation in Attachment to the Financial Services Authority Circular Letter No. 32 / SEOJK.04 / 2015 concerning Guidelines for Public Company Governance is carried out by Dwiwarna Series A Shareholders as Shareholders entitled to nominate candidates for the Directors.

In 2019, the diversity of the composition of the Company’s Directors is reflected in education, work experience, age and gender, which can be seen as in the table below:

Policy on Diversity in the Composition of members of the Board of Commissioners and Board of Directors





Achmad Baiquni President Director 63 Male • S1 in Development Economics

• S2 in Business Management

• BNI’s Managing Director Consumer.• BNI’s Managing Director Corporate.• Managing Director of Small

Business, Medium, and Sharia BNI.• Finance Director of BRI.

Economics, Business Management

Herry Sidharta President Director 63 Male • S1 Management• S2 Business

Administration

• Head of BNI Corporate Division.• Head of the Medium Business

Division.• Head of BNI Small Business

Division.

Economics, Financial Management

Ario Bimo Managing Director Finance

38 Male • S1 Bachelor of Industrial Engineering, Trisakti University

• S2 Master Of Engineering Management, University of Technology Sydney

• Corporate Banking Credit Analyst• Corporate Banking Relationship

Manager • Head Of Corporate Banking

Relationship Manager• Deputy Division Head State Owned

Enterprise and Government Institution

Technique,

Management



57 Male • S1 in Management Economics

• MBA and MIS in Business and Finance

• Doctor of Business Management

• GM/EVP Treasury BRI.• Director of Risk and Compliance

BTN.

Financial Management, Business Management, Law

Bob Tyasika Ananta Managing Director Treasury and International

57 Male • S1 in Accounting • S2 in Finance

• General Manager of the Hong Kong BNI Overseas Branch Office.

• Head of BNI International Division.• Head of BNI’s Strategic Planning

Division.

Accounting, Business Management


51 Male • S1 in Industrial Management Engineering

• S2 in Agribusiness

• Head of BNI, Jakarta City Regional Office.

• Head of BNI Jakarta Regional Office BSD.

• Head of BNI Network and Services Division

ManagementAgribusiness

Tambok P. Setyawati

Managing Director Micro, Small and Medium Enterprises (MSMEs) and Networks

56 Female • Bachelor of Agriculture

• Masters in Management

• Finance Director at PT Krakatau Steel (Persero) Tbk.

• SEVP Digital Banking BNI.• CEO of BNI Jakarta Kemayoran

Region

Agriculture, Management, Accounting


57 Male • S1 in Accounting• Master in

Agribusiness

• SEVPBNIInformation&DigitalBanking Technology.

• Director of Information Technology of BPJS Health.

• Head of Micro Business Network Division of PT Bank Rakyat Indonesia (Persero) Tbk.

Economics,Technology Management


53 Female S1 in Economic • Head of BNI Regional Office Jakarta Senayan.

• Head of BNI Network Management Division.

Economy

Putrama Wahju Setyawan

Managing Director Corporate Business

50 Male • S1 Forestry• S2 Master of

Management Accounting

• Head of BNI Corporate Credit Remedial and Recovery Division.

• Head of BNI’s SOE and Government Institutions Division.

• Head of BNI’s Commercial and Small Business Remedial and Recovery Division.

Forestry, Business Management

Endang Hidayatullah Managing Director HumanCapital&Compliance

49 Male • S1inLaw• S2Masterof

Management

• Head of Legal Division Law, Compliance, Human Capital




The GCG Assessment is an attempt to measure or map the company’s condition in the current GCG implementation. This is undertaken to ensure the level of GCG implementation, and to identify appropriate measures to prepare an infrastructure and corporate structure that is conducive to effective implementation of GCG. In other words, the GCG assessment is needed to identify the aspects that need attention first, and the steps that can be taken to make it happen. In order to evaluate the GCG implementation, the Company conducts GCG Assessments periodically and consistently each year, consisting of a Self Assessment in accordance with BI / OJK and Third Party Assessment as follows.

self assessmeNT

BNI conducts its self assessment of the application of the principles of Good Corporate Governance (Transparency, Accountability, Responsibility, Independence, as well as Fairness and Equality) based on SEOJK No. 13/SEOJK.03/2017 concerning the Good Corporate Governance for Commercial Banks, POJK No. 55/POJK.03/2016 concerning Good Corporate Governance for Commercial Banks, POJK No.21/ POJK.04/2015 concerning Corporate Governance Guidelines, OJK Circular Letter No. 32/SEOJK.04/2015 concerning Corporate Governance Guidelines, and OJK Circular Letter No. 4/POJK.03/2016 concerning Bank Rating on GCG Implementation for Commercial Banks, and Bank Indonesia Regulation on Bank Rating, one of the Bank Rating points is a self assessment on the implementation of Good Corporate Governance (GCG) principles in the Bank. Self Assessment are conducted periodically each semester in June and December in the current year.

GCG assessment is also intended to produce a Governance Rating which is a factor in determining the Bank’s Soundness. This assessment is carried out on 3 (three) aspects of the Governance system, namely the structure, process and results of the Governance of 11 (eleven) Assessment Factors of Governance Implementation. The three aspects are as follows:

1. Governance structure Rates governance structure to assess the adequacy of

Bank’s GCG governance structures and infrastructures so that the implementation process produces outcomes that match the expectations of the Bank’s stakeholders. Included in the Bank’s governance structure is the GMS, Board of Commissioners, Board of Directors, Committees and work units at the Bank. The Bank’s governance infrastructure, such as the organizational structure of Bank policies and procedures, management information systems and the main tasks and functions of each organizational structure. Governance Structure is an assessment aspect on the fulfillment of corporate structure and infrastructure in applying GCG as measured through the governance structures which includes:a. Shareholder Composition as a Company Body; the

structure and function of the persons responsible for the implementation of GCG; ethics enforcement; information disclosure; supervisory and audit; human resources management; operational / production responsibility; the marketing responsibility, finance; risk management, information technology management; stakeholder relations; procurement of goods and services; as well as change management.

b. Compliance company policies is mainly related to the enforcement of GCG functions in conducting the company’s operations, which include guidelines and policies related to GCG, ethics, information disclosure, supervision and audit as well as compliance, human resource management, operations/production, marketing, finance and accounting, risk management, information technology governance, relationships with stakeholders.

2. Governance Process The governance process assessment aims to assess

the effectiveness of the process of implementing GCG principles supported by the adequacy of the Bank’s governance structure and infrastructure so as to produce outcomes that are in line with the expectations of the Bank’s stakeholders. Governance Process Governance Process is an assessment aspect on the implementation of company systems and mechanisms in applying GCG as measured by:

Good Corporate Governance assessment




• ImplementationofGCG,ethics,informationdisclosure, supervision and audit as well as compliance, human resource management, operations / production, marketing, finance and accounting, risk management, information technology governance, relationships with stakeholders and so on.

• CorporategovernancemechanismsincludeGCGimplementation mechanisms and processes, ethics enforcement, information disclosure, monitoring and auditing and compliance, human resource management, operations / production, marketing, finance and accounting, risk management, information technology management, stakeholder relations.

3. Governance outcome Governance Outcome is an assessment aspect on the

results of the implementation of the company’s system and mechanisms in applying GCG as measured through GCG Implementation Results, including outputs and outcomes of the processes of GCG, ethics, information disclosure, supervision and audit as well as compliance, human resource management, operations/marketing, finance and accounting, risk management, information technology governance, relationships with stakeholders.

As an evaluation of the GCG implementation, BNI have

evaluated and measured the BNI GCG implementation through a self assessment based on the Regulation of Financial Services Authority No. 55/POJK.03/2016 on the implementation of Governance for Commercial Banks which measures the implementation of GCG from 11 aspects comprising:1. The Board of Commissioners’ tasks and

responsibilities implementation2. The Board of Directors’ tasks and responsibilities

implementation3. Committee’s tasks completion and implementation4. Conflicts of interest handling5. Compliance Implementation6. Internal audit function application7. External audit function implementation8. Risk management implementation, including the

internal control system9. Provision of funds to related parties and large

exposures10. Banks’ financial and non financial condition

transparency, reports on the implementation of good corporate governance and internal reporting

11. Strategic Plan

The Bank is obliged to conduct a Self Assessment for the GCG implementation. The GCG Self Assessment results for 3 (three) years can be seen in the table below.


Composite Score 2 2 2

assessmeNT resulT

In the first semester of 2019, BNI conducted a GCG self-assessment and was submitted to the OJK, with the following assessment results:

self assessment results of the GCG Implementation semester I / June 2019

ranking rank Definition Trend

2 This shows that the Bank Management has implemented Governance, which is generally good. This is reflected in the adequate fulfillment of GCG principles. In the event of any weaknesses in the application of GCG principles, the weaknesses are generally less significant and can be resolved with normal actions by the Bank Management. Currently the Bank is continuing to make corrective actions to follow up the Regulators’ findings.

Stable

In the second semester of 2019, BNI conducted a GCG self-assessment and was submitted to the OJK, with the following assessment results:

self assessment results of the first semester / December 2019 GCG Implementation

ranking rank Definition Trend

2 Demonstrates that the Bank Management has performed a generally good implementation of Good Corporate Governance. This is reflected in the adequate fulfillment of GCG principles. In the event of any weaknesses in the application of GCG principles, the weaknesses are generally less significant and can be resolved with normal actions by the Bank Management. Currently the Bank is continuing to make corrective actions to follow up the Regulators’ findings.

Stable




The ranking above is based on the strengths and weaknesses of GCG implementation in BNI in 2019 as follows:Strength:1. Structure: The Bank already has an adequate GCG structure and infrastructure according to regulations, that is related to

the Directors, Board of Commissioners, Committees, and work units in banks, as well as infrastructure consisting of bank policies and procedures, information systems, and the main tasks and functions of each organizational structure.

2. Process: Generally, GCG implementation has been applied well and effectively, as reflected from the fulfillment of BNI’s obligations as the Bank ank Issuer to all stakeholders.

3. Outcome: Banks are able to meet the expectations of all stakeholders, both in qualitative and quantitative aspects, including through the growth of bank performance, compliance with external and internal regulations and a reduction in the amount of sanctions.

Weakness:1. Structure: None2. Process: Overall, the governance process is carried out well in every activity /business and operational of the Bank,

however in its implementation it is still necessary to strengthen the internal control system.3. Outcome: During 2019 there were still sanctions imposed by regulators so that it showed the need for increased risk

awareness in order to reduce the imposition of sanctions by regulators.

Recommendations obtained by BNI from the self assessment and have been followed up can be seen in the table below.

weakness follow up

Overall, the governance process is carried out well in every activity/business and operational of the Bank, however in its implementation it is still necessary to strengthen the internal control system.

The Bank has made several improvements including the establishment of a Governance, Risk and Compliance (GRC) Forum consisting of all units in the first line, second line, and third line, which regularly holds regular meetings to discuss, among others, improvements and strengthening implementation of internal control.

There are still sanctions imposed by regulators so that it shows the need for increased risk awareness in order to reduce the imposition of sanctions by regulators.

The Bank has continuously increased risk awareness of all units, and made aspects of compliance, imposition of sanctions and follow-up audits as an element of unit evaluation.

CorPoraTe GoverNaNCe PerCePTIoN INDeX (CGPI)

BNI actively participates in Corporate Governance Perception Index (CGPI) held by The Indonesian Institute for Corporate Governance (IICG). BNI’s participation in the program aims to evaluate GCG implementation in BNI. The evaluation results are a reference for BNI to improve the future GCG implementation.

The 2018 CGPI which was carried out in 2019 with assessment aspects of the 2017 CGPI include governance structure, governance process, and governance outcome. CGPI’s assessment uses a mandatory GCG implementation and generally applicable best practices as well as approaches to stakeholders’ perspectives where the relationship with all stakeholders is increasingly important in maintaining the Company’s business sustainability in the long run.

BNI has completed all the requirements and stages of the 2018 CGPI assessment, in which the results showed very good results and received the predicate of the “Most Trusted Company”. CGPI assessment results in 2014-2018 are as follows.





CGPI assessment result fiscal 2017-2018

Indikator 2016 2017 2018

Governance Structure 29,06 23,03 31,39

Governance Process 29,73 38,14 28,84

Governance Outcome 29,59 27,77 29,51

skor CGPI 88,38 88,94 89,74

CGPI score

2017 2018201620152014

88,9489,74

88,3887,7387,46

In the last 5 (five) years, the assessment given by IICG in regard to BNI’s participation in CGPI has always increased. This shows that the implementation of GCG in BNI is getting better from year to year.

The recommendations obtained by BNI from CGPI on the 2018 fiscal year which were implemented in 2019 and have been followed up are as follows.

CGPI recommendation and follow-ups:

No. recommendation follow-up

1. Governance Structure Aspects

a. BNI needs to consider and manage the rights of Minority Shareholders by accommodating the aspirations of Minority Shareholders in the selection of Independent Commissioners and Unaffiliated Directors.

In the implementation of the GMS, the Company which is supervised by independent parties in the GMS, such as the Registrar and Notary Public, always gives the right to Minority Shareholders to vote and ask questions in the agenda for selecting members of the Board of Commissioners and Directors.

b. BNI needs to consider and respond to the issue of gender diversity in the composition of the Board of Commissioners and Directors.

BNI already has a diverse gender composition in the membership of the Board of Commissioners and Directors.

c. BNI needs to develop and update the guidelines for the implementation of the duties of the Board of Directors and the Board of Commissioners, specifically related to the resignation of members of the Board of Commissioners and Directors.

BNI has reviewed and changed the guidelines for implementing the duties of the Board of Directors and Board of Commissioners (board manual).

d. BNI needs to determine the design of the organizational structure tailored to the needs and division of tasks among the Directors according to the control room.

BNI already has an organizational structure, duties and responsibilities of directors in accordance with the nomenclature of the members of the Board of Directors.

2 Governance Process Aspects

a. BNI needs to develop and update policies and guidelines for the implementation of the GMS that provide added value to the company's shareholders.

BNI has developed guidelines for the implementation of the GMS in accordance with the provisions and the Articles of Association of the Company by considering GCG principles, so that it is expected to provide added value to the company.

b. BNI needs to optimize the implementation of GCG principles and practices in all subsidiary companies, and be evaluated by external parties.

BNI is actively conducting socialization to its subsidiaries and has involved its subsidiaries to carry out GCG assessments involving external parties.

c. BNI needs to develop systems and mechanisms for corporate internal control, as well as evaluating their effectiveness.

BNI periodically reviews internal control policies and procedures, forms a Governance, Risk and Compliance forum which, among others, has the task of evaluating, improving and improving the implementation of internal control in the company.

d. BNI needs to develop policies, guidelines, systems and mechanisms related to the implementation of sustainability and green banking.

BNI already has policies, procedures and systems as well as implementing suitainable finance programs. In addition, BNI has prepared a 2019 Sustainable Financial Action Plan (RAKB) which will be the basis and guideline for the implementation of Sustainable Finance.




CGPI recommendation and follow-ups:

No. recommendation follow-up

e. BNI needs to develop evaluations and measurements on supplier satisfaction on a regular basis as well as building fair relationships with suppliers on an ongoing basis.

BNI has a policy and conducts surveys and evaluations of supplier satisfaction. Survey and evaluation results are always submitted to management for review.

f. BNI needs to develop a system and mechanism for monitoring and evaluating the overall corporate strategy with the aim of ensuring the creation of value for all company stakeholders.

BNI already has a forum to monitor and evaluate the company's strategy which is carried out periodically and involves management and operational elements.

g. BNI needs to develop and make improvements to the system and instrument of the transformation of the company's business model including the implementation, communication and evaluation systems of the company's transformation.

BNI has a unit that has a function in change management whose job is to oversee the transformation of the company. Transformation implementation is always monitored and evaluated regularly by the Directors and Board of Commissioners.

3 Governance Outcome Aspects

a. BNI must be able to maintain growth by continuing to maintain the principle of prudence and the systematic application of risk management.

BNI in a balanced manner always targets a healthy and sustainable business growth by always paying attention to risk and prudence.

b. BNI needs to consider and respond to disability issues or special needs in the HR reception and development program.

BNI has a policy of accepting, placing and promoting disability employees.

c. BNI needs to improve employee communication and understanding of ethical guidelines to reduce ethical violations.

BNI has implemented a number of awareness programs to prevent ethical depiction and fraud. The program was developed according to employee needs.

d. BNI needs to develop follow-up handling and resolution of legal problems faced by the company.

BNI has a special unit for handling legal issues both at the central and regional levels, one of whose functions is to monitor and follow up on legal issues.

e. BNI needs to develop follow-up on the imposition of fines and reprimands received from regulators including by enhancing a culture of compliance.

BNI already has a compliance work unit that functions to develop a culture of compliance and manage compliance risk based on non-compliance data in all lines of the organization. The effectiveness of the management results is measured through the compliance index.

aseaN CorPoraTe GoverNaNCe sCoreCarD (aCGs)

In order to improve good corporate governance practices, BNI participated in the ASEAN Corporate Governance Scorecard assessment, which is one of the initiatives of the ASEAN Capital Market Forum which aims to improve the standards and practices of corporate governance of public companies in ASEAN, enhancing global viability of public companies in ASEAN with good corporate governance and showing the global community that ACGS participating companies are a good place to invest.The ASEAN CG Scorecard uses parameters based on the principles of corporate governance issued by The Organization for Economic Cooperation and Development (OECD) as follows: a. Rights of Shareholdersb. Equal Treatment of Shareholdersc. The Role of Stakeholdersd. Disclosure and Transparencye. Responsibilities of the Boards.

The assessment results show that the overall weighted score of the Company is 95.61 points and gets a predicate of “Very Good” or Level 4 (90-100.00), with the definition that the GCG practices conducted by BNI have fully adopted international standards. The total score obtained by the Company is still above the average score for public companies (Tbk) or listed companies in the Big Cap category (100 companies with the largest market capitalization on the exchange) whose value is only 72.87 at the assessment of ACGS in 2019 .





No. assessment Component fiscal year 2018 fiscal year 2017

1. Shareholders Rights 9.05 9.05

2. Equal Treatment to Shareholders 6 6

3. Roles of Stakeholders 15 15

4. Disclosure and Transparency 23.44 22.66

5. Responsibilities of the Board of Directors and Board of Commissioners

33.13 31.88

6. Bonus 11 9

7. Penalty (2) (2)

Total Score 95.61 (Very Good) 91.58 (Very Good)

Based on this assessment, the Company obtained recommendations as a reference for making improvements to the implementation of the Company’s GCG practices going forward. Based on these recommendations, the Company has followed up the following actions:

recommendation follow up

1. The company is expected to encourage all members of the company’s commissioners and directors to attend / participate in the GMS

To be the Company’s concern for the future.

2. The company is expected to be able to immediately announce the results of the AGM to the public within 1 working day.

The process of announcing the summary of GMS minutes is currently in accordance with the provisions in force in Indonesia, but BNI always strives to accelerate the delivery of information on the Annual / Extraordinary General Meeting of Shareholders so as to meet these criteria.

3. The bundling agenda can be resolved by the Company if the voting process for the agenda is related to changes in the composition of the membership of the company commissioners / directors to the candidate package that has been taking place so far.

Will be the Company’s attention in the next GMS.

4. In the invitation document or invitation to the GMS, it is recommended to explicitly disclose an explanation of the profiles (candidates) of new commissioners or directors to be appointed at the GMS.

Publication of the profile of candidates for the Management that will be appointed at the GMS at the time of the invitation of the GMS, will be the material for our improvement in the holding of the GMS in the future, taking into account the provisions in force at the Government Bank.

5. Identify and disclose the identity or name of the external auditor who will be appointed to audit the current period’s financial statements.

Will be the Company’s attention in the holding of the next GMS.

6. Prepare rules or policies regarding the reporting period (maximum 3 days) for the company’s stock trading transactions conducted by directors / commissioners and set forth in the Corporate Governance Guidelines or Board Charter.

The mechanism for reporting transactions in a maximum of 3 (three) working days by insiders has been carried out with reference to applicable regulations

7. The RPT policy should be reviewed and included provisions governing the prohibition of loans or ensuring that lending allowed to members of the commissioners and directors of the company is carried out in a reasonable transaction and at a reasonable interest rate / market interest rate.

In order to facilitate this, the Company has drawn up provisions for granting loan facilities to the Directors and Board of Commissioners.

8. Companies are advised to formulate and disclose policies that require that the RPT should be done fairly (fair and arms’ length transaction).

The Company already has the policy with reference to the provisions in force in the banking industry.

9. Explicitly disclose information in the annual report regarding dividend payment policies.

Dividend payment policy has been disclosed in the Company’s Annual Report.

10. Disclose in the annual report (Annual Report) regarding the total value of remuneration received by each member of the company commissioner.

The remuneration formulation for each member of the Board of Commissioners has been disclosed in the Company’s Annual Report.

11. Adding independent parties or replacing non-independent members with independent members in the composition of the Company’s Nomination / Remuneration Committee membership, so that the number of members coming from independent parties is greater than non-independent parties.

Will be the Company’s concern in the future.

12. The company should prepare a schedule for the board of directors and board meetings at the beginning of the current financial year or at the end of the previous financial year.

The schedule of commissioners and directors meetings has been prepared in early 2020 as explained in this Annual Report.




recommendation follow up

13. The company needs to encourage members of the board of commissioners to attend at least 75% of the total meetings held during the year.

The Bank has established rules and working procedures for the Directors and Board of Commissioners which have set a minimum limit for meeting attendance in accordance with applicable regulations.

14. It is necessary to regulate the policies that require the quorum requirements in the decision-making meeting by the board of commissioners.

The Bank has established rules and working procedures for the Directors and Board of Commissioners which have set minimum limits for decision making in accordance with applicable regulations.

15. Circulation of meeting material should be received by each member of the board of commissioners no later than five (5) working days before the board of commissioners meeting.

The Bank has determined the rules and working procedures of the Directors and Board of Commissioners in which it has determined the delivery of meeting material in accordance with applicable regulations.

16. The company is advised to disclose the remuneration policy for directors, including the president director.

The Bank has informed the amount of CEO Remuneration, as stipulated by the Financial Services Authority.

17. Formulate remuneration policies by setting measurable standards that link the directors’ performance with the company’s long-term interests.

The Bank has a remuneration policy by setting measurable standards that link the performance of the board of directors with the long-term interests of the company which are guided by SOE Regulations and OJK Regulations.

18. The Company is advised to include the duties and responsibilities of the main commissioners in the board work guidelines and disclose them to the public.

The Board of Commissioners’ work guidelines have been prepared in accordance with applicable regulations, while the recommendations are used as material for further improvement.

19. Companies are advised to conduct an annual performance evaluation of each or every member of the board of commissioners.

The annual performance evaluation of the Board of Commissioners has been carried out in accordance with the applicable laws and regulations in Indonesia.

suPerIor PerformaNCe assessmeNT CrITerIa

Building superior performance is a major demand for SOEs in achieving financial and non-financial performance. In order to increase capability and competitiveness, the Ministry of State-Owned Enterprises (BUMN) decided to build and implement a management and control system for BUMN performance based on Superior Performance Assessment Criteria (KPKU).KPKU is a performance management and control system prepared by the Ministry of BUMN as the standard guidelines for the Ministry of SOE and all SOEs in building, managing, and empowering their company’s systems and resources to achieve superior performance.

KPKU assessment criteria were adopted from the Malcolm Baldrige Criteria for Performance Excellence (MBCfPE) and have been implemented in SOE since 2012 as per Ministry of SOE Letter No. S-153/S.MBU/2012 dated July 19, 2012. BNI made the Malcolm Baldrige Criteria for Performance Excellence (MBCfPE) performance evaluation system since 2005, as part of the Bank’s performance development framework, to continue its implementation in the form of the KPKU BUMN.

Through the implementation of the KPKU framework, BNI gained a comprehensive picture of the Company’s condition from various aspects, both process and results.

Through the portrait of the Company’s condition, BNI can find out the strengths and weaknesses of the Company. The Company’s weaknesses that are encased in OFI become learning, as well as a source of inspiration and triggers for BNI to make improvements in various fields.KPKU assessment criteria consist of a number of questions representing the fundamental aspects of the management of company/organization in the context of achieving superior performance. Such questions are classified in 7 (seven) categories, as follows:

1. Leadership2. Strategic Planning3. Focus on Customers4. Measurement, Analysis, and Management of Knowledge5. Focus on Manpower6. Focus on Operation7. Business Results

For BNI, as one of the SOEs implementing KPKU, the evaluation process of the above seven categories will result in performance improvement feedback (OFI/Opportunity For Improvement), and a performance rating with a world class rating standard because SOE’s KPKU is extracted from Malcolm Baldrige Criteria, which is indeed designed to assess the company’s performance based on the characteristics of world-class companies. The rating performance is divided into several levels, which are:





earlyDevelopment

earlyresult

earlyImprovement

GoodPerformance

emergingIndustry leader

Industryleader

Benchmarkleader

worldleader

Through KPKU framework implementation, BNI obtains a comprehensive picture of the company’s condition from various aspects, either the processes or the results. Through a portrait of the company’s condition, BNI can acknowledge the company’s strengths and weaknesses. The company’s weakness as wrapped up in OFI becomes a study, as well as a source of inspiration and trigger for BNI to make refinements and improvements in various fields.

Since implementing MBCfPE system in 2005 and KPKU starting in 2012, the assessment results have shown that BNI’s KPKU score always increases from time to time. Based on the results of the 2019 KPKU assessment that took place in the second quarter 2019, BNI have succeeded in obtaining the “Industry Leader” Band Score, successfully raised the Band Score from the “Emerging Industry Leader”.

BoarD of CommIssIoNers’ PerformaNCe assessmeNT

The Board of Commissioners Performance Assessment is conducted through a variety of procedures or mechanisms as follows:1. The Board of Commissioners Performance Assessment by GMS The Board of Commissioners Performance Assessment is conducted by the Shareholders at the AGMS upon the

submission of the Board of Commissioners’ oversight duties report to the AGMS in the Company’s Annual Report, whereby based on the report the AGMS declares and grants acquit et de charge to the Board of Commissioners for the supervisory measures conducted in the Fiscal Year at the end of the year.

2. Based on the achievement of the Board of Commissioners Work Plan established at the beginning of the year3. Performance Evaluation of the Board of Commissioners through the preparation of the Self Assessment of the

Implementation of Bank Governance. The performance evaluation of the Board of Commissioners is also carried out through self-assessment of the

implementation of the duties and responsibilities of the Board of Commissioners as part of the Report (Self Assessment) on the Implementation of Bank Governance that must be submitted by BNI to the Financial Services Authority every semester as required in the Financial Services Authority Circular No. 13/SEOJK.03/2017 dated 17 March 2017 concerning the Implementation of Governance for Commercial Banks. Furthermore, OJK will conduct an evaluation or evaluation of the Report (Self Assessment) on the Implementation of the Bank’s Governance.

The Self Assessment criteria of the Board of Commissioners related to GCG implementation are Governance Structure, Governance Process, and Governance Outcome.

The Board of Commissioners ‘Performance Assessment in 2019 is reflected in the achievement of the Board of Commissioners’ Annual Work Program/Annual Work Plan in 2019, which was entirely achieved.




BoarD of DIreCTors assessmeNT

The performance of the Board of Directors and each member of the Board of Directors will be evaluated by the Board of Commissioners and submitted to the Shareholders at the GMS.

Board of Directors assessment using The superior Performance assessment Criteria method (KPKu) Ministry of SOE specifically determines the performance assessment of SOE’s Board of Directors by using KPKU method through Letter No. S-153/S-MBU/2012 dated July 19, 2012, on Performance Reporting Based on SOE’s Superior Performance Assessment Criteria Approach.

KPKu assessment Implementation ProcedureThe procedures for implementing KPKU Assessment are as follows 1. The Ministry of SOE establishes SOE Excellent Forum (FEB) which is tasked with implementing Assessment.2. The Ministry of SOE delivers the FEB Team to the Bank as personnel who carries out Assessment in the Bank.3. The FEB Team conducts Assessment and makes conclusions or assessment results.4. The FEB team submits the Assessment results to the Ministry of SOE to be approved.5. The Ministry of SOE determines the Assessment results.

KPKu evaluation Criteria

KPKu version of Perspective KPKu Performance measurement Indicators

Leadership, Governance, and Social Responsibility

• GCGImplementationQuality-ComplianceLevel/fulfillmentofSOEportals(assets,PKBL,FIS,HR,Public)

• StrategicProperleveloftheBank’sperformanceratingassessmentprograminenvironmentalmanagement.

• Thesuitabilitylevelofcapitalexpenditure(capex)preparationwiththecompanyneedsandsynchronization with MP3E

Strategic Planning • Objectivestrategydevelopmentandactionplanofstrategyimplementation• StrategyImplementation

Focus on customers A measure that shows the Bank’s sincerity in achieving, retaining, expanding, and creating markets and customers.

Focus on Manpower • WorkforceCapabilityandCapacity• Environment• EmployeeDevelopmentandEngagement

Effectiveness of Product and Process • Percentageofbusinessprocessimprovement• Theutilizationlevelofproductionequipment• Riskmanagementimplementationquality• MeasuresshowingtheBank’sachievementsincreatingvaluefromproducts/services,whichare

realized by appropriate operational planning• SOESynergy

Finance and Market • Profitability• Revenuegrowth• Efficiency/Cost• MarketGrowth• MarketControl





KPKu assessors The party conducting KPKU Assessment are the FEB Team and the Ministry of SOE.

KPKu assessment resultsThe results have shown that BNI’s KPKU score always increases from time to time. Based on the results of the 2019 KPKU assessment that took place in the second quarter 2019, BNI have succeeded in obtaining the “Industry Leader” Band Score, successfully raised the Band Score from the “Emerging Industry Leader”.

Corporate Governance Perception Index (CGPI)As a component in the assessment of the work of the Board of Directors in the field of Corporate Governance, the measurement of the assessment uses the results of an independent party assessment conducted by The Indonesian Institute for Corporate Governance (IICG).

assessment of BoD Performance using Key Performance Indicator (KPI)The assessment of the performance of the Board of Directors using KPI is carried out with a 100% collegial pattern measured based on the 5 (five) KPKU perspectives and the achievement of the implementation of the tasks of BUMN as the agent of Development:

Perspective No KPI unit

KPI Based on KPKU’s Perspective

Finance and Market 1 Earning After Tax (EAT) Trillion Rp

2 Market Cap Growth

3 NPL Ratio %

4 Cost to Income Ratio %

Customer Focus 5 Customer Satisfaction Survey Result by Independent Surveyor

%

6 Implementation on PAB that has already been approved by the Financial Services Authority

Ratings

Effectiveness in Product and Process

7 Improvement of Digitalized Banking Products and Services %

8 Growth of Branchless Banking Agent %

9 Online Subrogation System Development for KUR Total

Focus on Manpower 10 Employee Productivity Unit

11 Employee Engagement Survey Rp/Worker

Leadership, Governance, and Social Responsibility

12 KPKU Score Score

13 Realization of Distribution of Partnership and Community Development Program

Score

• Partnership program• Community Development

to RKAP budget %

14 Corporate Governance Perception Index Score




BoarD of DIreCTors remuNeraTIoN PolICy

remuneration GovernanceBNI already has a Board of Commissioners’ Remuneration Governance Policy, which refers to the Financial Services Authority Circular No. 45/POJK.03/2015 dated Desember 23, 2015 on Implementation of Governance in Providing Remuneration for Commercial Bank, and Regulation of the Minister of State-Owned Enterprises that regulates the Guidelines for Determining the Remuneration of the Board of Directors, Board of Commissioners and Supervisory Board of State-Owned Enterprises

Based on the BNI Company’s Articles of Association, members of the Board of Commissioners receive honorarium and benefits / facilities including bonuses and Retirement Benefits, which the type and amount are determined by the GMS by taking into account the applicable laws and regulations.

The Board of Commissioners supervises the implementation of the Remuneration Policy and conducts periodic evaluations through the Nomination and Remuneration Committee. The evaluation of the Nomination and Remuneration Committee is based on performance, risk, fairness with peer groups, the Bank’s long-term goals and strategies, fulfillment of reserves as stipulated in the legislation and potential future revenue of the Bank.

Based on the Resolution of the Annual GSM for the 2019 Fiscal Year the RUPS resolved to:1. Approve to give authority and power to the Dwi A Series Color Shareholders to determine the amount of tantiem for the

2019 financial year, as well as determine salary / honorarium, allowances, facilities and other incentives for members of the Board of Commissioners in 2019;

2. Approve to give authority and power to the Board of Commissioners by first obtaining written approval from the Dwi A Series Color Shareholders to determine the amount of tantiem for the 2018 fiscal year and to determine salary / honorarium, benefits, facilities and other incentives for members of the Board of Directors for 2019.

Procedure for Determining remunerationBroadly speaking, the procedure for determining the remuneration of the Board of Commissioners is carried out through the following stages:1. The Nomination and Remuneration Committee evaluates the remuneration policy that applies to the Board of

Commissioners2. Furthermore, the Nomination and Remuneration Committee will provide recommendations to the Board of Commissioners

regarding the remuneration policy for the Board of Commissioners3. The Board of Commissioners submits the proposed remuneration recommendation in the form of salary / honorarium and

bonus to the Dwi Warna Series A Shareholders to obtain AGM approval.

The Process of Determining the remuneration of the Board of Commissioners

Resolution of the General Meeting of Shareholders regarding the Delegation of Authority to Dwiwarna A Series Shareholders and the Board of Commissioners to determine the amount of the Board of Commissioners and Directors’ Income.

A review of the proposed amount of remuneration for the Board of Commissioners and Directors by the Nomination and Remuneration Committee is submitted to the Board of Commissioners

Letter from the Board of Commissioners to Dwiwarna A Series Shareholders regarding the proposed remuneration for the Board of Commissioners and Directors

Decree of Dwiwarna A Series Shareholders upon Remuneration of BNI’s Board of Commissioners and Directors

Letter of the Board of Commissioners to the Board of Directors regarding the Determination of the Remuneration of the Board of Directors and the Board of Commissioners

Remuneration Board of Commissioners and Board of Directors




remuneration structure of The Board of Commissioners The remuneration structure of the members of the Board of Commissioners is based on SOE Ministerial Regulation No. PER-04/MBU/2014 dated March 10, 2014 concerning Guidelines for Determining the Income of Directors, Board of Commissioners and Board of Trustees of State-Owned Enterprises and the amendments are as follows:

Table of remuneration structure for members of Board of Commissioners

Type of remuneration/ facilities Description

Honorarium 1. President Commissioner is 45% of the salary of the President Director.2. Vice President Commissioner is 42,5% of the salary of the President Commissioner. 3. Commissioner is 90% of the honorarium of the President Commissioner.

allowances

Religious Holiday Board of Commissioners is given allowances for Religious Holiday for 1 (one) time honorarium

Transportation Board of Commissioners is given transportation for 20 (twenty) percent of the honorarium..

Post- Employment Insurance 1. Given during the term of office2. Premium borne by the Company is 25% (twenty-five percent) of the honorarium in one year.3. Selecting the program for post-employment insurance is determined by the Board of Directors and

Board of Commissioners, coordinated by the unit managing the facilities and allowances for members of Board of Directors and Board of Commissioners.

4. Provision of premium, fee, or other terms relevant to post-employment insurance already includes premium for accident and death insurance.

facilities

Health 1. Health facilities are given to members of Board of Commissioners in the forms of health insurance or reimbursement of medical expenses.

2. Health facilities are given to members of Board of Commissioners, the wife/husband, and maximum 3 (three) children who have not reached the age of 25 (twenty five) provided that in the event that the child is not yet 25 years but had been married or had previously worked, the said child is not entitled to receive health facilities. Health facilities are provided in the forms of:

a. Outpatient and medicines; b. Inpatient and medicines; c. Medical check up subject to 1 (one) time every year and done inside the country.3. In the event that the treating doctor provides referrals for treatment overseas, the health facility is

provided in full.

Legal Aid 1. Legal Aid facility to members of Board of Commissioners is given in the event of any action/activity for and on behalf of a position of members of Board of Commissioners that is related to the purpose and objective as well as the company’s business activities.

2. Legal aid facility is at cost.3. Legal aid facility is budgeted at the Bank’s expense as stated in the Bank’s Work Plan and Budget

(RKAP).4. Legal aid facility can only be used during the term of office or no longer in office on the policies taken

during the term of office and cannot be given directly to the person concerned.5. In the event that members of the Board of Commissioners use lawyers/legal consultants of their own

choice, either at level of preliminary investigation/investigation, first-level court, appeal, cassation, and judicial review, then, the lawyer/legal consultant fee is not borne/compensated by the Bank.

6. Procedures for Board of Commissioners’ legal aid facility are carried out by referring to the applicable Laws and Regulations, specifically the Minister of State-Owned Enterprises Regulation which regulates the Guidelines for Determining the Income of Board of Directors, Board of Commissioners, and Supervisory Board of State-Owned Enterprises.




Indicator to Determine remuneration of Board of CommissionersIn determining indicators for Board of Commissioners and Board of Directors, the Company refers to SOE Minister Regulation No. PER-04/MBU/2014 on Guidelines for Determination of Income of the Board of Directors, Board of Commissioners, and Supervisory Board of SOE as have been amended several times, lastly by SOE Minister Regulation No. PER-01/MBU/05/2019 as follows:1. Business scale factor2. Business complexity factor3. Inflation Rate4. Company’s condition and financial capability5. Other relevant factors, as well as not in violation of the

laws and regulations.

Total Nominal/Component of remuneration of Board of CommissionersThe disclosure of remuneration component of the Board of Commissioners refers to Financial Services Authority Circular Letter No. 40/SEOJK.03/2016 on Implementation of Governance in Providing Remuneration for Commercial Bank.

The total nominal/component of remuneration of Board of Commissioners is as follows.

Total remuneration and other facilities

amount received in 1 (one) year

Person million rp

remuneration

Salary 9 15.300.96

Housing Allowance - -

Transportation Allowance 9 3.061.09

Holiday Allowance 9 1.287.37

Tantiem 9 68.886.13

other Natura facilities

Housing (cannot be owned) - -

Transportation (cannot be owned) - -

Post-Employment Insurance (can be owned)

9 2.336.07

Health (cannot be owned) 9 238.46

The honorarium composition of members of the Board of Commissioners is determined as follows:1. President Commissioner is 45% of the salary of the

President Director.2. Vice President Commissioner is 42.5% of the salary of

the President Director3. Commissioner is 90% of the President Director


The remuneration in one year is grouped in the range of income levels as follows:

Table of Group of remuneration amount of Board of Commissioner

Total remuneration Number of Commissioner million rp

Above Rp2 billion 9 93,992.77

Above Rp1 billion - Rp2 billion - -

Above Rp500 million - Rp1 billion - -

Bellow Rp500 million - -

TantiemTantiem paid in 2019 was 2% of the Bank’s net profit for the period of 1 January 2018 - 31 December 2018, in proportional to the amount received by the President Director as a basis for calculation, namely the President Commissioner received 45%, the Vice President Commissioner received 42.5%. The other Commissioners received 90% of the bonus received by the President Commissioner.

BoarD of DIreCTors’ remuNeraTIoN PolICy

remuneration GovernanceBNI already has a Board of Commissioners’ Remuneration Governance Policy, which refers to the Financial Services Authority Circular No. 40/SEOJK.03/2016 on Implementation of Governance in Providing Remuneration for Commercial Bank. The policy states that the remuneration is of Fixed and Variable natures and is given based on the business scale, business complexity, peer group, inflation rate, financial condition and capability of the Bank, as well as not contrary to the applicable laws and regulations.

Regarding the determination of Fixed Remuneration, it observe the difference (gap) of remuneration between levels of position, thus, it prevents potential internal conflicts and operational risks such as fraud or other operational risks. Regarding the determination of Variable Remuneration, the Bank uses the basis of prudent risk taking which refers to the provisions of the Financial Services Authority regulating Risk Management Implementation for Commercial Banks.




Based on BNI’s Articles of Association, members of the Board of Directors are given honorarium and allowances/facilities including tantiem and post-retirement benefits, and the types and the amounts of which are determined by the GMS with due observance to the prevailing laws and regulations.

The Board of Commissioners supervises the implementation of remuneration policies and conducts regular evaluations through the Nomination and Remuneration Committee. The Nomination and Remuneration Committee conducts evaluation on the Remuneration Policy that is based on performance, risk, fairness with peer group, targets, and the Bank’s long term strategy, as well as fulfilment of reserves as regulated in laws and regulations, and the Bank’s potential revenue in the future. Procedure for Determination of remuneration In general, the procedure for determination of the Board of Directors’ remuneration are carried out through the following stages:1. The Nomination and Remuneration Committee evaluates the remuneration policy applicable to the Board of Directors.2. Next, the Nomination and Remuneration Committee provides recommendations to the Board of Commissioners on the

remuneration policy for the Board of Directors.3. The Board of Commissioners submits proposals on remuneration recommendation in the form of salary/ honorarium and

tantiem to be approved by the GMS. The Process of Determining the remuneration of the Board of Directors

Resolution of the General Meeting of Shareholders regarding the Delegation of Authority to Dwiwarna A Series Shareholders and the Board of Commissioners to determine the amount of the Board of Commissioners and Directors’ Income.

A review of the proposed amount of remuneration for the Board of Commissioners and Directors by the Nomination and Remuneration Committee is submitted to the Board of Commissioners

Letter from the Board of Commissioners to Dwiwarna A Series Shareholders regarding the proposed remuneration for the Board of Commissioners and Directors

Decree of Dwiwarna A Series Shareholders upon Remuneration of BNI’s Board of Commissioners and Directors

Letter of the Board of Commissioners to the Board of Directors regarding the Determination of the Remuneration of the Board of Directors and the Board of Commissioners




remuneration structure for members of Board of DirectorsThe remuneration structure of members of the Board of Directors refers to SOE Minister Regulation No. PER-01/MBU/05/2019 dated May 31, 2019, and SOE Minister Letter No. S-481/MBU/D5/05/2019 dated May 31, 2019, on Submission of Remuneration Determination of the Board of Directors and Board of Commissioners of PT Bank Negara Indonesia (Persero), Tbk. in 2019, as follows.

Table of remuneration structure for members of Board of Directors

Type of remuneration /facility Description

Salary 1. President Director is 100%.2. Vice President Director is 95% of the Salary of President Director. 3. The Director in charge of Human Resources is 90% of the salary of the President Director.4. Other directors is 85% of the salary of the President Director

allowances

Religious Holidays Members of the Board of Directors are given allowance for Religious Holiday for 1 (one) time salary each year.

Housing Members of the Board of Directors are given housing allowances of IDR27,500,000.

Post-Employment Insurance 1. Given during term of office2. The premium borne by the company is maximum 25% of the annual salary3. Selecting the post-employment insurance program is determined by each member of the Board of

Directors that is coordinated by the unit managing the facilities and allowances for members of the Board of Directors and members of the Board of Commissioners.

4. Provision of premiums, fees, or other terms relevant to post-employment insurance already includes premiums for accident and life insurance.

facilities

Vehicles Members of the Board of Directors are provided with 1 (one) unit of official vehicle and 1 (one) driver who can be used full time by members of the Board of Directors with overtime paid by the Company.1. The brand and type of vehicle are determined by the Company.2. Maintenance costs and vehicle operating costs as well as other costs incurred in connection with

official vehicle facilities shall be borne by the Company at cost.3. Members of the Board of Directors who are no longer in office shall return the official vehicle to the

Company no later than 30 (thirty) days.

Health Health facilities are given in the forms of health insurance or reimbursement of medical expenses.1. Health facilities are given to members of the Board of Directors and a wife/husband as well as

maximum 3 (three) children who have not reached the age of 25 (twenty-five) provided in the event that the child is not yet 25 (twenty-five) years but had been married or had previously worked, the said child is not entitled to receive health facilities. Health facilities are provided in the forms of:a. Outpatient and medicine;b. Inpatient and medicine,c. Medical check-up, 1 (one) time every year and taken domestically.

2. In the event that the doctor recommends overseas treatment, the health facility may be covered fully.

Legal Aid 1. Legal Aid facility to members of the Board of Directors is given in the event of any action/deeds for and on behalf of a position of members of the Board of Directors with the intention and objective as well as the company’s business activities.

2. Legal aid facility is at cost.3. Legal aid facility to members of Board of Directors is budgeted at the Bank’s expense as stated in the

Bank’s Work Plan and Budget (RKAP).4. Legal aid facility can only be used in the event of a claim from third party, either during term of office

or no longer in office on the policies taken during the term of office and cannot be given directly to the person concerned.

5. In the event that members of the Board of Directors use lawyers/legal consultants of their own choice, either at level of preliminary investigation/investigation, first-level court, appeal, cassation, and judicial review, then the attorney/legal consultant fee is not borne/compensated by the Bank.

6. Procedures for Board of Directors’ legal aid facility are carried out by referring to the applicable laws and regulations, specifically the Minister of State-Owned Enterprises Regulation which regulates the Guidelines for Determining the Remuneration of Board of Directors, Board of Commissioners, and Supervisory Board of State-Owned Enterprises.

Housing Facilities 1. In the event that the Bank provides office-house for the Board of Directors, the Director must use the house as a housing facility and is not provided with housing allowance.

2. In the event that the Bank does not provide office-house, then the Director will receive housing allowance.

3. The housing facility received by the Board of Directors include utilities and maintenance of the house of residence.

4. Details of utility amount (electricity, water, telephone, etc.) as mentioned above refer to the policies stipulated in the Bank.





Indicators for Determining Board of Directors’ remunerationIn determining the Board of Directors’ indicators, BNI refers to SOE Minister Regulation Number: PER-04/MBU/2014, which was amended by SOE Minister Regulation No. No. PER-01/MBU/05/2019 on Guidelines to Establish Remuneration of Board of Directors, Board of Commissioners, and Board of Supervisors of State-Owned Enterprise as follows:• Businessscalefactor• Businesscomplexityfactor• InflationRate• Company’sconditionandfinancialcapability• Otherrelevantfactors,aswellasnotincontradictiontothelawsandregulations.

ToTal NomINal/ComPoNeNT of BoarD of DIreCTors’ remuNeraTIoN

Disclosure of remuneration components for the Board of Commissioners and Board of Directors refers to Financial Services Authority Circular Number 40/SEOJK.03/2016 on Commercial Bank’s Governance Implementation in Granting Remuneration.

Type of remuneration and other facilitiesamount received in 1 year

Percentage million rp

remuNeraTIoN

Salary 11 30,136.95

Housing Allowances 11 1,017.50

Transportation Allowances - -

Religious Allowances 11 3,348.55

Tantiem 11 171,116.65

oTher NaTura faCIlITIes

Housing (cannot be owned) - -

Transportation (cannot be owned) 11 9,726.64

Post-Employment Insurance (can be owned) 11 7,283.43

Health (cannot be owned) 11 495.11

The remuneration in one year is grouped in income level range as follows.

Table of remuneration by Group

Total remuneration Total remuneration Total remuneration

Above IDR 2 Billion 11 person 230.443,49

Above IDR 1 Billion - IDR 2 Billion - -

Above IDR 500 million - IDR 1 Billion - -

IDR Rp500 million below - -




TaNTIem

Tantiem paid in 2019 was 2% of the Bank’s net profit for the period of 1 January 2018 - 31 December 2018, which was given to the Board of Directors with a proportion of 100% for the President Director, 95% for the Vice President Director, and 90% for other members of Board of Directors.

emPloyee remuNeraTIoN

The employee remuneration strategy is determined based on the principles of supply and demand, BNI’s remuneration position compared to the market, and by considering employee talent classification. The component of employee remuneration consists of permanent remuneration which is differentiated based on position weight and person value. While variable remuneration is given based on performance that is associated with the achievement of bank performance, unit performance, and the employee concerned. The unit performance is reflected in the classification of business units, regions, subsidiaries, and branch offices located abroad.

Regarding the remuneration policy, BNI uses the consultant services from Willis Towers Watson, who conduct annual survey on salary. The result of which is used as a reference for employee remuneration.

hIGhesT aND lowesT emPloyee salary raTIo

Salary is employee’s right, a compensation in the form of money, given by the Company or employer for the services rendered by the employee, which is determined and pay upon according to a work agreement, arrangement, or laws and regulations.1. Ratio of highest and lowest employee’s salary is 45:12. Ratio of highest and lowest Director’s salary ratio is 1.1:13. Ratio of highest and lowest Commissioners’ salary ratio

is 1.1:14. Ratio of Director’s highest salary and employee’s highest

salary is 2.9:1

emPloyee aND/or maNaGemeNT sToCK alloCaTIoN ProGram

Referring to the Financial Services Authority (FSA) Regulation No. 02/POJK.04/2013 dated August 23, 2013, on Repurchase of Shares Issued by Issuers or Public Companies in Significantly Fluctuating Market Conditions and Circular Letter of SEOJK No. 5/SEOJK.04/2017 on Revocation of SEOJK No. 22/SEOJK.04/2015 on Other Conditions as a Market Condition Significantly Fluctuating in the Implementation of Repurchasing. Shares Issued by Issuers or Public Companies, BNI conducts repurchasing of the Company’s shares that have been issued and listed on the Indonesian Stock Exchange (Buy Back). BNI has appointed PT BNI Securities as a securities institution conducting repurchases of the Company’s shares with a period of share purchases in the market in less than 3 months from November 2, 2015, to December 28, 2015.

The number of shares repurchased amounted to 0.807% of the issued and fully paid capital or a total of 150,537,500 shares. The value of the repurchase of the Company’s shares was Rp749,979,275,500.00 (maximum IDR 750 billion), thus, the average price of Shares Buyback was Rp4,982.00 per share.

For the implementation of the repurchase of the Company’s shares, the Company conducted an Information Disclosure on October 30, 2015.

Considering item 4 letter a number 3 Regulation No. XI.B.2 in conjunction with Article 9 of the Financial Services Authority Regulation No. 2/POJK.04/2013, the repurchased shares can be transferred/used for the implementation of Employee Stock Option Plan or Employee Stock Purchase Plan. In regard to that matter, the Company conducted Information Disclosure on May 12, 2016, which in essence states that the Company will carry out the transfer of C Series shares resulting from the repurchase through the Share Ownership Program for Management and Employees of the Company in the form of Stock Bonuses (hereinafter referred to as the “Stock Bonus Program”).

The Stock Bonus Program is prepared as part of remuneration in accordance with Minister of State-Owned Enterprises Regulation No. Per-04/MBU/2014 on Guidelines for Determining Income of Board of Directors, Board of





Commissioners, and Supervisory Board of State-Owned Enterprises, in the form of long-term awards in which the repurchased shares are allocated to:1. Employees as a bonus for achieving the company’s

performance, and2. Members of the Board of Directors and Board of

Commissioners as part of tantiem for the relevant fiscal year.

Supervision of the Stock Bonus Program will be carried out by the Board of Directors and will be reported at the Company’s soonest General Meeting of Shareholders on such program implementation.

Allocation of stock bonus to members of the Board of Directors and Board of Commissioners in accordance with Minister of State-Owned Enterprises Regulation No. Per-04/MBU/2014 on Guidelines for Determining Income of Boardof Directors, Board of Commissioners, and Supervisory Board of State-Owned Enterprises is carried out after the Company has obtained approval from the General Meeting of Shareholders/Minister of SOE.

Based on the Minutes of the Company’s Annual GMS No. 8 dated March 10, 2016, the allocation of stock bonus to members of the Company’s Board of Directors and Board of Commissioners is carried out after obtaining approval from Minister of SOE.

Based on the Ministry of SOE Letter No. S-574/MBU/D5-06/2018 dated June 5, 2018, it basically stated the determination of 10% Long-Term Incentive (LTI) from the Tantiem of Board of Directors and Board of Commissioners for the 2017 Fiscal Year. LTI is given in the form of shares where the values which are deferred for three years or until the end of the term of office. This provision is exempted for Independent Commissioner, where LTI is given in cash in which the payment is deferred for three years or until the end of the term of office.




meeTING of BoarD of CommIssIoNers

mechanism of The Board of Commissioners meeting and The Board of Commissioners meeting with The Board of DirectorsThe Board of Commissioners meeting refers to the Financial Services Authority Regulation and the Company’s Articles of Association No. 33/POJK.04/2014 dated December 8, 2014 concerning the Board of Directors and Board of Commissioners of Issuers or Public Companies and the Company’s Articles of Association. The regulation states that the Board of Commissioners must hold a Meeting at least 1 (one) time in 2 (two) months and hold a meeting with the Board of Directors periodically at least 1 (one) time in 4 (four) months. In addition, the Board of Commissioners can hold a meeting at any time at the request of 1 (one) or several members of the Board of Commissioners or Directors, stating the matters to be discussed.

The Board of Commissioners may also take a valid decision without holding a Board of Commissioners Meeting provided that all members of the Board of Commissioners have been notified in writing and all members of the Board of Commissioners give their approval regarding the proposal submitted in writing and sign the agreement.

As the guideline for the implementation of the Board of Commissioners Meetings and the Joint Meetings with the Board of Directors, the Board of Commissioners has set the procedures and mechanism for the implementation of the Board of Commissioners Meetings and Board of Commissioners Meetings with the Directors in the Decree of the Board of Commissioners No. Kep/049/DK/2017 dated October 26, 2017 concerning the Board of Commissioners’ Guidelines and Work Rules which are further elaborated in the Decree of the Board of Commissioners No. KEP/010/DK/2018 dated July 12, 2018 concerning Rules of Procedure for the Meeting of the Board of Commissioners and the Joint Meeting with the Board of Directors of PT Bank Negara Indonesia (Persero) Tbk, which in principle contains following provisions:1. Meeting Schedule,2. Meeting agenda,3. Meeting Venues,4. Meeting Participants,5. Power and Representation,6. Summons of Meetings,7. Attendance and Decision Making Meeting,8. Documentation of the implementation of the Meeting and administration of Minutes of Meeting,9. Decision of the Board of Commissioners outside the meeting,10. Meeting of the Board of Commissioners through Teleconference Media11. Format and materials for Meeting Presentations.

The Board of Commissioners’ meeting consists of:1. Meeting of the Board of Commissioners (Rakom), which is the Internal Meeting of the Board of Commissioners2. Board of Commissioners meeting by inviting the Field / Sectoral Director or Senior Executive Vice President (SEVP)3. Joint Meetings of the Board of Directors and the Board of Commissioners (Radikom), which is the Board of Commissioners

Meeting with the Board of Directors, and is attended by the Corporate Secretary and the Secretary of the Board of Commissioners.

Meeting of The Board of Commissioners and Directors




agenda, Date and Participants of The Board of Commissioners meeting 2019Throughout 2019, the agenda, date and participants of the Board of Commissioners’ Meetings are as follows:

Board of Commissioners meeting

No. Date agenda Participant attendance Note

1. 10 January 2019 meeting with relevant sector DirectorsPresentation from the Public Accountant Office (KAP) regarding the Audit Progress for Fiscal Year 2018

Internal meeting of the Board of Commissioners• ApprovalofUpdatingtheAnti-Money

Laundering and Preventing Terrorism Financing Policy (APU PPT)

• Requestingapprovaltodivestanoverseasbranch’s fixed assets

• RequestingapprovalforOwner’sEstimate(HPS) of KAP 2019

• PreparingtheBOCGoodCorporateGovernance Report in the 2018 Annual Report

• Incomingmailthatneedtobefollowedup• Incomingmailfortheperusal• MonitoringtheFollow-uptoPrevious

Meetings

• AriKuncoro• WahyuKuncoro*)• RevrisondBaswir• PataniariSiahaan• BistokSimbolon**)• JoniSwastanto• MarwantoHarjowiryono***)• AhmadFikriAssegaf• SigitWidyawan

PresentAbsentPresentAbsentPresentPresentPresentPresentPresent

Teleconference

2. 17 January 2019 Internal meeting of the Board of Commissioners• Incomingmailthatneedtobefollowedup• Incomingmailfortheperusal• MonitoringtheFollowUpofPrevious

Period Meetings

meeting by inviting the sector DirectorDivesting the Fixed Assets of BNI overseas branch


PresentPresentPresentPresentPresentPresentPresentPresentPresent

Teleconference

3. 24 January 2019 Internal meeting of the Board of Commissioners• BNI’s2018LongTermIncentive(LTI)• BoardofCommissionersWorkVisitPlan• Incomingmailthatneedtobefollowedup• IncomingMailforthePerusal• MonitoringtheFollowUpofPrevious

Period Meetings



4. 7 February 2019 Internal meeting of the Board of Commissioners• BoardofCommissionersWorkVisitPlan• IncomingMailforthePerusal• MonitoringtheFollowUpofPrevious

Period Meetings• ReportfromtheChairmanoftheIntegrated

Governance Committee

meeting by inviting the sectoral Director• DiscussingResultsfromthe

Macroeconomic Stess Test • DiscussingtheCriteriaofIndividualFraud

Threshold for Long Term Incentive (LTI) of members of the Board of Directors and Board of Commissioners.








5. 14 February 2019 Internal meeting of Board of Commissioners• Limit/thresholdofBoardofDirectors’

actions that need written approval from the Board of Commissioners.

• Incomingmailthatneedtobefollowedup•IncomingMailfortheperusal•MonitoringtheFollowUpofPreviousPeriod

Meetings

meeting by inviting the related sectoral Director • IssuesintheRegionSulawesi• InformationTechnologyOversight:

Digitalization, Simplication of Business Processes and Cyber Security


Absent Absent PresentPresent PresentPresent PresentAbsent Present

6. 21 February 2019 Internal meeting of Board of Commissioners• Incomingmailthatneedtobefollowedup• IncomingMailfortheperusal• MonitoringtheFollowUpofPrevious

Period Meetings


Present Absent PresentPresent PresentPresent PresentPresent Present

Teleconference

7. 14 March 2019 Internal meeting of Board of Commissioners• AuditCommitteeReportsrelatedtoOwn

Estimate for Procurement of General Audit Services, Long Term Incentives (LTI): Threshold Individual Fraud and renewal of the Audit Committee Charter

• Incomingmailthatneedtobefollowedup• IncomingMailfortheperusal• MonitoringtheFollowUpofPrevious

Period Meetings

meeting by inviting sectoral Director Financial and Investment Performance of BNI Financial Institution Pension Fund (DPLK)


Present Absent PresentPresent PresentPresent PresentPresent PresentAbsent

8. 21 March 2019 Internal meeting of Board of Commissioners• Incomingmailthatneedtobefollowedup• IncomingMailfortheperusal• MonitoringtheFollowUpofPrevious

Period Meetings


Present Absent PresentPresent PresentPresent PresentPresent PresentAbsent

9. 28 March 2019 Internal meeting of Board of Commissioners• Incomingmailthatneedtobefollowedup• IncomingMailfortheperusal• MonitoringtheFollowUpofPrevious

Period Meetings

meeting by inviting sectoral Director Compliance Report for the Semester II 2018 (including Anti-Money Laundering and Prevention of Terrorism Funding (APU PPT), Anti-Fraud Strategy, Know Your Customer Principles, and Other Strategic Issues).


Present Absent AbsentPresentPresent Absent PresentPresent Absent







10. 11 April 2019 Internal meeting of Board of Commissioners• AppointmentoftheManagementBoardof

Subsidiary• Incomingmailthatneedtobefollowedup• IncomingMailfortheperusal• MonitoringtheFollowUpofPrevious

Period Meetings


Present Absent Present PresentPresent PresentPresent Absent Absent

11. 18 April 2019 Internal meeting of Board of Commissioners• ResultsoftheInterviewofCandidatesfor

Director of BNI Subsidiaries• Incomingmailthatneedtobefollowedup• IncomingMailfortheperusal• MonitoringtheFollowUpofPrevious

Period Meetings


Present PresentPresent PresentPresent PresentPresent PresentPresent

12. 2 May 2019 Internal meeting of Board of Commissioners• Incomingmailthatneedtobefollowedup• IncomingMailfortheperusal• MonitoringtheFollowUpofPrevious

Period Meetings

meeting by inviting sectoral Director • ProposalforDistributionofBNINetProfit

for Fiscal Year 2018• ProposalforChangingNomenclatureofthe

Board of Directors


Present PresentPresent PresentPresent PresentPresent Absent Present

13. 9 May 2019 Internal meeting of Board of Commissioners• ResultsoftheInterviewofCandidatesfor

President Director of BNI Subsidiaries • Incomingmailthatneedtobefollowedup• IncomingMailfortheperusal• MonitoringtheFollowUpofPrevious

Period Meetings


Present Absent PresentAbsent PresentPresent PresentPresent PresentPresent

14. 16 May 2019 Internal meeting of Board of Commissioners• IntroductionofNewMembersoftheBoard

of Commissioners • Incomingmailthatneedtobefollowedup• IncomingMailfortheperusal• MonitoringtheFollowUpofPrevious

Period Meetings

• AriKuncoro• Hambra****)• RevrisondBaswir• PataniariSiahaan• JoniSwastanto• MarwantoHarjowiryono***)• AhmadFikriAssegaf• SigitWidyawan• RatihNurdiati*****)

Present PresentPresent PresentPresent PresentAbsent PresentPresent

Teleconference

15. 23 May 2019 Internal meeting of Board of Commissioners• ApprovalforAppointmentofDirectorsand

Commissioners of BNI Subsidiaries• ApprovalofDraftofBNIInternalAudit

Charter in 2019• ThresholdforIndividualFraud• ApprovaloftheBoardofDirectorsproposal

for the reorganization of Board of Directors structure


Period Meetings

meeting by inviting sectoral Director • PlansforEquityParticipationinBNI

Subsidiaries• DiscussionofDebtorCreditFacilities


Present Absent PresentPresent PresentPresent Absent Absent Absent






16. 20 June 2019 Internal meeting of Board of Commissioners• Incomingmailthatneedtobefollowedup• IncomingMailfortheperusal• MonitoringtheFollowUpofPrevious

Period Meetings• CommitteeMembership• ExposurefromtheCorporate

Communications and Secretariat Division regarding the Implementation of Good Corporate Governance (GCG) at BNI

meeting by inviting sectoral Director Revision of Bank BNI Business Plan 2019-2021


Present Present Present Present Present Present Absent Present Absent

Teleconference

17. 27 June 2019 Internal meeting of Board of Commissioners• AuditCommitteeReportontheFollowup

of OJK Examination Results, Results of KAP Review for 2018

• AppointmentofPresidentDirectorofSubsidiary Companies


Period Meetings


Absent Present PresentPresentPresentPresentPresentPresentPresent Absent

Teleconference

18. 11 July 2019 Internal meeting of Board of Commissioners• Incomingmailthatneedtobefollowedup• IncomingMailfortheperusal• MonitoringtheFollowUpofPrevious

Period Meetings• MembershipoftheRiskMonitoring

Committee

meeting by inviting sectoral Director Governance and strategic issues of Information Technology BNI


Present AbsentPresent PresentPresent PresentPresent PresentPresent


Period Meetings

• AriKuncoro• Hambra****)• RevrisondBaswir• PataniariSiahaan• JoniSwastanto•• MarwantoHarjowiryono***)• AhmadFikriAssegaf• SigitWidyawan• RatihNurdiati*****)

Present PresentPresent AbsentPresent Present

AbsentPresent Absent

Teleconference


Period Meetings

meeting by inviting sectoral Director Kick off Audit Meeting 2019


Present PresentPresent PresentPresent PresentPresent PresentAbsent

21. 8 August 2019 Internal meeting of Board of Commissioners• ApprovalofreplacingtheHeadofBNI

Internal Audit Unit• BNItalentpooltobesubmittedto

Dwiwarna Series A Shareholders• Incomingmailthatneedtobefollowedup• IncomingMailfortheperusal• MonitoringtheFollowUpofPrevious

Period Meetings

meeting by inviting sectoral Director Performance of BNI Overseas Branch (KCLN) Semester I-2019


Present AbsentAbsent AbsentPresent PresentPresent PresentAbsent







22. 15 August 2019 Internal meeting of Board of Commissioners• Incomingmailthatneedtobefollowedup• MonitoringtheFollowUpofPrevious

Period Meetings


PresentPresentAbsent PresentPresentPresentPresentPresentPresent

23. 22 August 2019 Internal meeting of Board of Commissioners• IncomingMailfortheperusal• MonitoringtheFollowUpofPrevious

Period Meetings

meeting by inviting sectoral Director • PerformanceofBNIFinancialInstitution

Pension Fund (DPLK) Semester I-2019• DevelopmentofHumanResources(HR)

Professionalism with Nusantara Insight


PresentAbsent Absent PresentPresentPresentPresentPresentAbsent

24. 29 August 2019 Internal meeting of Board of Commissioners• IncomingMailfortheperusal• MonitoringtheFollowUpofPrevious

Period Meetings• ProposalforBNIBoardofDirectors

Candidates


PresentPresentPresentPresentPresentPresentPresentPresentAbsent

25. 5 September 2019 Internal meeting of Board of Commissioners• Incomingmailthatneedtobefollowedup• IncomingMailfortheperusal• MonitoringtheFollowUpofPrevious

Period Meetings

meeting by inviting sectoral Director Review of sectoral credit risk

• AriKuncoro• Hambra****)• RevrisondBaswir• PataniariSiahaan• JoniSwastanto• AhmadFikriAssegaf• SigitWidyawan• RatihNurdiati*****)• Askolani******)

PresentAbsent PresentPresentPresentAbsentPresentPresentAbsent


Period Meetings• DiscussionoftheBoardofCommissioners

Organs

meeting by inviting senior executive vice President (sevP)Performance Review and Policy for Remedial &Recovery


PresentPresentPresentPresentPresentAbsentPresentPresentPresent


Period Meetings


AbsentPresentPresentAbsentPresentPresentPresentAbsentPresent






28. 26 September 2019

Internal meeting of Board of Commissioners• Incomingmailthatneedtobefollowedup• IncomingMailfortheperusal• MonitoringtheFollowUpofPrevious

Period Meetings


PresentPresentPresentPresentPresentPresentPresentPresentAbsent

29. 3 October 2019 Internal meeting of Board of Commissioners• Incomingmailthatneedtobefollowedup• IncomingMailfortheperusal• MonitoringtheFollowUpofPrevious

Period Meetings• Reviewobligations,authoritiesand

responsibilities related to policies or guidelines or written procedures of the company determined by the Directors based on the Financial Services Authority Regulation (POJK) and the Financial Services Authority Circular Letter (SEOJK)

meeting by inviting sectoral Director • ReportonBNImaterialcases• CyberCrimeRiskMitigation


AbsentAbsentPresentPresentPresentPresentPresentAbsentPresent


Period Meetings




Period Meetings• PlansforBoardofCommissionersTraining


PresentPresentPresentPresentPresentPresentAbsentPresentAbsent

32. 24 October 2019 Internal meeting of Board of Commissioners• IncomingMailfortheperusal• MonitoringtheFollowUpofPrevious

Period Meetings

meeting by inviting sectoral Director Discussing cases at BNI Regional Offices and Branches


PresentPresentPresentPresentPresentPresentPresentAbsentPresent


Period Meetings

meeting by inviting sectoral Director BNI Performance by Region Quarter III - 2019 and Prognosis 2019


PresentPresentPresentPresentPresentAbsentPresentPresentAbsent







34. 7 November 2019 Internal meeting of Board of Commissioners• Incomingmailthatneedtobefollowedup• IncomingMailfortheperusal• MonitoringtheFollowUpofPrevious

Period Meetings

meeting by inviting sectoral Director Operational Risk Management Strategies and Policies in Regions and Branches


PresentPresentPresentPresentPresentPresentPresentAbsentPresent


Period Meetings


PresentAbsentPresentPresentPresentPresentPresentAbsentAbsent


Period Meetings

• AriKuncoro• RevrisondBaswir• PataniariSiahaan• JoniSwastanto• AhmadFikriAssegaf• SigitWidyawan• RatihNurdiati****)• Askolani*****)

PresentPresentPresentPresentPresentPresentAbsentAbsent

37. 5 December 2019 Internal meeting of Board of Commissioners• Incomingmailthatneedtobefollowedup• IncomingMailfortheperusal• MonitoringtheFollowUpofPrevious

Period Meetings

meeting by inviting sectoral Director Development of BNI New Products and Activities

• AriKuncoro• RevrisondBaswir• PataniariSiahaan• JoniSwastanto• AhmadFikriAssegaf• SigitWidyawan• RatihNurdiati*****)• Askolani******)

PresentPresentPresentPresentPresentPresentAbsentPresent

38. 12 December 2019 Internal meeting of Board of Commissioners• Incomingmailthatneedtobefollowedup• IncomingMailfortheperusal• MonitoringtheFollowUpofPrevious

Period Meetings• BoardofCommissioners’WorkandBudget

Plan for 2020• ReportoftheChairmanoftheIntegrated

Governance Committee

meeting by inviting sectoral Director Effectiveness of BNI Internal Control System

• AriKuncoro• RevrisondBaswir• PataniariSiahaan• JoniSwastanto• AhmadFikriAssegaf• SigitWidyawan• RatihNurdiati*****)• Askolani******)

AbsentPresentPresentPresentPresentPresentAbsent Absent

Note: *) Resigned as the Vice President Commissioner per May 13, 2019 **) Resigned as Commissioner per May13 May 2019 ***) Resigned as Commissioner per 30 August 2019 ****) Appointed as Vice President Commissioner on May 13, 2019 and not effective yet based on FSA Approval. Resigned as the Vice President Commissioner per 18

November 2019 *****) Appointed as Commissioner on May 13, 2019 and not effective yet based on FSA Approval ******) Appointed as Commissioner on August 30 August 2019 and effective serving Commissioner based on FSA Approval since December 20, 2019




BoarD of CommIssIoNers meeTING wITh The BoarD of DIreCTors

agenda, Date and Participants of The Board of Commissioners meeting with The Board of DirectorsThroughout 2019, the agenda, date and participants of the board of commissioners and board of directors meeting are as follows:

Table of meetings of the Board of Commissioners and the Board of Directors

No. Date agenda Board of

Commissioners meeting Participants

attendance NoteBoard of

Directors meeting Participants

attendance Note

1. 17 January 2019

• AuditedConsolidated Financial Performance of Fiscal Year 2018

• ReportontheAchievement of the Bank’s 2018 Business Plan.

• DecisionontheProvision of Credit in December 2018 which needs to be consulted with the Board of Commissioners

• AriKuncoro• WahyuKuncoro*)• RevrisondBaswir• PataniariSiahaan• BistokSimbolon**)• JoniSwastanto• Marwanto

Harjowiryono***)• AhmadFikri

Assegaf• SigitWidyawan

PresentAbsentPresentPresentPresentPresentPresent

Present

Present

Teleconference • AchmadBaiquni• HerrySidharta• CaturBudi

Harto*******)• PutramaWahju

Setyawan • AdiSulistyowati• TambokP

Setyowati• AnggoroEko

Cahyo • BobTyasika

Ananta • RicoRizal

Budidarmo• Dadang

Setiabudi• Endang

Hidayatullah

AbsentPresentAbsent

Present

PresentPresent

Absent

Present

Present

Present

Present

2. 21 February 2019

• ConsolidatedFinancial Performance in January 2019

• CreditDecisionin January 2019 which needs to be consulted with the Board of Commissioners




AbsentAbsentPresentPresentPresentPresentPresent

Present

Present

Teleconference • AchmadBaiquni• HerrySidharta• CaturBudi




Cahyo• BobTyasika


Budidarmo• Dadang

Setiabudi• Endang

Hidayatullah

PresentAbsentAbsent

Absent

AbsentPresent

Present

Present

Absent

Present

Absent

3. 21 March 2019

• ConsolidatedFinancial Performance in February 2019

• CreditDecisionin February 2019 which needs to be consulted with the Board of Commissioners




PresentAbsent PresentPresentPresentPresentPresent

Present

Absent

• AchmadBaiquni• HerrySidharta• CaturBudi




Cahyo• BobTyasika


Budidarmo• Dadang

Setiabudi• Endang

Hidayatullah

Absent PresentPresent

Present

Present Present

Present

Present

Present

Absent

Absent










attendance Note

4. 18 April 2019

• ConsolidatedFinancial Performance in March 2019

• Realizationofthe Bank’s First Quarter 2019 Business Plan

• DecisiononGranting Credit in March 2019 which needs to be consulted with the Board of Commissioners




PresentPresentPresentPresentPresentPresentPresent

Present

Present







Budidarmo• Dadang

Setiabudi• Endang

Hidayatullah

PresentPresentPresent

Present

PresentPresent

Present

Present

Present

Present

Present

5. 16 May 2019

• ConsolidatedFinancial Performance in April 2019

• AriKuncoro• Hambra****)• RevrisondBaswir• PataniariSiahaan• JoniSwastanto• Marwanto


Assegaf• SigitWidyawan• RatihNurdiati

*****)

Present Absent PresentPresent Present Present

Absent

Present Absent







Budidarmo• Dadang

Setiabudi• Endang

Hidayatullah

Absent Absent Present

Present

PresentPresent

Present

Absent

Absent

Present

Present

6. 27 June 2019

• KinerjaKeuanganKonsolidasi bulan Mei 2019

• KeputusanPemberian Kredit bulan April dan Mei 2019 yang perlu dikonsultasikan kepada Dewan Komisaris




*****)

Absent PresentPresent Present Present Absent

Present

Present Absent







Budidarmo• Dadang

Setiabudi• Endang

Hidayatullah

Absent AbsentPresent

Present

AbsentPresent

Absent

Absent

Present

Present

Absent









attendance Note

7. 18 July 2019

• ConsolidatedFinancial Performance in June 2019

• CreditDecisionin June 2019 which needs to be consulted with the Board of Commissioners




*****)

resentAbsentPresentAbsentPresentAbsent

Present

PresentAbsent







Budidarmo• Dadang

Setiabudi• Endang

Hidayatullah

PresentAbsentAbsent

Present

AbsentPresent

Present

Present

Present

Present

Absent

8. 29 August 2019

• ConsolidatedFinancial Performance in July 2019

• CreditDecisionin July 2019 which needs to be consulted with the Board of Commissioners




*****)

Present Absent PresentPresent Present Present

Present

Present Absent


Harto *******)• PutramaWahju





Budidarmo• Dadang

Setiabudi• Endang

Hidayatullah

PresentAbsent Present

Absent

Absent Absent

Present

Present

Present

Present

Absent

9. 19 September 2019

• ConsolidatedFinancial Performance in August 2019

• CreditDecisioninJuly&August2019 which needs to be consulted with the Board of Commissioners

• AriKuncoro• Hambra****)• RevrisondBaswir• PataniariSiahaan• JoniSwastanto• AhmadFikri


*****)• Askolani******)

Absent PresentPresent Absent Present Present

Present Present

Absent

• AchmadBaiquni• HerrySidharta• PutramaWahju





Budidarmo• Ario

Bimo********)• Dadang

Setiabudi• Endang

Hidayatullah

Absent Present Present

Present Present

Present

Present

Present

Present

Present

Present










attendance Note

10. 17 October 2019

• ConsolidatedFinancial Performance in September 2019

• DecisiononGranting of Credit in September 2019 which needs to be consulted with the Board of Commissioners

• AriKuncoro• Hambra****)• RevrisondBaswir• PataniariSiahaan• JoniSwastanto• AhmadFikri


*****)• Askolani******)

Present PresentPresent Present Present Absent

Absent Present

Absent






Budidarmo• Ario


Setiabudi• Endang

Hidayatullah

Absent Present Absent

Present Present

Absent

Absent

Absent

Present

Present

Absent

11. 28 November 2019

• BankBusinessPlan for 2020-2022

• ConsolidatedFinancial Performance in October 2019

• DecisionontheProvision of Credit in October 2019 which needs to be consulted with the Board of Commissioners

• AriKuncoro• RevrisondBaswir• PataniariSiahaan• JoniSwastanto• AhmadFikri


*****)• Askolani******)

Present PresentPresent Present Present

Present Absent

Absent






Budidarmo• Ario


Setiabudi• Endang

Hidayatullah

Absent AbsentAbsent

Absent Present

Present

Present

Present

Present

Present

Present

12. 12 December 2019

• ConsolidatedFinancial Performance in November 2019

• CreditDecisionsinOctober&November 2019 that need to be consulted with the Board of Commissioners

• AriKuncoro• RevrisondBaswir• PataniariSiahaan• JoniSwastanto• AhmadFikri


*****)• Askolani******)

Absent PresentPresent PresentAbsent

Present Absent

Absent






Budidarmo• Ario


Setiabudi• Endang

Hidayatullah

Present Present Present

Present Present

Present

Present

Present

Present

Present

Present

Note: *) Resigned as the Vice President Commissioner per May 13, 2019 **) Resigned as the Commissioner per May 13, 2019 ***) Resigned as the Commissioner per August 30. 2019 ****) Appointed as the Vice President Commissioner on May 13, 2019 and is not in effect based on FSA Approval. Resigned as the Vice President Commissioner per 18

November 2019 *****) Appointed as the Commissioner per May 13, 2019 and is not in effect based on FSA Approval. ******) Appointed as the Commissioner per August 30 2019, effective serving as Commissioner based on FSA Approval dated December 20, 2019 *******) Resigned as the Director per August 30, 2019 ********) Appointed as the Director per August 30, effective serving based on FSA Approval dated November 26, 2019




frequency of The Board of Commissioners meeting and The Joint meeting with The Board of DirectorsDuring 2019 the Board of Commissioners held 38 (thirty eight) Board of Commissioners Meetings, and 12 (twelve) Board of Commissioners and Board of Directors Meetings. Following is the frequency and attendance of meetings of each member of the Board of Commissioners

Name meeting

BoC meeting BoC and BoD meeting

Number of meeting and (%) attendance


Number of

meetingattendance %

Number of

meetingattendance %

Ari Kuncoro President Commissioner 38 33 87% 12 8 67%

Wahyu Kuncoro*) Vice President Commissioner 13 5 38% 4 1 25%

Hambra**) Vice President Commissioner 22 15 68% 6 3 50%

Revrisond Baswir Independent Commissioner 38 34 89% 12 12 100%

Pataniari Siahaan Independent Commissioner 38 33 87% 12 10 83%

Bistok Simbolon***) Commissioner 13 13 100% 4 4 100%

Joni Swastanto Commissioner 38 37 97% 12 12 100%

Marwanto****) Commissioner 24 24 100% 8 6 75%

Ahmad Fikri Assegaf Independent Commissioner 38 28 74% 12 9 75%

Sigit Widyawan Independent Commissioner 38 32 84% 12 10 83%

Ratih Nurdiati*****) Commissioner 25 9 36% 8 1 12.5%

Askolani*******) Commissioner 14 7 50% 4 1 25%

Note: *) Resigned as Vice President Commissioner per 13 May 2019 **) Appointed as Vice President Commissioner on 13 May 2019 and not yet in effect based on FSA approval. Resigned as Vice President Commissioner per 18 November

2019 ***) Resigned as Commissioner per 13 May 2019 ****) Resigned as Commissioner per 30 August 2019 *****) Appointed as Commissioner on 3 May 2019 and not yet in effect based on FSA approval ******) Appointed as Commissioner on 30 August 2019 and effective serving based on FSA Approval since December 20, 2019

Plan for holding The Board of Commissioners meeting in 2020The plan for holding the Board of Commissioners annual meeting and joint meeting with the Board of Directors in 2020 are prepared based on the Commissioners Work Plan, which is established in early 2020 with due observance of the prevailing laws and regulations specifically governing the duties, obligations and responsibilities of the Board of Commissioners:1. Meeting of the Board of Commissioners with the Board of Directors:

a. BNI Consolidated monthly Financial Performance b. Credit Decision Report which needs to be consulted with the Board of Commissionersc. Strategic issues

2. Board of Commissioners Meetings which consist of Internal Meetings of the Board of Commissioners, Board of Commissioners Meetings by inviting Sectoral/Field Directors, which in general include:a. Approval of the Bank Business Plan and monitoring of the implementation of the BNI Bank Business Planb. The level of health of BNI for Semester II-2019 and Semester I-2020 and BNI Risk Profile per quarterc. Implementation of BNI Risk Management and Integrated Risk Management in the BNI Financial Conglomerated. The effectiveness of the BNI Internal Control Unite. Findings and recommendations submitted by the Financial Services Authority, internal auditors, and external auditorsf. Implementation of BNI Compliance Function at least 2 (two) times in one year.g. Implementation of Anti Money Laundering (APU) and Prevention of Terrorism Funding (PPT) Program in the Financial

Services Sector, Implementation of Anti Fraud Strategies and Know Your Customer BNI Principleh. Strategic Issues for BNI Human Resources





i. Implementation of Good Corporate Governance at BNIj. Implementation of Integrated Governance for BNI Financial Conglomerate.k. Quality of BNI’s credit portfolio or financingl. Information Technology Governance and strategic issues of the BIIm. Performance of Sectoral Director related to BNI’s strategic issuesn. Report on BNI’s material cases o. Report of the Board of Directors regarding BNI’s new productsp. Approval for matters based on the Statutory Regulations and the Articles of Association of BNI must obtain the approval

of the Board of Commissioners, including:• Approvalforgrantingcredittorelatedparties• ApprovalofCompanyPolicies/Guidelines

meeTING of The BoarD of DIreCTors

mechanism meeting The Board of DirectorsThe implementation of the Company’s Board of Directors Meeting is carried out with reference to the provisions of the Financial Services Authority No. 33/POJK.04/2014 concerning Directors and Board of Commissioners of Issuers or Public Companies and Article 13 of the Company’s Articles of Association.

The Board of Directors Meeting is held under the following conditions:

organizing meetings 1. Board of Directors must hold the Board of Directors’ meeting at least 1 (one) time every month.2. The Board of Directors must hold joint meeting of the Board of Directors with the Board of Commissioners

periodically at least 1 (one) time in 4 (four) months3. Board of Directors’ Meetings may be held at any time in the event that:

a. It is deemed necessary by one or more members of the Board of Directorsb. Upon a written request from one or more members of the Board of Commissioners

summon of the meeting 1. Meetings can be held at the Bank’s domicile or elsewhere in the territory of the Republic of Indonesia or at the place of business of the Bank.

2. The summon of Board of Directors’ Meeting shall be made by the member of Board of Directors who is entitled to represent the Board of Directors.

3. The summon of the Board of Directors’ Meeting shall be made in writing and submitted or delivered directly to each member of the Board of Directors with an adequate receipt or by registered mail or by courier or telex, facsimile, or e-mail no later than 5 (five) days before the meeting is held by not including the Calling Date and the meeting date or in a shorter time if in an urgent situation.

4. The summon of meeting shall state the agenda, date, time, and place of the meeting.5. Such calling is not required for meetings that have been scheduled based on the decisions of the Board of

Directors’ Meeting held previously or if all members of the Board of Directors are present at the meeting.

Chair of the BoD meeting 1. All Board of Directors’ Meetings are chaired by the President Director. In the event that the President Director is absent or unavailable, the Vice President Director will chair the Board of Directors’ meeting or a Director who is appointed in writing by the President Director who will chair the Board of Directors’ Meeting in the event that at the same time the Vice President Director is also absent or unavailable or the Director appointed by the Vice President Director who will chair the Board of Directors’ Meeting in the event that at the same time the President Director is absent or unavailable and does not appoint anyone.

2. If the GMS does not appoint a Vice President Director, then in the event that the President Director is absent or unavailable, one of the Directors who is appointed in writing by the President Director will chair the Board of Directors’ Meeting.

3. In the event that the President Director does not appoint anyone, one of the Directors with the longest term of office as member of Board of Directors will chair the Board of Directors’ Meeting.

4. In the event that there are more than 1 (one) members of the Board of Directors who have the longest term of office as a member of the Bank’s Board of Directors, then the Director as stated in point 3 above who is the oldest in age will act as the chair of the Board of Directors’ Meeting.




attendance 1. Member of the Board of Directors may be represented at the Board of Directors’ Meeting only by another member of the Board of Directors based on a Power of Attorney. A member of the Board of Directors may only represent one other member of the Board of Directors.

2 Members of the Board of Directors who are unable to attend a Board of Directors’ Meeting can submit their opinions in writing and sign, then submit it to the President Director or Vice President Director or to other members of the Board of Directors who will chair the Board of Directors’ Meeting, whether or not they support the matters will be discussed and this opinion will be deemed as a vote legally issued at the Board of Directors’ Meeting.

3. In the event that a member of the Board of Directors is unable to attend a meeting physically, then such member of the Board of Directors may attend the meeting through teleconferencing, video conferencing, or other electronic media facilities, in accordance with the applicable regulations.

4. Each member of the Board of Directors who personally in any way, directly or indirectly, has an interest in a transaction, contract, or proposed contract, in which the Bank is one of the parties shall state the nature of interest in a Board of Directors’ Meeting, and therefore, has no right to take part in voting on matters related to such transaction or contract.

Decision making 1. Board of Directors’ Meeting is valid and entitled to make binding decisions if attended and/or represented by more than 1/2 (one half ) from the total members of the Board of Directors.

2. In the event that there is more than one proposal, a re-election is conducted so that one of the proposals gets votes more than 1/2 (one half ) part of the total votes cast.

3. Board of Directors’ Meeting Decisions shall be made based on deliberation to reach a consensus. In the event that decision based on deliberation to reach a consensus is not reached, then the decision shall be taken by voting based on the agreed votes that are more than 1/2 (one half ) part of the total valid votes cast at the related meeting.

4. In Board of Directors’ Meetings, each member of the Board of Directors is entitled to cast 1 (one) vote and 1 (one) additional vote for each other member of the Board of Directors represented.

5. Blank vote (abstention) is considered to approve the proposal submitted at the meeting. Void votes are considered non-existent and not counted in determining the number of votes cast at the meeting.

6. Voting concerning an individual shall be in folded ballots without signature, while voting concerning other matters shall be conducted orally, unless otherwise determined by the Chair of the Meeting, without any objection being raised by those present.

minutes of meeting 1. The results of the Board of Directors’ Meeting must be stated in Minutes of Meeting. Minutes of Meeting shall be made by a person present at the meeting who is appointed by the Chair of the Meeting, and then signed by all members of the Board of Directors present and delivered to all members of the Board of Directors.

2. Results of Board of Directors’ Meetings with the Board of Commissioners must be stated in Minutes of Meeting. Minutes of Meeting shall be made by a person present at the meeting who is appointed by the Chair of the Meeting, and then signed by all members of the Board of Directors and members of the Board of Commissioners present and delivered to all members of the Board of Directors and members of the Board of Commissioners.

3. In the event that there are members of the Board of Directors and/or members of the Board of Commissioners who do not sign the meeting results as referred to in number 1 and 2 above, such member must state the reason in writing in a separate letter attached to the minutes of meeting.

4. Minutes of Meeting as referred to in number 1 and number 2 above must be documented by the Bank.5. Minutes of the Board of Directors’ Meeting are legitimate evidence for members of Board of Directors and

third parties regarding the decisions taken in the related Meeting.

Decisions outside the Board of Directors meeting

1. Board of Directors may also make valid decision without holding Board of Director’s Meeting, provided that all members of Board of Directors have been notified in writing and all members of Board of Directors have approved the related proposal submitted in writing and have signed such approvals.

2. Decisions made by such way have the same binding power as that of made validly in Board of Director’s Meeting.





agenda, Date and Participants of The meeting of The Board of Directors 2019Throughout 2019, the agenda, date and participants of the Directors’ Meeting are as follows:

Table of Board of Directors meetings

No. Date meeting agenda meeting Participants attendance Note

1 03 January 2019 FY 2018 Financial Prognosis • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• TambokP.Setyawati(Dir.RL)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.KN)

AbsentPresentPresentPresentPresentPresentPresentPresentPresentAbsentPresent

Leave

Leave

2 10 January 2019 Structuring of BSL Organizations • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• TambokP.Setyawati(Dir.RL)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.KN)

PresentPresentAbsentPresentPresentPresentAbsentPresentPresentPresentPresent

On Duty

Leave

3 14 January 2018 1. Implementation of Business Meeting 20192. Financial Statements of 2018 (Update)

• AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• TambokP.Setyawati(Dir.RL)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.KN)

PresentPresentAbsentPresentOn DutyPresentAbsentPresentPresentPresentPresent

On Duty

Leave

4 21 January 2019 Credit Quality Work Plan for 2019 • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• TambokP.Setyawati(Dir.RL)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.KN)

PresentPresentPresentPresentAbsentPresentPresentPresentPresentPresentPresent

On Duty

5 24 January 2019 Java Jazz Festival, Proposal of Chinese New Year Cong. Ad and John Mayer Concert


PresentPresentPresentPresentPresentPresentPresentPresentPresentPresentPresent






6 07 February 2019 Update on Remuneration Rules • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• TambokP.Setyawati(Dir.RL)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.KN)


7 11 February 2019 1. Relayout of BoD Rooms2. Financial Performance BNI to

31 January 2019


PresentPresentPresentPresentPresentPresentPresentPresentPresentPresentAbsent On Duty

8 14 February 2019 Business Strategy in 2019 • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• TambokP.Setyawati(Dir.RL)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.KN)

PresentPresentPresentPresentPresentAbsentAbsentPresentPresentPresentPresent

On DutyOn Duty

9 18 February 2019 1. Financial Score of PMS Q4-20182. Business Growth in 2019 with Increasing

Quality



10 21 February 2019 Application of Qanun • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• TambokP.Setyawati(Dir.RL)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.KN)

PresentPresentAbsentPresentPresentAbsentPresentPresentAbsentPresentPresent

On Duty

On Duty

On Duty

11 21 February 2019 Strategy for Accelerating Account Opening • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• TambokP.Setyawati(Dir.RL)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.KN)

AbsentPresentPresentPresentPresentAbsentPresentPresentPresentPresentAbsent

On Duty

On Duty

On Duty







12 04 March 2019 1.UpdatesfromtheCorporate&SecretarialCommunications Division

2. Finalization of the 2019 KPI Unit / Sub Unit3. Art Work of Menara BNI Pejompongan



13 08 March 2019 Follow-up of Artwork of Menara BNI Pejompongan (Continuation from BOD Meeting on 4 March 2019)


AbsentAbsentPresentPresentPresentPresentPresentAbsentPresentPresentPresent

On DutyOn Duty

On Duty

14 11 March 2019 Update on Company’s Projects • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• TambokP.Setyawati(Dir.RL)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.KN)

AbsentAbsentPresentPresentPresentPresentPresentPresentPresentPresentPresent

On DutyOn Duty

15 14 March 2019 Financial Prognosis Q1 2019 • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• TambokP.Setyawati(Dir.RL)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.KN)

PresentPresentPresentPresentAbsentAbsentPresentPresentPresentPresentPresent

On DutyOn Duty

16 18 March 2019 1. Plans for Purchasing / Executing Assets2. Review on Segment Authority



17 21 March 2019 Implementation of LinkAja • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• TambokP.Setyawati(Dir.RL)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.KN)

PresentPresentPresentPresentPresentPresentPresentAbsentPresentPresentAbsent

On Duty

On Duty






18 25 March 2019 Update on Inacraft and Java Jazz 2019 • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• TambokP.Setyawati(Dir.RL)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.KN)

PresentPresentPresentPresentPresentAbsentPresentPresentPresentAbsentAbsent

On Duty

On DutyOn Duty

19 28 March 2019 Update from Legal Division • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• TambokP.Setyawati(Dir.RL)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.KN)

AbsentPresentAbsentPresentPresentAbsentPresentPresentPresentPresentPresent

On Duty

On Duty

On Duty

20 01 April 2019 1. Update on Qanun Progress2. Subsidiaries Discussion


PresentPresentAbsentPresentPresentAbsentPresentPresentAbsentPresentPresent

On Duty

On Duty

On Duty

21 04 April 2019 Update on Company’s Projects • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• TambokP.Setyawati(Dir.RL)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.KN)

AbsentPresentPresentPresentPresentPresentPresentAbsentPresentPresentAbsent

On Duty

On Duty

On Duty

22 08 April 2019 Business Review • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• TambokP.Setyawati(Dir.RL)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.KN)


23 11 April 2019 BNI’sFinancialPerformanceforMarch2019&Financial Prognosis of Q2-2019


PresentPresentPresentPresentPresentPresentPresentPresentAbsentPresentPresent

On Duty







24 15 April 2019 Communication and Marketing Strategies • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• TambokP.Setyawati(Dir.RL)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.KN)

PresentPresentPresentPresentPresentPresentPresentPresentPresentPresentAbsent On Duty

25 22 April 2019 Ramadan and Eid Program 2019 • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• TambokP.Setyawati(Dir.RL)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.KN)


On Duty

26 25 April 2019 1. Strategy for Achieving Prognosis Q2 / 20192. Discussion on BOD Nomenclature


AbsentPresentPresentPresentPresentPresentAbsentPresentAbsentPresentAbsent

Leave

On Duty

On Duty

On Duty

27 29 April 2019 Discussion on BOD and BOC Program • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• TambokP.Setyawati(Dir.RL)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.KN)

AbsentPresentPresentPresentPresentPresentPresentPresentAbsentAbsentPresent

On Duty

On DutyLeave

28 2 May 2019 1. Update on Corporate Action Progress2. Proposal for Subsidiary Project


AbsentPresentPresentPresentPresentPresentAbsentPresentPresentAbsentPresent

On Duty

On Duty

Leave

29 06 May 2019 1. Further Discussion on the Board of Directors Nomenclature

2. Update on Company’s Projects


PresentPresentAbsentPresentPresentPresentPresentPresentPresentPresentPresent

On Duty






30 09 May 2019 Financial Statements • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• TambokP.Setyawati(Dir.RL)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.KN)


31 16 May 2019 Change in BNI Organization as Follow Up of resolution of BNI Annual General Meeting May 13, 2019

• AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.HN)• TambokP.Setyawati(Dir.KR)

AbsentPresentAbsentPresentPresentPresentPresentPresentAbsentPresentPresent

On Duty

On Duty

On Duty

32 20 May 2019 Update on Link Aja • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.HN)• TambokP.Setyawati(Dir.KR)

AbsentPresentPresentPresentPresentPresentPresentPresentPresentPresentPresent

On Duty

33 27 May 2019 Savings Strategy in 2019 • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.HN)• TambokP.Setyawati(Dir.KR)

PresentPresentPresentPresentPresentAbsentPresentAbsentPresentPresentPresent

On Duty

On Duty

34 28 May 2019 Update on the Company’s Projects • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.HN)• TambokP.Setyawati(Dir.KR)

PresentPresentPresentAbsentPresentPresentPresentPresentPresentPresentPresent

On Duty

35 31 May 2019 Merchant Business Strategy • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.HN)• TambokP.Setyawati(Dir.KR)








36 10 June 2019 Update on the Company’s Projects • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.HN)• TambokP.Setyawati(Dir.KR)


37 13 June 2019 1. Revision on the Bank Business Plan (RBB)2. Update on the Company’s Projects



On Duty

38 14 June 2019 Revision on the Bank Business Plan (RBB) • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.HN)• TambokP.Setyawati(Dir.KR)


On Duty

39 17 June 2019 1. Revision on the Bank Business Plan (RBB 2019 – 2021)

2. Update on Company’s Projects3. Update on BNI 73rd Anniversary4. Business Strategy Discussion


AbsentPresentPresentPresentAbsentPresentPresentPresentPresentPresentPresent

On Duty

On Duty

40 20 June 2019 Discussion of the Company’s Operational Strategy


AbsentPresentAbsentAbsentAbsentPresentPresentPresentPresentAbsentPresent

On Duty

On DutyOn DutyOn Duty

On Duty

41 27 June 2019 Update on Agent 46 • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.HN)• TambokP.Setyawati(Dir.KR)

AbsentPresentPresentPresentAbsentPresentPresentPresentPresentAbsentPresent

On Duty

On Duty

On Duty






42 1 July 2019 Update on BNI 73rd Anniversary • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.HN)• TambokP.Setyawati(Dir.KR)


On Duty

43 4 July 2019 Subsidiary Project Plan • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.HN)• TambokP.Setyawati(Dir.KR)

PresentPresentPresentPresentPresentPresentAbsentPresentAbsentPresentPresent

On Duty

On Duty

44 8 July 2019 Subsidiary Project Plan • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.HN)• TambokP.Setyawati(Dir.KR)

PresentPresentPresentPresentPresentPresentAbsentPresentPresentPresentPresent

On Duty

45 11 July 2019 Revamping Regional Office Organization • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.HN)• TambokP.Setyawati(Dir.KR)

AbsentPresentPresentPresentPresentPresentPresentPresentPresentAbsentPresent

On Duty

On Duty

46 15 July 2019 BNI Financial Performance June 2019 • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.HN)• TambokP.Setyawati(Dir.KR)

PresentAbsentAbsentAbsentAbsentPresentPresentAbsentPresentAbsentPresent

On DutyOn DutyOn DutyOn Duty

On Duty

On Duty

47 18 July 2019 1. Digital Transformation Roadmap2. Rejuvenation of BNI Product and Platform


PresentPresentPresentPresentAbsentPresentPresentAbsentPresentPresentPresent

On Duty

On Duty







48 25 July 2019 Update on Business Meeting 2019 • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.HN)• TambokP.Setyawati(Dir.KR)

PresentPresentAbsentPresentPresentPresentAbsentPresentPresentAbsentPresent

On Duty

On Duty

On Duty

49 29 July 2019 Update on Status of Purchased Assets Development



On Duty

50 1 August 2019 Update on Subsidiary Projects • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.HN)• TambokP.Setyawati(Dir.KR)


51 5 August 2019 Discussion on Merchant Business • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.HN)• TambokP.Setyawati(Dir.KR)

AbsentPresentPresentPresentPresentAbsentPresentPresentPresentPresentPresent

Leave

Leave

52 8 August 2019 Strategy for Current Account Growth • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.HN)• TambokP.Setyawati(Dir.KR)

AbsentPresentPresentPresentPresentAbsentPresentPresentPresentPresentPresent

On Duty

Leave

53 12 August 2019 1. BNI Financial Performance in July 20192. The Company Business Highlights


AbsentPresentPresentPresentPresentAbsentPresentAbsentPresentPresentPresent

Leave

Leave

On Duty






54 15 August 2019 1. Update on the Implementation of FSAS 712.UpdateonMarketingCommunication&

Media Plan


AbsentPresentPresentAbsentAbsentAbsentPresentAbsentPresentPresentPresent

Leave

On DutyOn DutyLeave

On Duty

55 19 August 2019 Update on Credit Strategy • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• CaturBudiHarto(Dir.KJ)• RicoRizalBudidarmo(Dir.TS)• AnggoroEkoCahyo(Dir.KU)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• BobTyasikaAnanta(Dir.MR)• EndangHidayatullah(Dir.HN)• TambokP.Setyawati(Dir.KR)

AbsentPresentPresentPresentPresentAbsentAbsentPresentPresentAbsentPresent

On Duty

LeaveOn Duty

On Duty

56 22 August 2019 1. TPF Improvement Strategy2. Financial Prognosis for September -

December 2019



On Duty

57 29 August 2019 1. Update of Company’s Project2. Grha BNI Master Plan


PresentAbsentAbsentPresentPresentPresentPresentAbsentPresentAbsentPresent

On DutyOn Duty

On Duty

On Duty

58 2 September 2019 Continuation from Update on Company’s Projects

• AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• EndangHidayatullah(Dir.HN)• ArioBimo(Dir.KU)• AnggoroEkoCahyo(Dir.KR)• TambokP.Setyawati(Dir.KJ)• BobTyasikaAnanta(Dir.TS)• RicoBudidarmo(MR)


On Duty

59 5 September 2019 Update on RBB Revision • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• EndangHidayatullah(Dir.HN)• ArioBimo(Dir.KU)• AnggoroEkoCahyo(Dir.KR)• TambokP.Setyawati(Dir.KJ)• BobTyasikaAnanta(Dir.TS)• RicoBudidarmo(MR)








60 9 September 2019 Prognosis of Financial Performance as of December 31, 2019


AbsentPresentAbsentPresentPresentAbsentPresentPresentPresentPresentPresent

On Duty

On Duty

On Duty

61 12 September 2019 General Policy of the Board of Directors in 2020


PresentPresentAbsentAbsentPresentAbsentPresentPresentPresentPresentPresent

On DutyOn Duty

On Duty

62 16 September 2019 General Policy of the Board of Directors in 2020 (Continuation from BOD Meeting on Thursday 12 Sep 2019)



On Duty

63 19 September 2019 Card Business Strategy • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• EndangHidayatullah(Dir.HN)• ArioBimo(Dir.KU)• AnggoroEkoCahyo(Dir.KR)• TambokP.Setyawati(Dir.KJ)• BobTyasikaAnanta(Dir.TS)• RicoBudidarmo(MR)

AbsentAbsentPresentPresentPresentPresentAbsentPresentPresentPresentPresent

On DutyOn Duty

On Duty

64 23 September 2019 Performance and Strategy of BNI Multifinance in 2019


AbsentPresentPresentAbsentPresentPresentPresentPresentPresentPresentAbsent

On Duty

On Duty

On Duty

65 26 September 2019 Performance and Strategy of BNI Life in 2019 • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• EndangHidayatullah(Dir.HN)• ArioBimo(Dir.KU)• AnggoroEkoCahyo(Dir.KR)• TambokP.Setyawati(Dir.KJ)• BobTyasikaAnanta(Dir.TS)• RicoBudidarmo(MR)

PresentAbsentPresentAbsentPresentPresentPresentPresentPresentPresentPresent

On Duty

On Duty






66 30 September 2019 Strategy and Performance of BNI Syariah in 2019



On Duty

67 3 October 2019 Remedial&RecoveryBusinessStrategy • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• EndangHidayatullah(Dir.HN)• ArioBimo(Dir.KU)• AnggoroEkoCahyo(Dir.KR)• TambokP.Setyawati(Dir.KJ)• BobTyasikaAnanta(Dir.TS)• RicoBudidarmo(MR)


68 7 October 2019 Performance and Business Strategy of Subsidiaries in 2020


AbsentAbsentPresentPresentPresentPresentPresentPresentPresentPresentPresent

On DutyOn Duty

69 10 October 2019 1. Financial Performance 30 Sep 2019 and Prognosis Financial Performance 31 Dec 2019

2. Update on the Company’s Projects


PresentPresentPresentPresentPresentAbsentPresentAbsentPresentPresentPresent

On Duty

On Duty

70 14 October 2019 1. Concept of Design for BNI Building in Region JakartaSenayan&SenayanBranch

2. Proposed Project Decision of the Company



On Duty

71 17 October 2019 Development of Outlet Optimization • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• EndangHidayatullah(Dir.HN)• ArioBimo(Dir.KU)• AnggoroEkoCahyo(Dir.KR)• TambokP.Setyawati(Dir.KJ)• BobTyasikaAnanta(Dir.TS)• RicoBudidarmo(MR)

PresentPresentAbsentPresentPresentPresentPresentAbsentPresentAbsentAbsent

On Duty

On Duty

On DutyOn Duty







72 21 October 2019 1. Optimization of Remedial and Recovery of Credit

2. Update on Analyst Meeting Preparation


PresentPresentPresentPresentAbsentPresentPresentAbsentAbsentPresentPresent

On Duty

On DutyLeave

73 24 October 2019 Update on Latest Market Development • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• EndangHidayatullah(Dir.HN)• ArioBimo(Dir.KU)• AnggoroEkoCahyo(Dir.KR)• TambokP.Setyawati(Dir.KJ)• BobTyasikaAnanta(Dir.TS)• RicoBudidarmo(MR)


74 28 October 2019 Acceleration of Corporate Plan Strategy • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• EndangHidayatullah(Dir.HN)• ArioBimo(Dir.KU)• AnggoroEkoCahyo(Dir.KR)• TambokP.Setyawati(Dir.KJ)• BobTyasikaAnanta(Dir.TS)• RicoBudidarmo(MR)


75 31 October 2019 Acceleration of Corporate Plan Strategy • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• EndangHidayatullah(Dir.HN)• ArioBimo(Dir.KU)• AnggoroEkoCahyo(Dir.KR)• TambokP.Setyawati(Dir.KJ)• BobTyasikaAnanta(Dir.TS)• RicoBudidarmo(MR)


76 4 November 2019 Saving Accounts Improvement Strategy • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• EndangHidayatullah(Dir.HN)• ArioBimo(Dir.KU)• AnggoroEkoCahyo(Dir.KR)• TambokP.Setyawati(Dir.KJ)• BobTyasikaAnanta(Dir.TS)• RicoBudidarmo(MR)


77 7 November 2019 Bank Business Plan 2020 - 2022 • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• EndangHidayatullah(Dir.HN)• ArioBimo(Dir.KU)• AnggoroEkoCahyo(Dir.KR)• TambokP.Setyawati(Dir.KJ)• BobTyasikaAnanta(Dir.TS)• RicoBudidarmo(MR)







78 11 November 2019 1. Corporate Strategic Plans and Steps2. Discussion on RBB 2020-2022 (Continuation

from BOD Meeting on November 7, 2019)



79 12 November 2019 Proposal of Bank Business Plan 2020 - 2022 • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• EndangHidayatullah(Dir.HN)• ArioBimo(Dir.KU)• AnggoroEkoCahyo(Dir.KR)• TambokP.Setyawati(Dir.KJ)• BobTyasikaAnanta(Dir.TS)• RicoBudidarmo(MR)


80 13 November 2019 Proposed RBB 2020 - 2022 (Continuation from BOD Meeting on 12 Nov 2019)


PresentPresentPresentPresentPresentPresentPresentAbsentAbsentPresentPresent

On DutyOn Duty

81 14 November 2019 Proposal of Subsidiary Project • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• EndangHidayatullah(Dir.HN)• ArioBimo(Dir.KU)• AnggoroEkoCahyo(Dir.KR)• TambokP.Setyawati(Dir.KJ)• BobTyasikaAnanta(Dir.TS)• RicoBudidarmo(MR)


82 18 November 2019 Financial Performance for October 2019 and FY-2019 Financial Prognosis



On Duty

83 21 November 2019 Business Optimization • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• EndangHidayatullah(Dir.HN)• ArioBimo(Dir.KU)• AnggoroEkoCahyo(Dir.KR)• TambokP.Setyawati(Dir.KJ)• BobTyasikaAnanta(Dir.TS)• RicoBudidarmo(Dir.MR)








84 25 November 2019 Updating the Proposal of Health Facilities • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• EndangHidayatullah(Dir.HN)• ArioBimo(Dir.KU)• AnggoroEkoCahyo(Dir.KR)• TambokP.Setyawati(Dir.KJ)• BobTyasikaAnanta(Dir.TS)• RicoBudidarmo(MR)

AbsentAbsentPresentPresentAbsentPresentPresentAbsentAbsentPresentPresent

On DutyLeave

Leave

On DutyOn Duty

85 28 November 2019 Analysis on Increasing Saving Accounts • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• EndangHidayatullah(Dir.HN)• ArioBimo(Dir.KU)• AnggoroEkoCahyo(Dir.KR)• TambokP.Setyawati(Dir.KJ)• BobTyasikaAnanta(Dir.TS)• RicoBudidarmo(MR)

PresentAbsentAbsentAbsentAbsentAbsentPresentPresentAbsentPresentPresent

LeaveOn DutyOn DutyLeaveOn Duty

On Duty

86 2 December 2019 Fee Based Income Improvement Strategy • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• EndangHidayatullah(Dir.HN)• ArioBimo(Dir.KU)• AnggoroEkoCahyo(Dir.KR)• TambokP.Setyawati(Dir.KJ)• BobTyasikaAnanta(Dir.TS)• RicoBudidarmo(MR)

AbsentAbsentAbsentPresentPresentPresentPresentPresentPresentAbsentPresent

LeaveOn DutyOn Duty

Leave

87 5 December 2019 1. Updating Strategy, Optimization, and Management of the Company’s Projects

2. New Template and Event Update


AbsentPresentPresentPresentPresentAbsentAbsentPresentPresentPresentPresent

On Duty

On DutyOn Duty

88 9 December 2019 Financial Performance of November 2019 • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• EndangHidayatullah(Dir.HN)• ArioBimo(Dir.KU)• AnggoroEkoCahyo(Dir.KR)• TambokP.Setyawati(Dir.KJ)• BobTyasikaAnanta(Dir.TS)• RicoBudidarmo(MR)

PresentPresentPresentPresentPresentAbsentPresentPresentPresentAbsentPresent

On Duty

On Duty

89 11 December 2019 Update on the Preparation for the Implementation of PSAK 71


PresentPresentPresentPresentPresentPresentPresentPresentPresentAbsentPresent

On Duty






90 12 December 2019 Financial Prognosis for FY 2019 • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• EndangHidayatullah(Dir.HN)• ArioBimo(Dir.KU)• AnggoroEkoCahyo(Dir.KR)• TambokP.Setyawati(Dir.KJ)• BobTyasikaAnanta(Dir.TS)• RicoBudidarmo(MR)

PresentAbsentPresentPresentPresentPresentPresentPresentPresentAbsentPresent

On Duty

On Duty

91 19 December 2019 1. Provision of Employee Health Facilities2. Updating Company’s Projects


PresentPresentPresentPresentPresentAbsentAbsentPresentAbsentPresentPresent

On DutyOn Duty

On Duty

92 23 December 2019 Prognosis of Financial Statements • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• EndangHidayatullah(Dir.HN)• ArioBimo(Dir.KU)• AnggoroEkoCahyo(Dir.KR)• TambokP.Setyawati(Dir.KJ)• BobTyasikaAnanta(Dir.TS)• RicoBudidarmo(MR)

AbsentPresentAbsentAbsentPresentAbsentPresentPresentPresentPresentPresent

On Duty

On DutyOn Duty

On Duty

93 26 December 2019 1. Discussion on Authority to Grant Credit2. Discussion on Acquisition of Asset


PresentPresentPresentAbsentPresentPresentPresentPresentPresentPresentPresent

Leave

94 30 December 2019 Strategy to Increase Saving Accounts in 2020 • AchmadBaiquni(Dirut)• HerrySidharta(Wadirut)• PutramaWahjuSetyawan(Dir.KP)• DadangSetiabudi(Dir.TI)• AdiSulistiyowati(Dir.HT)• EndangHidayatullah(Dir.HN)• ArioBimo(Dir.KU)• AnggoroEkoCahyo(Dir.KR)• TambokP.Setyawati(Dir.KJ)• BobTyasikaAnanta(Dir.TS)• RicoBudidarmo(MR)

PresentPresentPresentPresentAbsentPresentAbsentPresentPresentPresentPresent

On Duty

On Duty

frequency and attendance of The Board of DirectorsThroughout 2019, the Board of Directors held 94 (ninety) Internal meeting and 12 (twelve) meetings with the Board of Commissioners. The frequency and attendance of meetings for each Directors are as follows:





Name Position

BoD meeting Joint meeting with BoC



Number of

meetingattendance %

Number of

meetingattendance %

Achmad Baiquni President Director 94 63 67% 12 4 33%

Herry Sidharta Vice President Director 94 83 88% 12 6 50%

Putrama Wahju Setyawan Managing Director of Corporate Business 94 77 82% 12 8 67%

Tambok P. Setyawati Managing Director of Retail Banking 31 31 100% 12 12 100%

Tambok P. Setyawati Managing Director of Consumer Business 27 27 100% 12 12 100%

Tambok P. Setyawati Managing Director of Micro, Small and Medium Enterprises (MSMEs) and Networks

36 29 81% 12 12 100%

Catur Budi Harto Managing Director Small Business and Networks

58 51 88% 8 5 63%

Rico Rizal Budidarmo Managing Director Treasury and International Banking

58 43 74% 12 9 75%

Rico Rizal Budidarmo Managing Director Risk Management 36 34 94% 12 9 75%

Anggoro Eko Cahyo Managing Director Finance 58 47 81% 12 9 75%

Anggoro Eko Cahyo Managing Director Consumer Business 36 31 86% 12 9 75%

Dadang Setiabudi Managing Director Information Technology and Operation

94 79 84% 12 11 92%

Adi Sulistiyowati Managing Director Institutional Relations 94 78 83% 12 8 67%

Bob Tyasika Ananta Managing Director Risk Management 58 51 88% 12 9 75%

Bob Tyasika Ananta Managing Director Treasury and International Banking

36 32 89% 12 9 75%

Endang Hidayatullah Managing Director Compliance 31 24 77% 12 6 50%

Endang Hidayatullah Managing Director Human Capital and Compliance

63 48 76% 12 6 50%

Ario Bimo Managing Director Finance 36 32 89% 4 4 100%

meeting schedule in 2020Based on Article 13 of the Bank’s Articles of Association, the Board of Directors is required to hold a Board of Directors Meeting periodically at least 1 (one) time each month. Meetings of the Board of Directors may be held at any time if deemed necessary by one or more members of the Board of Directors or at the written request of one or more members of the Board of Commissioners.

In 2020, the Board of Directors Meeting is scheduled to be held 12 (twelve) times, namely every Monday. The Board of Directors Meeting Schedule for 2020 is as follows:

No. Date agenda

1 16 January 2020 BusinessDevelopmentStrategy&PerformanceReview

2 10 February 2020 Information Systems Technology Strategy

3 26 March 2020 Organizational Development Strategy

4 6 April 2020 Human Resource Development Strategy and Remuneration Policy

5 14 May 2020 StrategiesforImplementingRiskManagement&InternalControl

6 8 June 2020 Financial Statements Projection

7 20 July 2020 Funding Strategy

8 14 August 2020 Strategy and Review of Equity Participation

9 7 September 2020 Office Network Strategy

10 15 October 2020 Credit Quality Strategy and Review

11 26 November 2020 Bank Business Plan

12 10 December 2020 Financial Statements Projection and Performance Review




affIlIaTIoN relaTIoNshIP of BoarD of CommIssIoNers

All members of the Board of Commissioners and between members of the Board of Commissioners and members of the Board of Directors are prohibited from having family relations up to the third degree, either in a straight line or sideways, including relationships arising from marriage. The entire Board of Commissioners does not have financial, family and management relationships either with fellow Commissioners or with the Board of Directors.

The independence and affiliation of members of the Board of Commissioners can be seen in the table below:

Name Position

financial, family and management relationship of the Commissioners

financial relationship with family relationship withmanagement relationship

with

Board of Commission-

ers

Board of Directors

Controlling sharehold-

ers

Board of Commission-

ers

Board of Directors

Controlling shareholders

yes No yes No yes No yes No yes No yes No yes No

Ari Kuncoro President Commissioner/ Independent Commissioner

√ √ √ √ √ √ √

Wahyu Kuncoro*)

Commissioner √ √ √ √ √ √ √

Hambra**) Independent Commissioner

√ √ √ √ √ √ √

Revrisond Baswir Commissioner √ √ √ √ √ √ √

Pataniari Siahaan Independent Commissioner

√ √ √ √ √ √ √

Joni Swastanto Commissioner √ √ √ √ √ √ √

Bistok Simbolon***)

√ √ √ √ √ √ √

Marwanto****) Independent Commissioner

√ √ √ √ √ √ √

Ahmad Fikri Assegaf


√ √ √ √ √ √ √

Sigit Widyawan Commissioner √ √ √ √ √ √ √

Ratih Nurdiati*****)

Commissioner √ √ √ √ √ √ √

Askolani******) Commissioner √ √ √ √ √ √ √

Note:*) Resigned as Vice President Commissioner on May 13, 2019

**) Appointed as Vice President Commissioner on May 13, and Resigned as Vice President Commissioner of BNI on 18 November 2019***) Resigned as Commissioner on May 13, 2019

****) Resigned as Commissioner on August 30, 2019 *****) Resigned as Commissioner on May 13, 2019 ******) Appointed as Commissioner on August 30, 2019

Affiliation relationship




affIlIaTIoN relaTIoNshIP of BoarD of DIreCTors

The Board of Directors always acts independently, in the sense that there is no conflict of interest that may interfere with the ability to perform its duties independently and critically, either in regard of relationship with one another or in regard of relationship with the Board of Commissioners.

The Board of Directors has no financial relationship, management relationship, share ownership, and/or family relationship with other members of the Board of Commissioners, Board of Directors, and/or Controlling Shareholders or relationship with the Bank, therefore, the Board can perform the duties and responsibilities independently.

Affiliation relationship between members of Board of Directors, Board of Commissioners, and Main and/or Controlling Shareholders includes:

1. Affiliation relationship between member of Board of Directors and other member of Board of Directors.2. Affiliation relationship between members of Board of Directors and members of Board of Commissioners.3. Affiliation relationship between members of Board of Directors and Main and/or Controlling Shareholders.

Independence of the Board of Directors can be seen in the table below:

Name Position

financial, family and management relationship of the Commissioners

financial relationship with family relationship withmanagement relationship

with

Board of Commis-sioners

Board of Directors


ers

Board of Commis-sioners

Board of Directors


ers

yes No yes No yes No yes No yes No yes No yes No

Achmad Baiquni President Director √ √ √ √ √ √ √

Herry Sidharta Vice President Director √ √ √ √ √ √ √

Ario Bimo Managing Director Finance

√ √ √ √ √ √ √



√ √ √ √ √ √ √

Bob Tyasika Ananta

Managing Director Treasury and International

√ √ √ √ √ √ √

Anggoro Eko Cahyo

Managing Director Consumer Business

√ √ √ √ √ √ √

Tambok Parulian Setyawati

Managing Director Micro, Small and Medium Enterprises (MSME) and Networks

√ √ √ √ √ √ √

Dadang Setiabudi

Managing Director Information Technology and Operations

√ √ √ √ √ √ √


√ √ √ √ √ √ √

Putrama Wahju Setyawan

Managing Director Corporate Business

√ √ √ √ √ √ √




BNI is a State-Owned Enterprise in which the largest share ownership is owned by the Republic of Indonesia. The Republic of Indonesia has one Dwiwarna Series A Share with 60% share ownership. So there are no major shareholders and individual controllers.

Negara republikIndonesia

PT Bank Negara Indonesia,(Persero) Tbk

larGesT shareholDer sCheme Dwiwarna A Series Shares grant the shareholders privileges that are not owned by other shareholders, which are:1. The right to approve in GMS on the following matters:

• ApprovalforamendmenttotheArticlesofAssociation;• ApprovalforchangestoEquity;• ApprovalforAppointmentandDismissalofmembersofBoardofDirectorsandBoardofCommissioners;• Approvalformerger,consolidation,acquisition,split,anddissolution;• ApprovalforremunerationofmembersofBoardofDirectorsandBoardofCommissioners;• ApprovalforassettransferbasedonArticlesofAssociationthatrequiresGMSapproval;• Approvalforparticipationandreductionofthepercentageofequityparticipationinothercompaniesbasedonthe

Articles of Association that requires GMS approval;• Approvalfortheuseofprofits;• Approvalforinvestmentandlong-termfinancingthatisnotoperationsinnaturebasedontheArticlesofAssociation

that requires GMS approval;

2. The right to propose candidate members of the Board of Directors and candidate members of the Board of Commissioners.3. The right to propose GMS agenda.4. The right to request and access company data and documents in which the mechanism to use such rights is in accordance

with the provisions in the Articles of Association and laws and regulations. Detailed information on Main and Controlling Shareholders can be seen in the Shareholders Composition section in this Annual Report.

Information on Main and Controlling shareholder




eQual TreaTmeNT To all shareholDers

BNI provides equal treatment and opportunities for all Shareholders including Minority Shareholders and Foreign Shareholders in obtaining information about the Bank. BNI actively makes timely or accurate disclosures regarding all material aspects of the Company, including the financial situation, performance, ownership and governance of the Company (The 2019 Information Disclosure List has been disclosed in the discussion of the Corporate Secretary).

BNI protects the rights of the Shareholders as referred to in the Capital Market provisions. The rights of stakeholders must be recognized in accordance with applicable laws and regulations, and active cooperation between the Bank and stakeholders must be developed in a joint effort to create wealth, work and sustainability of the Bank.




auDIT CommITTee rePorT

The Audit Committee is a committee formed by and responsible to the Board of Commissioners in helping carry out the duties and functions of Board of Commissioners in order to ensure good governance in the business activities, and supervision of the duties and responsibilities of the Board of Directors.

audit Committee formation BasisBNI Audit Committee was established in 2000 based on the Board of Commissioners’ Decree No. Kep/05/DK/2000 dated July 28, 2000 regarding the Establishment of the Audit Commit-tee. The BNI Audit Committee Charter is continuously refined and updated in accordance with the applicable rules and regulations’ developments/amendments and current conditions. The latest amendments to BNI Audit Committee Charter were made in 2019 stipulated by the Board of Commissioners Decree No. KEP/003/DK/2019 dated June 20, 2019 concerning the Audit Committee Charter and Code of Conduct of PT Bank Negara Indonesia (Persero) Tbk, with the following rules:1. Minister for State-Owned Enterprises Regulation No.

PER-12/MBU/2012 dated August 24, 2012 concerning Supporting Organs of the Board of Commissioners/Supervisory Board of State-Owned Enterprises.

2. Board of Directors Decree of PT Bursa Efek Indonesia No. Kep-00001/BEI/01-2014 dated January 20, 2014 concerning Amendment to Regulation Number I-A regarding Stock Listing and Equity-Type Securities Issued by the Listed Company.

3. Financial Services Authority (FSA) Regulation No. 55/POJK.04/2015 dated December 23, 2015 concerning the Establishment and Work Guide-lines of the Audit Committee.

4. Financial Services Authority Regulation No. 55/POJK.03/2016 dated December 7, 2016 concerning Implementation of Governance for Commercial Banks.

5. Financial Services Authority Regulation No. 13/POJK.03/2017 dated March 27, 2017 concerning the Use of Public Accounting Services and Public Accounting Firms in Financial Service activities.

6. Financial Services Authority Regulation No. 1/POJK.03/2019 dated January 28, 2019 concerning Internal Audit Function for Commercial Banks.

audit Committee CharterThe Audit Committee Charter covers the structure and terms of membership, tenure, duties and responsibilities, authorities, meetings of the Audit Committee, as well as reporting obligations on the Audit Committee execution of duties or activities. The Audit Committee’s Code of Conduct covers integrity, objectivity and independence, confidentiality, and competence.

The audit Committee Duties and responsibilitiesThe Audit Committee has duties and responsibilities to:1. Review the financial information to be published by

the Company to the public and/or authorities, such as financial statements, projections, and other statements relating to the Company’s financial information.

2. Review the adherence to laws and regulations relating to the Company’s activities.

3. Provide independent opinion in the case of:a. Disagreements between management and the

Accountant for services rendered; and/orb. Non-compliance of the public accounting firm’s audit

with applicable auditing standards.4. Provide recommendations to the Board of

Commissioners on the appointment of a Public Accountant and Public Accounting Office to be submitted to the General Meeting of Shareholders. Recommendations at least consider:a. Independence of Public Accountant, Public

Accounting Firm and insiders of the Public Accounting Firm;

b. Audit scope;c. Remuneration of audit services;d. Expertise and experience of Public Accountant,

Public Accounting Firm and Audit Team of Public Accounting Firm;

e. Methodology, techniques and audit facilities used by the Public Accounting Firm;

f. Fresh eye perspectives that will be obtained through the replacement of Public Accountant, Public Accounting Firm, and Audit Team from Public Accounting Firm;

g. Potential risks for the use of audit services by the same Public Accounting Firm successively for a sufficiently long period of time; and/or

h. Evaluation result on the implementation of audit services for financial formation by Public Accountant and Public Accountant Office in the previous period, if any.

Organs and Committees under The Board of Commissioners




The Audit Committee must ensure that the Audit Committee’s evaluation report on the conduct of providing audit services on annual historical financial information by the Public Accountant and/or Public Accountant Office, the Company reports to the Financial Services Authority periodically every year no later than 6 (six) months after the fiscal year ends;

5. Evaluate the audit services for annual historical financial information by Public Accountant and/or Public Accounting Office, at least through:a. The suitability of the audit performed by the Public

Accountant and/or Public Accounting Office with the applicable audit standards;

b. Adequacy of fieldwork time;c. Assessment of the scope of services provided and

the adequacy of the quotation test; andd. Recommendation for improvements provided by the

Public Accountant and/or Public Account-ant Office.

The Audit Committee must ensure that the Audit Committee’s evaluation report on the conduct of providing audit services on annual historical financial information by the Public Accountant and/or Public Accountant Office, the Company reports to the Financial Services Authority periodically every year no later than 6 (six) months after the fiscal year ends;

6. Review the execution of audits by internal auditors and external auditors, and oversee the implementation of follow-up actions by the Board of Directors on the auditor findings, in order to provide recommendations to the Board of Commissioners;

7. Review complaints relating to the Company’s accounting and reporting process;

8. Examine allegations of errors in decisions at the Board of Directors Meetings, or irregularities in the execution of the Board of Directors’ decisions. Such inspections may be conducted by the Audit Committee, or an independent party pro-posed by the Audit Committee and approved by the Board of Commissioners at the expense of Bank;

9. Review and advice the Board of Commissioners regarding potential conflict of interest

10. The Audit Committee provides recommendations to the Board of Commissioners regarding the appointment and dismissal of the Head of the Internal Audit Unit (SAI), and must ensure that the SAI Head’s appointment or dismissal report is signed by the President Director and the Chief Commissioner to the Financial Services Authority no later than 10 (ten) working days after the date of appointment or dismissal of the SAI Head;

11. Provide recommendations to the Board of Commissioners regarding the stipulation of Internal Audit Charter. The Audit Committee must ensure that the Internal Audit Charter is re-viewed at least once in 3 (three) years;

12. In carrying out the internal audit function, the Audit Committee is responsible for:a. Monitor and review the effectiveness of the Bank’s

internal audit implementation;b. Evaluating SAI Performance;c. Ensure SAI communicates with the Directors,

Board of Commissioners, external auditors, and the Financial Services Authority;

d. Ensure SAI works independently;e. Provide recommendations to the Board of

Commissioners regarding the preparation and determination of the audit plan, the scope and budget of the SAI;

f. Reviewing audit reports and ensuring the Board of Directors take corrective actions needed quickly to anticipate control weaknesses, fraud, problems with compliance with policies, laws and regulations, or other problems identified and re-ported by the SAI;

g. Provide recommendations to the Board of Commissioners regarding the overall SAI annual remuneration and performance awards; and

h. Ensure that SAI upholds integrity in carrying out its duties.

13. Provide recommendations to the Board of Commissioners regarding the appointment of an independent quality controller from an external party to conduct a review of the SAI’s performance. The Audit Committee must ensure that the re-port on the results of an independent external review party signed by the President Director and the President Commissioner is submitted to the Financial Services Authority no later than 2 (two) months after the review period ends.




14. The Audit Committee must ensure that special reports regarding any internal audit findings that are expected to endanger the business continuity of the Bank, signed by the President Director and the Head of Audit Committee, are submitted to the Financial Services Authority no later than 3 (three) working days after they are discovered;

15. The Audit Committee is obliged to ensure that the report on the implementation of the main results of the internal audit, which is signed by the President Director and the Chair of the Audit Committee, is submitted to the Financial Services Authority semi-annually at the latest:a. July 31 of the current year for the first semester;b. January 31 of the following year for the second

semester; and16. Maintain the confidentiality of Company documents,

data and information.

In carrying out its duties and responsibilities, the Audit Committee takes into account the Audit Committee Code of Conduct as follows:1. Integrity Audit Committee Members are committed to always

being consistent in thoughts, sayings and actions based on conscience and belief in essential truth principles. In performing their duties Audit Committee Members:a. Shall carry out their duties honestly, diligently and

responsibly;b. Shall be subject to the law and make disclosures in

accordance with the rules of law and profession;c. Shall practice and encourage others to act in a

professional manner;d. Shall respect and support the established Vision and

Mission of BNI;e. Shall be prohibited from intentionally becoming

part of illegal activities, or engaging in acts that undermine the credibility of the Audit Committee;

f. Shall be prohibited from deliberate misrepresentation or manipulation in carrying out the duties, responsibilities and authorities given.

2. objective and Independent The Audit Committee members provide fair and

balanced assessments of all relevant conditions and are not affected by the personal or other interests of the party in expressing their opinions. In performing their duties, Audit Committee Members:a. Shall pay attention to balance, and place the interests

of stakeholders above other interests;

b. Shall disclose all material facts which, if not disclosed, may obscure the result reporting;

c. Shall disclose if there is a relationship that has the potential to affect explicit judgment and cause a conflict of interest;

d. Shall be prohibited from accepting anything that may, or may potentially, affect professional judgment.

3. Competence Audit Committee Members use their knowledge,

expertise, and experience necessary to perform the tasks, responsibilities, and authorities provided. In performing their duties, Audit Committee Member:a. Shall perform the duties, responsibilities, and

authorities given in accordance with their competence;

b. Shall maintain and improve their knowledge and expertise sustainably.

4. Confidentiality Audit Committee Members shall always keep the

confidentiality of information that is secret and confidential to the Bank in accordance with the Bank’s policies and prevailing regulations. In performing their duties, Audit Committee Membersa. Shall be prudent in the use and safeguard of

information obtained;b. Shall be prohibited from using information for

personal or other purposes unless there is a legal obligation or professional obligation.

audit Committee authorities1. In performing its duties, the Audit Committee has the

authority to:a. Access documents, data and information about the

Company’s employees, funds, assets and resources as required.

b. Communicate directly with employees, including Board of Directors and those who perform the function of internal audit, risk management and accountant related to duties and responsibilities of the Audit Committee.

c. Involve independent parties outside of the Audit Committee required to assist the implementation of the duties (if required); and

d. Perform other authorities granted by the Board of Commissioners.

2. In exercising its authority, the Audit Committee works in cooperation with SAI.





audit Committee members Term of officea. Audit Committee members who are members of the Board of Commissioners term of office may not be longer than the

Board of Commissioners term of office as stipulated in the Articles of Association and can be re-elected only for the next 1 (one) period.

b. If the member of the Commissioner who is the chairman of the Audit Committee stops before his term of office as a Commissioner of the Company, the Audit Committee is replaced by another Independent Commissioner.

c. The term of office of Audit Committee members who come from independent parties is a maximum of 3 (three) years and can be extended once for 2 (two) years of service so that the Audit Committee members’ tenure from independent parties is a maximum of 5 (five) years, with does not reduce the right of the Board of Commissioners to terminate the members of the committee at any time before the term of its appointment ends.

audit Committee structure, membership and expertiseThe structure of the Audit Committee is set forth in the Audit Committee Charter set by the Board of Commissioners, as follows:1. The Audit Committee is established by and responsible to the Board of Commissioners.2. The Audit Committee members are appointed and dismissed by the Board of Commissioners.3. The Audit Committee members shall consist of at least:

a. An independent commissioner;b. One independent party with expertise in finance or accounting; andc. One independent party with expertise in law or banking.

4. The Audit Committee Chairman may only hold the position of Committee Chairman in no more than 1 (one) other committee.

5. Audit Committee memberships comprise an Independent Commissioner as Audit Committee Chairman. In the case of more than one Independent Commissioner being members of the Audit Committee, then one of them will act as the Audit Committee Chairman.

Table of audit Committee structure, membership and expertise

Name Position Description expertise

Pataniari Siahaan Chairman Independent Commissioner Law

Ahmad Fikri Assegaf Member Independent Commissioner Law

Donnaria Silalahi Member Independent Party Banking and Technology

Lungguk Gultom Member Independent Party Banking and Technology

To comply with the FSA Regulation No. 55/POJK.04/2015 dated December 23, 2015 regarding the Implementation of Good Corporate Governance for Commercial Banks, information on the appointment and dismissal of the Audit Committee has been submitted to Financial Services Authority at a maximum of 2 (two) days after appointment or dismissal, and has been posted on the Securities Exchange Website and/or Bank’s Website.




audit Committee Profile A brief profile of the Chairman and Members of the Audit Committee as at 31 December 2019 is as follows.

Profile can be found in the Board of Commissioners Profile

Pataniari SiahaanChairman of Audit Committee


Ahmad Fikri AssegafMember of Audit Committee

Indonesian citizen, domiciled in Jakarta. Born on September 16, 1952, currently 66 years old. Appointed as a member of the Company’s Audit Committee since June 2016 based on the Decree of the Board of Commissioners No.KEP/020 DK/2016 dated May 26, 2016 and the Decree of the Board of Commissioners No.KEP/007/DK/2018 dated May 24, 2018.

He has held various important positions in several companies,includingasQA&HCOperationDivisionHead(EVP) (2014-2015) and Operational Division Head (EVP) (2012-2013) at PT Bank Tabungan Pensiun Nasional Tbk. and PT Bank BTPN Syariah, Operational Risk Division Head (EVP) at PT Bank OCBC NISP Tbk. (2009-2012), various positions with the last position being Operation Risk Management Head (EVP) at PT Bank Danamon Indonesia Tbk. (2001-2009), and various positions with the last position being the System and Operations Group Head (VP) at PT Bank Niaga Tbk. (1984-2001).

Donnaria SilalahiMember of Audit Committee

Indonesian citizen, domiciled in Jakarta. Born on December 30, 1954, currently 64 years old. Appointed as a member of the Company’s Audit Committee since January 2018 based on the Decree of the Board of Commissioners No.KEP / 053 / DK / 2017 dated December 21, 2017.

He holds a Bachelor of Economics degree in Management from Parahyangan University in 1979. He has held various important positions in several companies, including as a Member of the Board of Directors (2013-2017) and a Member of the Audit Committee and a Member of the Risk Monitoring Committee (2011-2013) at PT BPD Banten Tbk, Audit Committee Member and Risk Monitoring Committee Member at PT Bank Commonwealth Indonesia (2011-2013), Risk Management and Compliance Division Head (2002-2003) and Internal Audit Division Head (2001-2002) at PT Bank Danamon Indonesia Tbk ., Asset Management Investment Division Head at the Indonesian Bank Restructuring Agency (IBRA) (1999-2001), and various positions with the last position as Corporate Banking Group Head at PT Bank Niaga Tbk. (1982-1999).

Lungguk GultomMember of Audit Committee

audit Committee education Qualifications and work experienceIn general, the requirements of the Audit Committee are as follows:1. Must have high integrity and good moral character,

ability, knowledge, experience in accordance with the line of work and ability to communicate well;

2. Shall not be a person who works or has the authority and responsibility for planning, directing, controlling, or supervising the activities of the company within the last 6 (six) months unless as Independent Director;

3. Shall not be a person from a public accounting firm, law firm, public appraisal services office or any other parties that have provided assurance services, non-assurance services, appraisal services and/or other consulting services to the company within the last 6 (six) months;

4. Must understand financial statements, the Company’s businesses, particularly related to the service or business activities, audit process, risk management and rules and regulations in capital market sand other related rules and regulations;

5. Must be subject to the Code of Conduct set by the Audit Committee;





6. Shall be willing to increase their competence continuously through education and training; 7. Must have at least one member who has an educational background and expertise in accounting and/or finance;

8. Shall not have a direct or indirect stake in the Company;9. In the case of audit committee members acquiring Company’s shares either directly or indirectly as a result of a legal event,

then such shares shall be transferred to another party within a maximum period of 6 (six) months after obtaining such shares;

10. Shall not have affiliated with members of the Board of Commissioners, members of the Board of Directors or major shareholders of the Company; and

11. Shall not have a business relationship, directly or indirectly related to the Company’s business activities.

As of December 31, 2019, the educational qualifications and work experience of the Chair and Members of the Audit Committee were as follows.

Table of education Qualifications and work experiences of audit Committee

Namen Position education work experience

Pataniari Siahaan Chairman His education can be viewed in the Board of Commissioners section

His work experience can be viewed in the Board of Commissioners section

Ahmad Fikri Assegaf Member His education can be viewed in the Board of Commissioners section

His work experience can be viewed in the Board of Commissioners section

Donnaria Silalahi Member - • QA&HCOperationDivisionHead(EVP)&OperationalDivisionHead(EVP)atPTBankTabunganPensiunNasionalTbk&PTBank BTPN Syariah

• OperationalRiskDivisionHead(EVP)atPTBankOCBCNISPTbk• VariouspositionswiththelastpositionbeingasOperationRisk

Management Head (EVP) pada PT Bank Danamon Indonesia Tbk • VariouspositionswiththelastpositionbeingasSystemand

Operation Policy Group Head (VP) pada PT Bank Niaga Tbk

Lungguk Gultom Member Bachelor’s degree in Economy • MemberoftheBoardofDirectorsaswellasMemberoftheAudit Committee and Risk Monitoring Committee at PT BPD Banten Tbk

• MemberoftheAuditCommitteeandRiskMonitoringCommittee at PT Bank Commonwealth Indonesia

• RiskManagementandComplianceDivisionHeadandInternalAudit Division Head at PT Bank Danamon Indonesia Tbk

• AssetManagementInvestmentDivisionHeadattheIndonesianBank Restructuring Agency (IBRA)

• VariouspositionswiththelastpositionasCorporateBankingGroup Head at PT Bank Niaga Tbk

audit Committee IndependenceThe independence of the Audit Committee is governed by the BNI Audit Committee Code of Conducts. The Audit Committee members provide fair and balanced assessments of all relevant conditions and are not affected by personal or other parties interests in expressing their opinions.

All Members of the Audit Committee shall be in-dependent parties with no financial, management, share ownership and/or family relation-ship with the Board of Commissioners, Board of Directors and/or Controlling Shareholders or relationship with the Bank, which could affect their ability to act independently. No Member of the Audit Committee can be a member of other committees.




Table of audit Committee Independence

Independence aspect Pataniari siahaan ahmad fikri assegaf Donnaria silalahi lungguk Gultom

No financial relationships with the Board of Commissioners and Board of Directors

√ √ √ √

No management relationships in the company, subsidiaries or affiliated companies

√ √ √ √

No shares in the company √ √ √ √

No family relationships with the Board of Commissioners, Board of Directors, and/or fellow members of the Audit Committee

√ √ √ √

Not serving on the board of political party or government official

√ √ √ √

audit Committee meeting1. The Audit Committee shall hold meetings at least once a month.2. Decisions can be made if attended by at least 51% (fifty one percent) of the number of members including an Independent

Commissioner and Independent Party. 3. Decisions are done by consensus. In the event that deliberation can not be made, it shall be decided by majority votes.4. The meetings will be chaired by the Audit Committee Chairman or an Independent Commissioner member of the Audit

Committee if the Audit Committee Chairman is unable to attend.5. All meetings must be documented in the minutes of meetings, signed by all members pre-sent. Any dissenting opinions

shall be clearly de-tailed in the minutes of meetings.

During 2019, the Audit Committee held 21 (twenty one) meetings, both internal Committee meetings, joint meetings with Sector Directors and related Divisions, and through a Board of Commissioners Meeting attended by Members of the Audit Committee with the aim that substantive matters can be reported immediately to the Board of Commissioners.

Audit Committee Meeting Frequency and Attendance

Table of attendance at audit Committee meetings

Name Position Number of meetings attendance Percentage

Pataniari Siahaan Chairman 21 21 100%

Ahmad Fikri Assegaf Member 21 17 80,95%

Donnaria Silalahi Member 21 21 100%

Lungguk Gultom Member 21 21 100%





audit Committee agendaThroughout 2019, the dates of implementation, meeting agenda and participants of the Audit Committee Meeting, are as follows:

Table of audit Committee meeting agenda

No. Date meeting agenda attendees

1. January 7, 2019 • ReviewofHPSforAuditorprocurementoffiscalyear2019• 2019WorkPlan• Reportfor2018AnnualReport

• PataniariSiahaan• AhmadFikriAssegaf• DonnariaSilalahi• LunggukGultom

2 January 17, 2019 Financial Report December 31, 2018 Publication • PataniariSiahaan• AhmadFikriAssegaf• DonnariaSilalahi• LunggukGultom

3. February 7, 2019 Reviewof2018Directors&BoardofCommissionersRealizationFacilities • PataniariSiahaan• AhmadFikriAssegaf• DonnariaSilalahi• LunggukGultom

4. February 21, 2019 • ImplementationEvaluationofRKATSAIQuarterIV-2018• EvaluationofMainAuditResults• Follow-uptoSAIExamination• Follow-upExaminationofExternalAuditors• MonitoringFollow-UponFraudCase• FSARegulationNo.1/POJK.03/2019concerningInternalAuditFunctionfor

Commercial Banks.


5 March 4, 2019 Discussion of LHA General SAI 2019 • PataniariSiahaan• AhmadFikriAssegaf• DonnariaSilalahi• LunggukGultom

6 March 14, 2019 • ReviewofHPSforAuditorProcurementof2019FiscalYear• ReviewofThresholdIndividualFraud• AuditCommitteeCharter

• PataniariSiahaan• DonnariaSilalahi• LunggukGultom

7. April 16, 2019 • ReviewComplianceDivisionRealisationinQuarterI-2019• ComplianceDivisionWorkPlanin2019• AntiFraudProgram• WhistleBlowingSystemProgram

• PataniariSiahaan• DonnariaSilalahi• LunggukGultom

8. 18 April 2019 Audit Progress for Fiscal Year 2018 • PataniariSiahaan• DonnariaSilalahi• LunggukGultom

9 April 23, 2019 • ImplementationEvaluationofRKATSAIQuarterI-2019• EvaluationofMainAuditResults• Follow-uptoSAIAudit• Follow-uptoExternalAudit• MonitoringFollow-UponFraudCase


10. June 27, 2019 • ReviewofFSAFindings• ReviewofFinancialResult• Reviewof2018Auditor


11. July 9, 2019 • ReviewComplianceDivisionRealisationinSemesterI-2019• FollowuptoComplianceDivisionReview• AntiFraudProgram• WhistleBlowingSystemProgram


12. July 11, 2019 • ImplementationEvaluationofRKATSAIQuarterII-2019• EvaluationofMainAuditResults• Follow-uptoSAIAudit• Follow-uptoExternalAudit• MonitoringFollow-UponFraudCase


13. July 23, 2019 Financial Report June 30, 2019 Publication • PataniariSiahaan• DonnariaSilalahi• LunggukGultom




Table of audit Committee meeting agenda

No. Date meeting agenda attendees

14. July 25, 2019 Audit Kick Off 2019 Fiscal Year • PataniariSiahaan• AhmadFikriAssegaf• DonnariaSilalahi• LunggukGultom

15. August 6, 2019 Discussion of the Audit Committee Recommendations Regarding the Appointment and Dismissal of the Head of the Internal Audit Unit (SAI)


16. October 3, 2019 • ReviewComplianceDivisionRealisationinQuarterIII-2019• FollowuptoComplianceDivisionReview• AntiFraudProgram• WhistleBlowingSystemProgram• MonitoringFollow-UponFraudCase


17. October 10. 2019 • RKATandAuditMethodin2020• SAIORSA• AuditorProcurement2020FiscalYear


18. October 15, 2019 Financial Report September 30, 2019 Publication • PataniariSiahaan• AhmadFikriAssegaf• DonnariaSilalahi• LunggukGultom

19. October 17, 2019 • ImplementationEvaluationofRKATSAIQuarterIII-2019• EvaluationofMainAuditResults• Follow-uptoSAIAudit• Follow-uptoExternalAudit• MonitoringFollow-UponFraudCase


20. November 14, 2019 Audit Progress for Fiscal Year 2019 • PataniariSiahaan• AhmadFikriAssegaf• DonnariaSilalahi• LunggukGultom

21. December 5, 2019 Review of 2019 Audit Report for Board of Commissioners • PataniariSiahaan• AhmadFikriAssegaf• DonnariaSilalahi• LunggukGultom

Brief report of 2019 activities of the audit Committee In order to carry out good management of the Company (Good Corporate Governance), the Board of Commissioners has established an Audit Committee with reference to the prevailing regulations. The Audit Committee Duties and Responsibilities, as well as Code of Conduct are governed by the Audit Committee Charter, and the Code of Conduct was established by the Board of Commissioners.

To comply with Financial Services Authority Regulation No. 55/POJK.04/2015 dated December 23, 2015, BNI has posted the Audit Committee Charter and other information required in the FSA Regulations on Bank’s Web Site.

In 2019, the Audit Committee has performed its duties and responsibilities as follows:1. Review the financial information to be issued to the

public and/or the authorities.

2. Review the compliance with laws and regulations related to the Company’s activities.

3. Evaluate the effectiveness of the audit/services implementation provided by the Public Accounting Firm (KAP), including reviewing independence and objectivity.

4. Provide recommendations to the Board of Commissioners regarding the appointment of Public Accountants and KAP for the audit of Fiscal Year 2019.

5. Prepare Evaluation Results Report on the implementation of KAP audit services for fiscal year 2018.

6. Review the conduct by internal auditors and external auditors audits, and overseeing the implementation of follow-up actions by the Board of Directors on the auditor findings.a. Review the planning and implementation for SPI

audits and consultations, as well as follow-up supervision for the SPI examination results.

b. Review the Compliance Division’s review (KPN) planning and implementation, as well as follow-up supervision for KPN Division review results.





c. Review the FSA Examination, as well as follow-up supervision of the FSA examination results.

d. Review the execution of BPK Audits, as well as follow-up supervision of the BPK audit results.

e. Review the execution of KAP Inspection, and follow-up supervision of KAP results (Management Letter).

f. Monitor the Board of Directors and Board of Commissioners reports preparation on the audit results points.

g. Monitor the progress of employee case settlement, and follow-up of cases related to Fraud.

7. Conduct BNI Internal Control System assessment a. Evaluate the Whistleblowing System (WBS).b. Evaluate the Anti-Fraud Strategy

8. Review the Company’s monthly performance report.9. Reviewing the implementation of Good Corporate

Governance (GCG) of the Company.10. Review Management proposals that require Board of

Commissioners approval.11. Prepare reports related to implementation of Audit

Committee’s duties.12. Coordinate between Committees

In fiscal year 2019, the Audit Committee through Committee meetings has discussed with related parties the following matters:a. management The Audit Committee reviews the audited and unaudited

financial statements which will be published in 2019, to ensure that the content and disclosure of information is in accordance with accounting standards and applicable regulations. Evaluation of audit effectiveness by the external auditors, the Independence, objectivity, and adequacy of the examination are also carried out by the Audit Committee through discussions with management. The Committee also held discussions and follow-up monitoring regarding the Audit findings, both Internal and External Audit Completion, follow-up monitoring settlement of cases that occur to accelerate the settlement and actions necessary for any administrative sanctions.

To improve the Bank credit quality, Audit Committee through the Board of Commissioners has made recommendation to Management to thoroughly review BNI credit process.

b. external auditor In the framework of financial statement audit per

December 31, 2019 conducted by Public Accounting Firm (KAP), the Audit Committee discusses the audit plan, monitors the audit progress including findings that required adjustments, evaluates internal control, including internal control over Company financial reporting, as well as the quality of the Company’s overall financial reporting.

To monitor the results of audits conducted by external auditors, namely Bank Indonesia (BI)/Financial Services Authority (FSA), Badan Pemeriksa Keuangan (BPK), Pusat Pelaporan dan Analisis Transaksi Keuangan (PPATK), and KAP, the Audit Committee evaluates the follow-up actions conducted by the management on the intended results from the external auditors audit. A review and evaluation on the external audit results was conducted by the Audit Committee at the end of 2019 as follows:• BIauditcompletionis100%orallrecommendations

have been followed-up.• FSAauditcompletionis98,63%withatotalpending

of 19 recommendations.• BPKauditcompletionis86,30%withatotalpending

of 57 recommendations.• ManagementLetterKAPPurwantono,Sungkoro

&Surja(memberofErnst&Young)completionis88.89% with a total pending of 2 recommendations.

The Audit Committee prepares an Evaluation Report

on the Audit Service for the Annual Historical Financial Information Year 2018 by KAP Purwantono, Sungkoro &Surja(memberofErnst&Young).Tocomplywiththe FSA Regulation No. 13/POJK.03/2017 dated March 27, 2017 regarding the Use of Public Accountant Services and Public Accounting Firm in Financial Services Activities, the Company has reported the Audit Committee’s Evaluation Result Report to FSA in June 2019.




c. Internal Control unit The Audit Committee reviews the annual internal audit

plan, monitors the implementation and results of the audit, and follows-up until completion by the Company’s Management. The Audit Committee also discusses with the Internal Audit Unit (SAI), in an effort to encourage the effectiveness and strengthen SAI function.

Based on the 2019 SAI RKAT, the realization of the planned activities carried out by SAI as follows:

No activity Plan realisation

1 General Audit 306 307

2 Information Technology Audit 12 12

3 Issue Audit 9 8

4 In-depth Audit - 24

5 Mandatory Audit 8 8

6 Consultation - 62

Total 335 421

Based on the review and evaluation of the SAI audit

follow-up up to the end of 2019, there were 246 (two hundred and forty six) follow-up actions that are still in the process of completion, each consisting of 1 (one) follow-up actions for the 2017 SAI audits, 44 (forty four) follow-up actions for the 2018 SAI audits and 201 (two hundred and one) follow-up actions for the 2019 SAI audits.

Based on the review and evaluation of the employee

case completion process, in 2019 there are 77 (seventy seven) cases. As many as 50 (fifty) cases have been processed, while 27 (twenty seven) cases are still in the process of being resolved.

Employees who are proven to have committed

violations and fraud are immediately given lay sanctions (Termination of Employment) to 26 (twenty six) employees, Demotion sanctions to 7 (seven) employees, STK sanctions (Stern Written Warning) to 12 (twelve) employees, STE sanctions (Letter of Reprimand) to 24 (twenty four) employees, and SP sanctions (Development Letter) to 48 (forty eight) employees.

With regard to efforts to further optimize the function of the SAI, the Audit Committee has recommended implementing the Risk Based Audit as the audit method and approach used by the SAI in conducting audits.

d. Director of Compliance Based on the Audit Committee review on Compliance

Report to Banking provisions and other related legislations, the report shall be delivered in the form of Duty Implementation Re-port of Director of Compliance. In 2019, The Bank has routinely submitted the report to the Financial Services Authority in accordance with the with FSA Regulation No. 46/POJK.03/2017 on Implementation of Compliance Function of Commercial Bank. Also, the Audit Committee conducts a review and discussion on the Compliance Division work plan, employee cases, Whistleblowing System (WBS) implementation and the application of the Anti-Fraud Strategy Program.

The Compliance Division work plan discussion is done to

encourage effective synergies between the Compliance Division and SAI in conducting oversight functions, especially the Company’s compliance with applicable regulations.

Based on the WBS reports review and evaluation

in 2019, there are 109 (hundred and nine) reports submitted through WBS, consisting of 58 (fifty eight) reports outside the WBS scope, 32 (thirty two) reports are not enough evidence/not proven true, 4 (four) reports are proven to be related to unethical behaviour, 1 (one) report is proven to be related to fraud, 6 (six) reports are proven to be related to violations of regulations/laws, and 8 (eight) the fol-low-up report is still in the process of being re-solved.

The Anti-Fraud Strategy for the second half of 2018 was

reported to FSA in January 2019 and in the first half of 2019 was reported to FSA in July 2019. In 2019, there was 2 (two) fraud cases reported as an incidental reports to FSA. Based on the review and evaluation of the Anti-Fraud Strategy in 2019, the number of internal fraud that occurred was 34 (thirty four) incidents and the number of external fraud was 2 (two) incidents.

e. The Board of Commissioners Duties and responsibilities, as well as the Audit

Committee recommendations, have been periodically reported to the Board of Commissioners, as follows:• ReviewtheproposedKAPappointmentandthe

Audit Committee recommendation to the Board of Commissioners to appoint KAP Purwantono, Sungkoro&Surja(memberofErnst&Young)





to conduct an audit of the BNI Consolidated Financial Statements ended December 31, 2019, and to review the effectiveness of the Public Accounting Office Audit Services including aspects of independence and objectivity.

• ReviewthePublishedFinancialReports.• ReviewtheeffectivenessoftheinternalauditfunctionwithregardtorealizationofRKAT,thefindingsand

recommendations including compliance audit on Internal Control, risk management and corporate governance (GCG) processes.

• Reviewtheeffectivenessofthefollow-uponthecompletionofInternalAuditorandExternalAuditors(FSA,CPC,PPATK) findings.

• ReviewtheCompany’smonthlyperformancereport,RBBrevisionproposal2019-2021andRBBproposal2020-2022submitted by Management.

• ReviewManagement’sproposalsthatrequiretheBoardofCommissionersapproval.• PreparetheAuditCommitteeSuggestionsandRecommendationsbasedontheAuditCommitteeMeetingresults,

and recommended to the Board of Commissioners to submit the Audit Committee Recommendations and Opinions to Management for follow-up.

Competency Development of the audit CommitteeIn 2019, members the Company’s Audit Committee participated in various competency improvement programs in the form of training, workshops, conferences, seminars, as shown in the following table:

Table of audit Committee Competency Development

Name Positionmateri for the

Competency Development/Training

Date and venue Type of Training & organizer

Pataniari Siahaan Chairman Material for Competency Development / Training, Time and Place of Implementation, and Types of Training and Organizers can be found in the Competency Development Board of Commissioners

Ahmad Fikri Assegaf Member Material for Competency Development / Training, Time and Place of Implementation, and Types of Training and Organizers can be found in the Competency Development Board of Commissioners

Donnaria Silalahi Member Workshop Discover Yourself Understand Others Bring Empowerment to All

Semarang, 28 February 2019 Lumina Spark Workshop, Faculty of Psychology, University of Indonesia

Lungguk Gultom Member Workshop Discover Yourself Understand Others Bring Empowerment to All

Semarang, 28 February 2019 Lumina Spark Workshop, Faculty of Psychology, University of Indonesia

NomINaTIoN aND remuNeraTIoN CommITTee rePorT

BNI has a Nomination and Remuneration Committee with functions and duties to assist the Board of Commissioners with regard to the implementation of the nomination and remuneration policy at the level of the Board of Commissioners, Directors, Committee members at the Board of Commissioners level and all Bank employees based on applicable regulations.

Nomination and remuneration Committee Basis of formationThe Nomination and Remuneration Committee was established in 2002 by virtue of a decision by the Board of Commissioners No. Kep/01/DK/2002 dated December 2, 2002 regarding the Establishment of the Nomination and Remuneration Committee. The Nomination and Remuneration Committee is established by the Board of Commissioners and carries out their duties according to regulations, which are as fol-lows:1. Minister of State-Owned Enterprises Regulation No. PER-12/MBU/2012 dated August 24, 2012 regarding the Supporting

Organs of the Board of Commissioners/Supervisory Board of State-Owned Enterprises.2. Financial Services Authority Regulation No. 34/POJK.04/2014 dated December 8, 2014 regarding the Nomination and Issuer

Remuneration Committee or Public Company.3. Financial Services Authority Regulation No. 45/POJK.03/2015 dated December 23, 2015 regarding the Implementation of

Corporate Governance in Remuneration for Commercial Banks.




4. Financial Services Authority Circular Letter No. 40/SEOJK.03/2016 dated September 26, 2016 regarding the Implementation of Corporate Governance in Remuneration for Commercial Banks.

5. Financial Services Authority Regulation No. 55/POJK.03/2016 dated December 7, 2016 regarding the Implementation of Corporate Governance for Commercial Banks.

6. Financial Services Authority Circular Letter No. 13/SEOJK.03/2017 dated March 17, 2017 regarding the Implementation of Corporate Governance for Commercial Banks.

Nomination and remuneration Committee Charter The Company has a Nomination and Remuneration Committee Charter that is continually re-fined and updated, in accordance with the development of rules and regulations, and current conditions. Renewal/improvement of the BNI Remuneration and Nomination Committee Charter was last conducted in 2017 as stipulated in the Decree of the Board of Commissioners No. KEP/030/DK/2017 dated June 08, 2017 regarding the Nomination and Remuneration Commit-tee Charter.

The Nomination and Remuneration Committee Charter contains:1. Legal Basis;2. Organizational structure and Nomination and

Remuneration Committee membership;3. Membership requirements;4. Responsibilities;5. Duties;6. Rights and obligations;7. Meetings;8. Term of Office.

Nomination and remuneration Committee structure, membership and expertiseThe Nomination and Remuneration Committee structure and membership is set forth in the Nomination and Remuneration Committee Charter as follows:1. The Nomination and Remuneration Committee is

established by the Board of Commissioners. The Board of Commissioners can establish a separate Nomination and Remuneration Committee.

2. The Nomination and Remuneration Committee shall act in an independent and responsible manner reporting directly to the Board of Commissioners.

3. Appointment of Nomination and Remuneration Committee Members for the Board of Directors is based on decisions made by the Board of Commissioners.

4. The Nomination and Remuneration Committee consists of at least three (3) members, namely 1 (one) Independent Commissioner serving as Chairman, 1 (one) Commissioner and 1 (one) company executive officer in charge of human resources, or those who occupy managerial positions below the Board of Directors in charge of human resources at BNI.

5. Nomination and Remuneration Committee Members, other than those mentioned in point d above may come from other Board of Commissioners members and those from outside BNI.

6. In the event that the membership of the Nomination and Remuneration Committee is more than 3 (three) persons, committee members who are Independent Commissioners shall be at least 2 (two) persons.

7. Other Nomination Committee members as referred to in point e cannot come from a manage-rial party under the Board of Directors in charge of human resources.

8. The Nomination and Remuneration Committee Chairman will be an Independent Commissioner at BNI.

9. The Nomination and Remuneration Committee Chairman shall not concurrently serve as chair-man in more than 1 (one) other committee, and may only concurrently serve as Committee Chairman in at most 1 (one) other committee in BNI.

10. Nomination and Remuneration Committee Members shall not be allowed coming from the Board of Directors, either in BNI or other Banks.

11. If deemed necessary, the Committee may appoint a Secretary to the Committee with the assignment, rights, powers and responsibilities established by the Chairman of the Committee.





In 2019, the structure and membership of the Nomination and Remuneration Committee underwent several changes as explained in the table below:

No. Name Position Description expertise

1. Ari Kuncoro Chairman Independent Commissioner Economics

2. Revrisond Baswir Member Independent Commissioner • Economics• Accounting

3. Pataniari Siahaan Member Independent Commissioner • Engineering• Law

4. Joni Swastanto Member Independent Commissioner Economics

5. Ahmad Fikri Assegaf Member Independent Commissioner Law

6. Sigit Widyawan Member Independent Commissioner • Accounting• Finance

7. Reny Wiriandhani Member Independent • Psycology• HumanCapital

8. Efita Praharani Member Division Head Human Capital Management • Psychology• Management

Nomination and remuneration Committee Profile As of December 31, 2019, a brief profile of the Chair and Members of the BNI Nomination and Remuneration Committee is as follows:


Ari KuncoroChairman of the Nomination and Remuneration Committee


Revrisond BaswirMember of the Nomination and Remuneration Committee

Chairman of the Nomination and Remuneration

Pataniari SiahaanChairman of the Nomination and Remuneration Committee


Joni SwastantoMember of the Nomination and Remuneration Committee


Ahmad Fikri AssegafChairman of the Nomination and Remuneration Committee


Sigit WidyawanMember of the Nomination and Remuneration Committee




Indonesian citizen, domiciled in Bekasi, West Java. Born on September 14, 1967. Currently 52 years old. Appointed as a Member of the Nomination and Remuneration Committee in the Company since September 2018 based on the Decree of the Board of Commissioners No. Kep / 018 / DK / 2018 dated December 17, 2018.

She earned a Bachelor’s degree in Psychology from Gadjah Mada University in 1992 and obtained a Master of Science in Administration from the University of Indonesia in 2005.

Previously served as Regional Banking Consumer Leader - Jakarta Kemayoran Regional Office PT Bank Negara Indonesia (Persero) Tbk. (2016–2018), and Deputy Head of the Consumer Product Management Division of PT Bank Negara Indonesia (Persero) Tbk. (May - September 2018). He currently serves as the Head of the Human Capital Management Division of PT Bank Negara Indonesia (Persero) Tbk. (September 2018 - present).

Efita PraharaniMember of the Nomination and Remuneration Committee

Indonesian citizen, domiciled in Jakarta. Born on April 29, 1969 Currently 50 years old. Appointed as an Independent Member of the Company’s Nomination and Remuneration Committee since January 2018 based on the Decree of the Board of Commissioners No. Kep / 055 / DK / 2017 dated December 21, 2017.

She earned a Bachelor’s degree in Psychology from the University of Indonesia in 1995 and a Master of Human Resources Management from Monash University Melbourne, Australia. He has served as Head of Human Resources for Consumer Banking at Standard Chartered Bank (2004-2011), Head of Human Resources at PT Bank ICBC Indonesia (2011-2015) and Head of People Development at Permata Bank (2015-2016).

Reny WiriandhaniMember of the Nomination and Remuneration Committee

Nomination and remuneration Committee education Qualifications and work experience Requirements for Nomination and Remuneration Committee members include: 1. Nomination and Remuneration Committee Members

should meet the following conditions:• Havehighintegrity,skills,knowledgeandsufficient

work experience in Nomination and Remuneration Committee tasks, and have an understanding of banking.

• Havenopersonalinterests/linksthatmayhavenegative impact and conflict of interest to the Company

• Provideenoughtimetocompletetasks.• Abletocooperateandcommunicatewelland

effectively.

2. In addition to the requirements referred to in point a above, the Nomination and Remuneration Committee members who are independent parties must meet the following requirements: a. Have no affiliation of financial relationship,

management relationship, ownership and/or family relationship with members of the Board of Commissioners, members of the Board of Directors and/or Series A Dwiwarna BNI Shareholders or relations with BNI that may affect their ability to act independently. The definition of independent Party in the Charter shall be guided by the provisions governing the independent committee under the Board of Commissioners in the prevailing laws and regulations, in particular Financial Services Authority Circulars governing the Implementation of Governance for Commercial Banks and Financial Services Authority Regulations governing the Nomi-nation Committee and Remuneration of Issuers or Public Companies.

b. Have experience related to nomination and/or remuneration.

c. Not an employee of BNI.d. Not concurrent as:

• MemberoftheBoardofCommissioners/Supervisory Board in State-Owned Enter-prises (SOEs)/other companies;

• Secretary/staffsecretarytotheBoardofCommissioners/Supervisory Board in SOEs/Other Companies.

• Othercommitteemembersinthecompany.





e. The executive officer in charge of human re-sources must have knowledge of the remuneration and/or nomination systems and the bank’s succession plan.

f. BNI shall examine the validity of all documents or data supporting the fulfilment of the Independent Party requirements, including personal statements of integrity from independent par-ties.

As of December 31, 2018, the education qualification and work experience of the Chairman and Members of the Remuneration and Nomination Committee are as follows.

Name Position education work experience

Ari Kuncoro Chairman His Education can be seen in the Board of Commissioners Composition Diversity.

His Work Experience History can be seen in the Board of Commissioners Composition Diversity

Wahyu Kuncoro*) Member His Education can be seen in the Board of Commissioners Composition Diversity.


Revrisond Baswir Member His Education can be seen in the Board of Commissioners Composition Diversity.


Pataniari Siahaan Member His Education can be seen in the Board of Commissioners Composition Diversity.


Joni Swastanto Member His Education can be seen in the Board of Commissioners Composition Diversity.


Bistok Simbolon**) Member His Education can be seen in the Board of Commissioners Composition Diversity.


Marwanto Harjowiryono***) Member His Education can be seen in the Board of Commissioners Composition Diversity.


Ahmad Fikri Assegaf Member His Education can be seen in the Board of Commissioners Composition Diversity.


Sigit Widyawan Member His Education can be seen in the Board of Commissioners Composition Diversity.


Efita Praharani Anggota Bachelor of Psychology Master of Administration Science

• BNI,HeadofRegionalBankingConsumerLeader

• BNI,DeputyHeadofConsumerProductManagement Division.

• BNI,HeadofHumanCapitalManagementDivision.

Renny Wiriandhani Anggota Bachelor of Psychology Master of Human Resources Management

• StandardCharterBank,HeadofHumanResources for Consumer Banking.

• PTBankICBCIndonesia,HeadofHumanResources.

• PermataBank,HeadofHumanResources.

Note:*) Resigned as Member of Nomination and Remuneration Committee on May13, 2019

**) Resigned as Member of Nomination and Remuneration Committee on May13, 2019 ***) Resigned as Member of Nomination and Remuneration Committee on August 30, 2019

Term of office of Nomination and remuneration Committee 1. The term of office for Nomination and Remuneration Committee member who is a Board of Commissioners member is

equal to the period of their appointment as a Commissioner as determined by the General Meeting of Shareholders.2. Nomination and Remuneration Committee Member who is Board of Commissioners member shall cease if the term of

office as a member of the Board of Commissioners ends.




3. If a Board of Commissioners member appointed as a member of the Nomination and Remuneration Committee resigns from his/her position as Board of Commissioners member before his/her term of office is completed, then they said Committee member may be replaced by other member of the Board of Commissioners.

4. If a member of the Board of Commissioners who serves as the Nomination and Remuneration Committee Chairman resigns from their position as a member of the Board of Commissioners, the Nomination and Remuneration Committee Chairman shall be replaced by other member from the Independent Board of Commissioners within 30 (thirty) days at the latest.

5. A replacement of Nomination and Remuneration Committee member who is not from the Board of Commissioners shall take place no later than 60 (sixty) days after the Nomination and Remuneration Committee member ceases performing their functions.

6. The term of office for member of Nomination and Remuneration Committee from independent party is 3 (three) years and this can be extended once for 2 (two) years, so the accumulation tenure in the company is for a maximum of 5 (five) years, but not prejudicing the rights of the Board of Commissioners to discharge any member of the Committee at any time.

Nomination and remuneration Committee Independence Nomination and Remuneration Committee members shall provide fair and balanced assessments on all relevant conditions and shall not influenced by personal interests or any other parties in conveying their opinions.

Table of Nomination and remuneration Committee Independence

Independence aspect

ari Kuncoro

wahyu Kuncoro*

revrisond Baswir

Pataniari siahaan

Joni swastanto

Bistok simbolon**

marwanto harjowiryono***

ahmad fikri assegaf

sigit widyawan

efita Praharani

renny wiriandhani

No financial affiliation with the Board of Commissioners and Board of Directors

√ √ √ √ √ √ √ √ √ √ √

No management affiliation in the company, subsidiaries or affiliated companies

√ √ √ √ √ √ √ √ √ √ √

No shares in the company

√ √ √ √ √ √ √ √ √ √ √

No family affiliation with the Board of Commissioners, Directors, and/or fellow members of the Risk Monitoring Committee.

√ √ √ √ √ √ √ √ √ √ √

Not serving on the board of political party, government official.

√ √ √ √ √ √ √ √ √ √ √

Note:*) Resigned as Vice President Commisioner/Member of Nomination and Remuneration Committee on May 13, 2019

**) Resigned as Commisioner/Member of Nomination and Remuneration Committee on May 13, 2019***) Resigned as Commisioner/Member of Nomination and Remuneration Committee on August 30, 2019





Duties and responsibilities of Nomination and remuneration CommitteeTo evaluate, prepare and provide recommendations to the Board of Commissioners regarding the nomination and remuneration system/policy for the Board of Commissioners, Board of Directors, executive officers and employees overall.1. Related to nomination:

a. Provide recommendations to the Board of Commissioners on:• compositionofmembersoftheBoard

of Directors and/or members of Board of Commissioners;

• policiesandcriteriarequiredintheNominationprocess; and

• performanceevaluationpolicyformembersofthe Board of Directors and/or members of the Board of Commissioners.

b. Assist the Board of Commissioners to assess the performance of members of the Board of Directors and/or members of the Board of Commissioners based on benchmarks that had been developed as an evaluation.

c. Provide recommendations to the Board of Commissioners regarding the capacity building program of members of Board of Directors and/or members of Board of Commissioners.

d. Provide proposals/recommendations for candidates who qualify as members of the Board of Directors and/or members of the Board of Commissioners to the Board of Commissioners to be submitted to the General Meeting of Shareholders.

e. Develop and provide recommendations to the Board of Commissioners regarding the systems and procedures and/or replacement of members of Board of Commissioners and members of Board of Directors to the Board of Commissioners to be submitted to the General Meeting of Shareholders.

f. Provide recommendations to the Board of Commissioners for Independent Parties to be-come a member of the Audit Committee and Risk Oversight Committee.

2. Related to remuneration:a. Evaluate remuneration system/policy based on

performance, risk, fairness against peer group, target, and long term Bank strategy, fulfillment of reserves as regulated in rules and regulations and future potential of Bank earnings.

b. Develop and provide recommendations to the Board of Commissioners regarding:• remunerationstructure;• remunerationpolicy;and• amountofremuneration;

The structure, policies and amount of remuneration for the Board of Commissioners and Board of Directors are evaluated by the Nomination and Remuneration Committee at least once a year.

c. Deliver evaluation results and provide recommendations to the Board of Commissioners on: • remunerationpolicyfortheBoardofDirectors

and Board of Commissioners to be submitted to the GMS.

• remunerationpolicyforexecutiveofficersandemployees overall to be submitted to the Board of Directors.

d. Ensure that the remuneration policy is in compliance with applicable regulations.

e. Conduct periodic evaluations of the implementation of remuneration policies.

f. Assist the Board of Commissioners in assessing the compatibility between performance and remuneration received for each member of the Board of Directors and/or members of the Board of Commissioners.

3. Carry out other tasks given by the Board of Commissioners related to the nomination and remuneration functions.

4. The procedures for duties and functions of Nomination and Remuneration Committee shall be conducted in accordance with FSA Regulations governing the Nomination and Remuneration Committees of Commercial Banks, FSA Regulations governing the Nomination and Remuneration Committee of Issuers or public company as well as FSA Regulations governing governance in applicable remuneration for commercial banks.

Nomination and remuneration CommitteeresponsibilitiesEvaluate, prepare and provide recommendations to the Board of Commissioners regarding the nomination and remuneration system/policy for Board of Commissioners, Board of Directors, executive officers and employees overall.




Nomination and remuneration Committee rights and obligations1. Based on a written assignment from the Board of

Commissioners, Nomination and Remuneration Committee may access the records or information about employees, funds, assets, and other resources owned by the company relating to the performance of its duties. The Committee shall report in writing the result of the assignment to the Board of Commissioners.2. To carry out its duties, Nomination and Remuneration

Committee shall cooperate with the Human Capital Division and other relevant Divisions.

3. Nomination and Remuneration Committee, with the approval of the Board of Commissioners, reserves the right to appoint a third party (person or entity) to assist their duties.

4. Members of the Nomination and Remuneration Committee shall perform their duties properly and maintain the confidentiality of all documents, data and company information from both internal and external parties and use them only for the benefit of the Committee’s duties.

5. The Nomination and Remuneration Committee, related to the remuneration policy, shall take into account at least: • Financialperformanceandreservesassetforth

in the applicable legislation.• Individualjobperformance.• Fairnessofpeergroups,and• ConsiderationoftheBank’slong-termgoalsand

strategies.• Beforetheendofthecurrentfinancialyear,

Nomination and Remuneration Committee shall prepare and submit work plan and annual budget to the Board of Commissioners to be set, and a copy of which will be delivered by the Board of Commissioners to the Board of Directors. The implementation of Nomination and Remuneration Committee work plan and annual budget will be reported to the Board of Commissioners.

• NominationandRemunerationCommitteeshall prepare and submit reports on their tasks, responsibilities and procedures to the Board of Commissioners.

Nomination and remuneration Committee meetings 1. Nomination and Remuneration Committee meetings

shall be held in accordance with the needs of the Company, at least four (4) times a year.

2. Nomination and Remuneration Committee meetings may only be held if attended by a majority of members, with the majority there of being the Chairman and 1 (one) Executive Officer in charge of Human Resources, or the party occupying a managerial position under the Board of Directors in charge of Human Resources.

3. The meetings shall be chaired by the Chairman, and if he/she is unable to attend the meeting, it shall be chaired by a senior committee member appointed/agreed upon in the meeting.

4. Decision making of the meetings shall be conducted based on consensus agreement. In the absence of consensus, decision shall be made on the basis of majority vote with the principle of 1 (one) person 1 (one) vote.

5. If the result of voting is a tie, then the decision shall be made on the basis of a majority vote with the principle of 1 (one) person 1 (one) vote, excluding the votes from the Executive Officer of Human Resources, or the party occupying a managerial position under the Board of Directors in charge of Human Resources.

6. The result of meeting will be recorded in the minutes of meeting signed by all members of the Committee and properly documented.

7. Any dissenting opinions that occurred in the meeting shall be clearly detailed in the minutes of meeting.

8. The minutes of meeting, as referred to in item 6 above, shall be submitted in writing by Nomination and Remuneration Committee to the Board of Commissioners.

9. Members attendance at meetings will be reported in the quarterly report and the annual report of the Nomination and Remuneration Committee.





Nomination and remuneration Committee meeting agenda In 2019, NRC held 10 (ten) meetings with the explanation table as follows:

Table of Nomination and remuneration Committee meeting agenda

No. Date agenda attendee

1. January 24, 2019 1. Presentation of Head of Human Capital Management Division regarding: • EmployeeEngagementSurvey2018• HRDevelopmentSysteminCorporatePlan• EmployeeTransferandPromotionSystem

2. Recommended Capability Development/ Refreshment Program for the Board of Commissioners

• AriKuncoro• RevrisondBaswir• PataniariSiahaan• AhmadFikriAssegaf• JoniSwastanto• BistokSimbolon*)• MarwantoHarjowiryono• RenyWiriandhani• EfitaPraharani

2. April 11, 2019 Presentation of Head of Human Capital Management Division on the Employee Remuneration System

• AriKuncoro• RevrisondBaswir• PataniariSiahaan• JoniSwastanto• BistokSimbolon*)• MarwantoHarjowiryono• EfitaPraharani

3. May 2, 2019 Willis Tower Watson's presentation on Directors' Remuneration in 2019 and Tantiem for the fiscal year 2018.

• AriKuncoro• WahyuKuncoro*)• RevrisondBaswir• PataniariSiahaan• JoniSwastanto• BistokSimbolon*)• MarwantoHarjowiyono**)• SigitWidyawan• RenyWiriandhani• EfitaPraharani

4. May 9, 2019 Discussion on recommendations for requests for approval of the appointment of Commissioners and Directors of subsidiaries

• AriKuncoro• RevrisondBaswir• JoniSwastanto• BistokSimbolon*)• MarwantoHarjowiyono**)• SigitWidyawan• AhmadFikriAssegaf• RenyWiriandhani

5. July 25, 2019 1. Discussion on the nomination of the President Director of the Subsidiary

2. Determination of BNI Talent Pool for 2019 Extraordinary BNI General Meeting of Shareholders

• AriKuncoro• RevrisondBaswir• PataniariSiahaan• JoniSwastanto• MarwantoHarjowiyono**)• AhmadFikriAssegaf• SigitWidyawan• RenyWiriandhani

6. August 22, 2019 1. Giving a mandate to the Chair of the KNR to :• Present,voteandrecommendintheEvaluationTeamof

prospective members of the Board of Directors / Board of Commissioners of PT Bank Negara Indonesia (Persero) Tbk which will be submitted at the Extraordinary General Meeting of Shareholders of PT Bank Negara Indonesia (Persero) Tbk on August 30, 2019

• Signalldocumentsrelatedtopointaabove

• AriKuncoro• PataniariSiahaan• JoniSwastanto• MarwantoHarjowiyono**)• AhmadFikriAssegaf• SigitWidyawan• RenyWiriandhani• EfitaPraharani

7. August 29, 2019 1. Preparations for the 2019 Extraordinary BNI Extraordinary General Meeting of Shareholders

2. Discussion of the Board of Directors’ letter related to talent proposals for candidates for the Directors

3. Submission of candidates for Directors to the Ministry of SOE as A Serie BNI Shareholder

• AriKuncoro• Hambra• RevrisondBaswir• PataniariSiahaan• JoniSwastanto• AhmadFikriAssegaf• MarwantoHarjowiyono**)• SigitWidyawan• RenyWiriandhani• EfitaPraharani




Table of Nomination and remuneration Committee meeting agenda


8. October 10, 2019 Company policy related to Employee Placement • AriKuncoro• Hambra• RevrisondBaswir• PataniariSiahaan• JoniSwastanto• AhmadFikriAssegaf• SigitWidyawan• RenyWiriandhani• EfitaPraharani

9. November 14, 2019 1. Presentations from the Director of Human Capital and related Compliance :• Updatesonemployeeremunerationpoliciesandupdateson

Human Capital Architecture as a whole .• Optimizationofemployeedevelopmentprograms

• AriKuncoro• RevrisondBaswir• PataniariSiahaan• JoniSwastanto• AhmadFikriAssegaf• SigitWidyawan• RenyWiriandhani• EfitaPraharani

10. December 5, 2019 Proposed Directors regarding post-duty health facilities for Members of the Board of Commissioners and Directors

• AriKuncoro• RevrisondBaswir• PataniariSiahaan• JoniSwastanto• AhmadFikriAssegaf• SigitWidyawan• RenyWiriandhani• EfitaPraharani

Notes: *) Ceased serving as a member of the Nomination and Remuneration Committee since May 13, 2019 **) Ceased serving as a member of the Nomination and Remuneration Committee since August 29, 2019

frequency and attendance of Nomination and remuneration Committee

The frequency and level of attendance of the Nomination and Remuneration Committee meetings can be seen in the table below:

Table of meeting attendance of Nomination and remuneration Committee meetings

Name Position Number of meetings attendance Percentage

Ari Kuncoro Chairman 10 10 100%

Wahyu Kuncoro*) Member 1 2 50%

Revrisond Baswir Member 9 10 90%

Pataniari Siahaan Member 9 10 90%

Joni Swastanto Member 10 10 100%

Bistok Simbolon*) Member 4 4 100%

Marwanto Harjowiryono**) Member 6 6 100%

Ahmad Fikri Assegaf Member 8 10 80%

Sigit Widyawan Member 8 10 80%

Reny Wiriandhany Member 9 10 90%

Efita Praharani Member 8 10 80%

Notes: *) Ceased serving as a member of the Nomination and Remuneration Committee since May 13, 2019 **) Ceased serving as a member of the Nomination and Remuneration Committee since 29 August 2019





Brief report on the Implementation of the Nomination and remuneration Committee activities in 2019During 2019, the Nomination and Remuneration Committee (KNR) Committee carried out all pro-grams/Work Plans set at the beginning of 2019 in order to assist the implementation of the duties of the Board of Commissioners. The mechanism of implementing KNR activities/tasks is carried out through:• ImplementationofKNRMeeting• Study/evaluation/reviewoutsidethemeetingforum

The results of the KNR Meeting and monitoring, review/evaluation/review of the KNR are submitted to the Board of Commissioners as reports and recommendations both in writing and in the Board of Commissioners’ Meeting forum.

The implementation of KNR activities in general covers the following matters:1. Implementation of nomination duties

a. Conduct a review of internal candidates for BNI managers and providing suggestions/ recommendations on BNI management candidates that meet the requirements to be proposed in the BNI GMS through the Series A Dwiwarna Shareholder.

b. Conduct a review of complete requirements of BNI management candidates for fit and proper test to the Financial Services Authority.

c. Conducting a review of candidates for BNI subsidiary company management that will be pro-posed to the Series A Dwiwarna Shareholders (Ministry of SOE).

d. Provide recommendations on the Capacity Building Program for members of the Board of Directors and the Board of Commissioners.

e. Provide recommendations on Nomination System of Members of the Board of Directors and Board of Commissioners.

f. Evaluate and provide recommendations on proposed candidates for Risk Monitoring Committee members from independent parties to the Board of Commissioners

g. Assess the performance of members of the Board of Directors and Board of Commissioners.

h. Reviewing the overall HR management nomination system or Human Capital Architecture (HCA)

i. Evaluate the development of Human Resources according to the Corporate Plan

j. Evaluate the transfer and promotions system and employee sanctions

k. Evaluate the talent management system

2. Implementation of remuneration dutiesa. Evaluate remuneration policies for members of the

Board of Directors and Board of Commissioners, executive officials and employees overall.

b. Review of Board of Directors and Board of Commissioners remuneration 2019 and tantiem 2018

c. Evaluate and provide recommendation on remuneration structure, policy and number for members of the Board of Directors and Board of Commissioners to be submitted to the GMS through Serie A Dwiwarna Shares including a review on Board of Directors remuneration recommendation related to Long Term Incentive al-location.

d. Ensure that employee remuneration policy is in accordance with applicable provision by periodically evaluating the implementation of employee remuneration policy.

Board of Directors succession Policy To prepare for future leadership regeneration, the Company’s internal programs have been harmonized with SOE Ministry Regulation No. PER-03/MBU/02/2015 dated February 17, 2015 regarding Requirements, Procedure for Appointment and Termination of Directors of SOEs. In this program potential employees who enter the Talent Pool will have the opportunity to attend a training or activities related to the field of management, business strategy, strategic planning, risk analysis and business potential, analysis of operational and financial performance as well as a variety of other similar programs.

With this program, if the Company requires leadership replacements, the Company will apply for internal candidates from the program participants, facilitated by the Board of Commissioners, after considering the Nomination and Remuneration Committee recommendations. Furthermore, the results of the internal candidate selection will be submitted to the Ministry of SOE to conduct a fit and proper test.

Development of the Nomination and remuneration CommitteeThroughout 2019, the Company’s Nomination and Remuneration Committee members have participated in various competency improvement programs in the form of training, workshops, conferences, seminars, as the following table:




No. Name PositionCompetency

Development/Training Topics

Time & location Type of training and organizer

1. Ari Kuncoro Chairman

President Commissioner/ Independent Commissioner

“PSAK 71 Impairment Deep Dive in Risk Management Perspective”

DenpasarJune 27-28, 2019

Bankers Association for Risk Management (BARa)

2. Revrisond Baswir Member


ASEAN Global Leadership Programme: LSE 2019

International Risk Management Refreshment and Wealth Management Certification Program for Executive-Europe Class 2019”

London March 25-29, 2019

LondonNovember 16-24, 2019

London School Economics and Political Science (LSE)

MM UGM, Institute Bankir Indonesia (IBI) and Lembaga Sertifikasi Profesi Perbankan (LSPP)

3. Pataniari Siahaan Member


Executive Risk Management Refresher Program

Barcelona, Milan, Madrid&NiceJuli 12-21, 2019

LPPI(Lembaga Pengembangan Perbankan Indonesia)

4. Joni Swastanto Member

Commissioner

ASEAN Global Leadership Programme: LSE 2019”

International Risk Management Refreshment and Wealth Management Certification Program for Executives


Moscow-Saint PetersburgJune 29- July 7, 2019


MM UGM, IBI and LSPP

5. Marwanto Harjowiryono*)

Member

Commissioner

Executive Risk Management Refresher Program

Barcelona, Milan, Madrid&NiceJuly 12-21, 2019

LPPI

6. Ahmad Fikri Assegaf Member


International Risk Management Refreshment and Wealth Management Certification Program for Executive-Europe Class 2019



7. Sigit Widyawan Member


International Risk Management Refreshment and Wealth Management Certification Program for Executives

Moscow-Saint PetersburgJune 29 - July 7, 2019


8. Reny Wiriandhani Independent Member Workshop Discover Yourself Understand Others Bring Empowerment to All

Semarang, February 28, 2019

Lumina Spark Workshop, Faculty of Psychology, University of Indonesia

9. Efita Praharani Member

Human Capital Division Head

Open Class Training on Data Science Development Program (Introduction to Human Capital Analytics)

Jakarta1 November 2019

BNI Corporate University

Notes:*) Ceased serving as a member of the Nomination and Remuneration Committee since August 29, 2019





rIsK moNITorING CommITTee

The Risk Monitoring Committee assists the Board of Commissioners in carrying out the functions and duties of Board of Commissioners in the application of the principles of Good Corporate Governance, particularly with regard to risk management.

appointment Basis BNI’s Risk Monitoring Committee was formed in 2004 based on the Board of Commissioners Decree No. Kep/002/DK/2004 dated March 1, 2004 regarding the Establishment of Risk Monitoring and Compliance Committee. The Risk Monitoring Committee was established by the Board of Commissioners and carry out their duties according to regulations, as follows:1. Ministry of State-Owned Enterprises Regulation PER-12/

MBU/2012 dated August 24, 2012 regarding Board of Commissioners/Supervisory Board Supporting Organs of State-Owned Enterprises (SOEs).

2. Financial Services Authority Regulation No. 33/ POJK.04/2014 dated December 8, 2014 regarding Board of Directors and Board of Commissioners of Issuers or Public Companies.

3. Financial Services Authority Regulation No. 55/ POJK.03/2016 dated December 7, 2016 regarding Implementation of Good Corporate Governance for Commercial Banks.

4. Financial Services Authority Circular Letter No. 13/SEOJK.03/2017 dated March 17, 2017 regarding Implementation of Good Corporate Governance for Commercial Banks.

risk monitoring Committee CharterThe Company’s Risk Monitoring Charter which continuously refined and updated is in accordance with developments/ amendments in applicable laws as well as current condition. The latest renewal/revision of BNI Risk Monitoring Committee Charter was carried out in 2017, as stipulated in the Board of Commissioners Decree Number KEP/028/DK/2017 dated May 18, 2017 on “Risk Monitoring Committee Charter.”.

The Risk Monitoring Committee Charter includes:1. Basis of formation and implementation of tasks2. Goals and objectives3. Structure and membership4. Requirements of member5. Duties6. Powers7. Rights and obligations8. Meetings 9. Term of office

risk monitoring Committee structure and membership1. Risk Monitoring Committee is established by decision

at Board of Commissioners’ meeting and in a Board of Commissioners’ Decree.

2. Risk Monitoring Committee is under the coordination of the Board of Commissioners and is directly responsible to the Board of Commissioners.

3. Appointment of Risk Monitoring Committee Members shall be conducted by Board of Directors based on decision at Board of Commissioners’ Meeting.

4. Risk Monitoring Committee shall at least consist of:a. 1 (one) Independent Commissioner as concur-rent as

chairmanb. 1 (one) person from an independent party with

expertise in risk management.c. 1 (one) person from an independent party with

expertise in finance.5. Independent Commissioners and independent parties

who are members of Risk Monitoring Committee shall at least make up 51% (fifty one percent) of the total members of Risk Monitoring Committee.

6. Risk Monitoring Committee Chairman is an In-dependent Commissioner concurrent as member as stipulated in the decision of Board of Commissioners’ meeting and in a Board of Commissioners Decree.

7. Risk Monitoring Committee Chairman may only concurrently hold 1 (one) other Committee Chairman position at BNI.

8. Former member of BNI Board of Directors and former executive officer or party with links to BNI that may affect the ability to act independently, who may become an independent member of Risk Monitoring Committee, shall be subject to a 6 (six) month long cooling off period. The cooling off provision shall not apply to former member of Board of Directors and former BNI executive officer whose duties are only to perform supervisory function for at least 6 (six) months. The term “cooling off” refers to the cooling off period as stipulated in FSA Regulations and Circular on the Implementation of Governance for Commercial Banks.

9. Member of Risk Monitoring Committee from independent party may not concurrently hold positions as:a. Member of the Board of Commissioners/Supervisory

Board of SOE/other companies;b. Secretary/Secretariat staff to the Board of

Commissioners/Supervisory Board of SOEs/other companies.




10. Board of Directors shall appoint and dismiss of member of Risk Monitoring Committee from independent party based on Board of Commissioners decision and Board of Commissioners’ Decree.

11. Risk Monitoring Committee Chairman shall have the right to propose the replacement of Risk Monitoring Committee member to Board of Commissioners if one of the members of the Risk Monitoring Committee ends their term, resigns or is dismissed.

12. Risk Monitoring Committee member is prohibited from being member of BNI’s Board of Directors or other banks.13. Risk Monitoring Committee shall work collectively in performing its duties to assist Board of Commissioners.14. Risk Monitoring Committee shall be independent both in the execution of its duties and reporting, and directly responsible

to Board of Commissioners.15. In performing daily tasks, the Committee shall be assisted by external staff or secretary to the Committee. The staff or

secretary shall be appointed on the basis of decision of Board of Commissioners Meeting and Board of Commissioners’ Decree.

In 2019, the structure and membership of Risk Monitoring Committee was amended several times as explained in the tablesbelow:

January 1 – may 13, 2019


Revrisond Baswir Chairman Independent Commissioner • Economics• Accounting

Bistok Simbolon*) Member Commissioner Law

Joni Swastanto Member Commissioner Banking

Irwan Rinaldi Member Independent Party Banking and Risk Management

Kartika Siwi Member Independent Party Banking

Note:*) Ceased serving as a member of the Risk Monitoring Committee since May 13, 2019

may 13 – June 27, 2019





Kartika Siwi Member Independent Party Banking

June 27 – august 1, 2019




Sigit Widyawan*) Member Independent Party Accounting and Finance


Kartika Siwi**) Member Independent Commissioner Banking

Notes : *) Serving as a member of the Risk Monitoring Committee since June 27, 2019**) Ceased serving as a member of the Risk Monitoring Committee since August 1, 2019





august 1 – october 1, 2019


Revrisond Baswir Chairman Independent Commissioner •Economics•Accounting


Sigit Widyawan Member Independent Party Accounting and Finance


october 1 – December 31, 2019


Revrisond Baswir Chairman Independent Commissioner •Economics•Accounting


Sigit Widyawan Member Independent Party Accounting and Finance


Shahjehan Jimmy Azis*) Member Independent Party Banking

Note:*) Serving as a member of the Risk Monitoring Committee since October 1, 2019

risk monitoring Committee ProfileA brief profile of the Chairman and Members of Risk Monitoring Committee as of December 31, 2019 as follows:


Revrisond BaswirChairman of the Risk Monitoring Committee


Joni SwastantoMember of the Risk Monitoring Committee


Bistok SimbolonMember of the Risk Monitoring Committee

An Indonesian citizen, domiciled in Jakarta, was born on October 11, 1959. Currently 60 years old. Appointed as a Member of the Company’s Risk Monitoring Committee since January 2018 based on the Decree of the Board of Commissioners No. Kep / 054 / DK / 2017 dated December 21, 2017.

She obtained his Bachelor of Economics degree in Financial Management from Jayabaya University in 1992 and obtained her Master of Management from Gadjah Mada University in 1998. He served as Deputy Head of Information Technology Division of PT Bank Negara Indonesia (Persero) Tbk (2004-2008), Vice Head of PT Bank Negara Indonesia (Persero) Tbk’s (2009-2010) Internal Audit Unit, and PT Bank Negara Indonesia (Persero) Tbk’s Operational Division Leader (2011-2014).

Kartika SiwiMember of the Risk Monitoring Committee




Indonesian citizen, domiciled in Jakarta. born on June 29, 1960. He is currently 59 years old. Appointed as a Member of the Company’s Risk Monitoring Committee since October 2019 based on the Decree of the Board of Commissioners No. Kep / 012 / DK / 2019 dated September 26, 2019He obtained his Bachelor of Economics degree in ManagementfromSriwijaya&TridinantiUniversityin1989and obtained his Master of Management in Agribusiness from the Bogor Agriculture Institute in 2000. He served as Vice President of Medan Central Credit Center Leader PT Bank Negara Indonesia (Persero) Tbk ( 2008-2009), Deputy GeneralManageroftheCorporateRemedial&RecoveryDivision of PT Bank Negara Indonesia (Persero) Tbk 2010-2012),DeputyGeneralManageroftheProcurement&FixedAssets Division of PT Bank Negara Indonesia (Persero) Tbk (2013-2014), and Deputy General Manager of the CorporateRemedial&RecoveryDivisionofPTBankNegaraIndonesia (Persero) Tbk (2015). Since 2012 he has been active as a Risk Management Certification Assessor at the Banking Professional Certification Institute (LSPP), General Banking Certification Assessor for the Indonesian Banking Development Institute (LPPI), as a Lecturer in Credit at BNI Corporate University and other banks.

Shahjehan Jimmy AzisMember of the Risk Monitoring Committee

Qualification of risk monitoring Committee1. General requirements

a. Have integrity, good character and morals and sufficient work experience related to the duties of other committees.

b. No personal interests/relationships that can have negative impact and conflict of interest with BNI.

2. Competency requirementsa. Have expertise, ability, knowledge and adequate

experience in economics, finance and banking or risk management in accordance with the requirements stipulated by Financial Services Authority Regulations regulating requirements for member of Risk Monitoring Committee.

b. Able to work together and have the ability to communicate well and effectively and provide sufficient time to carry out duties.

c. Have sufficient knowledge and understanding of the laws and regulations in the banking sector, Capital Market, SOE and other laws and regulations, especially those relating to BNI’s operational activities, implementation of Good Corporate Governance and risk management.

3. Independence requirements Risk Monitoring Committee member from independent

parties:a. Shall be external party with no relation to financial,

management, share ownership and/or family relations with the Board of Commissioners, Board of Directors and/or Series A Dwiwarna Shareholders or relationships with banks that can affect their ability to act independently, based on applicable legislation.

b. No business relationship either directly or indirectly related to BNI’s business activities.

c. In the last 1 (one) year before being appointed as member of Risk Monitoring Committee, he/she shall not work in Public Accounting Office or a consultant who provides audit services, risk management services and/or non-audit consultations to BNI.

d. Not an employee of Bank.





Qualifications and work experiences of risk monitoring CommitteeAs of December 31, 2019, educational qualifications and work experiences of the Chairman and Members of Risk Monitoring Committee are as follows:

Name Position education work experience

Revrisond Baswir Chairman Educational Experience can be viewed on Board of Commissioners’ Composition Diversity section

Work Experience can be viewed on Board of Commissioners’ Composition Diversity section

Joni Swastanto Member Educational Experience can be viewed on Board of Commissioners’ Composition Diversity section


Bistok Simbolon*) Member Educational Experience can be viewed on Board of Commissioners’ Composition Diversity section


Sigit Widyawan**) Member Educational Experience can be viewed on Board of Commissioners’ Composition Diversity section


Irwan Rinaldi Member • Bachelor’sdegreeinAccounting• Master’sdegreeinManagement

• BRIDeputyHeadofManagementandFinance Accounting Division

• BRIHeadofRiskManagementDivision

Kartika Siwi***) Member • Bachelor’sdegreeinEconomic• Master’sdegreeinManagement

• ViceHeadofBNIInformationTechnologyDivision.

• ViceHeadofBNIInternalAuditUnit.• HeadofBNIOperationsDivision

Shahjehan Jimmy Azis****) Member •Bachelor’sdegreeinEconomic • ViceHeadofBNISpecialCreditDivision• DeputyGeneralManagerDivision

CorporateRemedial&RecoveryBNI• DeputyHeadProcurement&Fixed

Assets Division BNI

Notes: *) Ceased serving as a member of the Risk Monitoring Committee since May 13, 2019 **) Serving as a member of the Risk Monitoring Committee since June 27, 2019 ***) Ceased serving as a member of the Risk Monitoring Committee since August 1, 2019****) Serving as a member of the Risk Monitoring Committee since October 1, 2019

Term of office of risk monitoring Committee• MembersoftheRiskMonitoringCommitteewhoaremembersoftheBoardofCommissionershavetermsofserviceas

committee members the same as their term of office as members of the Board of Commissioners determined by the GMS.•MembersoftheRiskMonitoringCommitteewhoaremembersoftheBoardofCommissionerswillautomatically

terminate as committee members if their term of office as Members of the Board of Commissioners ends.• IfamemberoftheBoardofCommissionerswhobecomestheChairpersonoftheRiskMonitoringCommitteequits

before his term of office as a member of the Board of Commissioners ends, the position of Chair of the Risk Monitoring Committee is replaced by other Independent Commissioners.

• ThetermofofficeofmembersoftheRiskMonitoringCommitteeoriginatingfromindependentpartiesisamaximumof 3 (three) years and can be extended once for 2 (two) years of service so that the total tenure of members of the Risk Monitoring Committee to the company is only 5 (five). years without prejudice to the right of the Board of Commissioners to dismiss the Committee members concerned at any time.

• TheBoardofCommissioners,bytakingintoaccounttheproposaloftheChairpersonoftheRiskMonitoringCommittee,may dismiss any member of the Risk Monitoring Committee from an independent party if the member is deemed not to carry out his duties and obligations as a committee member as stipulated in the Decree on appointment / appointment of the relevant committee members. and / or a Work Agreement between the committee members concerned and BNI, and based on applicable regulations.

• IntheeventthatamemberoftheBoardofCommissionerswhoservesasChairoftheRiskMonitoringCommitteeceasesto be a member of the Board of Commissioners, the Chairperson of the Committee concerned must be replaced by another member of the Board of Commissioners no later than 30 (thirty) days.




risk monitoring Committee IndependenceAll members of Risk Monitoring Committee shall be independent from financial, management, share ownership and/or family relationships from Board of Commissioners, Board of Directors and/or controlling shareholder or any relationships with the Bank, which may affect their ability to act independently.

Independence aspect revrisond Baswir

Joni swastanto

Bistok sombolon*)

sigit widyawan**) Irwan rinaldi Kartika

siwi***)

shahjehan Jimmy

azis****)

No financial relationship with Boardof Commissioners and Board of Directors

√ √ √ √ √ √ √

No management relationship in thecompany, subsidiaries or affiliated companies

√ √ √ √ √ √ √

No shares in the company √ √ √ √ √ √ √

No family relationship with Boardof Commissioners, Board of Directors and/or fellow membersof Risk MonitoringCommittee

√ √ √ √ √ √ √

Not serving on boards of political parties,government officials

√ √ √ √ √ √ √


risk monitoring Committee Duties and responsibilities The Risk Monitoring Committee duties and responsibilities shall be:1. To evaluate the suitability of risk management policies and the implementation of Bank policies, which include:

a. Evaluating the conformity between the bank’s risk management policy with the implementation of other policies, including credit risk, market risk, liquidity risk, operational risk, strategic risk, legal risk, compliance risk, and reputation risk.

b. Evaluating the conformity between the integrated risk management policy with the implementation of other policies, consisting of the 8 (eight), as well as insurance risk and the risk of intra-group transactions.

c. Providing recommendations to the Board of Commissioners on the suitability of risk management and integrated risk management policies to ensure that BNI has adequately managed risks.

d. Exploring and gives an opinion to the Board of Commissioners over public policy on the other credit along with the policies that is required by a regulator that delivered member Board of Directors to obtained approval from the Board of Commissioners.

2. To review and provide opinions to the Board of Commissioners on the General Policy of Credit and other policies required by the regulator submitted by the Board of Directors to obtain approval from the Board of Commissioners:a. To monitor the implementation of Risk Management Work Unit work plan and the Risk Management Committee duties.b. Monitoring the work unit work plan integrated risk management and duties integrated risk management committee.





c. To provide recommendations to the Board of Commissioners to enhance the effectiveness of risk management implementation at BNI, including the implementation of integrated risk management in the subsidiaries.

d. To provide evaluation result on risk-related regulator assessment to the Board of Commissioners.

3. Carrying out other certain tasks related to the function and scope of Risk Monitoring Committee assigned by the Board of Commissioners.

risk monitoring Committee authorities1. Based on written assignment from the Board of

Commissioners, Risk Monitoring Committee can access records or information about employees, funds, assets and other resources owned by BNI relevant to the performance of its duties. The Committee shall report in writing the result of the assignment to the Board of Commissioners.

2. Risk Monitoring Committee is authorized to conduct testing and perform inspections of BNI branches/representatives/ regions and business units, if necessary.

3. Members of Risk Monitoring Committee shall be authorized to communicate directly with parties related to Risk Monitoring Committee duties, including communicating matters related to financial and management information.

4. To carry out its duties, Risk Monitoring Committee in cooperation with Risk Management Committee, Integrated Risk Management Committee, Risk Management Work Unit and relevant work units.

rights and obligations of The risk monitoring Committee1. Members of the Risk Monitoring Committee must

carry out their duties properly by referring to the Risk Monitoring Committee Charter.

2. Members of the Risk Monitoring Committee from independent parties have the right to receive honorarium from BNI, in which the amount is determined by the Board of Commissioners based on the applicable laws and regulations.

3. Members of the Risk Monitoring Committee must maintain the confidentiality of all documents, data, information, and everything related to the duty implementation of the Risk Monitoring Committee.

4. Before the current fiscal year, the Risk Monitoring Committee must prepare and submit the Annual Work Plan and Budget to the Board of Commissioners for determination, in which copies of it is submitted by the Board of Commissioners to the Board of Directors for information. Implementation of the Annual Work Plan and Budget of the Risk Monitoring Committee is reported to the Board of Commissioners.

5. Members of the Risk Monitoring Committee must prepare and submit the report to the Board of Commissioners, which is signed by Committee Chair and Committee Members as follows:a. Report on each duty implementation is accompanied

by recommendations if deemed necessary.b. Quarterly report and annual report.

6. Every year, the Committee through the Board of Commissioners reports to the General Meeting of Shareholders on the responsibilities and achievements as well as other information that needs to be delivered.

7. Members of the Risk Monitoring Committee are prohibited from accepting gifts or gifts of any kinds related to their position.

8. Members of the Risk Monitoring Committee must provide sufficient time to carry out their duties and responsibilities optimally.

9. Committee members from independent parties must attend the Company’s working days and hours under the following conditions:a. At least 1 (one) day in one week according to the day

and attendance schedule determined by the Board of Commissioners and/or Committee Chair, among others, to attend the Committee Meetings and carry out other duties according to assigned duties and obligations; as well as

b. If necessary, at the request of the Board of Commissioners and/or Committee Chair, Committee members from independent parties must attend the Company or at Board of Commissioners’ Meetings or Committee Meetings, or at activities that must be attended by the Board of Commissioners in accordance with the requirements outside the day and routine attendance schedule.

10. In order to avoid overlapping duty implementation among the Committees under the Board of Commissioners and cooperation in the duty implementation, the Risk Monitoring Committee must coordinate with other Committees under the Board of Commissioners.




risk monitoring Committee meetings1. Risk Monitoring Committee shall meet at least 1 (one) time in 1 (one) month.2. Risk Monitoring Committee Meetings shall only be conducted if attended by at least 51% (fifty one percent) of the total

number of members including an Independent Commissioner and Independent Party members.3. Risk Monitoring Committee meeting shall be led by Risk Monitoring Committee Chairman or most senior Risk Monitoring

Committee Member, if absent.4. If deemed necessary, Risk Monitoring Committee may invite other parties related to the meeting to attend Risk Monitoring

Committee Meeting.5. Committee meetings decisions shall be made on the basis of consensus.6. In the absence of consensus, decision-making shall be based on majority votes with principle of 1 (one) person 1 (one) vote.7. Risk Monitoring Committee meetings decisions shall be considered valid if approved by more than . (one-half ) of Risk

Monitoring Committee members present. The principle of votes for members shall be 1 (one) person 1 (one) vote.8. Committee meetings results shall be recorded in minutes of meeting signed by all members of Committee present and

documented in accordance with the laws and regulations.9. Any dissenting opinions that occur in committee meetings shall be clearly detailed in the minutes of meeting.10. Committee Meetings shall be recorded in minutes of meeting by Committee Secretary, or by one Committee member who

is an independent party, in the absence of Committee Secretary.11. Committee Meetings Minutes of meeting shall be submitted in writing by Risk Monitoring Committee to Board of

Commissioners.12. Attendance of Committee Members at meetings shall be reported in the quarterly reports and annual reports of the

Committee.

risk monitoring Committee meeting agendaIn 2019, Risk Monitoring Committee (RMC) held 6 (six) meetings, either internal meetings or joint meetings with related divisions with the following agenda:

Table of risk monitoring Committee meeting

No. Date agenda attendance

1. January 24, 2019 RMC meeting with Enterprise Risk Management Division regarding realization of work plan of the Enterprise Risk Management Division in 2018 and ERM Division’s work plan for 2019.

• RevrisondBaswir• JoniSwastanto• BistokSimbolon*)• IrwanRinaldi• KartikaSiwi**)

2. February 21, 2019 RMC meeting with Enterprise Risk Management Divisiona. Soundness Level Semester II-2018.b. Risk Profile Quarter IV-2018 c. Integrated Risk Profile Semester II-2018

• RevrisondBaswir• JoniSwastanto• BistokSimbolon*)• IrwanRinaldi• KartikaSiwi**)

3. May 2, 2019 RMC meeting with Enterprise Risk Management Division, Legal Division, and Compliance Division, regarding:a. Risk Profile Quarter I-2019b. In-depth Credit Risk, Market Risk and Liquidity Risk

• RevrisondBaswir• JoniSwastanto• IrwanRinaldi

4. June 27, 2017 RMC meeting with Enterprise Risk Management Division and Internal Audit:a. In-depth Credit Risk including Internal Audit Finding on BNI Credit until

May 2019;b. Implementation Evaluation (Risk Management Committee) RMC

Quarter IV-2018 and Quarter I-2019.

• RevrisondBaswir• JoniSwastanto• SigitWidyawan***)• IrwanRinaldi• KartikaSiwi**)

5. August 29, 2019 RMC meeting with Enterprise Risk Management Division and Subsidiary Development Division regarding:a. Soundness Level Semester II-2019 including an explanation of capital

conditions related to Basel 3 regulations;b. Integrated Risk Profile Semester I-2019 including:

1. In-depth intra group Credit Risk and Insurance Risk; 2. Implementation Evaluation Integrated Risk Management

Committee.

• RevrisondBaswir• JoniSwastanto• SigitWidyawan***)• IrwanRinaldi•





Table of risk monitoring Committee meeting

No. Date agenda attendance

6. November 7, 2019 RMC meeting with Enterprise Risk Management Division, Treasury, Strategic Planning and Corporate Communication and Corporate regarding:a. Risk Profile Quarter III-2019;b. In-depth Credit Risk, Market Risk and Liquidity Risk, Strategic Risk and

Reputation Risk.

• RevrisondBaswir• JoniSwastanto• IrwanRinaldi• ShajehanJimmyAzis****)


frequency and attendance of risk monitoring Committee meetingIn 2019, Risk Monitoring Committee conducted 6 (six) KPR meetings, both internal meetings and joint meetings with divisions or units. The total attendance of each KPR member in the KPR Meeting is as shown in the table below:

Table of risk monitoring Committee meeting attendance

Name Position Number of meet-ings attendance Percentage

Revrisond Baswir Chairman 6 6 100%

Joni Swastanto Member 6 6 100%

Bistok Simbolon*) Member 3 2 66%

Sigit Widyawan**) Member 3 2 66%

Irwan Rinaldi Independent Member 6 6 100%

Kartika Siwi***) Independent Member 4 3 75%

Shajehan Jimmy Azis****) Independent Member 1 1 100%


Brief report of risk monitoring Committee activities in 2019In 2018, Risk Monitoring Committee completed all Programs/Work Plans established at the be-ginning of the year in order to assist the execution of Board of Commissioners duties. Implementation of activities/duties is done through:• KPRmeetingsincludinginvitingrelateddivisions/units.• Review/evaluationoutsidetheforumofmeetings.

Results of the meetings and monitor, review and evaluation of KPR shall be submitted to Board of Commissioners as reports and recommendations either in writing or within Board of Commissioners Meeting forum

The Monitoring Committee activities generally covered the following matters:1. Soundness Level per semester and Risk Profile per

Quarter.2. Integrated Risk Profile and Implementation of the

Integrated Risk Management Committee Semester I-2019.

3. Capital adequacy related to Basel III regulations.4. Provision of credit to related parties submitted by the

Directors to the Board of Commissioners for approval.5. BNI 2019 Recovery Plan.6. Anti-Money Laundering and Terrorism Funding

Prevention (APU PPT) report.7. Evaluation of the Implementation of the 2018 BNI Risk

Management and the 2019 Work Pro-gram8. Self-assessment report of BNI DPLK Risk Management

Implementation as of December 31, 2018.




9. Deepening of the main issues of Risk Profile Performance.10. BNI Equity Participation Policies and Procedures11. General Policy for Risk Management, Company Guidelines for Internal Control System, as well as General Policy for

Integrated Risk Management and Integrated Capital Management.12. BNI 2020 DPLK Business Plan and Self-Assessment Report on the Implementation of DPLK Risk Management13. BNI Bank Business Plan 2020-2022

Competency Development for risk monitoring Committee membersDuring 2019, members of the Risk Monitoring Committee have participated in various competency improvement programs in the form of training, workshops, conferences, seminars, as listed in the following table:

No. Name PositionCompetency

Development/Training Topics

Date & location organizer

1 Revrisond Baswir Chairman


ASEAN Global Leadership Programme: LSE 2019

International Risk Management Refreshment and Wealth Management Certification Program for Executive-Europe Class 2019




MMUGM, IBI dan LSPP

2. Joni Swastanto Member

Commissioner

ASEAN Global Leadership Programme: LSE 2019”

International Risk Management Refreshment and Wealth Management Certification Program for Executives”

London Maret 25-29, 2019

Moscow-Saint PetersburgJune 29–July 7, 2019


MMUGM, IBI and LSPP

3. Sigit Widyawan Member


International Risk Management Refreshment and Wealth Management Certification Program for Executives”

Moscow-Saint PetersburgJune 29–July 7, 2019

MMUGM, IBI and LSPP

4. Irwan Rinaldi Independent Member Workshop Discover Yourself Understand Others Bring Empowerment to

Semarang, February 28, 2019

Lumina Spark Workshop, Faculty of Psychology, University of Indonesia

5. Shahjehan Jimmy Azis Independent Member Risk Management Assessor Certification Refresher Program

December 2019, Jakarta BARa (Bankers Association for Risk Management

INTeGraTeD GoverNaNCe CommITTee

The Integrated Governance Committee (IGC) established by referring to and in accordance with applicable laws and regulations to Financial Services Authority regulation No. 18/POJK.03/2014 dated November 18, 2014 regarding Integrated Governance for Finance Conglomerate and Ministry of State-Owned Enterprises No. PER- 12/MBU/12/2012 dated August 24, 2012 on Supporting Organs of SOE’s Board of Commissioners/Supervisory Board.

Integrated Governance Committee appointment BasisEstablishment of Integrated Government Committee for Financial Conglomerate in BNI is based on Board of Commissioners Decree No. Kep/006/DK/2015 dated June 22, 2015 regarding the Establishment of Integrated Governance Committee. The Integrated Governance Committee shall be independent both in the execution of its duties and reporting and directly responsible to the Main Entity of Board of Commissioners.





Integrated Governance Committee CharterThe Company has an Integrated Governance Committee Charter that is continuously refined and updated in accordance with progress/amendment of applicable laws and current conditions. The renewal/revision of the latest BNI Risk Monitoring Committee Charter was carried out in 2017, as stipulated in the Board of Commissioners Decree No. KEP/044/DK/2017 dated October 12, 2017 on The Integrated Governance Committee Charter.The Integrated Governance Committee Charter contains legal basis; definition; establishment and committee structure; committee members requirements; committee membership; committee’ duties and responsibilities; committee’s authorities, rights and obligations; committee member’s appointment, dismissal and term of office; and committee meetings.

Qualifications of Integrated Governance Committee1. General requirements

a. Have good integrity, character, moral and sufficient work experience related to committee duties;

b. Have no personal interests/links that may have negative impact and conflict of interest on the Financial Services Institutions in BNI Financial Conglomerate.

2. Competency requirementsa. Have adequate educational background, ability,

knowledge and experience in banking or other financial services institutions;

b. Able to work together, have the ability to communicate properly and effectively, and provide enough time to carry out their duties;

c. Have sufficient knowledge and understanding of the principles and processes of Good Corporate Governance in general, as well as laws and regulations in the banking sector and other financial services institutions, especially related to operational activities of banking and other financial services institutions.

3. Independence requirements Independent Members of Integrated Governance

Committee:a. Shall be external party who has no financial

relationship, stewardship, share ownership and/or family relationship with Board of Commissioners, Board of Supervisors, Board of Directors and/ or Controlling Shareholders of Financial Services

Institutions in the BNI Financial Conglomerate, or relationship with Financial Services Institutions in BNI’s Financial Conglomerate that may affect their ability to act independently. Financial relationship, stewardship, share ownership and/or family relationship as referred to above shall be in accordance with applicable rules and regulations;

b. Has no direct or indirect business relationship relating to Financial Services Institution in BNI’s Financial Conglomerates.

membership of Integrated Governance Committee 1. Members of Integrated Governance Committee at least

consist of:a. An Independent Commissioner who is the Chairman

of one of the committees at the Main Entity, and concurrently serves as member;

b. An independent Commissioner who represents and is appointed by each Financial Services Institution in the BNI Financial Conglomerate, as member;

c. An independent party who serves as member. An independent party can come from an independent party member of the Committee in the Main Entity;

d. Members of the Sharia Supervisory Board of Financial Service Institution that carry out business activities based on Sharia principles in the BNI Financial Conglomerate as members, whose numbers are adjusted to the needs of BNI Financial Conglomerate as well as the efficiency and effectiveness of the duties of the Integrated Governance Committee.

2. The number and composition of Independent Commissioners who are members of the Integrated Governance Committee as referred to in point 1 letter b above are adjusted to the needs of the BNI Financial Conglomerate as well as the efficiency and effectiveness of the duties of the Integrated Governance Committee taking into account the least representation of each financial services sector.

3. The membership of Independent Commissioner in Integrated Governance Committee as referred to in point 1 letter b above can be in the form of permanent and non-permanent membership, in accordance with the needs of BNI Financial Conglomerate, where if necessary the Main Entity can add a non-permanent membership to the Independent Commissioner who is not yet member of Integrated Governance Committee.




4. Membership of Independent Commissioners, Independent parties and members of Sharia Supervisory Board as referred to in letter 1 above to Integrated Governance Committee in BNI Financial Conglomerate are not considered as concurrent positions.

Integrated Governance Committee Duties and responsibilitiesIntegrated Governance Committee’s duties andresponsibilities including:1. Evaluating Integrated Governance implementation

at least through assessment of adequacy of internal controls, implementation of integrated compliance functions and implementation of Integrated Governance Guidelines. In conducting the evaluation, Integrated Governance Commit-tee obtains information from evaluations of internal audit and compliance functions of each Financial Services Institute from members of Board of Commissioners of each Financial Services Institution where members are in the Integrated Governance Committee.

2. Providing recommendations to the Main Entity Board of Commissioners regarding the evaluation of Integrated Governance and improvement of Integrated Governance Guidelines.

Integrated Governance Committee works collectively in carrying out its duties to assist the Main Entity Board of Commissioners.

Integrated Governance Committee authorities 1. Integrated Governance Committee may request

an explanation or the necessary information about employees, funds, assets, and other resources related to the performance of its duties to the Institute of Financial Services in the BNI financial conglomerate, with due regard to the prevailing regulations. The Committee shall report in writing the result of the assignment to the Board of Commissioners.

2. Members of Integrated Governance Committee shall be authorized to communicate directly with the parties related to the Integrated Governance Committee duties.

3. To carry out its duties, the Integrated Governance Committee can cooperate or coordinate with other Committees under the Board of Commissioners, as well as relevant divisions/units/ work units on then Main Entity or others in the Institute of Financial Services in the BNI Financial Conglomerate.

4. Integrated Governance Committee members shall be independent parties who have the right to receive an honorarium from BNI as determined by Board of Commissioners under the applicable rules.

5. Member of Main Entity Board of Commissioners, Member of Board of Commissioners and Supervisory Board of Financial Services Institution who becomes Chairman/ member of Integrated Governance Committee shall not receive additional income other than income from their office as member of Board of Commissioners/Supervisory Board Members.

6. Integrated Corporate Governance Committee Members shall perform their duties properly and maintain confidentiality for all documents, data, information and everything related to the Integrated Corporate Governance Committee’s tasks used strictly only for their duties.

7. Integrated Corporate Governance Committee shall be required to evaluate the compatibility between Integrated Governance policies and the implementation of these policies, and provide recommendations to the Main Entity Board of Commissioners regarding Integrated Governance policies and their implementation, to ensure that Integrated Governance management has been conducted adequately.

8. Before the current financial year, Integrated Governance Committee shall prepare and submit Business Plan and Annual Budget to Main Entity Board of Commissioners to be established, a copy of which is delivered by the Main Entity Board of Commissioners to the Main Entity Board of Directors for their information. The Work Plan and Annual Budget implementation, by the Integrated Corporate Governance Committee, shall be reported to the Main Entity Board of Commissioners.

9. Integrated Corporate Governance Committee shall prepare and submit reports on the execution of their tasks, if necessary, with recommendation to the Main Entity Board of Commissioners signed by Committee Chairman and Members.

Term of office of Integrated Governance Committee1. Chairman and members of Integrated Governance

Committee shall be appointed and dismissed by Main Entity Board of Commissioners.

2. Member of Integrated Governance Committee who is a member of Main Entity Board of Commissioners or Board of Commissioners and Supervisory Board of Financial Services Institution:





a. Term of office shall be equal to the period of appointment as member of Board of Commissioners or Supervisory Board stipulated by the GMS.

b. Ceases by itself if the term of office as member of Board of Commissioners or Supervisory Board ends.3. Term of office of member of Integrated Governance Committee member from independent party shall be 3 (three) years,

and may be renewed once for 2 (two) years so that the total term shall be a maximum of 5 (five) years without prejudicing the right of Main Entity Board of Commissioners to dismiss any committee member at any time.

4. Main Entity Board of Commissioners may dismiss any member of Integrated Governance Committee if he/she is deemed to have not performed his/her duties as member of the committee as set forth in the Decree of appointment of committee member concerned.

5. In the event that member of Main Entity Board of Commissioners who concurrently serves as Chairman of Integrated Corporate Governance Committee resigns as member of Main Entity Board of Commissioners, the Chairman of the Committee shall be replaced by other member of Main Entity Independent Board of Commissioners who is Chairman of one of Committee in Main Entity within 30 (thirty) days at the latest.

6. Dismissal and appointment of Committee members shall be reported to the GMS. structure, membership and expertise of Integrated Governance Committee

Table of structure, membership and expertise of Integrated Governance Committee

Name Position Period Description expertise

Revrisond Baswir Chairman January 1 to December 31, 2019 Independent Commissioner PT Bank Negara Indonesia (Persero) Tbk

Economics

Joni Swastanto Member January 1 to December 31, 2019 Commissioner PT Bank Negara Indonesia (Persero) Tbk

Economics

Parikesit Suprapto Member January 1 to December 31, 2019 President//Independent Commissioner PT BNI Life Insurance

Economic Development

Utang Ranuwijaya Member January 1 to December 31, 2019 Sharia Supervisory Board PT BNI Life Insurance

Sharia Economics

Rizqullah *) Member January 1 to May 9, 2019 Independent Commissioner PT Bank BNI Syariah

• EconomicandShariaBanking• GeneralandShariaBanking

Max R. Niode **) Member June 27 to December 31, 2019 Independent Commissioner PT Bank BNI Syariah

Law

Hasanuddin Member January 1 to December 31, 2019 Independent Commissioner PT Bank BNI Syariah

Sharia Economic Law

Rosa Lima Dwi Mutiari Member January 1 to December 31, 2019 President//Independent Commissioner PT BNI Multifinance

Banking (Credit)

Eddy Siswanto Member January 1 to December 31, 2019 President//Independent Commissioner PT BNI Asset Management

Finance, Tax and accounting, Capital market, Pension fund

Suhendry Hafni Member January 1 to December 31, 2019 Independent Commissioner PT BNI Sekuritas

Banking

Setyowati Member January 1 to December 31, 2019 Independent Party Banking(RiskManagement&Compliance)

Notes: *) Ceased serving as a member of the committee since May 9, 2019 based on the Decree of the Board of Commissioners No. KEP/009/DK/2019 dated June 27, 2019. **) Serveing as a member of the committee since 27 June 2019 based on the Decree of the Board of Commissioners No. KEP/010/DK/2019 dated 27 June 2019.




Integrated Governance Committee

Profile can be found in the Board of Commissioners Profile section

Revrisond BaswirChairman of the Integrated Governance Committee

Profile can be found in the Board of Commissioners Profile sections

Joni SwastantoMember of the Integrated Governance Committee

(President Commissioner / Independent of PT BNI Life Insurance)Born in 1951. Graduated with a Bachelor of Corporate Economics from the College of Industrial Management (1980), Master (economic development) from Indiana University / USA (1990), Doctor (economic development) from the University of Notre Dame / USA (1995).

Serving as a member of the Integrated Governance Committee since December 2018. Previously served as Commissioner of PT Indocement Tunggal Perkasa Tbk (2001-2006), Commissioner of PT Bank Negara Indonesia (Persero) Tbk (2008-2010), President Commissioner of PT Pusri (Persero) (2008) -2012), Commissioner of PT Indosat (Persero) Tbk (2011), Commissioner of PT Telkom (Persero) Tbk (2012-2014), Commissioner of PT KPEI (2013-2016), Independent Commissioner of PT Bank Bukopin Tbk (2013-2018), Director Analysis of Financial Information Business Services of the State Ministry of SOEs / BUMN Investment and Development Agency (2000-2001), Director of Restructuring and Privatization, Directorate General of SOE Development, Ministry of Finance (2001-2002), Assistant Deputy for Restructuring and Privatization of Financial Services, Construction and Business others (2002-2005), Expert Staff of the Ministry of State Enterprises for Small Business Partnerships (2005-2008), Deputy for Banking and Financial Services of the Ministry of State Enterprises (2008-2010), Deputy for Business Services for the Ministry of State Enterprises (2010-2012) .

Parikesit SupraptoMember of the Integrated Governance Committee

(Member of the Sharia Supervisory Board at PT BNI Life Insurance), Born in 1958. Obtained a Bachelor degree in the Syari’ah Faculty of IAIN “SGD” Bandung (1984), a Bachelor degree (S2) IAIN “Syahid” Jakarta (1992) and a Bachelor degree (S3) ) IAIN “Syahid” Jakarta (1998).

Member of the BNI Integrated Governance Committee since January 2017. Previously served as Dean of the Sharia Faculty of Islamic Economics and IAIN “SMH” Banten (2011-2015), Director of the Postgraduate IAIN SMH Banten (2015-2017).

Utang RanuwijayaMember of the Integrated Governance Committee

(Independent Commissioner of PT Bank BNI Syariah)Born in 1957. Graduated with a Bachelor’s degree in Economics from the Islamic University of Indonesia in Yogyakarta in 1982, obtained a Masters degree in International Business from Baldwin University Wallace College, Ohio, USA in 1986 and obtained a Bachelor’s degreeinIslamicEconomics&FinancefromTrisaktiUniversity in 2013.

Member of the Integrated Governance Committee since October 2016 and ending May 2019. He has held various important positions in various companies, including as Director of PT Sarana Multigriya Financial (2005-2007), Head of Credit Risk Division of PT Bank Negara Indonesia (Persero) Tbk (2007-2008), Project Leader for the Establishment of Sharia Bank PT Bank Negara Indonesia (Persero) Tbk. (2008-2010), President Director of PT Bank BNI Syariah (2010-2012), Director of the Islamic Economics &FinanceMastersProgram(2013-2015),IndependentCommissioner of PT Asuransi Tripakarta (2015-2016), Independent Commissioner of PT Grha 165, Tbk (2015-2017).

RizqullahMember of the Integrated Governance Committee





(Independent Commissioner of PT Bank BNI Syariah)Born in 1957. Graduated with a Bachelor of Laws from Hasanuddin University Makassar (1983) and a Master of Laws degree from the University of Indonesia, Jakarta (1999).

Serving as a member of the Integrated Governance Committee since June 2019. Previously served as Commissioner of PT Asuransi Tri Pakarta (2014-2015), Head of BNI Internal Audit Unit (2011-2014), Head of the BNI Bank Legal Division (2004-2011) , President Commissioner of PT Swadharma Surya Finance (2003 - 2006), and CommissionerPT Swadharma Surya Finance (2000 - 2003).

Max R. NiodeMember of the Integrated Governance Committee

(Sharia Supervisory Board Member at PT Bank BNI Syariah)Born in 1961. Obtained a Bachelor degree in Sharia Faculty from Tribhakti Islamic University, Kediri in 1985, Bachelor of Sharia Faculty, State Islamic Institute (IAIN- now UIN) Syarif Hidayatullah, Jakarta in 1998, and completed his Doctoral program in 2008 in studies Sharia assessment from the same university.

Member of the BNI Integrated Governance Committee since January 2017. Served as a member of the LP POM-MUI Expert Team in 2006, and currently serves as Deputy Chair of the MUI National Sharia Board Daily Executing Board (BPH - DSN). Active in academic activities and has served as Dean of the Faculty of Sharia IIQ, Jakarta in 1993 - 1997 and 1999 - 2002 and has been a lecturer in Islamic Law at UIN and IIQ until now.

HasanuddinMember of the Integrated Governance Committee

(President Commissioner / Independent PT BNI Multifinance)Born in 1956. Obtained a Bachelor’s degree (S1) in Corporate Economics from Diponegoro University (1980) and a Bachelor’s degree (S2) at IPWI School of Economics (1995).

Member of BNI Integrated Governance Committee since October 2016. Previously held various positions from 2004 with her last position as Head of the BUMN and Government Institution Division at PT Bank Negara Indonesia (Persero) Tbk. (2012-2014), National Professional Certification Authority (Indonesian Professional Certification Authority), Competency Assessor at the Banking Professional Certification Institute (LSPP) (2012-Present), Lecturers and Credit Consultants at BNI Corporate University PT Bank Negara Indonesia (Persero) Tbk . (2014-present).

Rosa Lima Dwi MutiariMember of the Integrated Governance Committee

(President Commissioner / Independent Commissioner of PT BNI Asset Management), Born in 1956. Graduated as a Bachelor of Accouting at the University of North Sumatra - Medan (1982) and obtained a Master of Finance and Banking at Gadjah Mada University - Yogyakarta (1993). Has tax brevet A, B, and C as well as WMI Capital Market certification and has obtained WPPE and WPEE.

Member of the Integrated Corporate Governance Committee since September 2017. Previously worked at the BNI Group since 1982. In 2001-2010 he was an Accountant in the Finance Division of PT BNI Sekuritas (2001-2004), Investment Director at BNI Pension Funds (2004-2006) ,HeadoftheBudgeting&FinancialControlDivisionatPT Bank Negara Indonesia (Persero), Tbk (2006-2009), Managing Director at PT BNI Sekuritas (2009-2010), and Managing Director at PT Tri Handayani Utama (BNI Pension Fund Subsidiary Company) (2011-December 2018).

Eddy SiswantoMember of the Integrated Governance Committee




(Independent Commissioner of PT BNI Sekuritas)Born in 1958. He holds a management degree from Krisnadwipayana University in 1986 and a Masters in Management from Gadjah Mada University in 1995.

Member of the Integrated Governance Committee since December 2018. Previously held various strategic positions in the BNI Group, including Deputy Head of Institutional Financial Services Division (2008-2009), Denpasar Regional Leader (2009-2011), Compliance Division Leader (2011-2014) , Commissioner of PT BNI Sekuritas (2015-2018), Assessor at the Indonesian Banking Certification Institute (2012-present), Mediator at the Alternative Institute for Banking Dispute Resolution (2016-present).

Suhendry HafniMember of the Integrated Governance Committee

(Independent Party Integrated Governance Committee)Born in 1958. Obtained a Bachelor’s degree in Economics, Diponegoro University (1982).

Member of BNI Integrated Governance Committee since November 16, 2015. Previously he worked at PT Bank Niaga from 1983 to 2001 with his last position as Compliance Group Head, Commissioner of Niaga Securities (2000-2001), Credit&MarketRiskManagementofPTBankDanamon(2001-2006), Corporate Credit Audit Department Head PT BankMandiri(Persero)Tbk(2006-2007),CreditRisk&PolicyGroup Head PT Bank Mandiri (Persero) Tbk (2007-2009), Policy,System&ProcedureGroupHeadPTBankMandiri(Persero) Tbk (2010-2014), advisor at PT Bank Syariah Mandiri (2015-2017).

SetyowatiMember of the Integrated Governance Committee

educational Qualifications and work experience of the Integrated Governance Committee

Table of educational Qualifications and work experiences of Integrated Governance Committee

Name Position Period education experience

Revrisond Baswir Chairman January 1 to. December 31, 2019

• BachelorofAccounting

• MasterofBusinessAdministration

• PhDinEconomic

• ExpertStafffortheMinistryofHumanRightsof the Republic of Indonesia and the Regional Representative Council

• CommissionerandAuditCommitteeChairmanfor PTPN XIII, Pontianak

• CommissionerforPTPNVIII,Bandung• CommissionerandAuditCommitteeChairman

for PTPN XI, Surabaya• LectureratFEBUGM• CenterHeadforPopulistEconomicsStudies

UGM• PublicPolicyCommitteeMemberatthe

Ministry of SOEs

Joni Swastanto Member January 1 to. December 31, 2019

• BachelorofEconomics

• MasterofEconomics

• PhDinEconomics

• DirectoroftheBank3SupervisionDepartmentat Bank Indonesia

• DirectoroftheBankingInformationandLicensing Department at Bank Indonesia

• SemarangChiefRepresentativeatBankIndonesia

• HeadoftheBankingInformationandLicensingDepartment at Bank Indonesia

• HeadoftheBankingLicensingandInformationDepartment at the Financial Services Authority

• DeputyCommissionerofStrategicManagementIIB at the Financial Services Authority

• DirectorGeneral,MinistryofFinance







Parikesit Suprapto Member January 1 to. December 31, 2019


• MasterofEconomicDevelopment

• PhDinEconomicDevelopment

• CommissionerofPTIndocementTunggalPerkasa Tbk


• PresidentCommissionerofPTPusri(Persero)• CommissionerofPTIndosat(Persero)Tbk• CommissionerofPTTelkom(Persero)Tbk• CommissionerofPTKPEI• IndependentCommissionerofPTBankBukopin

Tbk• DirectorofFinancialServicesBusinessInfo

Analysis Ministry of State-Owned Enterprises / BUMN Investment and Development Agency

• DirectorofRestructuringandPrivatization,Directorate General of SOE Development, Ministry of Finance

• DeputyAssistantforRestructuringandPrivatization of Financial Services, Construction Services and others

• ExpertStaffoftheMinisterofStateOwnedEnterprises in the Field of Small Business Partnerships

• DeputyofBankingandFinancialServicesintheMinistry of State Enterprises

• DeputyforBusinessServicesoftheMinistryofState Enterprises

Utang Ranuwijaya Member January 1 to. December 31, 2019

• BachelorofReligiousCourts

• MasterofIslamicStudies

• PhDinIslamicStudies

• DeanofFacultyofShariaandIslamicEconomicsof IAIN “SMH” Banten

• DirectorofPostgraduateProgramofIAINSMH,Banten

• ShariaSupervisoryBoardatPTBNILifeInsurance

Rizqullah *) Member January 1 to. December 31, 2019


• MasterofInternational Business

• PhDinIslamicEconomy and Finance

• GeneralManagerofBNI–LondonBranch,England

• RegionalHeadofBNI-EastJava• DivisionHeadofBNI-ShariaBusinessUnit• DirectorofPTSaranaMultigriyaFinansial• HeadofBankDivision,BNICreditRiskDivision• ProjectHeadofEstablishingaShariaBank• AssessorofPublicBankingandBankRisk

Management• ManagingDirectorPTBankBNISyariah• TrisaktiUniversityProgramDirector-Islamic

Economics&FinanceMastersProgram• IndependentCommissionerofPTAsuransi

Tripakarta• IndependentCommissionerofPTGrha165,Tbk

Max R. Niode **) Member June 27 to. December 31, 2019

• BachelorofLaw• MasterofLaw

• CommissioneratPTAsuransiTriPakarta• HeadofInternalAuditofBNI• HeadofLegalDivisionofBNI• PresidentCommissioneratPTSwadharma

Surya Finance• CommissioneratPTSwadharmaSuryaFinance

Hasanuddin Member January 1 to. December 31, 2019

• DiplomafromShariaFaculty

• BachelorofShariaFaculty

• MasterofReligioninIslamic Studies

• PhDinIslamicStudies

• ViceChairmanofMUIFatwaCommission• MemberofLPPOM-MUIExpertTeam• MemberofSyariahAccountingCommittee

(KAS)-IAI• DeanofFacultyofSyariahIIQ,Jakarta• InstructorsinIslamicLawatUINandIIQand

served as Deputy Head of National Sharia Board (BPH-DSN) Daily Council of MUI.

• ShariaSupervisoryBoardatPTBankBNISyariah






Rosa Lima Dwi Mutiari Member January 1 to. December 31, 2019

•BachelorinManagement

•MasterinEconomics

• DivisionHeadofBNI–SOE&GovernmentInstitution Division

• DivisionHeadofBNI–CorporateIDivision• IndonesianProfessionalCertificationAuthority• CompetenceAssessor-LSPP• LecturerandCreditConsultant-BNICorporate

University

Eddy Siswanto Member January 1 to. December 31, 2019

• BachelorinAccounting

• MasterinFinanceand Banking

• AccountantofFinancialDivisionatPTBNISekuritas

• InvestmentDirectoratBNIPensionFund• DivisionHeadofBNI–Budget&Financial

Control• PresidentDirectoratPTBNISekuritas• PresidentDirectoratPTTriHandayaniUtama

(Subsidiary of BNI Pension Fund)

Suhendry Hafni Member January 1 to. December 31, 2019

• BachelorinManagement

• MasterinManagement

• DeputyHeadofBNI–FinancialServiceInstitution Division

• RegionalHeadofBNI–Denpasar,Bali• DivisionHeadofBNI–ComplianceDivision• CommissioneratPTBNISekuritas• AssessoratLSPI• BankingDisputeResolutionMediator

Setyowati Member January 1 to. December 31, 2019


• ComplianceGroupHeadatBankNiaga• CommissioneratNiagaSecurities• Credit&RiskManagementatBankDanamon• CorporateCreditAuditDepartmentHeadat

Bank Mandiri• CreditRisk&PolicyGroupHeadatBankMandiri• Policy,System&ProcedureGroupHeadat

Bank Mandiri• AdvisoratPTBankSyariahMandiri

Notes: *) Ceased serving as a member of the committee since May 9, 2019 based on the Decree of the Board of Commissioners No. KEP/009/DK/2019 dated June 27, 2019. **) Serving as a member of the committee since 27 June 2019 based on the Decree of the Board of Commissioners No. KEP/010/DK/2019 dated 27 June 2019.

Integrated Governance Committee Independence


Independence aspect

revrisond Baswir

Joni swastanto

Parikesit suprapto

utang ranuwijaya

rizqullah *)

max r. Niode

**)hasanuddin

rosa lima Dwi mutiari

eddy siswanto

suhendry hafni setyowati

No financialrelationshipwith Board ofCommissionersand Board ofDirectors

√ √ √ √ √ √ √ √ √ √ √

No managementrelationshipin companies,subsidiariesor affiliatedcompanies

√ √ √ √ √ √ √ √ √ √ √

No sharesownership in theCompany

√ √ √ √ √ √ √ √ √ √ √






Independence aspect

revrisond Baswir

Joni swastanto

Parikesit suprapto

utang ranuwijaya

rizqullah *)

max r. Niode

**)hasanuddin

rosa lima Dwi mutiari

eddy siswanto

suhendry hafni setyowati

No familyrelationshipwith Board ofCommissioners,Board ofDirectors and/orfellow membersof IntegratedGovernance

√ √ √ √ √ √ √ √ √ √ √

Not servingas politicalparty manager,governmentofficial

√ √ √ √ √ √ √ √ √ √ √

Notes: *) Ceased serving as a member of the committee since May 9, 2019 based on the Decree of the Board of Commissioners No. KEP/009/DK/2019 dated June 27, 2019.**) Serving as a member of the committee since 27 June 2019 based on the Decree of the Board of Commissioners No. KEP/010/DK/2019 dated 27 June 2019.

Integrated Governance Committee Development Competency

Table of Integrated Governance Committee Development Competency

Name Position serving Period Competency Development/Training Topics Date and location organizer

Revrisond Baswir

Chairman January 1 to December 31, 2019

1. ASEAN Global Leadership Programme Seminar - “Leadership, Entrepreneurship, and Innovation in the Global Economy”

LondonMarch 25 to 29, 2019


2. “International Risk Management Refreshment and Wealth Management Certification Program for Executive – Europe Class” Seminar

LondonNovember 16 to 24, 2019

MM UGM, IBI, LSPP

Joni Swastanto Member January 1 to December 31, 2019

1. ASEAN Global Leadership Programme Seminar - “Leadership, Entrepreneurship, and Innovation in the Global Economy”

LondonMarch 25 to 29, 2019


2. “International Risk Management Refreshment and Wealth Management Certification Program for Executive” Seminar

Moscow – Saint Petersburg June 29 to July 7, 2019

MM UGM, IBI, LSPP

Parikesit Suprapto

Member January 1 to December 31, 2019

1. “Good Corporate Governance, Risk and Compliance Management” Seminar

Singapore October 15-16, 2019

International Compliance Association

2. Risk Management Certification December 11, 2019 TLSP MKS

Utang Ranuwijaya


Ijtima’ Sanawi Workshop (Annual Meeting) BogorOktober 2-4, 2019

Workshop - DSN MUI

Rizqullah *) Member January 1 to. May 9, 2019

- - -

Max R. Niode **)


1. PSAK 71 Impairment Deep Dive in Risk Management Perspective

JakartaMarch 28-29, 2019

Bankers Association for Risk Management

2. Sustainable Banking Action Plan – Compilation Seminar

JakartaJuly 9, 2019

BNI Syariah

3. Good Corporate Governance Training JakartaSeptember 24, 2019

BNI Syariah

4. “Pancasilanomics in the Development of Equitable Financial and Banking Sectors” Seminar

JakartaNovember 28, 2019

BSMR (Badan Sertifikasi Manajemen Risiko)




Table of Integrated Governance Committee Development Competency

Name Position serving Period Competency Development/Training Topics Date and location organizer

Hasanuddin Member 1 January to. 31 December 2019

“Managing Juristic Differences: A Civilizational Approach” – International Conference

Qahirah EgyptOctober 15-16, 2019

Egypt’s Dar Al-Ifta

Rosa Lima Dwi Mutiari

Member 1 January to 31 December 2019

1. Workshop Assessor Competency JakartaDecember 9, 2019

Workshop Assessor Competency

2. 2020 of Opportunities and Challenges - National Seminar

JakartaNovember 26, 2019

Sharia Supervisory Board (DPS), APPI

3. “Multifinance: Consumer Protection, Risk Management, and Fraud Early Warning System in Digital Era” - International Seminar

Nusa Dua BaliApril 26, 2019

Sharia Supervisory Board (DPS), APPI

Eddy Siswanto Member 1 January to 31 December 2019

1. WMI Certification Training October 16, 2019 TICMI

2. Digitalization Trend in Wealth Management – 2019 Workshop

BNI-AM Sharing session with MaeSa International Pte. Ltd Singapore

Suhendry Hafni Member 1 January to 31 December 2019

Professional Commissioner Seminar JakartaApril 2, 2019

Intipesan

Setyowati Member 1 January to 31 December 2019

“Discover Yourself Understand Others Bring Empowerment to All” Workshop

Semarang February 28, 2019

Lumina Spark WorkshopFaculty of Psychology, University of Indonesia

Notes: *) Ceased serving as a member of the committee since May 9, 2019 based on the Decree of the Board of Commissioners No. KEP/009/DK/2019 dated June 27, 2019.**) Serving as a member of the committee since 27 June 2019 based on the Decree of the Board of Commissioners No. KEP/010/DK/2019 dated June 27, 2019.

risk monitoring Committee meetings1. Risk Monitoring Committee shall meet at least 1 (one)

time in 1 (one) month.2. Risk Monitoring Committee Meetings shall only be

conducted if attended by at least 51% (fifty one percent) of the total number of members.

3. Risk Monitoring Committee meeting shall be led by Risk Monitoring Committee Chairman or most senior Risk Monitoring Committee Member, if absent.

4. If deemed necessary, Risk Monitoring Committee may invite other parties related to the meeting to attend Risk Monitoring Committee Meeting.

5. The committee meeting must be attended by each Independent Commissioner from the Financial Services Institution in the BNI Financial Conglomerate who is a member of the Integrated Governance Committee. In the event that the independent Commissioner concerned is unable to attend the Integrated Governance Committee meeting, other Commissioners who are not members of the Integrated Governance Committee or officials at the relevant Financial Services Institution may be asked to attend the Integrated Governance Committee meeting by filling in the meeting attendance list, but not counted in the attendance quorum and voting to reach a decision at the meeting.

6. Committee meetings decisions shall be made on the basis of consensus.

7. In the absence of consensus, decision-making shall be based on majority votes. Risk Monitoring Committee meetings decisions shall be considered valid if approved by more than ½ (one-half ) of Risk Monitoring Committee members present. The principle of votes for members shall be 1 (one) person 1 (one) vote.

8. Committee meetings results shall be recorded in minutes of meeting signed by all members of Committee present and documented in accordance with the laws and regulations.

9. The results of the Committee’s meeting shall be stated in the minutes of the meeting signed by all Committee members present and properly documented.

10. Any dissenting opinions that occur in committee meetings shall be clearly detailed in the minutes of meeting along with reasons for dissent.

11. Attendance of Committee Members at meetings shall be reported in the quarterly reports and annual reports of the Committee.





frequency attendance at Integrated Governance Committee meeting

Table of attendance at Integrated Governance Committee meetings

Name Position Period Total meeting Number of meeting Percentage

Revrisond Baswir Chairman January 1 to December 31, 2019 5 5 100%

Joni Swastanto Member January 1 to December 31, 2019 5 5 100%

Parikesit Suprapto Member January 1 to December 31, 2019 5 5 100%

Utang Ranuwijaya Member January 1 to December 31, 2019 5 4 80%

Rizqullah *) Member January 1 to May 9, 2019 2 2 100%

Max R. Niode **) Member June 27 to December 31, 2019 3 3 100%

Hasanuddin Member January 1 to December 31, 2019 5 4 80%

Rosa Lima Dwi Mutiari Member January 1 to December 31, 2019 5 5 100%

Eddy Siswanto Member January 1 to December 31, 2019 5 5 100%

Suhendry Hafni Member January 1 to December 31, 2019 5 5 100%

Setyowati Member January 1 to December 31, 2019 5 5 100%

Notes: *) Ceased serving as a member of the committee since May 9, 2019 based on the Decree of the Board of Commissioners No. KEP/009/DK/2019 dated June 27, 2019.**) Serveing as a member of the committee since 27 June 2019 based on the Decree of the Board of Commissioners No. KEP/010/DK/2019 dated 27 June 2019.

risk monitoring Committee meeting agendaIn 2019, Risk Monitoring Committee (RMC) held 5 (five) meetings, either internal meetings or joint meetings with related divisions with the following agenda:

Table of risk monitoring Committee meeting agenda


1. February 7, 2019 1. Performance of Subsidiary Companies Quarter IV- 20182. Subsidiary Business Development Strategy for 2019

1. Revrisond Baswir2. Joni Swastanto3. Parikesit Suprapto4. Utang Ranuwijaya5. Rizqullah6. Suhendy Hafni7. Rosa Lima Dwi Mutiari8. Eddy Siswanto9. Setyowati

2. April 11, 2019 1. Effectiveness of the Integrated Compliance Function2. IntegratedRiskProfile,IntegratedRiskAppetiteStatement,AllExposure&

Stress Test Limits3. Evaluation of Self-Assessment Results of Integrated Governance in

Semester II / 2018

1. Revrisond Baswir2. Joni Swastanto3. Parikesit Suprapto4. Utang Ranuwijaya5. Rizqullah6. Hasanuddin7. Suhendry Hafni8. Rosa Lima Dwi Mutiari9. Eddy Siswanto10. Suhendry Hafni




Table of risk monitoring Committee meeting agenda


3. July 11, 2019 1. Evaluation of the Adequacy and Problems of Integrated Internal Control2. Results of Internal Audit of Subsidiary and Integrated Companies

1. Revrisond Baswir2. Joni Swastanto3. Parikesit Suprapto4. Utang Ranuwijaya5. Max R. Niode6. Hasanuddin7. Suhendry Hafni8. Rosa Lima Dwi Mutiari9. Eddy Siswanto10. Setyowati

4. September 12, 2019 1. Evaluation of the Effectiveness of the Integrated Compliance Function2. Integrated HR Management

1. Revrisond Baswir2. Joni Swastanto3. Parikesit Suprapto4. Max R. Niode5. Hasanuddin6. Suhendry Hafni7. Rosa Lima Dwi Mutiari8. Eddy Siswanto9. Setyowati

5. October 31, 2019 1. Financial Performance of Subsidiary Companies Quarter III-20192. Revision of the Integrated Governance Policy Guidelines3. 2020 Integrated Corporate Governance Committee Work Program

1. Revrisond Baswir2. Joni Swastanto3. Parikesit Suprapto4. Utang Ranuwijaya5. Max R. Niode6. Hasanuddin7 Suhendry Hafni8. Rosa Lima Dwi Mutiari9. Eddy Siswanto10. Setyowati

Brief report of Integrated Governance Committee activities in 2019In carrying out its duties and responsibilities in 2019, the Integrated Governance Committee has carried out activities and provided advice on the following matters:1. Reviewing and discussing subsidiaries’ performance

following the company’s growth strategy in line with BNI vision to be a financial institution that excels in service and performance, so that corporate plan of subsidiaries are integrated with corporate plan of parent company.

2. Encouraging the improvement of synergy of subsidiaries as part of BNI Group, including synergy in terms financing cooperation, sharing “know your customer” information, exploration of prospective new products and optimization of business opportunities from BNI as parent company.

3. Evaluating implementation of Integrated Governance covering the adequacy of integrated internal control; integrated compliance functions; Integrated Governance Guidelines; integrated risk management, and subsidiary performance.

4. Evaluating implementation of Integrated Governance Policy and Integrated Risk Management Policy.

5. Evaluating the adequacy of methodology and integrated internal control problems based on the results of integrated audit.

6. Evaluating integrated risk profile, integrated risk appetite, limits on all integrated exposures and integrated stress tests.

7. Encouraging the acceleration of BNI Incorporated, so the impact on the profitability of each subsidiary, accompanied by risk control, fulfillment of quality human resources and good governance.





8. Discussing and recommending settlement of the issues raised in the company’s subsidiaries and improvement of integrated compliance function.

9. Reviewing and ensuring Integrated Governance Report to FSA identifies strengths and weaknesses of implementation of integrated governance and ensures the weaknesses that exist have created an action plan/improvement measures.

10. Preparing an Evaluation Report on the Application of Integrated Governance to Board of Commissioners.

11. Conduct monthly reviews and monitoring of the financial performance of subsidiaries in order to achieve business targets as one of the results of integrated governance.

12. Review the BNI 2020-2024 Corporate Plan and the BNI 2020-2022 RBB to obtain the Board of Commissioners’ approval.

13. Increase joint commitment for all commissioners of subsidiary companies and all members of the Integrated Governance Committee that in conducting supervision must be based on the context of risk to the main entity.

14. Monitoring and ensuring FSA findings have been followed up and provide recommendations for improvements related to human resources, database needs, complete rules including conflicts of interest.

15. Ensuring that subsidiaries has anticipated changes in external conditions, namely the fluctuation of rupiah exchange rate and the digital era which is currently becoming a trend and developing in the community.

16. Conducting a review of the effectiveness of internal controls carried out by Integrated Governance Committee.

17. Reviewing the revisions to Integrated Risk Management Policy and Integrated Capital Management.

18. Conduct a review and provide recommendations to the Board of Commissioners on the proposals of the Directors of the BNI Main Entity regarding strategic actions in the subsidiary companies.

19. Performing duties of Integrated Governance Committee quarterly to Board of Commissioners.

20. Develop a work program for the Integrated Governance Committee in 2020 with a focus on: ensuring the structure of the Integrated Governance functions optimally; ensure that the Integrated Governance process runs well; evaluate the results of Integrated Governance.

seCreTarIaT of The BoarD of CommIssIoNers

In order to help smooth the implementation of duties, the Board of Commissioners can be assisted by the Secretary of the Board of Commissioners appointed by the Board of Commissioners, this is in accordance with the Articles of Association of BNI. The Secretary of BNI’s Board of Commissioners comes from outside the Bank, who is appointed and dismissed by the Board of Commissioners based on the Board of Commissioners’ Decision Letter and is directly responsible to the Board of Commissioners.

The Secretary of BNI’s Board of Commissioners oversees the Secretariat of the Board of Commissioners, which is formed and tasked with assisting and supporting the smooth activities and duties of the Board of Commissioners. In carrying out the duties, the Secretary of the Board of Commissioners is assisted by Staff of Secretary of the Board of Commissioners, who is from outside the company and Staff who is an internal staff of the Bank.

legal Basis formationDuty implementation of the Secretary of the Board of Commissioners and the Secretariat of the Board of Commissioners are guided by the State Minister for State-Owned Enterprises Regulation No. PER-12/MBU/2012 dated August 24, 2012, on Supporting Organs of the Board of Commissioners/Supervisory Board of State-Owned Enterprises, which among others regulates the Secretariat of the Board of Commissioners and Secretary of the Board of Commissioners.

Guidelines and work rulesThe Board of Commissioners have issued a Decision Letter No. KEP/041/DK/2017 dated September 28, 2017, on Guidelines and Work Con-duct of the Secretariat of the Board of Commissioners, which regulates the following matters:1. Appointment and Position of Secretary of the Board of

Commissioners,2. Term of Office of the Secretary of the Board of

Commissioners and Secretariat Staff of the Board of Commissioners who is from outside the bank,

3. Requirements for Secretary of the Board of Commissioners,

4. Remuneration of the Secretary of the Board of Commissioners and Secretariat Staff of the Board of Commissioners who is from outside the bank,

5. Duties of Secretariat and Secretary of the Board of Commissioners,




6. Access to and confidentiality of information, 7. Working time of the Secretary of the Board of Commissioners and Secretariat Staff of the Board of Commissioners who is

from outside the bank,8. Performance assessment of Secretariat of the Board of Commissioners,9. Prohibition of concurrent positions,10. Mechanism for Coordination of the Secretariat of the Board of Commissioners with the Corporate Secretary and

committees under the Board of Commissioners.

Profile of secretary of the Board of Commissioners

Period January 1, 2019 - November 1, 2019The Secretary of the Board of Commissioners at present is Fahrudin, who has been appointed as Secretary of BNI’s Board of Commissioners since July 3, 2017, based on Decision Letter of the Board of Commissioners No. KEP/032/DK/2017 dated July 3, 2017 and expires on October 31, 2019

Born in 1983, Graduated from Sekolah Tinggi Akuntansi Negara, Diploma Program in Accounting in 2005, Bachelor of Accounting, Universitas Indonesia in 2009 and Master of Accounting, Universitas Gadjah Mada in 2012. Currently also serves as Head of Sub Analysis and Information Presentation at the Ministry of SOEs (2015 - present), previously served as Information Presentation Sub Division Head at Ministry of SOEs (2014 - 2015), served as Audit Committee Member at PT Perkebunan Nusantara XI (Persero)(2013-2016), Secretary to the Board of Commissioners PT Pembangunan Perumahan (Persero) Tbk (April 2016-October 2017).

Period November 1, 2019 – January 1, 2020

Anas Puji Istanto, was appointed as the Secretary of the BNI Board of Commissioners since November 1, 2019 was appointed as the Secretary of the Board of Commissioners based on the Decree of the Board of Commissioners Number KEP / 015 / DK / 2019 dated October 24, 2019

Born in 1986, Graduated with a Bachelor of Law (S1) from Gadjah Mada University in 2008. Currently he also serves as the Head of the SOE Legal Services Sub-Sector at the Ministry of SOEs (2019), previously serving as the Head of the Legislation Regulations Subdivision I (2014-2017 ).

Anas Puji IstantoSecretary of the Board of Commissioners BNI (1 November 2019 - Now)

Period November 1, 2019 – January 1, 2020Anas Puji Istanto, was appointed as the Secretary of the Board of Commissioners of BNI since November 1, 2019 was appointed as the Secretary of the Board of Commissioners based on the Decree of the Board of Commissioners No. KEP/015/DK/2019 dated 24 October 2019.

Born in 1986, Graduated with Bachelor of Law degree from University Gadjah Mada in 2008. Currently he also serves as the Head of the SOE Legal Services Sub-Sector at the Ministry of SOEs (2019), previously serving as the Head of the Legislation Regulations Subdivision I (2014-2017).

requirements for the secretary of the Board of CommissionersThe Secretary of the Board of Commissioners shall fulfil the following requirements:1. Understand SOE’s management, monitoring, and

development systems;2. Have good integrity;3. Understand secretariat function;4. Have the ability to communicate and coordinate properly;5. Have sufficient time to perform the duties at the Bank.





Duties and responsibilities of the secretary of the Board of Commissioners The Secretary of the Board of Commissioners has duties and responsibilities to facilitate the duty implementation of the Board of Commissioners. Duties and Responsibilities of the Secretary of the Board of Commissioners:1. Coordinating the duties of the Secretariat of the Board of

Commissioners in performing the following tasks:a. Preparing meeting, including briefing sheet of the

Board of Commissioners;b. Preparing Minutes of Board of Commissioners’

Meeting according to the Bank’s Articles of Association, including attending and preparing Minutes of joint meeting of the Board of Commissioners and Board of Directors;

c. Administering Board of Commissioner’s documents either incoming letters, outgoing letters, minutes of meeting, or any other documents;

d. Drafting Work Plan and Budget of the Board of Commissioners;

e. Drafting Board of Commissioners’ Reports;

2. In addition to performing duties as stated in number 1 above, the Secretary of the Board of Commissioners as the head of the Secretariat of the Board of Commissioners performs the following duties:a. Ensuring that the Board of Commissioners complies

with the laws and regulations and implements Good Corporate Governance principles;

b. Providing information needed by the Board of Commissioners periodically or at any time when requested;

c. Coordinating Committee members, if necessary, to ensure the ease of the Board of Commissioners’ duties;

d. Becoming the liaison officer between the Board of Commissioners and other parties;

e. Performing other duties given by the Board of Commissioners, among others but not limited to:• CoordinatingthedraftofBoardof

Commissioners’ Decision Letter;• Coordinatingstudy/reviewnecessarybythe

Board of Commissioners;• AccompanyingtheBoardofCommissioners

during work visit/official travel at work units within the Bank’s environment and coordinating with committees under the Board of Commissioners in preparing the report of such work visit/official travel of the Board of Commissioners;

• AccompanyingtheBoardofCommissionersin meetings with the regulators or bank’s supervisory party related to the duties and obligations of the Board of Commissioners as the bank’s supervisor.

3. In the framework of administration order and good corporate governance implementation, the Secretariat of the Board of Commissioners must ensure that documents reflecting Board of Commissioners’ activities are well-kept at the Bank.

Prohibition of Concurrent Positions for secretary of the Board of CommissionersThe Secretary and Secretariat Staff of the Board of Commissioners who is from outside the bank cannot hold concurrent positions as:1. Member of the Board of Commissioners/Supervisory

Board at other SOE/Company;2. Secretary/Secretariat Staff of the Board of

Commissioners at other State-Owned Enterprise (SOE) of company;

3. Member of other committees at the Bank; and/or4. Member of committee at other SOE/company.

secretary of the Board of Commissioners Implementation Duties of the in 2019During 2019, the Secretary to the Board of Commissioners carried out the functions and duties to assist and support the implementation of the duties of Board of Commissioners through the provision of information, studies and reports to the Board of Commissioners, generally including the following matters:1. Assisting in the preparation the Board of Commissioners’

Fiscal Year 2020 Work Plan and Fiscal Year 2019 Work Plan Realization Report.

2. Assisting in the preparation of Board of Commissioners’ draft reports which are the obligation of the Board of Commissioners in accordance with the applicable regulators, among others:a. Reports to the SOE Ministry quarterlyb. Reports to FSAc. Reports of Board of Commissioners’ working visits

3. Monitoring, reviewing and informing the Latest legislation development to be submitted to the Board of Commissioners, including the creation, renewal/adjustment of the Board of Commissioners’ Decrees as well as charters for committees under the Board of Commissioners based on applicable rules and regulations.




4. Coordinating and organizing Board of Commissioners meetings, and Board of Commissioners meetings with Board of Directors including pre-paring meeting schedules, materials, preparing and administering minutes of Board of Commissioners meetings, providing recommendations and opinions of Board of Commissioners based on meetings of the Board of Commissioners with the Board of Directors and monitoring the follow-up of the recommendations and opinions from Board of Commissioners.

5. Assisting and facilitating the duties of Commit-tees under the Board of Commissioners as part of the Board of Commissioners’ duties based on applicable laws, among others:a. Coordinating division of the committees under the

Board of Commissioners.b. Coordinating and organizing meetings of

committees under the Board of Commissioners, including preparing meeting materials, preparing and administering minutes of meetings, and providing recommendations and opinions on the evaluation and committee meetings to the Board of Commissioners as input.

c. Monitoring the implementation of the commit-tees’ Work Plan under the Board of Commissioners.

d. Ensuring the completion of committees’ re-ports under the Board of Commissioners.

6. Carrying out administrative duties related to the smooth operation of the Commissioner’s duties, namely the management, storage and ad-ministration of minutes of meetings of the Board of Commissioners, and meetings of the Board of Commissioners with the Board of Directors, as well as minutes of meetings of Committees under the Board of Commissioners, documents/correspondence of the Board of Commissioners including preparing drafts of approval letters, and strategic input/advice of the Board of Commissioners submitted to the Board of Directors.

7. Accompanying the Board of Commissioners official visit to work units within the Company, and at meetings with regulators or bank supervisors related to the duties and obligations of the Board of Commissioners.





In carrying out its tasks, Board of Directors has established committees at the level of Board of Directors,in accordance with BNI business needs and regulatory provisions, which are expected to assist with operational effectiveness and efficiency, including:1. Credit Committee2. Integrated Risk Management Committee3. Risk and Capital Management Committee4. Product Committee5. Performance Management Committee6. Technology Management Committee7. Credit Policies and Procedures Committee8. Human Capital Committee

CreDIT CommITTee

Credit Committee structure and membership

Credit Committee comprises of 4 (four) levels, each of which has a membership composition and authority limit of its own, namely:1. Credit Committee (CC) at Board of Directors level (Radisi) or CC Head Office – 4 (KK P-4)

2. Credit Committee at Director level:a. CC Head Office – 3 (KK P-3)b. CC Head Office – 2 (KK P-2) c. CC Head Office – 1 (KK P-1)

3. Credit Committee at Division level (KKD)a. Head Office 2 (KP-2)b Head Office 1 (KP-1)

4. Credit Committee at Regional levela. Regional Officeb. Middlec. Small Credit Committee/Branch

Credit Committee at Board of Directors level

Credit Committee Name (CC) maximum Credit Committee member Necessary Committee member

CC Head Office – 4 (KK P-4)

up to BMPK Board of Directors President DirectorVice President DirectorManaging Director Corporate Banking/Managing Director Institutional RelationsManaging Director Risk Management

Committees Under the Board of Directors




Credit Committee at Director level

Credit Committee Name (CC) maximum CreditCommittee member

Business risk

CC Head Office – 3(KK P-3)

up to House Limit President DirectorVice President DirectorManaging Director Corporate Banking/Managing Director Institutional Relations



up to Rp750 billion Vice President DirectorManaging Director Corporate Banking/Managing Director Institutional Relations



up to Rp500 billion Managing Director Corporate Banking/Managing Director Institutional Relations


Credit Committee at Division level (KKD)

Credit Committee Name (CC) maximum CreditCommittee member

Business risk

CC Division Level (KKD) up to Rp400 billion Division Head and Deputy Head ofSOE&GovernmentInstitution/Corporate&Multinational1/Corporate&Multinational 2/CST Leader

Division Head and Deputy Head of Corporate Credit Risk

Profile and Certification of Credit Committee membersThe profile and certification of each committee member can be seen in the discussion of the Board of Directors’ Profile and the Senior Executive President’s Profile.

Credit Committee Duties and responsibilities

Credit Committee Job Description is as follows:1. Approve or reject proposals in accordance with the credit limit or types of credit authority established by the Board of

Directors.2. Coordinate with the Treasury Division on credit funding aspects.3. Be responsible for credit decisions based on financing feasibility, credit safety considerations, compliance with lending

policies and procedures as well as the provisions of credit limit.4. Reject the request and or influence of the parties with an interest in the credit applicants that provides credit that is merely

a formality.5. Carry out their duties, especially in connection with the provision of appropriate credit approval authority based on

professional, honest, objective, accurate and thorough skills.





Implementation of Credit Committee Duties in 2019

Throughout 2019, the Credit Committee has carried out the following duties and authorities:

Credit approval authority of Corporation segment

Credit Committee maximum Credit Number of meeting

Level of Board of Directors Credit Committee up to BMPK 7

Level of Directors Credit Committee

• PresidentDirector,VicePresidentDirector,ManagingDirectorCorporateBanking,ManagingDirector Risk Management

up to House Limit 50

• VicePresidentDirector,ManagingDirectorCorporateBanking,ManagingDirectorRiskManagement

up to Rp750 billion 29

• ManagingDirectorCorporateBankingandManagingDirectorRiskManagement up to Rp500 billion 50

Total 136

Credit approval authority of middle segment


Level of Board of Directors Credit Committee up to BMPK -


• PresidentDirector,VicePresidentDirector,SEVPMediumEnterprises,ManagingDirectorRisk Management

up to House Limit -

• VicePresidentDirector,SEVPMediumEnterprises,ManagingDirectorRiskManagement up to Rp750 billion -

• ManagingDirectorSmallBusiness&NetworkandManagingDirectorRiskManagement up to Rp500 billion 6

Total 6

Credit approval authority of organic Consumer segment



• PresidentDirector,VicePresidentDirector,ManagingDirectorRetailBanking,ManagingDirector Risk Management

up to House Limit -

• VicePresidentDirector,ManagingDirectorRetailBanking,ManagingDirectorRiskManagement

up to Rp75 billion 1

• ManagingDirectorRetailBankingandManagingDirectorRiskManagement Rp30 billion to Rp75 billion

11

Total 12

Credit approval authority of unorganic Consumer segment



• PresidentDirector,VicePresidentDirector,SEVPMediumEnterprises,ManagingDirectorRisk Management

up to House Limit 1

• VicePresidentDirector,SEVPMediumEnterprises,ManagingDirectorRiskManagement up to Rp150 billion 1

• SEVPMediumEnterprisesandManagingDirectorRiskManagement Rp30 billion to Rp75 billion

12

Total 14




Credit approval authority of Bank financial Institution segment


Level of Directors Credit Committee up to BMPK -

VicePresidentDirector,ManagingDirectorTreasury&InternationalBanking,ManagingDirectorRisk Management

up to House Limit 16

ManagingDirectorTreasury&InternationalBankingandManagingDirectorRiskManagement up to US$200 million 8

Total 24

Credit approval authority of overseas Branch office segment

Branch office of singapore




• PresidentDirector,VicePresidentDirector,ManagingDirectorTreasury&InternationalBanking, Managing Director Risk Management

up to House Limit 1

• VicePresidentDirector,ManagingDirectorTreasury&InternationalBanking,ManagingDirector Risk Management

up to US$50 million 1

• ManagingDirectorTreasury&InternationalBanking,ManagingDirectorRiskManagement up to US$30 million 1

Total 3

Branch office of New york





up to House Limit 1


up to US$50 million -

• ManagingDirectorTreasury&InternationalBanking,ManagingDirectorRiskManagement up to US$30 million -

Total 1

Branch office of Tokyo





up to House Limit -


up to US$50 million 2

• ManagingDirectorTreasury&InternationalBanking,ManagingDirectorRiskManagement up to US$30 million -

Total 2





INTeGraTeD rIsK maNaGemeNT CommITTee

BNI as part of the financial services sector that has several subsidiaries incorporated in a Financial Conglomerate also implements Risk Management in an integrated manner. Integrated Risk Management Committee (KMRT) is a Non Structural Committee formed based on Directors Decree No. KP/193/DIR/R dated May 26, 2015 which has been updated in accordance with the changes in the organization of the Directors of CFM. Directors Decree No. KP/384/DIR/R November 9, 2018.

structure and membership of the Integrated risk management CommitteeIn the Company’s structure, the position of the Integrated Risk Management Committee is under the Board of Directors. The Integrated Risk Management Committee is chaired by the Director of Risk Management – BNI as the Director who oversees the Bank’s Risk Management function. In detail, the membership composition of the Integrated Risk Management Committee is as follows:

No. Integrated risk management Committee structure and membership (KmrT)

1. Chairman Managing Director Risk Management – BNI, as the Director oversees the Bank’s Risk Managementfunction

2. Secretary Division Head Risk Management - BNI

3. Permanent Members • ManagingDirectorFinance–BNI• ManagingDirectorCompliance–BNI• InternalControlUnitHead–BNI• SubsidiaryDevelopmentUnitHead–BNI• StrategicPlanningDivisionHead–BNI• LegalDivisionHead–BNI• CorporateCommunicationsandSecretariatDivisionHead–BNI• DirectorinchargeofRiskManagement–BNISyariah• DirectorinchargeofRiskManagement–BNISekuritas• DirectorinchargeofRiskManagement–BNILife• DirectorinchargeofRiskManagement–BNIMultifinance• DirectorinchargeofRiskManagement–BNIAssetsManagement• DivisionHeadinchargeofRiskManagement–BNISyariah• DivisionHeadinchargeofRiskManagement–BNISekuritas• DivisionHeadinchargeofRiskManagement–BNILife• DivisionHeadinchargeofRiskManagement–BNIMultifinance• DivisionHeadinchargeofRiskManagement–BNIAssetsManagement

4. Non-permanent Members BNI or Subsidiary Director and Division /Unit Head associated with the meeting..

Profile and Certification of members of the Integrated risk management CommitteeThe profile and certification of each committee member can be seen in the discussion of the Board of Directors’ Profile, Senior Executive President’s Profile, and Profile of Senior Officers.

Integrated risk management Committee Duties and responsibilitiesDuties and Responsibilities of Integrated Risk Management Committee shall be to provide recommendations to Board of Directors including:1. Preparation of Integrated Risk Management policy2. Integrated Risk Management policy repairs or improvements based on evaluation results conglomerate.3. Determination of methodology and evaluation of integrated risk profile for BNI Financial Conglomerate.




Implementation of the Integrated risk management Committee Duties in 2019During 2019, the Integrated Risk Management Committee held 2 (two) meetings with the following agenda:

No KmrT Date agenda

1 01/2019 February 8, 2019 1. Approval of the Integrated Risk Profile Self Assessment Results 31 December 2018.2. Approval on the Results of Calculation of Integrated Capital Adequacy Requirement

(KPMM) for the position on December 31, 2018.3. Approval of the Integrated Risk Appetite Statement Review and the Integrated Risk

Limit in 2019.

2 02/2019 August 6, 2019 1. Approval of the Integrated Risk Profile Self Assessment Results position 30 June 2019.

2. Approval on the Results of Calculation of Integrated Capital Adequacy Requirement (KPMM) for 30 June 2019.

rIsK aND CaPITal CommITTee

Risk and Capital Committee (KRK) is a permanent committee in BNI that has the authority and function:1. Determination of policies and risk management in all BNI organization units, including managing capital adequacy to cover

risks and support the bank’s business strategy.2. Determination of policies and management of assets and liabilities.3. Determination of policies and management of anti fraud strategies in all organization units.

Risk and Capital Committee (KRK) was formed based on the Directors’ Decree, most recently amended based on Directors Decree No. KP/483/DIR/R dated December 21, 2016 which has been updated in accordance with the changes in the organization of the Directors of CFM. Directors Decree No. KP/384/DIR/R dated November 9, 2018, chaired by the President Director and as Vice Chairman is the Vice President Director.

Risk and Capital Committee has 3 (three) sub Committees, namely:1. Risk Management Sub Committee (RMC)2. Asset and Liability Sub Committee (ALCO)3. Anti Fraud Sub Committee

All profiles and certifications of each committee member can be seen in the discussion of Board of Directors’ Profiles, Senior Executive President Profiles, and Profiles of Senior Officers.

risk and Capital Committee - risk management sub Committee (KrK-rmC)

structure and membership of risk and Capital Committee - risk management sub-Committee (KrK-rmC)

No. membership Composition of risk and Capital Committee (KrK)

I. Chairman President Director

II. Vice Chairman Vice President Director





No. membership Composition of risk and Capital Committee (KrK)

membership Composition of KrK – risk management sub Committee (rmC)

I. Chairman Managing Director Risk Management

II. Secretary Division Head Risk Management (concurrently a permanent member)

III. 1. Permanent Members • ManagingDirectorHumanCapital&Compliance• ManagingDirectorCorporateBanking• ManagingDirectorConsumerBanking• ManagingDirectorTreasury&InternationalBanking• ManagingDirectorInformationTechnology&Operation• ManagingDirectorSmallBusiness&Network• ManagingDirectorFinance• SEVPMediumEnterprises• SEVPRescue&LoanSettlement• DivisionHeadTreasury• DivisionHeadCorporateCreditRisk• DivisionHeadMedium&SmallEnterprisesCreditRisk• DivisionHeadConsumerCreditProcessingandBilling• DivisionHeadStrategicPlanning• DivisionHeadCompliance• DivisionHeadBudgetingandFinancialControl• UnitHeadInternalControl• DivisionHeadLegal• DivisionHeadCorporateCommunications&Secretariat• DivisionHeadGovernancePolicies• UnitHeadCustomerAnalysis&ManagementPortfolio• DivisionHeadCreditAdministration

2. Non-Permanent Members Director/SEVP/Division/Unit Head associated to the Meeting materials.

Duties and responsibilities of risk and Capital Committee - risk management sub Committee (KrK-rmC)Duties and responsibilities of KRK – RMC are to evaluate and provide recommendations related to Risk Management, which at least includes:1. Develop Risk Management Policies and Strategies and their changes.2. Develop a Risk Management framework and contingency plan to anticipate the occurrence of abnormal conditions.3. Improve the Risk Management process periodically and incidentally as a result of a change in the external and internal

conditions of the Bank that affect the adequacy of Capital, Bank Risk Profiles, and ineffective implementation of Risk Management based on the evaluation results.

4. Establish policies and/or business decisions that deviate from normal procedures, such as exceeding significant business expansion compared to the Bank’s predetermined Business Plan or taking position/risk exposures that exceed the prescribed limits.

5. Establish a capital adequacy management policy to protect risks and support the Bank’s business strategy, including measurement, structure (tier 1/tier 2), capital allocation and contingency plans.

Implementation of risk and Capital Committee Duties of the risk management sub-Committee (KrK-rmC) in 2019During 2019, KRK-RMC has held 4 (four) meetings with the following agenda:

No forum Date agenda

1 RMC/01 January 16, 2019 BNI Health Level December 31, 2018BNI Risk Profile December 31, 2018

2 RMC/02 April 16, 2019 BNI Individual Risk Profile position as of March 31, 2019.Review Risk Appetite Statement 2019 - Macroprudential Intermediation Ratio Parameters (RIM) and Liquidity Coverage Ratio (LCR).

3 RMC/03 July 16, 2019 BNI Health Level position 30 June 2019.BNI Individual Risk Profile position 30 June 2019.

4 RMC/04 October 18, 2019 Profil Risiko BNI Individu Posisi 30 September 2019.




risk and Capital Committee for The asset and liability sub Committee (alCo)

structure and membership of risk and Capital Committee – asset and liability sub Committee (alCo)

No. risk and Capital Committee for The asset and liability sub Committee (alCo) membership

1. Chairman ManagingDirectorTreasury&InternationalBanking

2. Secretary Division Head Treasury (concurrently a permanent member)

3. Permanent Members • ManagingDirectorHumanCapital&Compliance• ManagingDirectorCorporateBanking• ManagingDirectorConsumerBanking• ManagingDirectorTreasury&InternationalBanking• ManagingDirectorInformationTechnology&Operation• ManagingDirectorSmallBusiness&Network• ManagingDirectorFinance• SEVPMediumEnterprises• SEVPRescue&LoanSettlement• DivisionHeadBankRiskManagement• DivisionHeadCorporateCreditRisk• DivisionHeadMedium&SmallEnterprisesCreditRisk• DivisionHeadConsumerCreditProcessingandBilling• DivisionHeadStrategicPlanning• DivisionHeadCompliance• DivisionHeadBudgetingandFinancialControl• DivisionHeadInternational• DivisionHeadGovernancePolicies• DivisionHeadBisnisCorporate&MultinationalBusiness1• DivisionHeadBisnisCorporate&MultinationalBusiness2• UnitHeadSyndication• DivisionHeadSOEsandGovernmentInstitutions• DivisionHeadMediumBusiness• DivisionHeadSmallBusiness1• DivisionHeadSmallBusiness2• UnitHeadCustomerAnalysis&PortfolioManagement• DivisionHeadConsumerProductManagement• DivisionHeadTransactionalBankingServices• DivisionHeadInstitutionalRelations• DivisionHeadNetworkManagement• DivisionHeadWealthManagement

4. Non-Permanent Members SEVP/Division Head/Unit/Units associated with the Meeting materials.

asset and liability sub Committee (alCo) Duties and responsibilitiesAsset and Liability Sub Committee duties and responsibilities include:1. Define BNI ALMA goals and objectives and formulate policies and strategies required.2. Provide instructions and asset management for BNI obligations.3. Establish and maintain the amount of liquid assets corresponding to liquidity needs and Bank Indonesia requirements.4. Maintain a funds balance from fund sources.5. Establish a good fund placement policy for Primary Reserve, Secondary Reserve, Tertiary Reserve and Loan.6. Analyze the balance sheet structure and review all risks arising from exposure owned by BNI in the form of interest rate

risk, foreign exchange risk and liquidity risk.7. Evaluate the economic indicators progress and prospects and analyze the impact on the savings and loan position, foreign

exchange position, interest rates, foreign exchange and BNI profitability.8. Establish lending rates (base rate) and interest rates for deposits (demand deposits, savings and time deposits).

asset and liability (alCo) sub Committee Duties Implementation in 2019Throughout 2019, the ALCO Committee has held 10 (ten) ALCO meetings with proposed meeting agendas as follows:





No. Date Proposed meeting agenda

1 January 24, 2019 Asset&LiabilityPerformanceandManagementMonitoring

2 March 12, 2019 Performance Monitoring and Interest Rate Risk Management

3 April 30, 2019 BNI liquidity management ahead of the Hari Raya period

4 July 3, 2019 Changes to the base rate and authority to decide on a special rate for Credit

5 August 9, 2019 Performance Monitoring, managing liquidity for credit expansion

6 August 28, 2019 Adjustment of debtor interest rates for Medium and Small segments that do not meet the minimum CASA depositional requirements

7 September 27, 2019 The rates for Institutional Demand Deposit and Rupiah Savings boards for some tiering balances were reviewed down by 0.20% to 0.25%

8 October 25, 2019 Rupiah Deposit board rates for some tiering balances and tenors were reviewed down 0.25%

9 November 29, 2019 Performance Monitoring, managing liquidity for credit expansion

10 December 18, 2019 BNI liquidity management ahead of Christmas and New Year

risk and Capital Committee anti-fraud sub-CommitteeIn accordance with Financial Services Authority Regulation No. 39/POJK.03/2019 dated 19 December, 2019 concerning the Implementation of Anti-Fraud Strategies for Commercial Banks, as a form of commitment in increasing the effectiveness of the implementation of Anti-Fraud Strategies, BNI formed an Anti-Fraud Committee to foster anti-Fraud culture and concern for all organizational levels.

structure and membership of the anti-fraud risk and Capital Committee sub-CommitteeBased on Board of Directors Decree No. KP/384/DIR/R dated November 9, 2018 with cfm. REN Memo No. REN/2/1489 dated 11 December 2018 concerning Changes in Membership of the Risk and Capital Management Committee (KRK), the structure and membership of the Anti-Fraud Risk and Capital Committee Sub-Committee are as follows.

No. anti-fraud risk and Capital Committee sub-Committee membership

1. Chairman Managing Director Compliance

2. Secretary Head of Compliance Division (concurrent as member)

3. Permanent Members • ManagingDirectorRiskManagement• ManagingDirectorRetailBanking• ManagingDirectorSmallBusinessandNetwork• DivisionHeadBankManagementRisk• DivisionHeadGovernancePolicies• UnitHeadInternalControl• DivisionHeadHumanCapitalManagement• DivisionHeadLegal• DivisionHeadNetworkManagement• DivisionHeadConsumerCreditProcessingandBilling

4. Non-Permanent Members Sector Director/SEVP/Division/Unit Head associated with the meeting Anti Fraud

Description of Tasks and responsibilities of The risk and Capital Committee anti fraud sub CommitteeThe Anti-Fraud Sub-Committee Duties and responsibilities include:1. Identify, evaluate and assign follow-up in event of fraud

derived from activities in all BNI work units.2. Develop a culture and concern for anti-fraud at all levels

of the organization.3. Establish anti-fraud policy and strategy.4. Monitor the implementation of anti-fraud policy and

strategy in BNI and periodically review the impact of policy and strategy.

In carrying out its duties and responsibilities, The Anti Fraud Sub-Committee is assisted by the Compliance Division and has the following functions:1. Managing the implementation of Anti Fraud policy

and strategy, in coordination with the units/divisions concerned;

2. Reviewing Anti Fraud strategy SOP;3. Reporting regularly and incidentally to Internal parties

(President Director and Board of Commissioners) and external (Financial Services Authority) associated with Anti-Fraud Strategy;




4. Acting as reporting and data liaison with Divisions/other Units and external interested parties regarding Anti-Fraud Strategy and managing database-related fraud in BNI;

5. Monitoring the initiation and implementation of Anti-Fraud Strategy and improvements.

Implementation of Tasks in 2019 of The risk and Capital Committee anti fraud sub CommitteeAnti-Fraud Committee Meeting (KAF) in 2019 has been held with the following corrective actions:1. Strengthening the Know Your Employee (KYE)

implementation2. Review the scope of the Dedicated Auditor audit3. Conducting studies of remote branches4. Reviewing the improvement of the Real Time Gross

Settlement (RTGS) business process5. Making cash ceiling alert tools6. Improvement related to internal control at the Branch

Office7. Improvement of Information Technology (IT) related to

Branch Office operations8. Use of external consultants/auditors to review internal

control processes9. Implementation of certification for frontliner employees

Anti Fraud Committee Meeting (KAF) in 2019 has been held with the results, namely:1. awareness

a. Socialization and deeper anti-fraud awareness in accordance with profiling fraud perpetrators.

b. Spiritual training for all employees.c. Mandatory e-learning Anti Fraud Awareness by all

employees.d. Submitting lessons learned in fraud cases.e. Tips for safe transactions via e-Channel to all

customers and BNI card holders.2. Preventive

a. Each account opening customer can be equipped with a customer photo and signature in the form of ESVS which can later be stored in the system and can be accessed by every frontliner and credit unit.

b. Changes in parameters/conditions causing changes in a dormant account to become active and the authority to activate dormant accounts, so that dormant account activations can be directly monitored.

c. The addition of the passbook numerator in the iCons system, so that at the time of the change or issuance of the passbook can be directly seen the history of the passbook.

d. Inputting the Debit Card PIN in PINPAD without card swipe for debit card replacement transactions without having to carry a passbook and non-pinpad transactions at the teller.

e. Publishing CS/Supervisor Journal, so that CS/Supervisor activity can be monitored through CMOD.

f. Transaction normalization (transaction authority and PINPAD loss), which will be developed with the SSO module (single sign on).

g. Conduct more intensive monitoring for areas where ATM management is still in the branch and develop standard mitigation for ATMs that have not been managed by vendors.

h. Installation of CCTV online/live at high risk locations.3. actions

a. Bulk Force PIN Implementation.b. Optimizing the use of CMOD (exception report)

reports.c. Implementation of the structure of credit

administration organizations in branch offices and credit center as well as increasing the competence of credit administration officers.

d. Review of Bina BNI for credit administration and customer service positions including issues of authority and career path.

e. Affirming the four eyes principle for credit card application.

f. Increased use of mobile banking by customers.g. Ensure that in the MCC with BNI Life there is a

compensation clause for fraud.h. Affirmation of responsibility/guarantee related to anti-

skimming devices from ATM machine vendors.i. Trial of regular roaming and force pin debit programs

for BNI employees.

ProDuCT CommITTee

Product Committee (PRC) is a forum for managing policies and monitoring products/activities at BNI to ensure success in creating maximum profits. The Product Committee was formed based on Directors Decree No. KP/448/DIR/R dated September 20, 2012 the PRC membership structure has been changed to cfm. REN Memo No. REN/2/1397 dated November 21, 2018 concerning Changes to Membership of the Product Committee.





Product Committee structure and membership

No. Product Committee membership

1. Chairman President Director

2. Deputy Head Accredited as Permanent Member

Vice President Director

3. Permanent Members • ManagingDirectorFinance• ManagingDirectorSmallBusinessandNetwork• ManagingDirectorRiskManagement• ManagingDirectorInformationTechnologyandOperation• ManagingDirectorCompliance• DivisionHeadofPolicyGovernanceDivision• DivisionHeadofBudgetingandFinanceControlDivision• DivisionHeadofNetworkManagementDivision• DivisionHeadofBank’sRiskManagementDivision• DivisionHeadofConsumerCreditProcessingandCollectionDivision• DivisionHeadofInformationTechnologySolutionsandSecurityDivision• DivisionHeadofOperationsDivision• DivisionHeadofComplianceDivision• DivisionHeadLegal

4. Non-Permanent Members Member of Board of Directors who act as Sponsor Director, Chief Business Risk Officer, Division/Unit Head and Subsidiary Head related to the topics covered

5. Secretary Division Head Strategic Planning

6. Supporting Staff Group • HeadofManagementandOrganizationResearchGroup–StrategicPlanningDivision• HeadofStrategicPlanningGroup–StrategicPlanningDivision• HeadofCorporatePolicyandGuidanceSystemGroup–CorporateGovernanceDivision• HeadofFinancialPerformanceAnalysisGroup–BudgetingandFinanceControlDivision• HeadofAccountingPolicyDevelopmentGroup–BudgetingandFinanceControlDivision• HeadofCorporateBudgetGroup–BudgetingandFinanceControlDivision• HeadofBusinessPerformanceMonitoringGroup–BudgetingandFinanceControlDivision• HeadofRiskIntegrationGroup–Bank’sRiskManagementDivision• HeadofFraudAuthorizationandControlGroup–ConsumerCreditProcessingandCollectionDivision• HeadofBusinessPartnerGroup–InformationTechnologySolutionsandSecurityDivision• HeadofOperationalDevelopmentGroup–OperationalDivision• HeadofRegulatoryandPolicyComplianceGroup–ComplianceDivision• HeadofLegalStudyandDevelopmentGroup–LegalDivision

Profile and Certification of Product Committee membersThe profile and certification of each committee member can be seen in the discussion of the Directors’ Profile and the Senior Executive President’s Profile..

Description of Duties and responsibilities of the Product CommitteeThe duties and responsibilities of the Product Committee include:1. Establish a strategy for business scale and development through BNI products/activities.2. Conduct comprehensive testing and decide on the “feasibility” of new products/activities, especially related to cross-

sectoral / segment alliances and strategic alliances with subsidiaries/other companies outside BNI by inviting relevant Sector Directors.

3. Monitored products/activities implemented at BNI and made decisions on the sustainability of products/activities on the recommendation of the Supporting Staff Group/product owner.

4. As an arbitration institution in cross-cutting issues related to Performance Management System (PMS) in implementing new products/activities.




Implementation of Duties and frequencies of Product Committee meetingsDuring 2019, the Product Committee held 2 (two) meetings with the following agenda:

No. Date Proposed meeting agneda

1 May 29, 2019 a. Development Progress and/or New Activitiesb. Proposed New Products and/or Activitiesc. Discussion related to Problems and Obstacles related to Bank Products and/or Activities

2 November 21, 2019 Development Progress and/or New Activities in 2019 and Proposed Product Development and/or New Activities in 2020

PerformaNCe maNaGemeNT CommITTee

Performance Management Committee (PMC) shall be a permanent committee in BNI as a forum for policy management, budget monitoring and expediting the process of performance management in BNI to ensure alignment of strategic planning, facilitating the process of setting targets and performance assessment in accordance with Decree of Board of Directors No. KP/353/DIR/R dated June 21, 2017 regarding Performance Management Committee (PMC). structure and membership of The Performance management Committee

No. Performance management Committee membership


2. Deputy Head Accredited as PermanentMember

Vice President Director

3. Permanent Members • AllMembersoftheBoardofDirectorsandSEVP• DivisionHeadStrategicPlanning• DivisionHeadBudgetingandFinancialControl• DivisionHeadHumanCapitalManagement• DivisionHeadNetworkManagement• DivisionHeadInternalControl• DivisionHeadDataManagement• DivisionHeadSOE&GovernmentInstitution• DivisionHeadSmallBusiness• DivisionHeadConsumerProductManagement• DivisionHeadInstitutionalRelations• DivisionHeadTreasury• DivisionHeadE-Banking

4. Non-Permanent Members Division/Unit Head related to the topics covered

5. Secretary 1 (Target Setting)

Division Head Budgeting and Financial Control

6. Secretary 2 (Strategic Planning)

Division Head Strategic Financial Planning

7. Supporting Staff Group • GroupLeaderCompanyBudget-BudgetingandFinancialControlDivision• GroupLeaderFinancialPerformanceAnalysis-BudgetingandFinancialControlDivision• GroupLeaderStrategicPlanning-StrategicPlanningDivision• GroupLeaderWorkManagementSystem-StrategicPlanningDivision• GroupLeaderBusinessPerformanceMonitoring-NetworkManagementDivision• GroupLeaderJobProfileandIndividualPerformance-HumanCapitalDivision• GroupLeaderPlanningandDevelopment-InternalAuditUnit• GroupLeaderLiaison&DataQuality-DataManagementDivision

Profile and Certification of members of the Performance management CommitteeThe profile and certification of each committee member can be seen in the discussion of the Directors’ Profile and the Profile of the Senior Executive President and the Profile of Executive Officers.





Performance management Committee Duties an responsibilitiesPerformance Management Committee Duties include:Target setting1. Approve and establish an annual schedule and responsible for planning and budgeting.2. Supervise and monitor the planning and budgeting activities development.3. Decide CAPEX proposals with certain criteria (business cases).

strategic Planning1. Review and ensure alignment between RBB, Corporate Plan and budgets, and recommend adjustments as needed.2. Review and approve recommended targets/budget adjustments (forecasting) and recommend RBB/Corporate Plan changes

if necessary as arbitrator on issues related to performance measurement.

Performance assessment1. Review and approve KPI at the sector level.2. Review and make BNI KPI recommendations3. Provide recommendations to sectors and divisions during the process of determining and decreasing KPIs and targets. 4. Review the Performance Management process on an ongoing basis/suggest policy initiatives/amendments to improve

efficiency.5. ProvideKPIBusinessUnit&FunctionalUnitdesigninsight.6. Review and decide on PMS scores (Q1, Q2 and Q3)7. Review the feedback from the Sector Director and provide PM4 Q4 insight score before being cut in the PMC Forum.

Implementation of Duties and frequencies of Performance management Committee meetingsDuring 2019, the Performance Management Committee held 2 (two) Performance Management Committee Meetings, with the agenda:

No Date agenda

1 March 4, 2019 Finalization of the 2019 KPI Unit and Sub Unit

2 February 14 2019 Finalizationof2018BOD&SubUnitKPIScores

TeChNoloGy maNaGemeNT CommITTee

The Technology Management Committee is one of the permanent committees in BNI that has the authority as an Information Technology Steering Committee (IT Steering Committee) in providing recommendations to the Board of Directors regarding the formulation, determination of policies and strategies for BNI’s information technology development. This committee was formed with the aim of assisting the Board of Commissioners and Board of Directors in carrying out oversight of Information Technology (IT) activities.

The Technology Management Committee was formed based on Directors Decree No. KP/201/DIR/R dated June 14, 2011 regarding the Management of Technology Management Committee which was updated through the Strategic Planning Division Memo No. REN/2/1648 dated 7 November 2019 concerning Changes in Membership of the Technology Management Committee.




structure and membership of The Technology management Committee

No. Technology management Committee membership

1. Chairman ManagingDirectorInformationTechnology&Operation

2. Deputy Head Accredited as PermanentMember

ManagingDirectorSmallBusiness&Network

3. Permanent Members • ManagingDirectorConsumerBanking• ManagingDirectorFinance• ManagingDirectorCompliance• ManagingDirectorRiskManagement• DivisionHeadInformationTechnologySolution• DivisionHeadInformationTechnologyOperation• DivisionHeadDataManagement• DivisionHeadConsumerProductManagement• DivisionHeadCardBusiness• DivisionHeadE-Banking• DivisionHeadInternational• DivisionHeadBudgetingandFinancialControl• DivisionHeadDigitalOperational• DivisionHeadOperational• DivisionHeadRiskManagement• DivisionHeadStrategicPlanning• HeadInternalControlUnit• DivisionHeadAsset&ProcurementManagement• DivisionHeadCompliance• HeadValueChainManagementUnit• HeadInformationSecurityUnit

4. Non-Permanent Members Board of Directors, Head, Division/Unit and Subsidiary’s related to the topics covered

5. Secretary DivisionHeadSolution&ITSecurity

6. Supporting Staff Group Related Division

Profile and Certification of members of the Technology management CommitteeThe profile and certification of each committee member can be seen in the discussion of the Directors’ Profile and the Profile of the Senior Executive President and the Profile of Executive Officers.

Description of Duties and responsibilities of the Technology management CommitteeThe duties and responsibilities of the Technology Management Committee consist of various fields, namely:1. IT Policy Formulation

a. Provide recommendations to Board of Directors regarding key IT policies and procedures, specifically related to aspects of developing and procuring IT systems, IT and communication network operational activities, information security, end user computing, e-banking activities, use of IT service providers, and policies and procedures related to application of risk management to the use of BNI IT.

b. Review and approval of IT budget and information security recommendations.c. Determine and evaluate IT Governance.

2. IT and Business Strategy Alignmenta. Provide recommendations to Board of Directors regarding the Information Technology Strategic Plan (ITSP) in

accordance with BNI’s strategic business plan, by considering efficiency, effectiveness and roadmap, resources needed, as well as cost and benefit which will be obtained when the plan is implemented.

b. Evaluate and recommend the suitability of projects approved with the IT Strategic Plan.c. Establish the priority status of IT projects that are critical and have a significant impact on BNI’s operational activities.





d. Evaluate the suitability of IT with the needs of management information systems that support the management of BNI’s business activities in the IT sector so that these investments can contribute to the achievement of BNI’s business objectives.

3. IT Risk Managementa. Provide recommendations to Board of Directors regarding the formulation of key IT policies and procedures, specifically

related to aspects of the development and procurement of IT systems, IT and communication network operational activities, information security, end user computing, e-banking activities, use of IT service providers. As well as policies and procedures related to the application of risk management to the use of BNI’s IT.

b. Ensure the effectiveness of risk minimization measures for BNI investments in the IT sector so that these investments can contribute to achieving BNI’s business objectives.

c. Facilitate relations between Divisions/Units to resolve various IT related problems.

4. IT Performance Measurement and Evaluationa. Conduct analysis and recommendations on the suitability of implementation of IT projects with project charter in a

service level agreement (SLA).b. Monitor IT performance and improvement efforts.

Implementation of Duties and frequencies of Technology management Committee meetingsThroughout 2019, the Technology Management Committee has held 2 (two) meetings with the following agenda:

Date meeting agenda

July 24, 2019 • 2019ITProject• CAPEXAutomationProject2019• ITGuidingPrinciple• BNICybersecurity• BNIDigitalService(APIManagement)• R&D(E-Stamp&SmartSound)

December 10, 2019 • 2019ITProjects(IncludingCapex)andRPTI2020• CyberSecurity• UpgradeITSystemCapacity

CreDIT & BusINess PolICy CommITTee

The Credit Policy and Procedure Committee is a permanent committee in BNI which includes the Credit Policy Sub Committee (KKP) and the Credit Procedure Sub Committee (KPP). Credit Policy and Procedure Committee (KKP) was formed based on Directors Decree No. KP/333/DIR/R dated April 21, 2019.

TheProcedure&CreditPolicyCommitteeischairedbythePresidentDirectorwithapermanentmembershipof12(twelve)members.InthestructureoftheBank,theProcedure&CreditPolicyCommitteeisundertheBoardofDirectors.

Procedure & Credit Policy Committee membership

No. Procedure & Credit Policy Committee membership


2. Vice Chairman Vice President Director




a. structure and membership of Credit Policy sub Committee (KKP)

No. Credit Policy sub Committee membership (KKP)

1. Chairman Managing Director - Human Capital and Compliance

2. Secretary Division Head Governance Policies

3. Permanent Members • ManagingDirectorCorporateBanking• ManagingDirectorInstitutionalRelations• ManagingDirectorConsumerBanking• ManagingDirectorSmallBusiness&Network• ManagingDirectorFinance• ManagingDirectorRiskManagement• SEVPRescue&LoanSettlementCredit• DivisionHeadGovernancePolicies• DivisionHeadBankRiskManagement• DivisionHeadCompliance• HeadInternalAuditUnit


b. structure and membership of Credit Procedure sub Committee (KPP)

No. Credit Procedure sub Committee (KKP) membership

1. Chairman Managing Director - Human Capital and Compliance

2. Secretary Division Head Governance Policies

3. Permanent Members • ManagingDirectorCorporateBanking(specificallyrelatedtoCorporatesegment)• ManagingDirectorConsumerBanking(specificallyrelatedtoConsumersegment)• ManagingDirectorSmallBusiness&Network (specially related to Medium and Small segment)• ManagementDirectorRiskManagement• ManagingDirectorInformationTechnology&Operation(specificallyrelatedtotheCredit

operational)• ManagingDirectorTreasury&International(specificallyrelatedtoTreasury&International

segment)• SEVPRescue&LoanSettlement(specificallyrelatedtoRescue&LoanSettlement)


Profile and Certification of Credit and Business Policy Committee membersThe profile and certification of each committee member can be seen in the discussion of the Board of Directors’ Profile and the Senior Executive President’s Profile.

Description of assignments and responsibilities of The Credit and Business Policy Committee

a. Credit Policy sub Committee (KKP)The duties and responsibilities of the Credit Policy and Procedures Committee shall be as follows:1. Establish Bank Credit Policy (KPB) particularly with regard to formulation of the precautionary principle in credit subject

to the approval of Board of Commissioners.2. Establish Treasury and International Business/Financial Institution Policies, especially with regard to the formulation of

the precautionary principle.3. Supervise so that such KPB can be applied and enforced consequently and consistently and do a review if there are

barriers/obstacles in the implementation of KPB.4. Conduct periodic review on the maximum period of three 3 (three) years of the KPB and if necessary set changes/

improvements to KPB.





5. Monitor and evaluate:a. Development and overall quality of credit portfolio.b. Improve implementation of loan approval authority.c. Improve granting process, development and quality of loans granted to parties related tothe Bank and certain large

debtors.d. Improve implementation of BMPK, Good Corporate Governance and Risk Management.e. Adherence to legislation and other regulations provisions in the implementation of credit provision.f. Complete problem loans in accordance with established KPB.g. Bank’s efforts in meeting the adequacy of allowance for credits.

6. Deliver periodic written reports to Board of Commissioners, on the results of monitoring the application and implementation of KPB and the results of monitoring and evaluating of matters referred to in point 4 above.

7. Formulate and recommend measures to perfect the implementation of Bank Credit activities.

B. Credit Procedure sub Committee (KKP)Duties and responsibilities of Credit Procedure sub committee are as follows:1. Establish procedures and operational Credit provisions.2. Establish Lending Model. Lending Model is operating policies and procedures related to specific credit financing schemes with the terms and

conditions specially adapted to the market segment, industry or area of interest with regard to prudential banking principles and good corporate governance.

3. Establishing operational procedures and provisions for Treasury and International Business/Financial Institutions4. Deliver Credit Procedure Sub-Committee’s decision reports periodically to the Credit Policy and Procedures Committee.

Decision-makinga. Credit Policy sub Committee (KKP)

1. Meeting decisions are made based on deliberation to reach consensus2. In the event that decisions are not made based on deliberations and consensus, the decision is made through a vote.3. Voting is valid if:

a. More than 1/2 members of the Credit Policy Sub Committee who are members of the Board of Directors; andb. More than 1/2 of the other Credit Policy Sub Committee members who have voting rights agree and the Meeting

meets the quorum

B. Credit Procedure sub Committee (KPP)1. The Credit Procedure Sub-Committee is entitled to make decisions in which there are Directors who oversee the policy

governancefunction(DirectorofHumanCapital&Compliance),Directorswhooverseethebusinessriskfunction(Director of Risk Management), and Director of segment related to the proposal material which is decided.

2. The Chairperson at the suggestion of the PGV and/or input from other Credit Committee Sub Committee members can determine other ways of making decisions

3. Decision of Credit Committee Sub-Procedure is valid if approved by all members of the Committee (dissenting opinion is not allowed).

Implementation of Duties and frequencies of Credit Policy and Procedure Committee meetings 2019Implementation of Duties and Frequencies of Credit Policy and Procedure Committee Meetings 2019




No Date agenda

1 January 7, 2019 Review of Authority to Decide Overseas Branch Loans (KCLN) for Director-Level Credit Committees (Tiering Authority to Decide Performing Loans (NPL) Credit)

2 January 22, 2019 Completeness of Administrative Data of BNI Pension Retirement Applicants (BFP) for Retired BNI Pension Fund Participants (DP)

Adjustment of BNI Griya Credit Term Features

3 February 12, 2019 Giving Fees/Services for the Use of Assets/Assets through Brokers/Property Agents

4 March 22, 2019 Provision of SCF Line to the Social Security Organizing Agency (BPJS)

5 April 5, 2019 Authority to Decide on Purchasing Consumer Credit Portfolio (Bulk) from Financial Institutions (Banks/Non-Banks)

6 June 13, 2019 Provisions of Receivables/Revenues to be received as Collateral Credit for Power Plant Developer (PPL) or Independent Power Procedure (IPP)

7 June 20, 2019 Alignment of Bankers Acceptance (BA) Funding Transaction Authority

8 July 12, 2019 Debtor Management Provisions Outside Segmentation for Medium and Small Segments

9 July 19, 2019 Review Authority for Replacement/Withdrawal or Release of Collateral for Performing Loan (PL)

10 July 29, 2019 Review the Age Requirements for Consumer Credit Applicants

11 July 29, 2019 Review of Granting Credit for Business Entities or Legal Entities

12 August 1, 2019 Review the Internal Rating Bank Model

13 August 1, 2019 Authority of Deciding Productive and Consumptive Credit for HNS (Head Network of Service) and HCR (Head of Consumer)

14 August 21, 2019 Review of Granting Loans to Business Groups from Companies that have become Corporate Segment Debtors

15 August 28, 2019 Review on the Provision of Investment Credit Top Up Facility in the Property Sector

16 September 3, 2019 Review Confirmation Letter

17 September 13, 2019 Review of Business Process Provisions and Authority to Decide Credit up to IDR 3 billion

18 September 23, 2019 Review of BNI Debt Service Ratio (DSR) Debt Service Ratio (BFP) Provisions

19 October 18, 2019 Review of Authority to Disconnect Cooperation with Developer

20 October 21, 2019 Review of BNI Griya/BNI Griya Multipurpose Prepaid Payment (PSJT) Provisions

21 November 14, 2019 Review of the Naming of the Directors and Divisions of the Credit Committee

22 December 30, 2019 Aircraft and Helicopter Financing Scheme

humaN CaPITal CommITTee

The Human Capital Committee is a permanent committee in BNI, staffed by all members of the Board of Directors and several Division Heads, with the following powers:1. Decide on policies/regulations in the field human resource management related:

• PlanningOfficer• RecruitmentandSelection• TrainingandCompetenceDevelopment• EmployeePerformanceAssessment• CareerPathandSuccession• Remuneration• Industrialrelations• Workculture

2. Decide on approval for the realignment/promotion program for the positions of Division Head and Region Head3. Evaluate the performance of Division Head and Regional Head4. Decide on the approval for administrative sanctions for the positions of Division Head and Regional Head5. Approve the delegation of authority in human resource management Human Resources





Human Resource Committee is established based on Board of Directors Decree No. KP/235/DIR/R dated July 18, 2011 concerning Amendment Human Capital Committee. With the issuance of this Decree, Board of Directors Decree No. KP/078/DIR/R dated February 9, 2004 concerning Human Capital Committee and Board of Directors Decree No. KP/637/DIR/R dated October 5, 2004 concerning the Disciplinary Committee are no longer valid.

structure and membership of The human resource Committee

No. human resource Committee membership


2. Permanent Members Director supervising Human Capital Division (concurrently Chairperson) *) Director supervising Compliance Division *)

3. Non-Permanent Members Segment Director and/or Supervising Officer Division/Unit (if there is no Segment Director) related to meeting material *)

4. Secretary Division Head Human Capital (HCT)

*) In the absence of a Director’s position, the position is replaced by the SEVP or the Supervising Officer Division/Unit related to meeting.

Profile and Certification of members of the human resources CommitteeThe profile and certification of each committee member can be seen in the discussion of the Directors’ Profile and the Senior Executive President’s Profile.

human Capital Committee Duties an responsibilitiesThe Human Capital Committee duties and responsibilities are as follows:1. Ensure that policies/provisions in the field of human capital are consistent and aligned with strategic policy planning. The

human capital policies/provisions include Human Capital management, Remuneration System management and Reward and Punishment mechanisms for all BNI employees.

2. Ensure the availability of qualified human resources and placing them in the right positions to support the leadership positions including Division Head and Regional Head.

3. Evaluate the performance of the labor force Division Head.4. Ensure that the delegation of authority in the field of human resource management is in accordance with the needs and

purposes.

Team under the human resources Committee Human Resource Management System Policy Formulation and Assessment Team

No. Team under the human resources Committee membership

1. Chairman Division Head Human Capital (HCT)

2. Permanent Members • DivisionHeadStrategicPlanning(REN)(concurrentlyChairperson)• DivisionHeadCompliance(KPN)

3. Non-Permanent Members Board of Directors, Head, Division/Unit related to the topics covered *)

4. Secretary Division Head Human Capital (HCT) related to the topics covered (Not Concurrently Chairperson)




Team of Policy Assessment and Formulation for Human Capital Management System Duties and Responsibilities include: 1. Manage the research, assessment and evaluation of the effectiveness and quality as well as recommend proposed

changes/improve operational policies and mechanisms for policies related to human capital management: • Employeeplanning• Recruitment&selection• Trainingandcompetencedevelopment• Employeeperformanceassessment• Careerpathsandsuccession• Remuneration• Industrialrelations• CorporateCulture

2. Managing the proposed delegation of authority in human capital management.

advisory Team for management realignment

No. advisory Team for management realignment membership

1. Chairman Division Head Human Capital (HCT)

2. Permanent Members • DirectorsupervisingHumanCapitalDivision(concurrentlyChairperson)• HeadofDivision/Unitrelatedtothetopicscovered

3. Secretary Division Head Human Capital (HCT) related to the topics covered (Not Concurrently Chairperson)

Duties and Advisory Team For Management Realignment is the task of planning and finding candidates who are required and approved by the candidates to be transferred/promoted as leadership staff.





advisory Team for administrative sanctions

head office

No. advisory Team for administrative sanctions membership

1. Chairman Division Head Human Capital (HCT) (Concurrently Member)

2. Members • DivisionHeadCompliance(KPN)• DivisionHeadLegal(HUK)• HeadofDivision/Unitrelatedtoevents/casesortheirrepresentatives

3. Secretary Head of Internal Audit (SPI) (Not Concurrently Member)

regional office

No. No. advisory Team for administrative sanctions membership

1. Chairman Head of Regional (CEO Region)

2. Members • DeputyHeadofRegionalwhichsupervisesunitsofevents/cases• OtherDeputyHeadofRegionalappointedbyHeadofRegional(CEORegion)• HeadofDivision/Unitrelatedtoevents/casesortheirrepresentatives

3. Secretary Head of Regional Internal Control (Not Concurrently Member)

Duties and Responsibilities of the Advisory Team For Administrative Sanctions, namely Managing the analysis and assessment activities on the recommendations of administrative sanctions received from the case processing division to then recommend to the decision maker or provide an administrative sanction verdict against the employee related to the case in accordance with the applicable authority matrix.

Implementation of the Duties of the human resources Committee 2019During 2019, the Human Resource Management Policy Assessment and Formulation Team has conducted 7 (seven) meetings, the Advisory Team For Management Realignment (TPMTP) has scheduled meetings regularly 1 (one) time a week to discuss the transfer of Branch Office staff, The Center. Meanwhile, the decision to transfer the position of CEO of the GM and CEO of the Region has been made through a Board of Directors Meeting, amounting to 12 (twelve) meetings. Meanwhile, the Advisory Team For Administrative Sanctions has conducted 8 (eight) discussion meetings.