Dedicated to
Sustainable Growth
Sustainability Report 2012
Dedicated to Sustainable Growth
1
Contents
About the Report
2
Bank BTN Profile
3
• Bank BTN at A Glance
3
• Vision and Mission
5
• Corporate Values
5
Message from the President Commissioner
6
Message from the Director
8
Management Strategy and Approach
10
• Sustainability Principles
10
• Governance Strategy
12
• Towards a Sustainable World Class
13
• GCG Roadmap Pillars
14
• GCG Implementation Results 15
• Dividend Policy
21
• Social Responsibility
21
• Community Development Program
22
• Contribution to Nation
31
• Growing Together With Business Partners and Suppliers
32
• Moving Forward
33
• Improved Customer Products and Services
34
• Strengthening Other Assistance
36
• Accountability to Customers
40
• 2012 Activities
43
• Housing Finance to The World
62
Indicators of Sustainability
64
• Financial Indicators
64
• Non-Financial Indicators
65
• GCG Assessment 66
• Awards
67
Your Opinion Matters
68
Cross Reference for Global Reporting Initiatives (GRI) 69
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
2
About the Report
This Sustainability Report is the third report
presented by Bank BTN as an effort to inform
the transparency of the Bank’s commitment
to creating a sustainable contribution to
the stakeholders and the public. This is a
manifestation of our commitment to express
Bank BTN’s concern in achieving sustainable
development in line with the wheels of business
run by the company on a daily basis.
For Bank BTN, sustainable development is
one of the most important factors in an effort
to boost the company’s business performance
in a consistent and sustainable manner in the
long term in line with its vision, mission and
goals to be achieved.
Global Reporting Initiatives (GRI) 3.1 states that
the goal of sustainable development is to meet
the needs of the present generation without
compromising the ability of future generations
to meet their needs. As an important force in
society, organizations of any kind, have an
important role in achieving this goal. Therefore,
Bank BTN is determined to make sustainable
development as its primary development goal
so that lofty ideals to make Bank BTN as the
leading Bank in housing finance as well as
always be a friend of Indonesian families
towards world class banking company can
be realized immediately and ultimately to
create synergy with related parties and
provide significant benefits in favor of
promoting economic development in Indonesia.
Bank BTN | Sustainability Report 2012
We strongly believe that the achievements
obtained right now are the results of the
implementation of strategies of promoting
ongoing efforts to contribute to the stakeholders
in particular and to society in general.
In essence, the contents of this Sustainability
Report cover the social activities of Bank BTN
within one year from 1 January 2012 up to
31 December 2012. Thus it can be said that this
Report generally discloses our performance
and/or activities in support of sustainable
development as well as closely related to the
activities of our corporate social responsibility
to customers, employees, suppliers, business
partners, communities and the environment.
Moreover, we can state that the Sustainability
Report is tailored to international standards that
follow the GRI 3.1 rules. We have demonstrated
our steps towards such standards through
this report. This Sustainability Report is an
integral part of the 2012 Annual Report of
Bank BTN. Therefore, these two reports
complement each other in representing the
overall idea of the performance of our business
and operations, and its relationship with the
Bank’s sustainability in the future. Thus,
some repetitions are unavoidable because
the two reports complement each other in
practice representing transparency principles
in disclosing the company’s achievement of
its business performance and relationship to
sustainable development in the future.
Dedicated to Sustainable Growth
3
Bank BTN Profile
Bank BTN at A Glance
Bank BTN (IDX: BBTN) is a public company and the market leader in housing finance in Indonesia.
Bank BTN has been entrusted by the government as lender of housing loans since 1974, and has
been established as a Company since 1897 (then called Postspaar Bank). Since that time, Bank BTN
has been striving to help Indonesian families from all walks of life to have a decent house to live in.
In line with Bank BTN’s vision to become the Leading Bank in Housing Finance, Bank BTN has
differentiated its business into Housing Finance & Consumer Banking, Housing & Commercial
Banking, and Sharia Banking to provide a wider choice to serve customers in addition to the
housing finance sector that has become Bank BTN’s commitment since its inception. As of 31
December 2012, Bank BTN has a total of 3 regional offices, 65 branch offices, 223 sub-branch
offices, 415 cash offices, 22 Sharia branch offices, 21 Sharia sub-branch offices, 7 Sharia cash
offices, 12 payment points, 1,404 ATMs across Indonesia, as well as providing access to a network
of more than 50,000 ATM Link network, ATM Bersama, and ATM Prima.
SUMATRA
1
Kantor
Wilayah
94
6
Outlets Sharia
Outlets
190
ATM
701
Online Post
Office
KALIMANTAN
28
Outlets
62
ATM
2
Sharia
Outlets
295
Online Post
Office
SULAWESI
35
2
Outlets Sharia
Outlets
70
ATM
126
Online Post
Office
MALUKU & PAPUA
8
Outlets Sharia
Outlets
18
ATM
59
Online Post
Office
JAWA
2
Kantor
Wilayah
523
40
Outlets Sharia
Outlets
1.030
ATM
1.598
Online Post
Office
BALI & NUSA TENGGARA
15
Outlets
34
ATM
Sharia
Outlets
143
Online Post
Office
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
4
Company Name
PT Bank Tabungan Negara (Persero) Tbk
Menara Bank BTN
Jln. Gajah Mada No. 1
Jakarta 10130, Indonesia
Phone : 62-21 6336789, 6332666
Fax
: 62-21 6346704
Establishment Date
9 February 1950
Shareholders Composition (as of 31 December 2012)
• The Government of Republic of Indonesia 61.35%
• Employees 1.30%
• Public 37.35%
Share Registrar
Indonesia Stock Exchange
Line of Business
Commercial Bank
Share Code
BBTN
Public Accounting Firm
Purwantono, Suherman & Surja
Anggota Ernst & Young Global
Gedung Bursa Efek Indonesia Menara 2 Lt. 7
Jln. Jend. Sudirman Kav 52 - 53,
Jakarta 12190, Indonesia
Phone : 62-21 52895000
Fax
Securities Administration Agency
: 62-21 52894100
PT Datindo Entrycom
Puri Datindo – Wisma Sudirman
Jln. Jend. Sudirman Kav 34 - 35,
Jakarta 10220, Indonesia
Phone : 62-21 5709009
Fax
Rating Agency
: 62-21 5709026
PT Pemeringkat Efek Indonesia (Pefindo)
Setiabudi Atrium Suite 809 - 810
Jln. HR Rasuna Said Kav. 62
Jakarta 12920, Indonesia
Phone : 62-21 5210077
Fax
: 62-21 5210078
PT Fitch Ratings Indonesia
Prudential Tower, lantai 20
Jln. Jenderal Sudirman Kav. 79
Jakarta 12910, Indonesia
Phone : 62-21 57957755
Fax
Corporate Secretary
: 62-21 57957750
Rakhmat Nugroho
Menara Bank BTN Lantai 20
Jln. Gajah Mada No. 1
Jakarta 10130, Indonesia
Phone : 62-21 6336789, 6332666
Fax
Investor Relations
: 62-21 6336719
Eko Waluyo
Menara Bank BTN Lantai 20
Jln. Gajah Mada No. 1
Jakarta 10130, Indonesia
Phone : 62-21 63870142, 63870107
Fax
: 62-21 63870104
Corporate Website
www.btn.co.id
Call Center
500286
Share Owners of Bank BTN
As of 31 December 2012, BBTN is owned by 6,392 shareholders,
which consists of 6,210 local shareholders and 182 foreign
shareholders
2013 Annual General Meeting of Shareholders
2013 Annual General Meeting of Shareholders will be held in
27 March 2013 in Jakarta
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
Vision
5
To be the leading Bank in housing finance
Mission
•
•
•
•
•
Providing pre-eminent service in housing finance and related industries, consumer loans and
SME loans.
Improving competitive excellence through continuous product and service innovation, as well
as the latest technology - based strategic networks.
Preparing and developing qualified, professional and high integrity human capital.
Executing prudent banking management in accordance with the principles of good corporate
governance to increase shareholder value.
Caring for community interests and the environment.
Corporate Values
6 Corporate Values
• Service Excellence
Delivering service beyond customers’
expectations (both internally and externally).
• Innovation
Constantly developing new ideas and sustainable
improvements, thus delivering added value to the
Company.
• Exemplary Behavior
Starting with ourselves as role models of the
values reflected in Bank BTN’s working culture
for staff and other concerned parties.
• Professionalism
Being competent in own expertise and
continuously improving ourselves to yield the
best performance and deliver added value for the
company and everyone in Bank BTN.
• Integrity
Being consistent with company regulations,
professional code of ethics as well as good
principles in mindset, expression and action.
• Team Work
Building sincere and open relationships between
the people of Bank BTN and other parties, based
on trustworthy respect for others in order to
achieve our common goals.
Advanced Culture Internalization Program
2013
Strengthening the Culture Internalization Process of
Bank BTN
• Pola Prima Workshop
• Training Leadership for Middle Manager
• Change Agent Briefing/Train The Trainers
• Optimizing the Organization for Culture Management
• Pola Prima Human Capital Management
• Culture Program Campaign in Work Units
• Effective Monitoring
• Culture Roadshow
• Conducting Pola Prima Award
12 Corporate Culture
• Hospitable, polite and friendly
• Caring, proactive and responsive
• Taking initiative to improve
• Oriented to create added value
• Being a role model for good and proper
behaviour
• Spurring implementation of working
culture values
• Being competent and responsible
• Working smart and thoroughly
• Being consistent and disciplined
• Being honest and dedicated
• Being sincere and open-minded
• Trusting and respecting each other
2014–2015
Strengthening the Culture
Internalization Program of Bank BTN
• Conducting a mechanism to monitors
the culture program, coaching/
sharing program, and objective
recognition benefits
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
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Message from the
President Commissioner
Dear Stakeholders,
Through this excellent opportunity, it is a happiness of its own for the Board of Commissioners that
Bank BTN can once again show the 2012 Sustainability Report of Bank BTN which is an integral
part of the 2012 Annual Report. In this report, we describe a variety of things that we have done in
order to contribute in a sustainable manner, not only for improving the performance of Bank BTN
and services to customers, but more and foremost is Bank BTN’s contribution to build and improve
the housing finance in Indonesia in general.
Along with the success of the Indonesian nation to maintain economic stability so that it can
support Indonesia’s bright economic prospects in the future, the management of Bank BTN always
strives to be the leader in an effort to support the housing needs of Indonesian people. In addition,
as a public bank with a business focus on the housing finance segment, the management of Bank
BTN also directs the Company’s services to meet various housing finance supporting needs as
the business segment of Bank BTN in order to provide the best service to its customers. However,
the management of Bank BTN will remain faithful to the business roots that have stuck solid as
the largest housing loan provider Bank in Indonesia. The management and all ranks of Bank BTN
intend to retain this special characteristic along with our efforts to improve the service of our nonhousing loans.
The management of Bank BTN runs residential and non-residential business based on targets that
have been established in the framework towards international quality. In general, a variety of Bank
BTN targets in 2012 as a series of Bank BTN road map towards a world-class company had been
well fulfilled. Therefore, the management and all ranks of Bank BTN strive to continue providing
a sustainable contribution to the customers, the developers, the public and all stakeholders to
continue to improve the quality of housing finance products and the existing system of services.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
7
To deliver services, Bank BTN also prioritizes benefits for all parties and/or from all levels of
society. We continue to provide facilities that facilitate the middle to bottom communities to get a
decent place to live in, according to what have been entrusted to Bank BTN by the Government.
We are fully aware that the current achievements of Bank BTN are inseparable from the
contribution of all ranks of Bank BTN. Therefore, the management of Bank BTN will continue
to ensure that the various programs to appreciate and develop employees will continue to
be improved. Performance evaluation at all levels continues to be refined with a clear and fair
system of rewards and punishments based on performance shown. In addition, Bank BTN also
does not forget the importance of maintaining a sustainable harmony with the community and
environment of Bank BTN. The management and ranks of Bank BTN will continue to provide the
best services to micro, small, and medium enterprises and implement various programs that
support the improvement and development of education, health, and environment through the
BTN Harmony Program. Maintaining good relations with the public and the environment is one of
the provisions of Bank BTN in achieving world-class quality and in sustaining Bank BTN’s business
in the future. Looking forward, the management and all ranks of Bank BTN will continue to try to
implement a range of strategies that have been established as well as maintain good relationships
with its stakeholders. The management of Bank BTN also plans to improve efficiency in business
operations and continue to maintain sufficient capital to expand capacity and network coverage
of Bank BTN in times to come. All these will be done so that Bank BTN can continue to provide
sustainable contribution through the housing finance sector in particular and in other areas hence
the Board of Commissioners strongly supports these efforts. In the future, we believe that Bank
BTN can continue to improve sustainable contribution to this Nation and Country that we all love.
Jakarta, 31 December 2012
Zaki Baridwan
President Commissioner (Independent)
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
8
Message from the Director
Dear Stakeholders,
In the midst of global economic turmoil and intense competition in the banking industry in recent
years, Bank BTN still managed to achieve a variety of targets in 2012 which was planned to be
achieved. We can state that Bank BTN’s achievement has been obtained none other than through
the hard work of all ranks of Bank BTN in implementing various efforts and/or implementing
business strategies that make sustainable aspects as the most important factor.
Bank BTN is very aware of how important the strategy to maintain sustainability of the Bank. The
main challenge is that sustainable development requires the existence of demand for options and
new innovative ways of thinking. Global Reporting Initiatives (GRI) 3.1 stated that the development
of knowledge and technology does not only demand contribution to economic growth, but also
assist in solving risk-related problems and threats to the sustainability of our social relationships,
environment, and economy. Therefore, new knowledge and innovation in technology, management
and public policy, are a challenge for all organizations to make new choices in implementing
their operation, production, services, and other activities, which will have an impact on the earth,
humans, and the economy. Thus, transparency aspects in providing information on various efforts
that have been made by a company in achieving sustainability efforts have become a crucial matter
in the current globalization century.
Therefore, Bank BTN is again dedicating this Sustainability Report to the stakeholders to provide
clear and transparent information about its continuous efforts to constantly strive contributing
to customers, society, nation and country. We can state that this Sustainability Report has been
compiled based on the GRI Reporting Framework to reveal outputs and results occurring in a
particular reporting period in the context of organizational commitment, strategy, and management
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
9
approach of Bank BTN. Through this report, all stakeholders will get information about the
contribution of Bank BTN on an ongoing basis which we strongly felt supports the improved
performance of Bank BTN for the long term which in recent years consistently proved successful
to boost growth in net profit with respect to the implementation of various corporate strategies,
including internet-based systems, infrastructure improvements, and efficiency in credit control
and debt collection. Bank BTN has also been diversifying its products to support the needs of its
customers. Bank BTN understands that the needs for housing could not be separated from the
needs of people living in them. Therefore, Bank BTN will continue to develop products, not just
housing products, but also non-housing products in conjunction with retaining its identity as the
leader in Indonesian housing finance.
It is also necessary to state that Bank BTN continues to demonstrate its commitment to grant
housing loans for the lower middle class to support the Government program through the Housing
Finance Liquidity Facility (FLPP). We have proven this by successfully becoming the Best FLPP
Program Executing Bank selected by the Ministry of Public Housing. In addition, we also recognize
the importance of human capital restructuring. We appreciate the hard work of employees fairly
based on their performance and contribution to the Bank, as well as other rational and reliable
considerations. Increased appreciation for employee performance is also one form of our efforts
to support performance sustainability of Bank BTN in the future. Along with the Bank’s internal
restructuring and quality improvement of products and services to customers, we also strengthen
our good relationship with other stakeholders, such as business partners, communities and the
environment, as well as the Government. We are also committed to developing products for Micro,
Small and Medium Enterprises, as well as implementing programs fostering environmental
and social responsibility as summarized in the BTN Environmental Harmony Community
Development Program.
In 2013 and in the future, Bank BTN will continue to improve a variety of programs that can
contribute to the sustainability of the Bank, the environment, community, and housing finance
in Indonesia in general. We hope to be able to continue to assist our customers in meeting their
housing needs, as well as taking a step forward toward world-class quality.
As a closing statement, on behalf of the entire Board of Directors of Bank BTN, we express our
appreciation and gratitude to the Board of Commissioners, all ranks of employees of Bank BTN, as
well as to the stakeholders for their support and confidence in Bank BTN so far.
Jakarta, 31 December 2012
Evi Firmansyah
Director
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
10
Management Strategy and Approach
Bank BTN understands that the goal of
sustainable development is to meet the needs of
the present generation without compromising the
ability of future generations to meet their needs.
As a component of the economic development of
Indonesia, Bank BTN is very supportive of
that goal.
Sustainability Principles
In this current era of globalization and the
information age, a new opportunity for
creating wealth and improving the quality of
life through a variety of economic activities
is usually accompanied by a number of new
risks associated with the stability of the
environmental, economic and socio-cultural
conditions. The development of knowledge
and technology required not only contribution
to economic growth, but can also help in
solving risk-related problems and threats to
the sustainability of our social relationships,
environment, and economy. Therefore, new
knowledge and innovations in technology,
management and public policy are a challenge
for all organizations to make new choices in
implementing their operation, production,
services, and other activities, which will have
environmental, social and cultural impacts.
Bank BTN understands that the goal of
sustainable development is to meet the
needs of the present generation without
compromising the ability of future generations
to meet their needs. As one component of the
economic development of Indonesia, Bank
BTN is very supportive of that goal. One form
is through the submission of this Sustainability
Report prepared by incorporating transparency
and accountability elements through the
implementation of corporate activities involving
Bank BTN | Sustainability Report 2012
three elements, namely economic, social and
environmental, and/or attention to sustainable
principles, as follows:
• Documents created by the company relating
to the performance of the economic,
social, and environmental aspects as a
means of management control for internal
stakeholders as well as an accountability
tool (especially) for external stakeholders.
• The report on all three aspects of
performance can only be called a
sustainability report when reporting
performance in a specified period which
is sustained or showed improved tendency
towards a positive net impact.
• The consequence is that this sustainability
report contains various indicators of
these three aspects that are continuously
monitored periodically.
Business Strategy
With reference to the Long Term Plan (RJP)
of Bank BTN from 2008 to 2012, Bank BTN
has undertaken several strategies, including
successfully became a public company listed on
the Stock Exchange in 2009 and implemented
a Rights Issue in November 2012. Then, Bank
BTN’s business plan for the year 2012-2014
has been developed to help achieve the longterm transformation plan. Key elements of the
Company’s strategy include:
Dedicated to Sustainable Growth
11
Increase in third party funds and
reduction of maturity mismatch
Improving risk management
capabilities on an ongoing basis
Bank BTN plans to raise third-party funds,
in particular on low-cost accounts such
as current accounts and savings, through
measures to fund loan growth and to reduce
funding costs. First, Bank BTN extends
distribution outreach by opening 100 additional
cash offices by the end of 2012, and expands
the network of ATMs and relocation of ATMs
to locations with potential for better business.
Second, Bank BTN enters into cooperation with
PT Pos Indonesia to build additional service
offices equivalent to cash offices that are
connected electronically to Bank BTN at 194
new post offices by the end of 2012. Third, Bank
BTN plans to improve standards of service and
offer more products and features to savings
customers. Bank BTN strives to improve crossselling activities of savings products both to
customers who already have housing loans as
well as to new customers with existing products
or new products to be offered. Fourth, Bank
BTN plans to increase wholesale funding by
issuing bonds and obtaining additional loans,
including bilateral loans. This can help Bank
BTN diversify its funding sources and reduce
maturity mismatch, as wholesale funding is
likely to have a longer tenor which may reduce
the risk of housing finance maturity mismatch.
Bank BTN seeks to improve the quality of its
loan portfolio by introducing new systems
and improve repayment collection activities.
First, Bank BTN has implemented the “iLoan”
system, which standardizes the housing loan
documentation process of the Company. This
system will reduce the policy scope of housing
loan officers and standardize credit analysis
in all branches. Second, it has implemented
the “iColl” system which automated the
collection process; Bank BTN believes that
this will enhance collection effectiveness and
ensure that customer accounts that require
special attention to be considered and actively
monitored. Third, improving risk management
and monitoring processes. Bank BTN has
implemented the branch monitoring program
for commercial loans, to help better manage
the NPL ratio and ensuring that credit quality
is maintained. Bank BTN is constantly refining
market and operational risk management.
Bank BTN regularly performs stress test
analysis and portfolio balancing as needed.
Bank BTN also evaluates the risk management
module to be applied on information
technology systems in order to strengthen
monitoring activities.
Improve high-margin credit with
a focus on the upper secondary
segment and non-housing loans
Bank BTN will continue to focus on housing
finance as its strength. In addition, Bank BTN
also intends to increase focus on the segment
of non-subsidized housing loans with higher
margins and better asset quality through
offering new product features and making
housing loan officers focused on promoting
housing loans to the upper middle customer
segment. Bank BTN also plans to increase
lending to the non-residential and commercial
segments by increasing the composition of
non-housing loans to 15% of total corporate
loans, because loans granted to these
segments provide a higher profit margin than
housing loans.
Increase of fee-based income
Bank BTN has a strong customer base for
fee-based income and other banking services
products offered effectively. By building
stronger brand awareness and network
expansion, Bank BTN can provide comfort to
its customers in accessing banking services
and fee-based products offered. Bank BTN
continues to strive on increasing fee-based
income by offering and developing various
kinds of other banking products and services
including; remittance services, payment point
and credit card services. Bank BTN also
plans to expand priority banking business by
opening more priority banking branches and
introducing wealth management services to
customers in the upper middle segment. Bank
BTN believes that all customers, including
the upper middle class customers will benefit
from the comprehensive products offered to
encourage fee-based income.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
12
Support Sharia business growth of
the Company
Bank BTN believes that there are significant
market opportunities to increase Sharia
business which has continued to grow since
its inception in 2005. Sharia assets continue
to rise, making the Sharia business units of
Bank BTN the largest among other banks
in Indonesia. Bank BTN plans to continue
supporting the strong growth of Sharia
business by introducing new products and new
features. Currently Bank BTN offers 15 Sharia
finance products and 8 Sharia savings products
for its consumer and commercial customers.
Furthermore, Bank BTN plans to add new
Sharia branches and Sharia office channeling
to the existing 50 Sharia branches and 240
Sharia offices channeling, and increase the
number of Sharia business unit employees.
Strengthening intrapreneurship and
organizational development
Bank BTN continues to strengthen human
capital and operating systems to support
strategic objectives and to make Bank BTN an
effective and efficient bank. Bank BTN plans to
strengthen intrapreneurship in the organization
by encouraging employees to be more
innovative and independent. First, Bank BTN
will instill a strong sales culture for all frontline
staff through strengthening performancebased assessment systems by implementing
the
Balanced
Scorecard
performance
management instrument and the introduction
of structured training programs. Second, Bank
BTN plans to optimize learning opportunities
Bank BTN | Sustainability Report 2012
for all employees by introducing training
programs both technical and management
skills to minimize the competency gap. Third,
in addition to the steps above, Bank BTN plans
to improve the quality of all human capital by
increasing the effectiveness of recruitment
strategies, employee incentives and reward
structures, implement career and talent
management systems, and developing the
Human Capital Information System (“iHCIS “),
which will be used to support human capital
initiatives. Bank BTN increased the number
of employees from 4,231 employees in 2010 to
5,135 employees in 2011 and 6,048 employees
in 2012. Fourth, Bank BTN will continue to
improve information technology systems by
investing on new systems and upgrading
the data warehouse in order to improve the
automation of the organization as a whole.
Governance Strategy
Our Commitment
As Friend of Indonesian Families
The house is a basic human need. The house
has a role and a function that is so essential
for life and human life. The house is not just
a place and center of education for the family,
culture nursery, or improving the quality of
life for future generations, but, above all, the
house has a truly central role as self protection
and self-esteem. In fact, no matter how hard
efforts have been made by a nation to build
the structure of a country to become sturdy
and strong it will never work well without the
nation’s success in managing the household
completely, both physical and spirit.
Dedicated to Sustainable Growth
13
Bank BTN has committed to be a friend of
Indonesian families and serves them with a
chance to acquire a decent and comfortable
house. By strengthening our focus on providing
home financing to the community, we plan to
meet a variety of needs for Indonesian families
and add value to their lives.
Towards a Sustainable World
Class
Bank BTN is determined to be the
FAMILY PRIDE OF INDONESIA with
the best corporate governance
practices in the future.
In order to fulfill our commitment to be a friend
of Indonesian families, Bank BTN realizes
that Governance or known widely as Good
Corporate Governance (GCG) is a necessary
condition so as to improve the performance
of the company, not only in the short term
but also in the long-term consistently and in
a sustainable manner. Moreover, as a public
company that is determined to become a world
class banking company, the management and
all ranks of Bank BTN have a high commitment
in implementing GCG.
Therefore, all management aspects of the Bank’s
business are always enhanced by conducting
relentless transformation of business processes
in a consistent and sustainable manner, in line
with good corporate governance principles.
In applying the basic principles of Corporate
Governance which include transparency,
accountability, responsibility, independency
and fairness (TARIF), Bank BTN builds on the
paradigm and/or the firm conviction that good
corporate governance should ensure the creation
of the balance of the business completely/
comprehensively so that all forms of interests,
both business and social, the individual with the
group, internal as well as external, as well as
the interests of shareholders and stakeholders
will lead to equilibrium. For Bank BTN, the
application of good corporate governance
principles does not merely follow the rules, but
is a fundamental element that supports the
Bank’s business performance and sustainability
in the future. GCG implementation becomes the
engine and driving mechanism (value driver)
for Bank BTN to enhance shareholder value
(value creation) as can be seen through the
illustrations and then ultimately will provide
strategic impact, as follows:
• Improve Bank performance through
the creation of good decision-making
processes, increased operational efficiency,
and optimal service to the stakeholders.
• Enhance corporate value with improved
financial performance and risk reduction
for actions carried out in the Bank’s
operational activities.
• Increase investor confidence to conduct
business activities in Indonesia as one
of the emerging markets amid global
economic challenges.
• Meet stakeholders’ satisfaction including
task
satisfaction
and
employees’
satisfaction.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
14
GCG Roadmap Pillars
The four pillars of Bank BTN GCG implementation milestones are as follows:
•
•
•
•
Commitment on Governance
Governance Structure
Governance Mechanism
Governance Outcome
These GCG pillars are clues in order to execute Bank BTN GCG development strategy which
includes several stages, as follows:
1. Pre-Implementation Stage: At this stage, there are 3 (three) steps to take, namely:
• Confirm management commitment.
• Establish and/or complete the GCG soft structure.
• Establish and/or complement GCG infrastructure.
Stage I
Stage II
Stage III
Pre-Implementation
Implementation
Implementation Cycle
•Confirm management
commitment
•Establish and/or complete
the GCG soft structure
•Establish and/or
complement GCG
infrastructure
•Awareness programs.
• Internalization and dan
institutionalization
• Programme Assessment
and Evaluation
• Software development
(Intelligence Governance
[i-Gov])
• Externalization
•Sustainable monitoring
and setting action plan
and feedback at the end
of each year using the
Plan-Do-Check-Action
(PDCA) method towards
long-term success
VALUE CREATION
DIVIDEND
CAPITAL GAIN
GROWTH
PROFITABILITY
VALUE DRIVERS
- NET INTEREST MARGIN
- COST TO INCOME
- RISK MANAGEMENT
Bank BTN | Sustainability Report 2012
- ASSET QUALITY
- FEE BASED INCOME
- ETC
MARKET &
INVESTOR
CONFIDENCE
PRINCIPLES OF GCG
- Transparency
- Accountability
- Responsibility
- Independency
- Fairness
Boosting the value
driver to work, as the
Company is managed
based on “Best
Practices”
Dedicated to Sustainable Growth
15
Governance Outcome
Governance Mechanism
Governance Structure
Commitment on Government
Good Corporate Governance
4 GCG Pillars
2. Implementation Stage: Several strategies are conducted at this stage, namely:
• Awareness programs.
• Internalization and institutionalization.
• Programme assessment and evaluation.
• Software development (Intelligence Governance [i-Gov]).
• Externalization.
3.Implementation Cycle Stage: Sustainable monitoring and setting up action plan and
feedback at the end of each year using the Plan-Do-Check-Action (PDCA) method towards
long-term success.
GCG Implementation Results
In 2012, several indicators demonstrating the successful implementation of the above strategy
can be viewed from the GCG assessments conducted by several independent parties that can be
described as follows: First, The Indonesian Institute for Corporate Governance (IICG) in a survey
of Corporate Governance Perception Index (CGPI) 2012 took measurements of Bank BTN’s GCG
implementation through four assessment stages with different weights; self assessment (25%),
completeness of documents (23%), paper and presentation (17%) and observation (35%) and
concluded that Bank BTN is included in the corporate category of “Most Trusted”. The quality
score of Bank BTN’s GCG implementation is 85.90 (eighty-five point nine) out of a maximum value
of 100 (one hundred) as well as awarded as ”The Most Trusted Company”. According to IICG, the
management of the Company has done a good job.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
16
Bank BTN share ownership mostly own by Foreign Investors
(61.24% as of 31 December 2012)
40.300 %
66.774 %
61.250 %
61.240 %
59.700 %
33.226 %
38.750 %
38.760 %
Dec-10
Dec-11
IPO
Dec-12
Second, as a public company, the implementation of Bank BTN’s GCG is constantly assessed by
independent parties. One of them was carried out by IICD using the Organization for Economic CoOperation and Development (OECD) standards which included five assessment factors, as follows:
•
•
•
•
•
The Rights of Shareholders and Key Ownership Functions
The Equitable Treatment of Shareholders
The Role of Stakeholders in Corporate Governance
Disclosure and Transparency
The Responsibilities of the Board
As explained by the IICD, its activities are aimed at continuing to encourage the implementation of
good corporate governance as well as giving the highest appreciation and respect to the Company
that has managed to implement GCG well, properly and earnestly. Based on the IICD assessment,
Bank BTN managed to get the Best Disclosure and Transparency award.
Thanks to good governance and good stock performance, Bank BTN managed to attract the
attention of global investors to do business with Bank BTN.
Governance Structure and Mechanism
Bank BTN’s governance structure (Management Structure) is a way how activities within the
organization are divided, organized and coordinated as well as designed in order to support the
passage of the organization’s activities in a responsible and controlled manner by segregation
of decision making with decision control (who controls whom) through major organs and organ
support built in Bank BTN. Put differently it can be said that the governance structure is a
framework within the organization which determines how various governance principles can be
shared, run and controlled by Bank BTN through the segregation of functions, rights, duties and
responsibilities between the parties concerned in Bank BTN, covering the internal and external
control processes which are effective as well as creating internal balance (between the organs
of the company) and external balance (among stakeholders) while also arranging how Bank
BTN is directed and controlled to enhance business performance in an accountable manner
(Governance Mechanism).
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
17
CORPORATE ORGAN
MAIN
ORGANS
GMS
SUPPORTING
ORGANS
Board of
Commissioners
Board of
Directors
Corporate
Secretary
Committees
Committees
•Audit Committee
•Remuneration
& Nomination
Committee
•Risk Monitoring
Committee
•Risk
Internal
Management
Audit
Committee
•Credit
Committee
External
•Personnel
Audit
Committee
•Information
Technology
Compliance
Steering
Committee
•Product
Risk
Committee
Management
•ALCO
•etc.
etc.
As can be seen through the illustration above Bank BTN has Main Organs consisting of the AGM,
Board of Commissioners and Board of Directors, and Supporting Organs consisting of committees,
under the supervision of the Board of Commissioners and Board of Directors, as well as units that
work under the supervision of the Board of Directors. GMS is the highest organ in Bank BTN and a
forum to set up policies and make decisions not granted to the Board of Commissioners and Board
of Directors. The Board of Commissioners is in charge of supervising and providing advice to the
Board of Directors, while the Board of Directors is the organ responsible for the management and
performance of the business and operations of the Bank.
The composition of the Board of Commissioners and the Board of Directors of Bank BTN as of
31 December 2012 is as follows:
President Commissioner &
Independent Commissioner
Zaki Baridwan
President Director
Maryono
Independent Commissioner
Subarjo Joyosumarto
Director
Evi Firmansyah
Commissioner
Sahala Lumban Gaol
Director
Saut Pardede
Commissioner
Dwijanti Tjahjaningsih
Director
Irman A. Zarihuddin
Commissioner
Agung Kuswandono
Director
Mas Guntur Dwi S
Independent Commissioner
Amanah Abdulkadir
Director
Poernomo
Director
Mansyur Syamsuri Nasution
A full description of the structure and governance mechanisms of Bank BTN and/or various
programs implemented in 2012 can be viewed in the 2012 Annual Report of Bank BTN.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
18
Communication with Shareholders & Investors
In communicating with shareholders and investors, Bank BTN is guided by the principles of
transparency and fairness, so that fair disclosure to all parties is emphasized without any
discrimination based on shareholding composition. This is proved to be conducted well by Bank
BTN as in 2012, according to the assessment conducted by the Indonesian Institute for Corporate
Directorship (IICD), Bank BTN was awarded Best Disclosure and Transparency. The assessment
carried out by IICD was conducted using international standards, namely the standards used by the
Organization for Economic Co-Operation and Development (OECD), which include five assessment
factors, as follows:
•
•
•
•
•
The Rights of Shareholders and Key Ownership Functions
The Equitable Treatment of Shareholders
The Role of Stakeholders in Corporate Governance
Disclosure and Transparency
The Responsibilities of the Board
Bank BTN is actively organizing forums for analysts and investors through public exposure to
ensure that information transparency can be well implemented. The methods used are as follows:
• Direct, which include Public Expose, Non-Deal Road Show, Press Conference, 1-on-1 Meetings,
Group Meetings, Branch Visits and Site Visits
• Indirect, which include Annual Report, Published Financial Statements, Website, Conference
Calls and Emails.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
19
Investor Relations Activities in 2012
Basically Bank BTN continues to maintain good relations with stakeholders, particularly
shareholders and investors, as the important actors to business sustainability. Throughout 2012,
the Bank organized various activities of information disclosure, which we may convey as follows:
No.
Activities
1.
Public Expose
2.
Analyst Meeting
3.
4.
5.
Investor Conference
Roadshow
GMS
Details
Time
Location
Investor Day 2012
3 May
Jakarta
FY 2012
28 Feb
Jakarta
1Q 2012
24 Apr
Jakarta
2Q 2012
14 Aug
Jakarta
3Q 2012
17 Oct
Jakarta
Macquarie Asia Pacific Financials & Property
Conference
16-17 Jan
Hong Kong
Nomura ASEAN All Access
27-28 Feb
Singapore
UBS Indonesia Conference
6-7 Mar
Jakarta
J.P. Morgan Indonesia Conference
18-19 Jun
Jakarta
Citi Indonesia Investor Conference
26-27 Jun
Jakarta
Non-Deal Roadshow
12-13 Mar
Hong Kong
Non-Deal Roadshow
15-16 Mar
Tokyo
Non-Deal Roadshow
19-20 Mar
Kuala Lumpur
Non-Deal Roadshow
21-23 Mar
Singapore
Non-Deal Roadshow
26-28 Mar
Europe
Roadshow
22-23 Oct
Singapore
Roadshow
24-25 Oct
Hong Kong
Roadshow
24-25 Oct
Jakarta
Roadshow
29-30 Oct
London
AGMS
19 Apr
Jakarta
EGMS
7 Nov
Jakarta
EGMS
28 Dec
Jakarta
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
20
In addition to these activities, Bank BTN have also actively organized other events such as media
meetings, media coverage and promotion through the media. No less important to convey is
that Bank BTN has also given the widest possible access to the general public and investors to
obtain information through the Company’s website at www.btn.co.id. The site contains the latest
information such as corporate actions, financial reports and company guidance (quarterly), Bank
BTN’s presentation material to the public and media clippings of the Company’s newsletters.
Since the listing of its stock on the Indonesia Stock Exchange, Bank BTN has recorded an increase
in good performance. This can be seen from the 2.04 times oversubscription, awarded as the Best
Mid Cap IPO Deal for the Year 2009 in South East Asia, Best IPO in Indonesia (The Asset Asian
Awards 2009) and successfully performing the Fastest IPO process. Bank BTN shares have also
been included as a component for the calculation of some of the leading stock index, namely:
• LQ 45 Index
• 100 Kompas Index
• 27 Business Index
Most Bank BTN investors are foreign investors. Therefore, Bank BTN seeks to provide information
disclosure to its investors by international standards. Bank BTN’s commitment to provide
transparency to investors has been recognized by various parties, both national and international.
One of our proud achievements was the award of Best Investor Service Provider in Indonesia that
we received from the Global Banking and Finance Review, London.
In 2013, Bank BTN launched several programs to continue to strengthen our relationship with
investors. Some of these are activities that we do on a regular basis such as investor conferences,
non-deal roadshows and analyst meetings. In addition, we will also socialize regulations relating
to transparency and disclosure of information, as well as making arrangements for corporate
actions, including plans for the General Meeting of Shareholders and other forms of transparency.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
21
Dividend Policy
In an effort to maximize shareholder value, Bank BTN has made provision for minimum payment of
cash dividends of at least 25% of net revenue each year. The exact amount will be decided after the
AGM on the recommendation of the Board of Directors. This dividend payment is conducted taking
into account the profit, financial condition, liquidity and compliance with applicable regulations,
and other factors deemed relevant by the Board of Directors after the AGM approval.
We can state that in 2010, in accordance with the decision of the AGM on 19 May 2011, Bank BTN
implemented several dividend policies, as follows:
• Distribute cash dividend amounting to Rp274.78 billion. The cash dividend is calculated based
on the achievement of financial performance during 2010.
• Total dividend per share of Rp31.19.
• Payout ratio 30%.
Meanwhile, in 2011, in accordance with the decisions set out in the Annual General Meeting of
Shareholders on 19 April 2012, Bank BTN implemented several dividend policies, as follows:
• Distribute cash dividend amounting to Rp223.73 billion. The cash dividend is calculated based
on the achievement of financial performance for the year 2011.
• Total dividend per share Rp25.31.
• Payout ratio 20%.
Dividend Policy
Total Dividend
Dividend
per Share
Dividend Ratio
Payment Date
2010
274.78
31.19
30% of net profit in 2010
30 June 2011
2011
223.73
25.31
20% of net profit in 2011
30 May 2012
Social Responsibility
Community Development and the Environment
Bank BTN’s contribution to society and environment is manifested in its social activities within the
framework of the Corporate Social Responsibility (CSR) program. CSR is the real intention and/or
the implementation of Bank BTN concern for the community and the environment.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
22
Bank BTN CSR Public Policy
Corporate Social Responsibility (CSR) refers to Bank BTN’s commitment to participate actively in
improving the welfare of the community through good business practices and contributing part of
its corporate resources through a variety of activities, such as: environmental protection, education,
health, partnerships, art, and sports, as can be seen in the CSR Basic Concept illustrations of Bank
BTN. Through the CSR, in running the wheels of business, Bank BTN constantly strives to create
a harmonious business activity atmosphere with the wider and environment friendly community.
By making contributions to the community and the environment, Bank BTN expects to become a
company loved by the wider community. Thus, Bank BTN can participate in creating a society that
is safe, comfortable and dynamic as an ideal condition for the survival of any business.
In the implementation, in broad outline, the various activities undertaken by Bank BTN in
implementing the Social and Community Development Program include the Partnership and
Community Development Program (PKBL). The PKBL program of Bank BTN focuses its activities on
community empowerment goals, especially on residential neighborhood or settlement. The focus
of community empowerment on housing has been selected in connection with the core business
of Bank BTN of granting housing loans. In practice, community empowerment is demonstrated
through activities that contain educational, environmental, and socio-economic empowerment.
Community Development Program
Basic Concept of Bank BTN’s CSR
Corporate Image
Money
Skill
Forces
Environment
Education
Communication
Health
Partnership
Arts & Sports
Third Party Partnership
Bank BTN | Sustainability Report 2012
Communication
Dedicated to Sustainable Growth
23
PKBL Policy
Broadly speaking, through the PKBL, Bank BTN strives to prioritize community empowerment in
every operational activity, particularly housing and settlement, which is the core business of Bank
​​
BTN. In practice, the program covers important activities in the area of environmental, social and
economic empowerment, and education.
Environmental Activities and Impact
Bank BTN implements CSR activities in the environmental area through the BTN Environmental
Harmony and Nature Conservation program. Through the BTN Environmental Harmony program,
we offer support and aid to the community, in particular at places where Bank BTN is providing
finance. In practice, this program is prioritizing the middle to lower communities.
The program aims to educate the public in an integrated manner through training or education,
and aid for people as basis for development of an integrated program. The program includes
integrated and sustainable activities to support hygiene, health, reforestation, and education.
The following is a description of BTN Environmental Harmony activities by area:
• Environment: Bank BTN delivers materials about community participation in waste
management, methods of sorting garbage, organic waste management, and the manufacture
of products from non-organic waste.
• Education and training: Bank BTN conducts development, education and training of quality
physical and spiritual education for children along with their parents. With training, children
and parents are expected to identify themselves so that they can form a healthy teamwork in
interpersonal relationships.
• Health: This program assists the development of quality public health through workshops on
children’s health and herbal plants against various diseases.
• Socio-economic: This program is expected to trigger and lay the basis for reducing poverty
through several activities such as entrepreneurial training, family management and
empowerment of the surrounding potential.
• Religion: Community activity programs should be balanced with the form of religion as
motivation and reinforcement as well as foundation in interacting both in family and society.
• Public Infrastructure: Public infrastructure facilities as fulfillment for the needs of the
community and the environment to support other activities so that the community is expected
to be more empowered.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
24
The names of activities in the BTN Environmental Harmony Program can be explained in more
detail in the table below:
Name of activities in BTN Environmental Harmony Program
No
Name
Details
1
Sejahtera BTN
Development Program on Welfare, Social, Arts, and Culture
2
Religi BTN
Religious Program
3
Hijau BTN
Conservation Program
4
Bugar BTN
Sports Program
5
Sehat BTN
Health Program
6
Cerdas BTN
Education Program
7
Bersih BTN
Sanitary Program
8
Peduli BTN
Disaster Relief Program
9
Kemitraan BTN
Empowerment Enterpreneurship Society Program
Sejahtera
BTN
Kemitraan
BTN
Religi
BTN
Peduli
BTN
Hijau
BTN
Community
Bugar
BTN
Bersih
BTN
Cerdas
BTN
Bank BTN | Sustainability Report 2012
Sehat
BTN
Dedicated to Sustainable Growth
25
In 2012, Bank BTN again organized the “Bank BTN Environmental Harmony” event with the
theme Managing Waste to Get Rupiah. The “BTN Environmental Harmony” event was able to
develop public awareness of the importance of environmental cleanliness. In 2012, Bank BTN
prepared sufficient funds for the program. This program is an ongoing CSR program. The pilot
project was implemented in 2011 at the Puri Nirwana III housing complex, Karadenan, Cibinong,
Bogor in West Java. As a continuation program, the 2012 event was carried out at the Pondok
Sukmajaya Permai housing complex, Sukmajaya Sub-district, Depok in West Java. The community
empowerment program held at Pondok Permai Sukmajaya housing complex carried the themes
of BTN Environmental Harmony, Green BTN, Smart BTN, BTN Clean and Healthy BTN. Bank
BTN deliberately selected Pondok Sukmajaya Permai housing complex as the location for its CSR
activity of ‘BTN Green Community’ because it is one of the housing projects financed by Bank BTN.
The BTN Environmental Harmony 2012 Program is a PKBL-CSR activity program of Bank BTN
with community empowerment as its environmental target while focusing on activities in an
integrated and sustainable manner towards a prosperous society along with Bank BTN’s growth.
The program is a continuation of BTN Green Community program previously implemented in 2009.
Award from the Ministry of Forestry
Bank BTN received an award from the Minister of Forestry, Mr. Zulkifli Hasan, for its contribution
on tree planting action at 100 schools in Jakarta.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
26
The table below shows some of the activities carried out for BTN Environmental Harmony Program
in 2012:
No
1
Program
BTN Environmental
Harmony
Time
January 2012
Types of Activities
Location
Entrepreneurship Management
Procurement of School Boats
Building of Health Clinic
Reforestation
Lae-lae, Makassar
Procurement of Cleaning Facilities in
the form of Garbage Vehicles
2
BTN Environmental
Harmony
December 2012
Entrepreneurship Management
Rehabilitation of Health Facilities
Procurement of Motor Tahu
Bandung
Reforestation
Procurement of educational facilities
Bank BTN is also committed to preserves the nature by planting 60,000 trees based on the
Agroforestry planting pattern, in cooperation with PT. BUMN Hijau Lestari 1 in Sumedang District
as Citarum Watershed which involves farmer groups and the surrounding communities. We hope
that through this program, we can improve the quality of Citarum Watershed by raising public
awareness for environmental protection.
In addition, we have also implemented conservation programs in Jember, Bangkalan, Makassar,
Tanjung Pinang, and Tasikmalaya by planting green plants in the city park and planting
mangrove seeds.
Poverty Elimination Program in
Mataram
To show its concern to society and
environment, Bank BTN becomes a
coordinator for Poverty Elimination
Program for the surrounding area of
Mataram, which was initiated by the
Ministry of State-Owned Enterprises.
Bank BTN later assigned the University of
Mataram as the program implementor to
assist the community.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
27
Socio-economic Empowerment Activities
In 2012, social and economic empowerment activities of Bank BTN, among others were as follows:
Bank BTN organized the BUMN Cheap Market 2012 Event
To show concern for the people in need, on 11 April 2012 at Kel Pegadungan, Kalideres Sub-district
in West Jakarta, Bank BTN organized BUMN Cheap Market 2012 event where it sold 2,000 food
packages worth of Rp100,000 (one hundred thousand rupiah) per package for only Rp30,000 (thirty
thousand rupiah) per package to the public.
Then on 15 August 2012 Bank BTN together with PT. Sucofindo (Persero) as the Regional Coordinator
for DKI Jakarta and PT. RNI (Persero) as the Sub-Coordinator for Central Jakarta organized the
BUMN Cheap Market 2012 event in the month of Ramadhan, Idul Fitri, Christmas and New Year
2012. Bank BTN participated by handing out food packages as much as 2,500 packages worth of
Rp250,000,000 (two hundred and fifty million rupiah).
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
28
Free of charge Homecoming Facility
Bank BTN has provided free of charge homecoming facility for 1,200 informal workers. The
homecoming participants are informal workers who work in the offices and housing complex of
BTN scattered around the Jabotabek area. Among the participants are low income BTN savers,
which are customers with small savings balance. The homecoming together program is one form
of Bank BTN CSR activity conducted periodically every year. In 2012, it was the fifth activity carried
out by Bank BTN. If compared with similar programs of the past year, the number of homecoming
participants increased by 100 people. Participants are not charged with cost for this program. They
just need to show BTN Bank savings passbook as proof of customer membership. Bank BTN also
provides food and beverages, including gifts for Lebaran in their respective areas.
Health Activities
In 2012, Bank BTN continued the implementation of its commitment to support the improvement
of public health in Indonesia. The programs that are carried out for the healthcare area disbursed
funds amounting to Rp600 million for Indonesia Heart Foundation. These funds were used to
finance operations activities for children from unfortunate families amounted to Rp500,000,000
(five hundred million rupiah) and to support preventive and promotive campaigns as well as for
heart check ups worth of Rp100,000,000 (one hundred million rupiah). Bank BTN also supported
blood donation events conducted by Indonesian Red Cross by providing two units of cars for blood
donors worth Rp1.05 billion.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
29
In addition, Bank BTN also conducted activities for eye quality improvement for children of school
age in the form of 5,000 glasses in South Sulawesi and North Sulawesi amounted to Rp925,200,000
(nine hundred twenty five million two hundred thousand rupiah).
Education and Training Activities
In regard to Activities and Impact of Financial Sector Education and Training Related to Social
and Community Development we convey that through the Community Development Program,
Bank BTN has been trying to prioritize community empowerment in each operational activity,
particularly in housing environment and settlement, which is the core business of ​​
Bank
BTN. In practice, this program covers important activities in education, environment, and
socio-economic empowerment.
In 2012, Bank BTN provided scholarships for higher education to 290 students throughout
Indonesia. Some of the areas to which the scholarships were given include Denpasar,
Solo, Bengkulu, Purwokerto, Makassar, Semarang, Mataram, Medan, Banjarmasin,
Madiun, Depok, Pekanbaru, Surabaya, Cilegon, Bandung, Banjarmasin and Malang. The
amount of funds expended for this scholarship program amounted to Rp1,245,300,000
(one billion two hundred and forty five million three hundred thousand rupiah).
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
30
The following table illustrates the distribution of Bank BTN scholarships in 2012:
Distribution of Bank BTN’s Scholarships
No
1
Region
Denpasar
Academic Institution
Number of Students
Amount (in Rupiah)
IKIP PGRI Denpasar
6
Universitas Mahasaraswati
2
18,000,000
6,000,000
Universitas Bengkulu
6
36,000,000
2
Bengkulu
Stikes Bengkulu
2
6,000,000
3
Solo
UNS
20
60,000,000
4
Purwokerto
Universitas Jenderal Sudirman
14
84,000,000
5
Makassar
Universitas Muhammadiyah
6
18,000,000
6
Semarang
Universitas Diponegoro
12
36,000,000
UNS
10
30,000,000
Poltekkes Semarang
6
18,000,000
7
Mataram
8
Medan
IAIN Walisongo
2
6,000,000
IAIN Mataram
10
72,000,000
Universitas Mataram
10
12,000,000
Universitas Sumatera Utara
10
30,000,000
Universitas Muslim Nusantara
2
6,000,000
Universitas Lambung Mangkurat
6
18,000,000
6,000,000
9
Banjarmasin
STKIP PGRI
2
10
Madiun
IKIP PGRI
2
6,000,000
11
Depok
UI
35
210,000,000
12
Pekanbaru
UNRI
12
36,000,000
Universitas Islam
4
12,000,000
Stikes Hang Tuah
4
12,000,000
Unair
10
60,000,000
Unesa
24
144,000,000
13
Surabaya
IAIN
6
36,000,000
UHT
20
120,000,000
ITS
2
12,000,000
UPN Veteran
2
12,000,000
Ubhara
2
12,000,000
Universitas Petra
5
9,000,000
14
Cilegon
Universitas Serang Raya
2
6,000,000
15
Bandung
Universitas Ikopin
10
24,300,000
16
Malang
State University
24
72,000,000
Total
290
1,245,300,000
In addition, Bank BTN has also organized several MSME training for non-bank customers so
that micro, small, and medium entrepreneurs can develop their businesses. In implementing
this program, Bank BTN has collaborated with other agencies such as the Indonesian Young
Entrepreneurs Association (Himpunan Pengusaha Muda Indonesia, HIPMI) and Our Yogyakarta
Foundation (Yayasan Yogyakarta Kita). Total cost for this training program amounted to
Rp624,575 million.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
31
The following table shows the training types and the allocation of funds for each training activity.
Allocation of Funds for Training
No
Region
1
Yogyakarta
Training on mushroom producing
Activity
Amount (in Rupiah)
2
Semarang
Training on catfish farming
20,250,000
3
Yogyakarta
Training on MSME’s management and infrastructure
24,600,000
4
Tasikmalaya
Training for MSME and Cooperatives
40,000,000
5
Karawang
HR empowerment and economic enhancement
45,000,000
6
Surabaya
Training and education infrastructure
50,000,000
7
Semarang
MSME Trainig with HIPMI
53,500,000
8
Harmoni
MSME Training with PP Muhammadiyah
61,050,000
9
Bogor
Training on MSME and Islamic Benefaction
96,975,000
10
Mataram
Training on compost and biogas making
100,000,000
11
Harmoni
MSME Training with MUI
126,000,000
Total
624,575,000
7.200.000
Other Social Aid
In addition, throughout 2012, Bank BTN also provided other aid for post-natural disaster recovery
in Kintamani, Bangli, Bali, Padang, Ambon, Bandung and Banjarmasin and the development of
public facilities and infrastructure as well as worship facilities.
Cost Allocation 2012
The following are details of the allocation of program funds for community development and
economic empowerment for the year 2012.
No
Field
Total Aid (Rp)
1
Aid to victims of natural disasters
796,200,000
2
Education and training assistance
6,090,435,364
3
Health improvement aid
2,034,065,300
4
Aid for development of infrastructure and public facilities
5,093,970,000
5
Aid to places of worship
2,225,421,344
6
Conservation aid
1,094,800,000
Total
17,334,892,008
Contribution to Nation
As evidence of our commitment to contribute to the country, Bank BTN has always returned added
value to the government through taxes and dividends. In 2012, Bank BTN paid taxes amounting to
Rp991.17 billion 4% higher than the total taxes paid in 2011. Meanwhile, dividend for the government
for the year 2012 amounted to Rp223.73 billion, which is calculated based on the achievement of
financial performance for the year 2011 with a payout ratio of 20%.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
32
Total taxes paid by Bank BTN during the last three years can be seen in the following table:
Types of Taxes
Total Taxes in million Rupiah
2012
2011
PPh Article 21
120,216
129,476
74,564
PPh Article 22
*
*
1,798
PPh Article 23
PPh Article 25/29
PPh Article 26
PPh Article 4 (2) Final
PPN
2010
16,706
13,533
11,339
392,729
392,836
279,089
13,084
8,715
3,683
441,653
406,900
296,693
1,717
1,786
4,750
PBB
5,067
1,838
1,575
Total
991,172
955,083
770,861
* As of 31 August 2010, it was no longer mandatory for Bank BTN to collect Income Tax Article 22 (PPh Pasal 22).
Meanwhile, total dividends paid out by Bank BTN during the last 4 years (2009-2012) to the
government (cash and stock) were as follows:
Year
Total Dividend
(in million Rupiah)
2009 (for 2008’s dividend)
43,047
2010 (for 2009’s dividend)
131,530
2011 (for 2010’s dividend)
274,781
2012 (for 2011’s dividend)
223,732
Total
673,090
We realize that the gains and achievements we have made involved contributions from government
and society. Therefore, giving back to the country is a task that we must carry out as well
as possible.
Growing Together With Business Partners and Suppliers
Bank BTN’s commitment in the housing finance sector is reflected from the harmonious
relationships with strategic partners and/or suppliers such as developers and contractors. Such
cooperation should be mutually supportive and provide value-added services. In this cooperation,
Bank BTN upholds the principles of professionalism, transparency and fairness.
To be a strategic partner of Bank BTN in both individual housing loans and residential construction
loans, Bank BTN has implemented several parallel guidelines for all parties. With these guiding
principles, it is expected that the existing cooperation between Bank BTN and the developers can
be mutually beneficial and provides equal opportunity to every party.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
33
So is also the case with suppliers, potential suppliers should follow the bidding mechanisms that
conducted transparently. The bidding mechanism will be done by opening the offer, considering
every offer that comes in, and evaluate them in order to get a strategic partner in conducting
cooperation. By upholding transparency, the bidding is evidence of no corruption, collusion and
nepotism in regards to cooperation with business partners.
In business cooperation, Bank BTN will first consider the type of business partners and suppliers,
supplier experience from the first operation, and the advantages of engaging with the supplier
compared to the competitors. Above all, robust capabilities are not sufficient without a commitment
to uphold the values ​​of good reference and business ethics.
Good cooperation is inseparable from the anticipation of emerging risks. Bank BTN will notice the
number of employees owned by suppliers to calculate the risks involved with the capabilities of
the workforce. Labor is workforce bound permanently, subcontractors, or part-time employment.
Associated with compliance to applicable laws, Bank BTN also considers other things, such as the
application of the provisions of the Labor Law.
Bank BTN will pay attention to the existence of child labor, compensation in the form of wages,
working hours, the availability of health and safety care, conditions of discrimination and diversity,
as well as concern for the environment.
Moving Forward
There are many further steps to take by Bank BTN to maintain sustainability and harmony with
society and the environment. These include plans for corporate governance, social responsibility,
human resource development, and lending to communities and developers.
Based on the corporate governance roadmap, the year 2013 is time for Bank BTN to harvest the
results of GCG implementation stage of 2012. Therefore, the next task for Bank BTN is to monitor
and strengthen the implementation of GCG in accordance with the applicable standards. If good
corporate governance is well maintained, Bank BTN will go through a smooth path to reach the
goal of becoming a world-class bank in 2025.
In addition, Bank BTN will continue to develop its community development programs to create an
environment that is always comfortable for living, and improve its housing finance services for the
public so that they can have a decent place to live in.
Bank BTN also intends to increase employee engagement with Bank BTN so that the Bank and
employees can develop a unified common interest. Appreciation and fair opportunity for all parties
will be enhanced by strengthening the existing system.
Furthermore, Bank BTN expects to expand larger by continuing to contribute to the environment
as well as to sustain its business.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
34
Improved Customer Products and Services
More than just a normal housing finance …
Bank BTN does not only provide housing finance, but also supports developers to build decent
housing for the community.
Bank BTN has even contributed to the international community. In 2012, Bank BTN was made
benchmark by the Tanzania Postal Bank and they obtained a lot of benefits and inspirations from
Bank BTN.
Since 1974, the government has entrusted Bank BTN to disburse housing loans for the people.
We continuously deliver our best efforts in assisting Indonesian families to have their dream home
with affordable price, especially for the lower middle class society.
As of 31 December 2012, the total conventional loans of Bank BTN reached Rp75.41 trillion,
increased from Rp58.53 trillion as of 31 December 2011. Meanwhile, the total Sharia financing in
2012 received an amount of Rp6.00 trillion, significantly increased from the total of Rp4.23 trillion
in 2011. From these loans position, the total of housing loans reached Rp70.22 trillion and the
total of non-housing loans reached Rp11.19 trillion. Loans composition disbursed by Bank BTN
comprises of 86% housing loans and 14% non-housing loans.
The composition also shows that Bank BTN’s commitment to develop non-housing finance is no
less important than housing finance. Bank BTN realizes that the service needed by Indonesian
families is not only to have a home, but also the need to have a shelter, where they can live with
dignity. Based on this understanding, Bank BTN intends to develop a non-housing loan portfolio
while maintaining focus on housing loans as Bank BTN’s core business for over 3 decades.
Here is a table comparing the amount of housing loans disbursed by Bank BTN for the last 3 years.
December 2009
December 2010
December 2011
December 2012
Rp billion
Rp billion
Rp billion
Rp billion
Subsidized Mortgages
19,088
21,945
25,804
25,562
Non-Subsidized Mortgages
Loan Type
12,482
15,635
18,611
29,129
Other Housing
2,783
3,611
4,199
6,070
Non-Housing Loans
3,792
5,519
7,191
9,462
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
35
Since the beginning, Bank BTN has consistently demonstrated its commitment to helping people,
especially the middle to lower class to meet their needs for decent housing. Through KPR BTN
Sejahtera FLPP, Bank BTN implements the government subsidy program to provide financing for
home ownership with the Housing Finance Liquidity Facility to the whole people of Indonesia with
low interest rates, low installments to remain throughout the loan period.
Bank BTN grants the FLPP with two products, namely KPR BTN Sejahtera Tapak (for landed
house purchases) and KPR BTN Sejahtera Susun (for purchase of apartments). These products
are intended for Low-Income Communities (MBR) that meet the criteria, as follows: (1) For the
purchase of the first house (never had a home); (2) Had never received a subsidy; (3) Has a tax ID
and SPT/Income Statement; and (4) Has a maximum principal income of Rp3.5 million/month for
KPR BTN Sejahtera Tapak and Rp5.5 million per month for KPR BTN Sejahtera Susun.
Throughout 2012, Bank BTN managed to grant subsidized housing loans amounting to Rp3.99
trillion, or as many as 63,167 housing units through Conventional Banks and Rp223.92 billion, or
as many as 3,289 housing
​​
units through the Sharia Business Unit. Thus, overall, as can be seen
through the illustration, Bank BTN granted 98% (92% from BTN Conventional and 6% from Sharia
Business Unit). The success of Bank BTN in granting subsidized housing loans has shown Bank
BTN’s commitment in strengthening the contribution of the Bank to finance housing for the lower
middle communities.
Here is an illustration diagram showing the granting of subsidized housing loans within the last
5 years.
New Realization Progress for Subsidized Mortgage
(in billion Rupiah)
6,000
Position Progress for Subsidized Mortgage
(in billion Rupiah)
30,000
5,576
5,000
5,896
25,000
5,107
25,804
4,727
4,000
4,213
3,845
20,000
25,562
21,945
19,088
3,000
15,000
14,744
2,000
10,000
1,000
5,000
0
2007 2008 2009 2010 2011 2012
0
10,978
2007 2008 2009 2010 2011 2012
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
36
Strengthening Other Assistance
Bank BTN’s commitment to strengthen housing finance for the lower middle income class does
not make us forget the service for middle-class customers. Bank BTN is still faithfully serving
middle-class customers by offering the following products:
KPR BTN Platinum
KPR BTN Platinum is a housing loan from Bank BTN for both home purchases from developers or
non-developers, both for purchase of new or used houses, buying a house still under construction
(indent) and taking over credit from another bank. Advantages of KPR BTN Platinumare
competitive interest rate, the process is quick and easy, very flexible term, credit life insurance,
fire insurance, and earthquake insurance, and extensive cooperation networkwith developers
throughout Indonesia. Bank BTN provides financing up to 80% of the lowest selling price of the
house after discounts withthe fair market price, based on bank appraisal for houses with a land
area of more than 70m2 or 70% for the building in a land area less than 70m2. The interest rate is
floating interest ratewith maximum loan tenor of 25 years. This loan is also secured by the house
and land financed. Throughout 2012, Bank BTN distributed 75,922 KPR BTN Platinum units with a
value of Rp11.00 trillion.
KPA BTN (Kredit Pemilikan Apartemen or Apartment Loans)
KPA BTN is an apartment loan for the purpose of purchasing an apartment, either for the purchase
of new or used apartments, buying unfinished apartments (indent) and taking over loans from
other banks. Advantages of KPA BTN are competitive interest rate, the process is quick and easy,
very flexible term, credit life insurance, fire insurance, and earthquakes, and extensive cooperation
network with developers in major cities in Indonesia, along with very attractive promotional
programs. Maximum financing of KPA BTN is up to 80% of the lowest selling price after discounts
with fair market price based on Bank appraisal for the building with an area of more than 70m2 or
70% for the building with an area of less than 70m2. The interest rate is the floating interest rate
with a maximum term of 15 years. Throughout 2012, Bank BTN has channeled KPA BTN as much
as 1,763 units with a value of Rp363.18 billion.
KP Ruko BTN
Kredit Ruko BTN is a home store/home office/kiosk loan that can be occupied or used as a place of
business. Advantages of this service are competitive interest rate, the process is quick and easy,
very flexible term, credit life insurance, fire insurance and earthquake insurance (in some areas).
Through the Kredit Ruko BTN, Bank BTN grants loans to buy a home store (shop) that can function
as a shop, office, or other business purposes. Loans are available up to 70% of the purchase price
or the market value, whichever is lower. Home store loan is generally for a maximum term of 15
years secured by the shop being financed at floating interest rate. Throughout 2012, Bank BTN
channeled as much as 738 units with a value of Rp222.44 billion.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
37
In addition, Bank BTN also keeps granting other consumer loans through the following products:
BTN Home Loan Collateral (KAR BTN)
KAR BTN is a loan facility from Bank BTN that can be used for a variety of consumer needs by taking
as collateral residential/apartment/home office/home store owned by customers. Advantages of
KAR BTN are competitive interest rate, free loan amount, very flexible term of up to 10 years as
well as credit life insurance and fire insurance protection.
This facility is used to fund a variety of purposes as long as not conflicting with the law. With this
product, customers submit collateral such as land and building. Loan is granted for a maximum of
75% of the transaction value according to the Bank if the loan collateral is in the form of residential
house. If the loan is secured by an apartment/home store/condominium/flat/home office, the
amount of loan granted shall not exceed 60% of the transaction value according to the Bank. This
loan has a maximum tenor of 10 years with floating interest rate.
BTN Building House Loan (Kredit Bangun Rumah, KBR)
KBR BTN is a loan granted for building a house to an individual customer who has land or a plot
of land. Maximum financing is 70% of the Budget Plan (RAB) to build the house according to the
Bank. Loan period is up to 10 years with floating interest rate.
PUM-KB BTN Jamsostek
For customers who have participated in the Social Security (Jamsostek) and are experiencing
financial hardship to pay advance payment for buying a house by way of a Housing Loan, PUMPKAB BTN Jamsostek is the solution. The loan is granted by PT. Jamsostek (Persero) through Bank
BTN to its members who qualify PUMP-KB requirements, for the purpose of paying down payment
for the purchase of a house. Advantages of PUMP-KB BTN Jamsostek BTN are the flexible period
PUMP-KB up to 15 years and not exceeding the housing loan period, interest rate of 6% with a
maximum loan amount requirements, as follows:
• Wages ≤ Rp5 million: MK Rp20 million
• Wages ≥ Rp5 million ≤ Rp10 million: MK Rp30 million
• Wages ≥ Rp10 million: MK Rp50 million
PUMP-KAB Jamsostek BTN is granted in conjunction with the granting of BTN Housing Loan.
PRR-KB BTN Jamsostek
For customers who are Jamsostek members and are experiencing financial hardship to develop or
renovate homes in conjunction with the Kredit Agunan Rumah (KAR), PRR-KB BTN Jamsostek is
the solution. The loans are granted by PT. Jamsostek (Persero) through Bank BTN to its members
who qualify the requirements of PRRKB, with the aim to develop/renovate houses, where the loans
are submitted, approved, and pari passu secured by KAR. Advantages of PRR-KB BTN Jamsostek
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
38
are flexible term up to 10 years and not exceeding the KAR period, interest rate of 6%, maximum
loan up to Rp30 million and not exceeding 50% of total loans (Kredit Agunan Rumah BTN plus
PRR-KB Jamsostek).
TBUM BTN Bapertarum
For Civil Servant (PNS) customers who are experiencing financial difficulties for advance payment
to buy a house by way of housing loan, the Additional Advance Payment Assistance (TBUM
Bapertarum) is the solution. This product is a product for partial down payment financing of
housing loans, consisting of aid that does not have to be returned again and aid to be returned,
that are distributed to civil servants who meet the requirements and is intended for group I, group
II and group III, with funding coming from Taperum-PNS dues. Loans are granted by Bapertarum
to through Bank BTN tomembers of the civil servants who qualify Bapertarum TBUM, for the
purpose of buying home down payment. Advantages of TBUM-BTN Bapertarum are flexible term
up to 15 years and not exceeding the housing loan term, 6% interest rate, with maximum credit
terms as follows:
• Category I
• Category II
• Category III
: Rp13.2 million
: Rp13.5 million
: Rp13.8 million
Kring BTN
Kredit Ringan BTN (Kring BTN) is a loan with light installments to employees of companies/
institutions without any collateral, simply by submitting the customer employee’s SK. Advantages
of Kring BTN are cash up to Rp100 million, competitive interest with fixed rate, quick and easy
process, without collateral, flexible period up to 5 years, credit life insurance protection and also
lighter installments if payroll of clients utilizes the BTN Payroll facility.
Kring BTN Pensiunan
In addition to Kring BTN, Bank BTN also provides services that cater to the needs of retirees with
a maximum loan amount of Rp100 million. Maximum term is up to 7 years with a fixed interest
rate system.
Kredit Swadana BTN
Kredit Swadana BTN is a loan facility granted to customers with collateral in the form of savings
and time deposits placed at Bank BTN with maximum loan of 90% of the funds deposited at Bank
BTN. Advantages are competitive interest rate, quick and easy process, very flexible term of up to
1 year and can be extended.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
39
Support for Developers
Bank BTN does not only provide housing finance, but also supports developers to build decent
housing for the community. Bank BTN also provides loan facilities to the developers. We recognize
the importance of the role of developers in providing the best housing facilities for our customers.
Therefore, we continue to maintain and improve our products for the developers. The assistance
for developers is routed through BTN Construction Loans which have achieved growth of as much
as 48.37% to Rp8.07 trillion in 2012 from Rp5.44 trillion in 2011.
Growth of New BTN Construction Loans Granted
2010 - 2012 (in billion Rupiah)
2010
2011
2012
4,904
5,441
8,072
These loans serve as working capital to finance the construction of houses and apartments.
For these loans, Bank BTN grants facilities at a maximum of 80% of the cost of development or
construction at floating interest rate.
To improve its Construction Loan portfolio, Bank BTN always strives to construct appropriate
marketing activities. Bank BTN also maintains good relationships with major developers,
including PT Summarecon Agung Tbk, PT Agung Podomoro Land Tbk, PT Agung Sedayu and PT.
Modernland Realty Tbk. In addition, Bank BTN also provides housing loan support services such
as working capital loans for contractors, investment loans, and working capital loans to MSME
and corporations. All these products support the developers in providing decent housing for the
community. Together with the developers, Bank BTN strives to provide the best housing services
for all segments of society in Indonesia.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
40
Involvement in International Projects
As a commitment of Bank BTN to play a role in the financing industry in and outside the country,
Bank BTN is collaborating with the World Savings Bank Institute (WSBI) in the BTN Meticulously
Savings program. This program has been organized as part of the WSBI project to increase total
savings from less able communities. This project is supported by funding from the Bill & Melinda
Gates Foundation and Bank BTN is one out of 10 banks around the world to receive this funding.
The pilot project for this program has been held in Central Java. The features provided by BTN
Meticulous Savings are attractively designed and not difficult for people who are not familiar with
Bank transactions. The transactions for the program are conducted online in the post offices
collaborating with Bank BTN.
Accountability to Customers
Bank BTN always strives to provide added value in housing finance services, not only with the best
products, but also with services that are consistent, reliable, thorough, and attentive to the needs
of customers as well as a form of Bank BTN in fulfilling its responsibilities to customers.
Bank BTN Policy
One of the pillars of the Indonesian Banking Architecture (API) as announced by Bank Indonesia
which must be implemented by national banks is to realize the empowerment and protection of
consumers to banking services through the establishment of a standard preparation of customer
complaints mechanism, the establishment of an independent mediation organization, increasing
transparency of information on banking products, and socialization to customers. Through these
various programs, it is expected to increase customer confidence in the national banking system.
Bank BTN is always striving to make the API programs successful to provide added value in housing
finance services, not only with the best products, but also services that are consistent, reliable,
thorough, and attentive to the needs of customers as well as a manifestation of the fulfillment of
responsibilities by Bank BTN to customers.
Bank BTN customers can voice their opinions about the services of the Bank through the Branches,
Headquarters Division, Contact Center, as well as print and electronic media. Bank BTN has been
pursuing various policies, among others as follows:
• Develop a Customer Complaints System (NES) which can monitor solution of complaints as
a whole. SPN is a web-based system to facilitate the monitoring of the status of complaint
solutions while providing certainty for consumers about the length of time required by the Bank
to resolve complaints. By using the online and integrated system, customers can also submit
complaints and check the status of their complaints at Branch Offices anywhere in Indonesia.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
41
With online and web-based as well as integrated SPN, the complaint handling mechanism is
also more structured and carefully monitored. The customer complaint handling mechanism
can be seen in the chart illustrated below:
Supervision of Customer Handling
Report
(User Analyst)
Coordination Between
Divisions for Customer
Report Completion
(Group Support)
Customer Report
Receiver (end user)
Acceptance of notification of
report from the customer
Acceptance of notification of
report from the customer
Customer Report Inquiry
to the SPN
Review the details of
customer report to the SPN
Review the details of
customer report to the SPN
Recorded in SPN
Is it necessary to be escalated
to supporting groups?
Escalate the customer
report completion process
Delivery of report progress
to the customer
Escalate the customer report
completion process
Customer Complaints Receiver
(End User)
Yes
Data Entry on customer report to
the SPN
Delivery of registration
number to the customer
Delivery of report completion
result to the customer
No
No
Yes
Data entry for the report
completion result to the SPN
Coordinate the report
completion process
Data entry for the report
completion result
Close the report process
• Create and implement systems and procedures to ensure that the Bank has established
transparent product information in accordance with Bank Indonesia regulations on
Transparency of Bank Product Information and the Use of Customer Personal Data, such as:
»» Provide written information in the Indonesian language completely and clearly about the
characteristics of each bank product.
»» Information is delivered to Customers in writing and or orally.
»» In providing information, the Bank does not provide misleading (mislead) and or unethical
(misconduct) information.
»» The information about the characteristics of Bank Products includes:
-- Product name
-- Type of product
-- Benefits and risks inherent in the products
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
42
•
•
•
•
•
-- Requirements and procedures for using Bank Products
-- The costs inherent in products
-- Calculation of interest or profit sharing and profit margin
-- Validity of products
-- Publishers (issuers/originators) of bank products
In connection with bank products and raising funds, the Bank provides information regarding
the product guarantee program.
The Bank notifies the Customers of any changes, additions, and or reduction to the
characteristics of bank products.
The Bank includes information on bank product characteristics with location and or form
clearly shown and or legible and or easily understandable.
The Bank provides bank product characteristics information service that can be obtained easily
by the public.
Information about bank products has been published through the Bank’s homepage which can
be easily accessed by the public.
Furthermore, we also confirm that the use of customers’ personal data has been managed in
accordance with the provisions as follows:
• The Bank has requested written approval from the Customers that the Bank will not provide,
and/or distribute Customer Personal Data to other parties for commercial purposes, unless
otherwise stipulated by other laws and regulations in force.
• In the approval requests the Bank first of all explained the purpose and consequences of
granting and or dissemination of Customer Personal Data to other parties.
• Approval requests may be made by the Bank before or after Customers conducted transactions
relating to bank products.
• Customer approval to the request is made ​​by the Customer signing on a form specially designed
for the purpose.
• If the Bank uses the personal data of a person and/or a group of people who gained from
Another Party for commercial purposes, the Bank shall have a written assurance from
the Other Party which contains the written consent of the person or the group of people to
disseminate the personal data.
• Create and implement systems and procedures to ensure that the Bank has made transparent
the procedures for customer complaints and resolving disputes for the customers according
to Bank Indonesia regulation on Customer Complaints and Banking Mediation, among
others through:
»» The Customer Complaint Service Unit, both at the branch office and at the Head Office
(Division of Policy and Business Development) to handle customer complaints.
»» The Bank has policies and procedures for resolving customer complaints in accordance
with the provisions.
»» The Bank has made transparent the procedures for customer complaints and dispute
resolution delivered to the customers verbally, through direct mail (via mail), by mail via the
Branch Office, by phone, via the internet, and through the mass media.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
43
2012 Activities
During 2012, Bank BTN resolved 2,883 complaints and there are still 756 complaints remaining
unresolved. Complaints still being resolved consist mainly of complaints related to:
• Land certificates
• Inter-bank ATM transactions
• Loan process
Here is a graphic illustration showing the comparison of the total number of complaints by quarter
which occurred in 2012.
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Quarter 1
Quarter 2
Quarter 3
Quarter 4
5,383
2,824
2,791
2,883
In addition to the various matters above, Bank BTN always serves customers emphasizing on
quality of service both in the quality of products offered, the facilities provided for customer
satisfaction, and even the physical feasibility of our service centers. The following are programs
conducted by Bank BTN to improve quality of service in 2012:
• Opening new Sub-branch Offices and Cash Offices and the addition of new ATMs
across Indonesia.
• Distribution of Old-Age Savings, Multipurpose Old-Age Savings and PT Taspen Retirement
payments as well as gas bill payments for PGN household subscribers.
• Improved product features with promotions that benefit customers.
• Training to improve services for the ranks of frontliners (Tellers and Customer Service) at
branch offices on an ongoing basis.
• Improving the quality of information technology systems.
• Implementation of building physical standards and quality service of Bank employees.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
44
Other Matters for Our Customers
As a token of appreciation of Bank BTN to customer loyalty, in 2012 Bank BTN held a number of
programs that offered attractive prizes, including the Homebastis 2012 Raffle Program. In this
activity, Bank BTN prepared savings gifts totaled Rp16.8 billion under the name of Home Bastis
BTN Regular Raffle.
This program is an appreciation for loyal Bank BTN savers. The program as currently practiced
by Bank BTN was initiated in 2003. Each raffle stage will be conducted for the Regular I, Regular
II, Regular III as well as the Grand Prize. The Regular I raffle drawing was conducted in
​​ October
2012. The Regular II raffle drawing will be conducted in January 2013. While Regular III drawing
and simultaneously the Grand Prize will be conducted in April 2013. At the Grand Prize raffle will
be drawn 5 houses each worth Rp1.5 billion as grand prize gift located in the Jabotabek area.
While at the regular raffle is drawn savings prizes each worth Rp25 million for 99 winners, each
worth Rp10 million for 333 winners and for 555 winners each worth Rp5 million. Awarding the main
prize in the form of a house is the manifestation of Bank BTN’s core business in the field of housing
finance. The house is also an asset with a value that continues to grow. The raffle participants are
savings customers of Tabungan BTN Batara and Tabungan BTN Prima.
Financial Impact on Customer Service
In 2012, total funds spent by Bank BTN to improve services in response to customer needs can be
seen in the following table:
No
Activities
1
Frontliner Customer Care Training
2
Arrangement of Blue Print Service Quality
3
Mistery Shoping Survey for Service Quality by Consultant
Bank BTN | Sustainability Report 2012
Total Cost
(Million Rupiah)
1,200
250
6,447
Dedicated to Sustainable Growth
45
Human Capital and Industrial Relationship of Development
Bank BTN guarantees the rights and obligations and equal opportunities to all employees
regardless of race, religion, race, class, gender, and physical condition. Bank BTN also has a
strong commitment to maintaining a good working environment for the creation of a healthy, safe,
and convenient working atmosphere.
In 2012, the turnover rate of Bank BTN was only 1.13% per year, or very low. This is consistent with
the results of a survey conducted by Louis Allen showing Bank BTN’s Employee Engagement Index
(EEI) earning a score of 4.20% which suggests Bank BTN efforts in maintaining a good working
environment for the creation of an atmosphere conducive to fruition. Bank BTN employees are
willing to work hard and striving to exceed expectations to build a career in Bank BTN.
Bank BTN Policy
For Bank BTN, labor is one major key to the business success of the Bank. We believe that what we
have achieved now we would never get without the cooperation and hard work of our employees.
Therefore, we always strive to develop the skills of employees and to provide a fair appreciation
in accordance with their performance so far. We want to develop the potential of every employee
optimally so that they can actively contribute to the sustainability of the Bank. We also try to make
Bank BTN the best workplace for its employees.
Bank BTN is managing all employee affairs starting from planning all stages of employment
development or ranging from recruitment, employee selection, talent mapping, career development,
and succession to the retirement of employees from Bank BTN. Bank BTN is using the Integrated
Human Capital Management as a guide to managing human resources in Bank BTN as can be
seen through the illustrations of Integrated Human Capital Management below.
We can state that in general, the whole policy of the Bank in the human capital management area
is divided into 6 (six) sections as follows:
1. Organization Development Policy
This contains the Bank’s policies and procedures in the preparation and development
capabilities and infrastructure of the organization in the field of human resource development.
2. Human Capital Acquisition Policy
This contains the Bank’s policies and procedures regarding the search, selection and placement
of employees at vacant positions, both from within and outside the Bank, to ensure placing the
right people in the right position (the right man on the right position).
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
46
Human Capital Management System Implementation
Organization
Development
Human Capital
Acquistion
Human Capital
Development
Human Capital
Engagement
Human Capital
Reward
Vision Mission
Employee Needs
Planning & Standards
Formation
Learning &
Development
A Staff
Committee
Cash
Remuneration
Cultural
Induction
Procurement
Employees
Education
Talent
Management
Remuneration
Non-Cash
Organization
Structure
Employee Selection
Performance
Management
System
Occupational
Positions and
Ranks
Appointment &
Staffing
Industrial
Relations
Job Description and
Job Specification
Principles
Employees
Employee
Relations
Human Capital Information System
Family Title
Competency
Requirements
Administration
Officer
Personel Data
Parent
3. Human Capital Development Policy
This contains the Bank’s policies and procedures on development and learning aspects of
employees to improve their competence so that all employees can perform their job well.
The policies and procedures in this section govern the way of the development and learning
process, both formal and informal.
4. Human Capital Engagement Policy
This contains the Bank’s policies and procedures to enhance the commitment and motivation
of employees in working through the procedures of performance and career management,
creation of harmonious employment relationship between the Bank and the employees as well
as inter-employee relations.
5. Human Capital Reward Policy
This contains the Bank’s policies and procedures to enhance the commitment and motivation
of employees in working through the procedures of granting rewards to employees, both in the
form of cash and non-cash.
6. Human Capital Information System Policy
This includes the Bank’s policies and procedures regarding personnel administrative
procedures associated with the position and the job of employees, as well as Human Capital
database and information.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
47
Employee Recruitment and Selection
Changes in the external environment and within the organization led to the changing needs for
the amount and quality of human capital. Recruitment of employees is the first step to meet those
needs. Therefore, we need specific procedures to ensure that we can attract potential talents to
join our team and contribute to the growth of the Bank.
The principles we use to hire employees are as follows:
• Meeting the needs of employees based on Workload Analysis.
• Employee recruitment is done if analysis results showed the difference (minus) between
the calculation of the Workload Analysis and the number of Employees who currently serve
on the unit.
• Employee recruitment can also be done if there are vacant positions that should be
filled immediately.
• Employee recruitment focuses on internal recruitment (promotion and rotation) with
possibility to conduct external recruitment when recruiting internally was assessed insufficient
or inadequate.
• The following are types of recruitment conducted by Bank BTN:
• Internal Recruitment: Bank to recruit employees who have been there to meet particular
positions. Internal recruitment can be done in several ways as follows:
»» Promotion
»» Mutation of employees to a higher level either in one division or to different divisions.
»» Rotation
»» Mutation of employees to the same level of position both in one division and to
different divisions.
• The Bank recruits candidates from outside the Bank to fill particular vacant positions. External
recruitment can take the form of direct hire of fresh graduates, pro-hire for experienced
employees, and labor outsourcing. In order to meet the selection principles of Bank BTN
employees, applicants must submit an official application letter accompanied with an
attachment that has been established by the Bank. The selection process is conducted by the
HCD with the possibility by the branch office. The selection process must be approved by the
Director of Human Capital Division.
The common methods used in the selection of employees are among others:
»» Administrative selection
»» Check references
»» Tests of academic potential
»» Interview
»» Assessment
»» Health test
»» Training program
Not all of the above methods are carried out in the selection process, but tailored based on the
purpose and positions that will be addressed.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
48
Talent Mapping
Good management and staffing is the key to the Bank’s performance success. Talent mapping is
the method used by Bank BTN to manage and place employees in the right position. This method
measures the potential, competence and performance of employees. With this method, we evaluate
employees based on performance and potential. Their potential aspects including cognitive and
personality, behavioral competencies, technical competencies, last education level and working
experience. The assessment results will then be entered into the 9 boxes of the matrix so that the
level of performance and potential of each individual employee can be obtained as described in the
illustration below.
Potential
Low
Medium
High
Need To Develop:
Performance
High
(3000-3700)
- Coaching &
Concelling
- Repositioning
7.
Potential
8.
Star Employee
9.
Fast Track
(< 2 yr)
4.
Average
5.
Potential
6.
Middle Track
(2 – 3 yr)
3.
Normal Track
(> 3 yr)
- On The Job Dev.
Slow Starter:
Medium
(2351-2999)
- Training
- Study Literature
- Mentoring
Slow Starter:
Low
(1000-2350)
Unit
1.
- Training
- Study Literature
- Mentoring
Need To Develop:
2.
- Coaching & Concelling
- Repositioning
- On The Job Dev.
Based on the talent mapping in the 9 boxes, each employee is grouped according to 9 types of
groups. Group 1 is the group that is considered low-performing and low-potential (unfit) while group
9 is the group that is considered the most high-performing and high-potential (star employee). The
group with the best performance and potential gets the opportunity to ascend to a higher career
level. Meanwhile, the group with the lowest-performing and lowest-potential may be evaluated,
with the possibility of receiving several sanctions, including moved to a lower position.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
49
Career and Success
With a clear performance measurement system, we can assess potential employees to be
developed to a higher career level. Bank BTN provides this opportunity through rotation and
promotion. Rotation and promotion is only reserved for employees who are included in group 9
(star employees), 8 and 6 (potentials), and 5 (average) in the talent mapping. Normally, employees
can be promoted within a period of more than 3 years. However, if the employee is a potential and
performing well, promotion can be granted within 1-2 years only.
Meanwhile, for certain positions that are considered important, Bank BTN has formulated a
specific succession system. A candidate is nominated successor to fill a position by the superior
who held that office and proposed by the personnel division committee concerned. Succession
is only for employees included in group 9 (star employees) in the talent mapping. The candidate
who is nominated must also not engage in certain cases of misconduct. Then, the successor will
be trained by the mentor and will be prepared for filling the position within a period of four years
or more. If the successor is completely ready, he/she can succeed the position in 1-2 years only.
Labor, Health, and Safety
The management of stakeholders, particularly employees, is directed to the advancement of
the Bank’s business with respect to the Bank’s social responsibility related to labor, health and
safety, and equal employment opportunities regardless of gender and racial differences, and focus
on scale of priorities and mutual respect in order to reach balance and harmony. In an effort
to guarantee labor rights in terms of basic protection against occupational accidents, death and
health, as well as to comply with the Government policy that requires employers to include all of its
workforce in the Social Security (Jamsostek) program, Bank BTN provides Social Security benefits
as part of the benefit allowance for employees. Social Security (Jamsostek) benefits are given to
employees so that they can work in peace and comfort.
Social Security (Jamsostek) benefits provided by Bank BTN are as follows:
• Workers Social Security (Jamsostek): Protection for workers in the form of compensation in
cash as a partial replacement of income lost or reduced and services as a result of events
or circumstances such as occupational accidents, illness, pregnancy, maternity, old age,
and death.
• Occupational Accident Benefits: Protection program aimed at tackling the loss of some or all
income resulting from social risks such as death or disability due to occupational accidents
both physically and mentally.
• Old Age Benefits: Protection program paid at the time a worker reaches the age of 55 years or
has met certain requirements.
• Death Benefits: Protection program addressed to the heirs of the Social Security (Jamsostek)
program participants who died not because of occupational accidents as an effort to alleviate
the burden of the family in the form of funeral expenses as well as compensation in the form
of money.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
50
In addition, Bank BTN provides various health benefits for the purposes of treatment and health
recovery. All employees are eligible for treatment assistance regardless of ethnicity, religion, race,
class, gender, or physical condition as part of the Benefit Allowance in order to improve the quality
of working optimally to better support the operational activities of the Bank. The goal is to ease the
burden of the relevant employee if he/she or his/her family had to undergo medical care/treatment.
The following is health aid given to permanent employees of Bank BTN:
•
•
•
•
•
•
•
Medical treatment abroad
Hospitalization, including for long periods of time
Outpatient
Traffic accidents
Illnesses on business or educational trips
Glasses
Periodic health examination which includes General Medical Check-Up dan Medical Check-Up
Appreciation towards Employees
In practice, Bank BTN does not only provide career development opportunities to employees.
Based on professionalism, we also give them proper appreciation in the form of salaries, position
benefits, workers social security, THR, leave allowances, bonuses, and so forth.
Linking Diagram for Human Capital Reward Policies in Bank BTN
Input
Appointment &
Staffing
Career Planning
Succession Planning
Performance
Management System
Expenditure and
Development
Education
HR Administration
Industrial Relations
Bank BTN | Sustainability Report 2012
Process
Cash Remuneration
Basic Salary
Leave Allowance
Holiday Allowance
Clothing Benefits
Output
Remuneration
Non-Cash
Share Ownership
Employee Loans
Holiday Allowance
Expertise Benefit
Clothing Representation
Benefit
Location Benefit
Medical Benefit
Incentives
Condolence Benefit
Production service and
additional bonus
Routine Medical
Check-Up
Overtime
Moving Facilities
Other cash
remuneration policy
which will identified in
accordance with the
bank’s needs
Insurance Benefit
Other cash remuneration
policy which will
identified in accordance
with the bank’s needs
Personel
Data Parent
Dedicated to Sustainable Growth
51
Highest and Lowest Salary Ratio
The highest and lowest salary ratio of Bank BTN employees in 2012 is as follows:
Highest and Lowest Salary Ratio in 2012
No
Description
Ratio
1
Highest and lowest salary of the employees
18 : 1
2
Highest and lowest salary of the BOD members
1:1
3
Highest and lowest salary of the BOC members
1:1
4
Highest salary of BOD members and Highest salary of employees
3:1
Training and Development
In 2012, Bank BTN conducted a series of training and development programs, which include:
•
•
•
•
•
Career education and training;
Technical education and training;
Business-related training;
Academic education;
Other staff development education and training.
The achievement of Bank BTN work program in 2011 in order to improve the competence of
its employees was better than the previous year. Employee productivity ratio in 2012 amounted
to Rp190 million per employee, higher than in 2011, which amounted to Rp176 million per
employee. This means an increase in employee productivity in contributing to the achievement of
corporate profits.
In 2012, total funds used for the training and development program amounted to Rp116, 709 billion.
There were no less than 467 types of activities conducted by Bank BTN for 19,919 employees
as participants.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
52
The achievement of human capital on asset growth and profit of Bank BTN during 2008 up to 2012
can be seen through the illustrations.
Total Number of
Employees
Asset Ratio/
Employee
(Rp billion)
Ratio Profit per
Employee
(Rp million)
Ratio Personnel
Costs Per
Employee
(million)
4,168
44,992
430
594
86.18
10.79
103.17
142.51
255
4,340
58,448
490
654
88.29
13.47
112.90
150.69
2010
4,231
1,081
5,312
68,385
916
762
82.39
12.87
172.25
143.45
2011
5,135
1,202
6,337
89,121
1,119
892
81.75
14.06
176.42
140.76
2012
6,048
1,094
7,142
111,749
1,364
1,010
80.74
15.65
190.98
141.42
Permanent
Employees
Ratio Assets Per Employee (Rp billion)
20.00
BOPO (%)
318
4,085
Human Capital
Cost (Rp billion)
3,850
2009
Profit
(Rp billion)
2008
Year
Employee
Candidate
Asset
(Rp trillion)
Employee Productivity
Total Employee
Financial Data
Ratio of Net Income Per Employee (Rp million)
200.00
190.98
15.65
15.00
13.47
10.00
176.42
2010
2011
150.00
14.06
12.87
10.79
100.00
5.00
0.00
172.25
103.17
112.90
5.00
2008
2009
2010
2011
2012
0.00
2008
BOPO (%)
2012
Ratio of Net Income Per Employee (Rp million)
150.69
150.00
88
2009
88.29
86.18
146.00
84
82.39
142.00
143.45
142.51
81.75
80
140.76
80.74
76
138.00
134.00
2008
2009
2010
Bank BTN | Sustainability Report 2012
2011
2012
141.42
2008
2009
2010
2011
2012
Dedicated to Sustainable Growth
53
Turnover Rate
During 2012, there were 81 employees who resigned. Based on this figure, Bank BTN’s turnover
rate is only 1.13% per year, or very low. The working environment that is conducive is the reason
for the very low turnover rate. In future, Bank BTN is committed to maintaining a good working
environment for the creation of a healthy, safe and comfortable working atmosphere.
Working Climate/Employee Engagement Survey
In 2012, the results of a survey conducted by Louis Allen shows Bank BTN’s Employee Engagement
Index (EEI) at a score of 4.20% with a scale as follows:
•
•
•
•
1-2
3 4 5 : Not Engaged,
: Neutral,
: Engaged, and
: Highly Engaged.
The survey results are consistent and/or in line with the turnover rate above as Bank BTN efforts
in maintaining a good working environment for the creation of a healthy, safe, and convenient
working atmosphere have borne fruit in the form of Bank BTN employees willing to work hard and
striving to exceed expectations to build a career in Bank BTN.
Similarity of Rights
As described above, Bank BTN provides equal rights and obligations and opportunities for all
employees in career development and for performing their duties in a professional manner without
distinction to ethnicity, religion, race, class, gender, and physical condition.
Creating a Favorable Work Environment
Bank BTN always implements measures to create a healthy, safe, and convenient working
environment. All our efforts in achieving these goals are always based on the corporate culture
that guides all employees of all levels of position to work in Bank BTN.
Corporate values ​​are incorporated in the POLA PRIMA which includes:
• Service Excellence: serve more than just what the customer expects. This applies to both
internal and external relations of Bank BTN.
• Innovation: constantly developing new ideas and refine sustainable programs that can
ultimately deliver added value for Bank BTN.
• Example: each employee must start from himself/herself to become role models in behavior
that reflect the work cultural values ​​of Bank BTN. This applies both to fellow colleagues in
Bank BTN and the parties involved.
• Professionalism: competent in their field and always eager to develop themselves. That way,
every human of Bank BTN can produce the best performance and provide added value for the
Company and all employees.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
54
• Integrity: encourage every human of Bank BTN to be consistent in thought, word, and
action, in accordance with the provisions of Bank BTN, code of ethics, and the principles of
commendable truth.
• Cooperation: always motivated to build an open and sincere relationship with fellow humans
of Bank BTN and other parties based on mutual trust and respect to achieve a common goal.
MSME Development & Partnership Programs
The empowerment of Micro, Small and Medium Enterprises (MSME) is a very important factor in the
economic development of Indonesia in order to realize a just and prosperous society. The existence
of dominant MSME as the national economic main actors is the subject of vital development for
the expansion of business opportunities for new entrepreneurs and to absorb labor as well as to
reduce unemployment (pro job). Therefore, the development approach to support MSME becomes
very important.
As a leading player in the housing finance in Indonesia, Bank BTN carries out its task to
provide complete financial solutions for all customers from all walks of life. In order to provide
comprehensive services to the community, Bank BTN is committed to helping grow and develop
micro, small, and medium enterprises (MSME), which are crucial for the business and economic
activities in Indonesia.
Bank BTN Policy
At Bank BTN, the loan disbursement products for SME consists of KUR; Micro, Small and Medium
Enterprises (MSME) Business Loans; and loans for Partnership Program. In disbursing these
loans, Bank BTN categorizes the micro customers as enterpreneurs with maximum business
asset of Rp50 million and maximum sales of Rp300 million per year.
For this segment, Bank BTN disburses BTN MSME Loans with maximum of Rp100 million. As
for the small business, the customers are enterpreneurs with maximum business asset of Rp500
million and maximum sales of Rp2.5 billion per year.
For this segment, Bank BTN disburses its loans with maximum of Rp500 million. Meanwhile, the
medium business customers are enterpreneurs with maximum business asset of Rp10 billion
and maximum sales of Rp50 billion per year. For this segment, Bank BTN disburses its loans with
maximum of Rp5 billion.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
55
Disbursement Activity for Business Loans (KUR)
KUR BTN is disbursed to micro, small, medium, and cooperation business through linkage
institutions. Bank BTN disburses its KUR as working capital with maximum tenure limit of three
years and can be extended to six years.
KUR for investment has tenure limit maximum of five years and can be extended to ten years.
As a collateral, this loans collaterates project or business funded in accordance with Bank
Indonesia’s regulations.
Bank BTN applies additional collateral with level of interest rate effective per year for its business
loans, with maximum of 22% per year for maximum of Rp20 million loans and 13% per year for
loans up to Rp500 million (retail KUR), and 13% per year for KUR Linkage (maximum of Rp2 billion).
Until 2012, the total of customers for KUR BTN (non-Sharia) amounted to 13,763 accounts. The
number grew by 56.31% from 2011 KUR customers of 8,805 accounts. Such increase reflected
on KUR disbursement, which continue to show an increase from, year to year. In 2011 Bank BTN
disbursed its KUR amounted to Rp912.6 billion, while in 2012 the figure increased by 35.44% to
Rp1.24 trillion, as being explained in the following table:
KUR Growth
Type of Loan
Realization 2011
(Rp billion)
Realization 2012
(Rp billion)
Growth (%)
KUR
913
1,236
35.44
BTN KUR Growth 2010-2012
Account
Loans
(Rp billion)
Account
2010
KUR
2,609
Loans
(Rp billion)
Account
912
7,932
2011
361
5,631
Loans
(Rp billion)
2012
1,236
Bank BTN’s KUR disbursement since 2008 to December 2012 has covered several economic
sectors. The biggest KUR disbursement for the last 5 years was directed to construction sector
(31.01%), wholesale and retail trading (26.76%), real estate, rental business, and corporate services
(10.16%), and the rest goes to other sectors (32.07%).
Meanwhile, the largest distribution by region of Bank BTN KUR was Java (66.80%), Sumatra
(13.67%), and Sulawesi (3.70%).
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
56
Bank BTN’s KUR disbursement since 2008 to December 2012
Construction
Trading
Rental Business & Corporate Services
32.07 %
10.16 %
31,01 %
Others
26.76 %
Distribution by Region of Bank BTN KUR since 2008 to December 2012
Java
Sumatra
13.67 %
Sulawesi
Others
3.7
0%
15.83 %
66.80 %
The constraints faced in granting Bank BTN KUR during 2012 were the limited bank office
networks of Bank BTN that grant KUR and the lack of KUR experts, while MSME businesses are
spread across many regions in Indonesia. In addition, granting KUR through the linkage program
with certain institutions has not been realized to the fullest. The number of claims that are still in
process or pending is still relatively large and enough to affect the level of NPLs.
To solve this problem, we have expanded our network by adding outlets equipped with SML Account
Officers specialize in handling KUR and improve linkage with executing pattern by establishing
closer cooperation with non-bank financial institutions. In addition, we are also expanding our
marketing channels by embracing several government and private organizations.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
57
Partnership Program Activities
The Partnership Program Distribution of Bank BTN has been spread to various economic sectors.
The largest distribution until December 2012 was to the Trading Sector (29.18%) and Farming
Sector (10.75%).
5.72
%
The following is a graph and table of Bank BTN partnership distribution by economic sector during
the period 2008 - 2012:
Industry
29.18%
47.48%
Trading
Farming
Animal Husbandry
Plantation
Fishery
Services
10.75%
No
Economic Sector
2.38%
3.54%
0.53%
Others
0.21%
Real 2008 to Dec 2012
(in million)
Percentage
1
Industry
2
Trade
2,951
5.72%
15,056
29.18%
3
4
Farming
5,548
10.75%
Animal Husbandry
1,227
2.38%
5
6
Plantation
110
0.21%
Fishery
276
7
Services
0.53%
1,827
3.54%
8
Others
24,600
47.48%
Total
51,595
100.00%
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
58
Meanwhile, the largest distribution of Bank BTN partnership program by region was to Java
(80.19%), Sumatra (6.79%), and Kalimantan (4.49%).
The following is a graph showing the distribution of Bank BTN partnership program by region.
1.09 %
Java
3.9
4.49 %
79
7%
3.4
6.
Kalimantan
Sulawesi
Maluku & Papua
Sumatra
%
Bali, NTB & NTT
6%
80.19 %
Growing Together with Our Partners
Our efforts in granting loans to micro, small, and medium enterprises have also resulted in the
success of MSME business growth, in particular the growth of MSME financed by Bank BTN. The
growth of MSME in Indonesia will provide a positive influence to the Indonesian economy as a
whole. In appreciation for their cooperation with Bank BTN in developing the national economy, we
show the profile of our MSME partners, as follows.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
59
Indah Andayani
Tudung Saji Businesswoman
“The competition is definitely there, but with
a clean heart and intention the results would
be good”, this is always in the mind of Indah
Andayani. In 2006 the economic condition
really did not support so various things
needed to be attempted to make a living.
That reason is what driove Indah to start
selling Tudung Saji and only with simple
tents, Indah patiently and tenaciously sold
Tudung Saji at the morning market in Senayan
every Saturday and Sunday beginning from
4 am until 12 noon.
The sale proceeds of Tudung Saji in Senayan were
mediocre and just enough to earn a bit of money. This condition
continued until early 2007. Seeing Indah’s struggle, a friend who works at
Bank BTN suggested to Indah to try to take a Partnership Program Loan through Dedi and Rizal
from BTN Cinere Sub-branch. Indah did not waste the opportunity to get additional working capital
provided by BTN Cinere. Her business continued to grow so that by the end of 2007, Indah was able
to sell Tudung Saji at two locations, namely at Mall Ambassador and ITC Bumi Serpong Damai.
Indah’s business continued to grow so that by 2008, Indah once more applied for a loan to BTN
Cinere and through the assistance of Ricky she obtain larger loan than before amounting to
Rp15,000,000. With the additional working capital Indah managed to expand Tudung Saji sales to
other locations such as ITC Mangga Dua, ITC Cipulir and ITC Depok.
In 2010 Indah applied for a loan to Bank BTN Kuningan Branch in Jakarta and through Nony
she obtained additional working capital loan of Rp30,000,000 which is still outstanding until now.
Through the program of Bank BTN that always suggested its business partners to follow various
kinds of activities such as exhibitions, Indah felt blessed because she now has many business
relations both domestic and abroad among others in Surabaya, Semarang, Yogyakarta, Bandung,
Batam, Singapore, Kuala Lumpur and Poland.
Indah felt very blessed as thanks to Bank BTN’s Partnership Program many more people know
about Banna Craft Products which has made her business stronger and independently.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
60
Kodrat
Seashell Artist
The hard work and never-give-up attitude are the success key for Mr. Kodrat. At first, he started his
career as a fishermen in Kebumen. The unstable income resulted from high level of dependancy
on the nature condition, made him experienced poverty. The rainy season affected the sea wave
dynamic, which disabled him from going to the sea, also means less income for his family. The
unstable condition of poverty, made Mr. Kodrat switch his business interest to seashell artist. Yet,
such action did not make his life condition change to be better.
In 1992, Mr. Kodrat and his family moved to Bekasi with his savings of Rp500,000 that he received
from selling his land at his hometown. In addition, he also brought a sack of seashells. Using his
savings, Mr. Kodrat bought tools and materials designed for seashell processing amounted to
Rp100,000.
The first seashell ornament produces by Mr. Kodrat is the keychain. Due to the cheap price,
he thought that the keychain will be easily sold. He set the price of Rp500 for each keychain.
Mr. Kodrat brought his handicraft and sold it in the economic class train through Bogor - Jakarta.
His seashell handicrafts were indeed attracting good responses from the customers. Mr. Kodrat
then develop his crafts into various ornaments, such as tissue box, ashtray, brooches, decorative
lamps, and so on.
His buyers started to increase, as well as their demand. Mr. Kodrat then apply for loans to Harapan
Indah Branch of Bank BTN. As Bank BTN’s fostered partner, Mr. Kodrat was invited to joined several
MSME exhibitions in Jakarta, Bogor, Depok, Tangerang, and Bekasi. Through these exhibitions,
Mr. Kodrat’s handicrafts gained more popularity among the buyers. Their demand for his handicraft
products are increase and customers are looking for his products.
Mr. Kodrat’s seashell handicraft business are now developed into a bigger business thanks to Bank
BTN’s supports.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
61
Tentrem Sri Minarsih
Treebark Craft Businesswoman
We have to take our hat off to Tentrem Sri
Minarsih because at the age of 54 years
she already has a long experience in the
bark craft industry. Starting from a concern
feeling, around the year 1999 Bengkulu
had not have any proud product icon, which
could raise the economy of the community.
According to Mrs. Sri, as she is usually
called, in Bengkulu there are lots of putrid trees such as the Lantung tree that is only used as
firewood. She then had the idea to scrape the bark off the Lantung tree as material for products
that have selling points, such as hats, shoes, bags, and so on.
Then Mrs. Sri took a KUR loan from Bank BTN. She chose the bank because at that time its
interest rate was the lowest. Bank BTN has supported Mrs. Sri to attend several exhibitions at
home and abroad. According to Mrs. Sri nearly 90% of the Lantung tree products are even more
accepted by overseas markets such as China, Japan, and Italy (Milan). After she attended various
exhibitions, according to Mrs. Sri nowadays many people already know that the treebark craft comes
from Bengkulu.
Slowly but surely her endeavors have borne sweet fruit and the government has also provided her
with several prestigious awards for the business that she has been developing. Due to the quite
high volume of production and consistency, in 2009 Mrs. Sri was honored with the Paramakarya
award from the Ministry of Manpower and Transmigration. Then she won the Upakarti award in
2010 as the highest award from the government in the field of industry. In addition, the Lantung
treebark craft of Mrs. Sri has been twice nominated by Inacraft Awards in the woodcraft category.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
62
Housing Finance to The World
Tanzania Postal Bank Visitation
With a range of recognitions achieved by Bank
BTN, it is no surprise that Bank BTN has
become a role model for many corporations,
both national and international. Bank BTN
was invited to deliver its presentation at many
events, both in the national and international
level. In 2012, Bank BTN welcomed a visit
from Tanzania Postal Bank who intended to
learn from Bank BTN regarding its banking
operational activities.
The team from Tanzania Postal Bank received
many valuable knowledge and experiences
from Bank BTN during their visit. For them, the
range of activities since the first day to the last
day of their visitation in Indonesia, was full of
many good surprises and beautiful memories
that they can never forget. “That’s beyond our
expectation,” said Prof. Lettice K. Rutashobya
(Chairperson-BOD) a moment before she and
her team left Bank BTN. “Asante Bank BTN,
Ni vyema kupatana nawe. Kwaheri!” (Thank
you Bank BTN, it is a pleasure to meet you all.
Good bye!).
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
63
International Housing Finance Training
Since the first inception, Bank BTN has succeeded in maintaining its consistency as the best
provider for housing loans disbursement in Indonesia. Helping millions of families to realize their
dream of having their dream home.
In fact, in 2012 Bank BTN has conducted an effort to establish an international network in order
to support the development of housing finance. Bank BTN collaborated with HDFC-India in
conducting an event called “2012 International Seminar on Housing Finance Management”, which
was held in Nusa Dua, Bali, with the following objectives:
• To
share
the
knowledge,
experiences, ideas, and best
practices concerning international
standards for housing finance
management.
• To establish international network
for housing finance business
development.
• To inspire the world to develop the
housing finance business.
Bank BTN | Sustainability Report 2012
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64
Indicators of Sustainability
These indicators of sustainable performance are
organized by financial and non-financial category
which includes environmental, social and other
aspects relevant to the sustainability report.
Performance indicators or Key Performance
Indicators (KPI) of Bank BTN are indicated
by 4 (four) perspectives using the Balanced
Scorecard method, which we can state
as follows:
• Financial
Perspective,
namely:
performance management, which includes
the achievement of corporate financial
targets, such as ROA, ROE, NIM, Profit
Margin and CER.
• Customer Perspective, which consists of
the market share for KPR and KPA and the
Services Index.
• Business Process Perspective, which
consists of GCG Index, implementation of
project changes, percentage of IT Master
Plan implementation, opening of networks,
growth of commercial third-party funds,
commercial loans growth, implementation
of i-Loan, growth of consumer thirdparty funds, CASA ratio, performance
management
implementation
(BSC),
percentage of NPLs (gross), risk profile, and
implementation of Human Capital System.
• Growing and Learning Perspective, which
consists of Culture Assessment Index,
implementation of organizational structure,
and implementation of business processes.
Financial Indicators
Bank BTN achieved a net profit of Rp1.36 trillion
in 2012, an increase of 21.93% from 2011.
Meanwhile, Bank BTN’s financing position
reached Rp81.41 trillion and funding position
amounted to Rp80.67 trillion.
While in terms of total assets growth, as of
31 December 2012 Bank BTN experienced
an increase of 25.39% to Rp111.75 trillion
from Rp89.12 trillion in the previous year.
Bank BTN | Sustainability Report 2012
Based on total assets, Bank BTN remained
firm in maintaining its position in the group
of 10 national commercial banks with the
greatest assets.
Key financial ratios were also relatively stable.
Some indicators, such as CAR reached 17.69%,
LDR 100.90%, ROA 1.94% and ROE 18.23%
by the end of 2012. Bank BTN also managed
to maintain stability of its net interest income
margin (NIM) above 5%, namely 5.83% in 2012.
However, in terms of loan portfolio quality
there was a decline. In 2012, NPLs (net) stood
at 3.12%, which in 2011 was 2.23%. Therefore,
the management is paying special attention
to reviewing based on better governance to
improve the loan portfolio quality in times
to come.
In addition to maintaining its banking position,
Bank BTN bond ratings also improved. The
Indonesia Securities Rating Agency (Lembaga
Pemeringkat
Efek
Indonesia,
Pefindo)
increased Bank BTN’s rating for bonds issued
namely Bonds XII of 2006, Bonds XIII of 2009
and Bonds XIV of 2010, Bonds XV of 2011, and
Sustained Bonds I of 2012 by each recording a
rise from rank AA- to AA. The improved rating
reflected the strengthening position of Bank
BTN as well as improved profitability indicators.
In terms of increased efficiency, to better
support and optimize business operations of
the Bank in the face of increasingly high and
complex customer expectation, Bank BTN
applied i-Loan and i-Coll technology integrated
with the Bank’s risk management system.
Several other IT applications were implemented
to speed up business processes, among others
Voip, HCIS, Outward RTGS Interface, Single
Sign On, as well as consolidation of the Intercity
Clearing application.
Dedicated to Sustainable Growth
65
In terms of market share for government loan
subsidies for low income people (MBR), Bank
BTN remained consistent to its commitment
to the Government by channeling funding for
subsidized housing loans (KPR) and Bank BTN
remained the largest dealer bank. Throughout
2012, Bank BTN managed to distribute
subsidized housing loans (KPR) amounting
to Rp2.77 trillion, or as many as 66,456
housing units through Conventional Banks
and Rp188.61 billion, or as many as 4,393
housing units through Sharia Business Units.
Thus, overall Bank BTN channeled 98% (92%
from BTN Conventional and 6% from Sharia
Business Units).
Bank BTN also performed a number of
diversified businesses in order to increase
its fee-based income, improve margins,
reduce loan concentration risk, as well as
managing the maturity mismatch. Bank BTN
plans to improve the composition of housing
loans and non-housing loans. One way is
through an increase in priority banking and
bancassurance services.
Non-Financial Indicators
There are several levels of customer service
models which may be applied by Bank BTN.
The most superior service level is often referred
to as service excellence. Through the POLA
PRIMA corporate culture, Bank BTN strives to
continuously enhance its service to customers.
In 2012, Bank BTN won a number of awards,
such as:
• Indonesia To Service to Care Award 2012
(The Best of Indonesia Service to Care
Champion 2012)
• Infobank Digital Brand of The Year 2011
(Digital Housing Loan Brand Rank I)
• Word of Mouth Marketing Award 2012 (First
Winner In Home Loans Category)
• Corporate Image Award 2012 (National
Bank Category (Assets ≤ 100 Trillion)
• BUMN Marketing Award 2012 (Bronze winner
for strategic, tactical dan special category award)
• Banking Service Excellence Award 2012
(1st Best Phone Handling Commercial
Bank and 10th Best Overall Performance
Commercial Bank)
• Indonesia Banking Award 2012 (The Best
Bank 2012 in “Marketing”)
• Consumer Banking Excellence Award
(The 1st Winner In Category of Housing
Loans/KPR
This suggests that Bank BTN’s efforts have
begun to bear expected results.
Meanwhile, in terms of employment, the results
of a survey conducted by Louis Allen Worldwide
Inc. show that the Employee Engagement Index
(EEI) of Bank BTN in 2012 reached a score of
4.2, equal to the achievement in 2011 and up
0.18 points from the score in 2010. With a scale
of 1 to 5, the value indicates that the employees
enjoy working in Bank BTN and have felt
bound as an integral part of the company.
This is also supported by Bank BTN’s policy to
provide rights and obligations as well as equal
opportunities for all employees in developing
their career and performing their duties in
a professional manner without distinction to
ethnicity, religion, race, class, gender, and
physical condition. In addition, Bank BTN
continues to implement measures to create
a healthy, safe, and convenient working
environment. All our efforts in achieving these
goals have always been based on a corporate
culture that guides all employees of all levels
of position in working for Bank BTN. Bank
BTN is committed to making the Company a
learning organization, where every employee
is encouraged to develop his/her potential and
competency in order to work better and ready
to occupy a higher position. The commitment
is realized by maintaining a good working
environment for the creation of a healthy,
safe, and convenient working atmosphere.
As a result, during 2012, only 81 employees
resigned. Based on this figure, the turnover
rate of Bank BTN is only 1.13% per year, or can
be said very low.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
66
Subsequently, in terms of compliance with
prudential banking principles, in 2011 Bank
BTN acquired an international award as the
“Best Investor Service Provider” in Indonesia in
the context of the Global Banking and Financial
Review Award. Bank BTN was selected after
undergoing a series of assessments by
industry analysts on important parameters
such as strengths of innovation, management,
transparency, and ability to resolve customer
complaints. In the same year, domestically
Bank BTN also won the title of Champion
and received the Annual Report Award.
The awards indicate that implementation
of banking compliance principles has been
seriously carried out by Bank BTN. This was
done in order to maintain business continuity
by sticking fast to the principles of good
corporate governance, namely transparency,
accountability, responsibility, independence, as
well as justice and equality.
From the achievements above can be
recognized that Bank BTN has an unwavering
commitment to remain focused on housing
finance as the Bank’s main core business in
making sustainable development as the most
important factor to put forward.
GCG Assessment
Bank BTN is implementing the GCG assessment
program periodically. In this case, there are two
types of GCG assessments conducted, namely
self-assessment and third party assessment.
In 2012, Bank BTN implemented:
• Self-assessment based on BI regulations
and acquired a Composite Score 1.35
Bank BTN | Sustainability Report 2012
or “Very Good” category. From year to
year, GCG Assessment results based
on BI criteria showed consistent results
of continued improvement, and in 2012
Bank BTN was awarded a “Very Good”
Composite Score.
• Third party assessment, in collaboration
with the Indonesian Institute for Corporate
Governance (IICG) and the Indonesian
Institute for Corporate Directorship (IICD).
GCG Assessment by IICG
Since the last decade, IICG has consistently
performed
the
Corporate
Governance
Perception Index (CGPI). In 2012, CGPI was
done through four assessment stages with
different weights, which we can state as
follows: self-assessment (25%), completeness
of documents (23%), paper and presentation
(17%) and observation (35%). CGPI research
and rating results are then organized into 3
(three) rating categories, namely “Reliable
enough”; “Trusted” and “Highly Trusted”. After
having been rated independently and objectively
based on CGPI criteria, IICG concluded that
Bank BTN has been included in the company
category of “Highly Trusted”. The score quality
of Bank BTN CG implementation in 2012 was
85.90 (eighty-five point nine) out of a maximum
value of 100 (one hundred) as well as managing
to earn the award for “The Most Tusted
Company”. According to IICG, the management
of the company has performed well.
GCG Assessment by IICD
As a public company, the implementation of
Bank BTN’s GCG is continually assessed by
independent parties. One of them was carried
Dedicated to Sustainable Growth
67
out by IICD using the Organization for Economic
Co-Operation and Development (OECD)
standards, which include five assessment
factors, as follows:
• The Rights of Shareholders and Key
Ownership Functions
• The Equitable Treatment of Shareholders
• The Role of Stakeholders in Corporate
Governance
• Disclosure and Transparency
• The Responsibilities of the Board
As explained by IICD, these activities aimed at
continuing to encourage the implementation
spirit of good corporate governance as well as
to appreciate and respect the highest to the
company for having successfully implemented
the GCG righteously, correctly, and earnestly.
Based on IICD assessment, Bank BTN
managed to acquire the Best Disclosure and
Transparency 2012 award.
Awards
In 2012, Bank BTN received or won various
awards which proved its commitment
in
maintaining
business
sustainability,
maintaining good corporate governance,
as well as contributing to society and the
environment, among others as follows:
• The “Property and Bank Award” was
awarded to Bank BTN as the “State-owned
Bank Consistent in Channeling Residential
Finance“. Bank BTN had been entrusted
by the Government as provider of housing
finance since 1974. Since that time, Bank
BTN had been striving to help Indonesian
families from all walks of life to have a
decent place to live in.
• The Minister for Peoples’ Housing of the
Republic of Indonesia has awarded the
“Adiupaya Puritama” to Bank BTN because
of Bank BTN’s success to become the
Best FLPP Program Executioner (ranked
first in conventional banking and ranked
second in Sharia banking). This shows the
seriousness of Bank BTN to carry out the
mandate of the Government in providing the
best service to communities in need.
• In the GCG area Bank BTN has proven
its commitment to become one of the
companies with the best governance in the
future. In 2012, Bank BTN won the Most
Trusted Company Based on Corporate
Governance Perception Index from IICG
and acquired the Best Disclosure and
Transparency award from IICD. A similar
award was also acquired by Bank BTN
in 2011.
• Similarly, in the risk management area,
Bank BTN acquired award as the “Best
Bank 2012 in Risk Management” from
the Business Review-Ideku Group in the
“Indonesia Banking Award 2012” event.
This suggests that Bank BTN has been able
to manage the risks faced in running its
daily business well.
Those various awards are an indicator that
shows Bank BTN’s commitment to run a
sustainable business. Complete information
on the various awards obtained by Bank BTN
during the year 2012 can be found in the 2012
Annual Report.
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
68
Your Opinion Matters
All input from you are valuable for us. Please do
not hesitate to submit suggestions and ideas to
improve the presentation of our Sustainability
Report or for development of our business,
governance, and social responsibility activities.
Feedback Survey
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Con tac t u s:
C orporate S ec retar y Di v i si on
Menara Bank BTN
Jln. Gajah Mada No.1
Jakarta 10130 - Indonesia
Phone : +62 (021) 6336789
Fax : +62 (021) 6336719
E-mail : csd@btn.co.id
www.btn.co.id
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
69
Cross Reference for
Global Reporting Initiatives (GRI)
This Sustainability Reporting is adjusted to
international standards to follow the rules of
Global Reporting Initiatives (GRI) 3.1.
GRI Cross Reference
Category
Page
1.1 Statement from the most senior decision maker of the organization (e.g., CEO, chair,
or equivalent senior position) about the relevance of sustainability to the organization
and its strategy.
6-9
1 Strategy and Analysis
AR
1.2 Description of key impacts, risks, and opportunities.
2 Organizational Profile
Cover
2.1 Name of organization.
2.2 Primary brands, products, and/or services.
2.3 Operational structure of the organization, including main divisions, operating
companies, subsidiaries, and joint ventures.
2.4 Location of organization’s headquarters.
2.5 Number of countries where the organization operates, and names of countries with
either major operations or that are specifically relevant to the sustainability issues
covered in the report.
2.6 Nature of ownership and legal form.
2.7 Markets served (including geographic breakdown, sectors served, and types of
customers/beneficiaries).
36-39, AR
AR
68, AR
NR
3-4
3, 36-39
2.8 Scale of the reporting organization, including:
- Number of employees;
- Net sales (for private sector organizations) or net revenues (for public sector organizations);
- Total capitalization broken down in terms of debt and equity (for private sector organizations); and
AR
- Quantity of products or services provided.
2.9 Significant changes during the reporting period regarding size, structure, or
ownership.
AR
2.10 Awards received in the reporting period.
67
3 Report Parameters
3.1 Reporting period (e.g., fiscal/calendar year) for information provided.
2
3.2 Date of most recent previous report.
2
3.3 Reporting cycle (annual, biennial, etc).
2
3.4 Contact point for questions regarding the report or its contents.
68
Report Scope And Boundary
3.5 Process for defining report content, including:
- Determining materiality;
- Prioritizing topics within the report; and
- Identifying stakeholders the organization expects to use the report.
2
3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint
ventures, suppliers). See GRI Boundary Protocol for further guidance.
2
3.7 State any specific limitations on the scope or boundary of the report.
2
3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced
operations, and other entities that can significantly affect comparability from period
to period and/or between organizations.
AR
3.9 Data measurement techniques and the bases of calculations, including assumptions
and techniques underlying estimations applied to the compilation of the Indicators
and other information in the report.
2
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
70
3.10 Explanation of the effect of any re-statements of information provided in earlier
reports, and the reasons for such restatement (e.g., mergers/acquisitions, change of
base years/periods, nature of business, measurement methods).
2
3.11 Significant changes from previous reporting periods in the scope, boundary, or
measurement methods applied in the report.
2
3.12 Cover Table identifying the location of the Standard Disclosures in the report.
69-73
3.13 Policy and current practice with regard to seeking external assurance for the report.
If not included in the assurance report accompanying the sustainability report,
explain the scope and basis of any external assurance provided. Also explain the
relationship between the reporting organization and the assurance provider(s).
2, AR
4 Governance, Commitment, and Engagement
4.1 Governance structure of the organization, including committees under the highest
governance body responsible for specific tasks, such as setting strategy or
organizational oversight.
4.2 Indicate whether the Chair of the highest governance body is also an executive
officer (and, if so, their function within the organization’s management and the
reasons for this arrangement).
AR
4.3 For organizations that have a unitary board structure, state the number of members
of the highest governance body that are independent and/or non-executive members.
AR
4.4 Mechanisms for shareholders and employees to provide recommendations or
direction to the highest governance body.
AR
4.5 Linkage between compensation for members of the highest governance body, senior
managers, and executives (including travel arrangements), and the organization’s
performance (including social and economic performance).
AR
4.6 Processes in place for the highest governance body to ensure conflicts of interest are
avoided.
AR
4.7 Process for determining the qualifications and expertise of the members of the
highest governance body for guiding the organization’s strategy on economic,
environmental, and social topics.
AR
4.8 Cover internally developed statements of mission or values, codes of conduct, and
principles relevant to economic, environmental, and social performance and the
status of their implementation.
AR
4.9 Procedures of the highest governance body for overseeing the management
and identifying the organization towards economic, environmental, and social
performance, including relevant risks and opportunities, as well as adherence to or
compliance with internationally agreed standards, codes of conduct, and principles.
AR
4.10 Processes for evaluating the highest governance body’s own performance,
particularly with respect to economic, environmental, and social performance.
AR
16-17, AR
Commitments To External Initiatives
4.14 List of stakeholder groups engaged by the organization.
4.15 Basis for identification and selection of stakeholders with whom to engage.
2, 16, 32-33, AR
4.16 Approaches to stakeholder engagement, including frequency of engagement by type
and by stakeholder group.
18-20
4.17 Key topics and concerns that have been raised through stakeholder engagement,
and how the organization has responded to those key topics and concerns, including
through its reporting.
NA
NA
Economic Performance Indicators
EC1 Direct economic value generated and distributed, including revenues, operating costs,
employee compensation, donations, and other community investments, retained earnings, and
payments to capital providers and governments.
24-32, 34-39, 55,
64-65, AR
EC2 Financial implications and other risks and opportunities for the organization’s activities
due to climate change.
NR
EC3 Coverage of the organization’s defined benefit plan obligations.
AR
EC4 Significant financial assistance received from the government.
AR
Market Presence
EC5 Range of ratios of standard entry level wage compared to local minimum wage at
significant locations of operation.
AR
EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant
locations of operation.
NA
EC7 Procedures for local hiring and proportion of senior management hired from the local
community at locations of significant operation.
NA
EC8.Development and impact of infrastructure investments and services provided primarily for
public benefit through commercial, inkind, or pro bono engagement.
NA
EC9 Understanding and describing significant indirect economic impacts, including the extent
of impacts.
AR
Bank BTN | Sustainability Report 2012
Dedicated to Sustainable Growth
71
Environmental Performance Indicators
Materials
EN1 Materials used by weight or volume.
NR
EN2 Percentage of recycled materials used.
NA
Energy
EN3 Direct energy consumption by primary energy source.
NA
EN4 Indirect energy consumption by primary source.
NR
EN5 Energy saved due to conservation and efficiency improvements
NA
EN6 Initiatives to provide energy-efficient or renewable energy based products and services,
and reductions in energy requirements as a result of these initiatives.
NA
EN7 Initiatives to reduce indirect energy consumption and reductions achieved.
NA
Water
EN8 Total water withdrawal by source.
NA
EN9 Water sources significantly affected by withdrawal of water.
NA
EN10 Percentage and total volume of water recycled and reused.
NA
Biodiversity
EN11 Location and size of land owned, leased, managed by the reporting organization located
in or adjacent to protected areas or areas of high biodiversity value outside the protected
areas.
NA
EN12 Description of significant impacts due to activities, products, and services of the
reporting organization on the biodiversity in protected areas and areas of high biodiversity
value outside the protected areas.
NR
EN13 Environment Protection and Habitat Conservation.
26
EN14 Strategies, current actions, and future plans for managing impacts on biodiversity.
26
EN 15 Number of IUCN Red List species and national conservation list species with habitats
in areas affected by operations, by level of extinction risk.EN 15 Number of IUCN Red List
species and national conservation list species with habitats in areas affected by operations, by
level of extinction risk.
NR
EN15 Top of Form Top of Form
EN 15 Number of IUCN Red List species and national conservation list species with habitats in
areas affected by operations, by level of extinction risk.
Emissions, Effluents, And Waste
EN16 Total direct and indirect greenhouse gas emissions by weight.
NR
EN17 Other relevant indirect greenhouse gas emissions by weight.
NR
EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved.
NR
EN19 Emissions of ozone-depleting substances by weight.
NR
EN20 NOx, SOx and other significant air emissions by type and weight
NR
EN21 Total water discharge by quality and destination.
NR
EN22 Total weight of waste by type and disposal method.
NR
EN23 Total number and volume of significant spills.
NR
EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under
the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste
shipped internationally.
NR
EN25 Identity, size, protected status, and biodiversity value of water bodies and related
habitats significantly affected by the reporting organization’s discharges of water and runoff.
NR
Products And Services
EN26 Initiatives to mitigate environmental impacts of products and services, and extent of
impact mitigation.
NR
EN27 Percentage of products sold and their packaging materials that are reclaimed by
category.
NR
Compliance
EN28 Monetary value of significant fines and total number of non-monetary sanctions for
noncompliance with environmental laws and regulations.
NR
EN29 Significant environmental impacts of transporting products and other goods and
materials used for the organization’s operations, and transporting members of the workforce.
NR
Bank BTN | Sustainability Report 2012
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72
Overall Aspect
EN30 Total environmental protection expenditures and investments by type.
31
Social Performance Indicators
Employment
LA1 Total workforce by employment type, employment contract, and region.
AR
LA2 Total number and rate of employee turnover by age group, gender, and region.
53, AR
LA3 Benefits provided to full-time employees that are not provided to temporary or part-time
employees, by major operations.
49-51
LA4 Percentage of employees covered by collective bargaining agreements.
NA
LA5 Minimum notice period(s) regarding operational changes, including whether it is specified
in collective agreements.
NA
LA6 Percentage of total workforce represented in formal joint management–worker health and
safety committees that help monitor and advise on occupational health and safety programs
NA
LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work
related fatalities by region.
NA
LA8 Education, training, counseling, prevention, and risk-control programs in place to assist
workforce members, their families, or community members regarding serious diseases.
24
LA9 Health and safety topics covered in formal agreements with trade unions.
49-50, AR
LA10 Average hours of training per year per employee by employee category.
51, AR
LA11 Programs for skills management and lifelong learning that support the continued
employability of employees and assist them in managing career endings.
48-49
LA12 Percentage of employees receiving regular performance and career development
reviews.
53, AR
LA13 Composition of governance bodies and breakdown of employees per category according
to gender, age group, minority group membership, and other indicators of diversity.
LA14 Ratio of basic salary of men to women by employee category.
AR
51, AR
Human Rights
HR1 Percentage and total number of significant investment agreements that include human
rights clauses or that have undergone human rights screening.
NA
HR2 Percentage of significant suppliers and contractors that have undergone screening on
human rights and actions taken.
NA
HR3 Total hours of employee training on policies and procedures concerning aspects of human
rights that are relevant to operations, including the percentage of employees trained.
AR
HR4 Total number of incidents of discrimination and actions taken.
None
HR5 Operations identified in which the right to exercise freedom of association and collective
bargaining may be at significant risk, and actions taken to support these rights.
None
HR6 Operations identified as having significant risk for incidents of child labor, and measures
taken to contribute to the elimination of child labor.
None
HR7 Operations identified as having significant risk for incidents of forced or compulsory labor,
and measures to contribute to the elimination of forced or compulsory labor.
None
HR8 Percentage of security personnel trained in the organization’s policies or procedures
concerning aspects of human rights that are relevant to operations.
None
HR9 Total number of incidents of violations involving rights of indigenous people and actions
taken.
None
Community Responsibility
SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage
the impacts of operations on communities, including entering, operating, and exiting.
SO2 Percentage and total number of business units analyzed for risks related to corruption.
AR
None
SO3 Percentage of employees trained in the organization’s anti corruption policies and
procedures.
NA
SO4 Actions taken in response to incidents of corruption.
AR
SO5 Public policy positions and participation in public policy development and lobbying.
NA
SO6 Total value of financial and in-kind contributions to political parties, politicians, and
related institutions by country.
NA
SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly
practices and their sanctions.
NA
SO8 Monetary value of significant fines and total number of non-monetary sanctions for
noncompliance with laws and regulations.
Bank BTN | Sustainability Report 2012
None
Dedicated to Sustainable Growth
73
Product Responsibility Performance Indicators
PR1 Life cycle stages in which health and safety impacts of products and services are
assessed for improvement, and percentage of significant products and services categories
subject to such procedures.
NR
PR2 Total number of incidents of non-compliance with regulations and voluntary codes
concerning health and safety impacts of products and services during their life cycle, by types
of outcome.
NR
PR3 Type of product and service information required by procedures and percentage of
significant products and services subject to such information requirements.
NA
PR4 Total number of incidents of non-compliance with regulations and voluntary codes
concerning product and service information and labeling, by type of outcomes.
NA
PR5 Practices related to customer satisfaction, including results of surveys measuring
customer satisfaction.
40-43
PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing
communications, including advertising, promotion, and sponsorship.
AR
PR7 Total number of incidents of non-compliance with regulations and voluntary codes
concerning marketing communications, including advertising, promotion, and sponsorship by
product.
NA
PR8 Total number of substantiated complaints regarding breaches of customer privacy and
losses of customer data.
43
PR9 Monetary value of significant fines for noncompliance with laws and regulations
concerning the provision and use of products and services.
NA
Product Portfolio
FS1 Policies related to environmental and social aspects applied to business lines
NA
FS2 Procedures for assessing and screening environmental and social risks to business lines.
NA
FS3 Processes for monitoring clients’ implementation of and compliance with environmental
and social requirements included in agreements or transactions.
NA
FS4 Process (es) for improving staff competency to implement environmental and social
policies and procedures as applied to business lines.
NA
FS5 Interactions with clients/associations/business partners regarding environmental and
social risks and opportunities.
22-26
FS6 Percentage of the portfolio for business lines by specific region, business segment (e.g.
micro/SME/large) and by sector.
34, 39, 54, 55, 56
FS7 Monetary value of products and services designed to deliver specific social benefits for
each business line broken down by purpose.
36-38
FS8 Monetary value of products and services designed to deliver a specific environmental
benefit for each business line broken down by purpose.
NA
FS9 Coverage and frequency of audits to assess implementation of environmental and social
policies and risk assessment procedures.
NA
FS10 Percentage and number of companies held in the institution’s portfolio with which the
reporting organization has interacted on environmental or social issues.
NA
FS11 Percentage of assets subject to positive and negative environmental or social screening.
NA
FS12 Voting polic(ies) applied to environmental or social issues for shares over which the
reporting organization holds the right to vote shares or advises on voting
NA
NA: Not Available
NR: Not Relevant
AR: (Please refer to) Annual Report
None: No such cases indicated
Bank BTN | Sustainability Report 2012
Furthermore, we will continue to prioritize the best service as a testament of our
commitment in the housing finance area and other banking services which is the
reason for the existence and sustainability of Bank BTN.
Sustainability Report 2012
PT Bank Tabungan Negara (Persero) Tbk
Menara Bank BTN
Jln. Gajah Mada No. 1 Jakarta 10130
Phone
: 62-21 6336789
Fax
: 62-21 6346704
E-mail
: admin@btn.co.id
Call Center : 500 286