enabling access - Bank BTPN Syariah

PT Bank Tabungan Pensiunan Nasional Syariah

enabling accessto every corner of the country

#bankirpemberdaya with Ibu Rachel, seaweed farmer, financing customer, Sentra Mutiara Cibi-Cibi, Kupang, NTT

acquiring fundsfrom wealthy families

#bankirpemberdaya with Ibu Khoe Sio Hong, funding customer, Menara Kadin Branch, Jakarta

a group of productive underprivileged women – the financing customers in the rattan craftmen community in Plumbon, Cirebon, West Java

of productive underprivileged families

all to be channeled to millions

in the customer centersdirectly served

#bankirpemberdaya are serving financing customers in Routine Center Meeting in Sentra Pabuaran, Serang, Banten

the spirit of #bankirpemberdaya from Kuta Baro, Banda Aceh, going through obstacles to serve and empower financing customers

empowered by thousand of ‘Melati Putih Bangsa’

trained high school graduates

enhanced through Daya programs

Ibu Wieke – designer, funding customer, participating in Sahabat Daya for financing customers in Sentra Amanuban Tengah, Kupang, NTT

continuous innovation with technology

Ibu Aeng Khaeriah, BTPN Wow! iB agent, Sentra Tegal Amprok, Serang, Banten, serving financing customers using BTPN Wow! iB

#bankirpemberdaya from business and support units with the affluent customers and productive underprivileged customers and their families

we choose to be a different banker, to fulfill our heart-felt yearning to do good for all

we are

table of content

18 financial highlights

19 performance highlights 2017

20 significant events 2017

22 awards

24 president commissioner's report

28 president director's report

32 sharia supervisory board's report

35 company profile

37 about BTPN Syariah

38 organization structure

41 board of commissioners profile

45 board of directors profile

50 sharia supervisory board profile

52 board of commissioners committees profile

56 shareholders composition and profile

58 structure of ownership

59 information for shareholders

67 management discussion and analysis

69 financial review

69 economic outlook

70 sharia banking industry overview

71 financial performance

72 financial impact

73 business outlook 2018

77 business review

77 financing

78 funding

80 Poverty Probability Index® (PPI®) 2017

83 business development plan 2018

85 operational review

85 human capital

88 operational

89 information technology

92 risk management

executivesummary

01

02

annual report2017

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99 daya

101 daya for health and welfare

102 daya to grow business

103 daya for community development

105 corporate governance

106 good corporate governance report

155 internal audit report

159 compliance report

161 committee report

178 social system, environment and management

189 corporate data

190 executive officers

191 products and services

192 offices network

197 statement of the board of commissioners and the board of directors

198 financial statement

290 consolidated financial statement of the parent company

296 financial services authority (OJK) reference

page85 employees as

#bankirpemberdaya

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04

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17

In million Rupiahunless otherwise stated

Balance Sheet 2017 2016 2015Total Assets 9,156,522 7,323,347 5,196,199

Total Financing 6,053,273 4,996,812 3,678,027

Third Party Funds 6,545,879 5,387,564 3,809,967

Current Account 95,169 13,400 28,755

Savings Account 1,296,350 1,043,452 756,756

Time Deposit 5,154,360 4,330,712 3,024,456

Total Equity 2,254,646 1,592,716 1,163,471

Profit/Loss Income from Bank's Fund Management as Mudharib:

- Margin from buying-selling activities Murabahah 2,833,239 2,177,556 1,512,596

- Other Income 72,014 48,926 50,051

Third Party Rights on the Profit Sharing of Temporary Syirkah Fund

(345,600) (290,310) (247,178)

Other Operational Income 7,046 4,895 4,834

Operational Expense (1,658,438) (1,386,238) (1,070,219)

Operational Profit 908,261 554,829 250,084

Nett Non-Operational Income/(Expense) 437 914 360

Profit Before Tax 908,698 555,743 250,444

Current Year Profit from Discontinued Operations - - (19,149)

Nett Profit After Tax 670,182 412,495 169,206

Other Comprehensive Income (14,278) 9,978 5,312

Current Year Comprehensive Profit 655,904 422,473 174,518

Financial Ratios (%)Cost to Income Ratio 68.8 75.1 85.3

Capital Adequacy Ratio (CAR) 28.9 23.8 19.9

Gross Non-Performing Financing Ratio (NPF Gross) 1.67 1,53 1.25

Nett Non-Performing Financing Ratio (NPF Netto) 0.1 0.2 0.2

Return on Asset Ratio (RoA) 11.2 9.0 5.2

Return on Equity Ratio (RoE) 36.5 31.7 17.9

Financing to Deposit Ratio (FDR) 92.5 92.8 96.5

financial highlight

annual report2017

18

// executive summary

‘16‘15 ‘17

‘16‘15 ‘17

‘16‘15 ‘17

‘16‘15 ‘17

In million Rupiahunless otherwise stated

Balance Sheet 2017 2016 2015Total Assets 9,156,522 7,323,347 5,196,199

Total Financing 6,053,273 4,996,812 3,678,027

Third Party Funds 6,545,879 5,387,564 3,809,967

Current Account 95,169 13,400 28,755

Savings Account 1,296,350 1,043,452 756,756

Time Deposit 5,154,360 4,330,712 3,024,456

Total Equity 2,254,646 1,592,716 1,163,471

Profit/Loss Income from Bank's Fund Management as Mudharib:

- Margin from buying-selling activities Murabahah 2,833,239 2,177,556 1,512,596

- Other Income 72,014 48,926 50,051

Third Party Rights on the Profit Sharing of Temporary Syirkah Fund

(345,600) (290,310) (247,178)

Other Operational Income 7,046 4,895 4,834

Operational Expense (1,658,438) (1,386,238) (1,070,219)

Operational Profit 908,261 554,829 250,084

Nett Non-Operational Income/(Expense) 437 914 360

Profit Before Tax 908,698 555,743 250,444

Current Year Profit from Discontinued Operations - - (19,149)

Nett Profit After Tax 670,182 412,495 169,206

Other Comprehensive Income (14,278) 9,978 5,312

Current Year Comprehensive Profit 655,904 422,473 174,518

Financial Ratios (%)Cost to Income Ratio 68.8 75.1 85.3

Capital Adequacy Ratio (CAR) 28.9 23.8 19.9

Gross Non-Performing Financing Ratio (NPF Gross) 1.67 1,53 1.25

Nett Non-Performing Financing Ratio (NPF Netto) 0.1 0.2 0.2

Return on Asset Ratio (RoA) 11.2 9.0 5.2

Return on Equity Ratio (RoE) 36.5 31.7 17.9

Financing to Deposit Ratio (FDR) 92.5 92.8 96.5

Third Party Funds(in Million Rupiah)

Cost to Income Ratio

Gross Non-Performing Financing (NPF Gross)

Return on Asset Ratio (ROA)

Return on Equity Ratio (ROE)

68.8%

1.67%

11.2%

36.5%

Total Assets(in Million Rupiah)

Total Financing(in Million Rupiah)

Total Equity(in Million Rupiah)

5,387,564

4,996,812

7,323,347

1,592,716

3,809,967

3,678,027

5,196,199

1,163,471

6,545,879

6,053,273

9,156,522

2,254,646

performance highlight 2017


19

significant events 2017

6march

BTPN Syariah held the Annual General Meeting of Shareholders to obtain approval from the Shareholders for the management decisions, operational activities and Annual Report ending December 31, 2016.

7march

Ratih Rachmawaty was officialy appointed as the President Director. 13

14

1

2

june

june

july

may

H. Ikhwan Abidin, MA was officialy appointed as the Sharia Supervisory Board.

Maya Kartika was officialy appointed as the member of the Board of Commissioners.

Mulia Salim was officialy appointed as the Deputy President Director.

H. Muhamad Faiz, MA was officialy appointed as the Sharia Supervisory Board.

annual report2017

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23

29

26

22

27 8

august

october

july

august

july september

Ratih Rachmawaty, the President Director, served as the Key Note Speaker in the 2nd Annual Islamic Finance Conference – Yogyakarta.

BTPN Syariah granted Umroh Pilgrimage Program to the Agent and Customers of BTPN Wow! iB who won the competition for the highest number of transactions.

Launched M-Prospera as the initial step of automation.

Arief Ismail was officialy appointed as the Compliance Director.

Ratih Rachmawaty, the President Director, served as the Key Note Speaker in the launching of National Committee of Sharia Finance and the Forum of National Work of the Association of Islamic Economist Experts Indonesia.

Awarding the motorcycle prize to the customer as the winner of BTPN Wow! iB with the highest number transactions in Sumenep, Madura.


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award

annual report2017

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Global Islamic Financial Awards (GIFA)BTPN Syariah was granted the international award for the category “Best Islamic Bank for SME Banking” 2017

Bank IndonesiaBTPN Syariah was the “First Best” for the category Bank for Micro, Small and Medium Enterprise Buku 1 and 2

Economic ReviewBTPN Syariah was ranked “Gold” in the Indonesia GCG Award III 2017 for the category Non-Publicly Listed Sharia Bank

Anugerah Perbankan IndonesiaBTPN Syariah reached the 4th Rank for the category The Best Non-Publicly Listed Commercial Bank 2017

Investor AwardBTPN Syariah was awarded as the “Best Sharia Bank” for the category Sharia Bank with total assets below Rp10 trillion.

Infobank Award• Awarded as the “First Best” for the category of

Bank with total assets below Rp10 trillion.• Awarded as “Very Good” for the category of

Sharia Bank with the core capital between Rp1 trillion to Rp5 trillion.

• Awarded as “Top 100 Bankers”

Warta EkonomiBTPN Syariah was granted the award “Indonesia Best Banking Brand Award 2017 – Good Financial Performance Category Islamic Banking”

Top Bank AwardBTPN Syariah obtained the award for the following category:• Top Bank Syariah 2017• Top Laku Pandai 2017• Top CEO 2017

Indonesia Banking AwardBTPN Syariah obtained the award for the category Bank Syariah with total assets below Rp10 trillion as:• The Most Reliable Bank• The Most Efficient Bank

KARIM Consulting GroupBTPN Syariah obtained with the following awards:• “The Best of the Best Islamic Bank –

The Magnificent Seven Special Award”• “The Best Islamic Bank – Islamic Full Fledge

Bank” for Category Buku 2 and 3• “The Most Efficient – Islamic Full Fledge Bank”

for Category Buku 2 and 3• “The Most Profitable – Islamic Full Fledge Bank”

for Category Buku 2 and 3

Anugerah Syariah RepublikaBTPN Syariah was granted the awards for:• The Best Performance Category• The Best Innovation Category• The Best Performance and Innovation Category

for the Sharia Bank with total assets below Rp10 trillion.

Rating Bank - InfobankBTPN Syariah was in second rank for the bank with total assets below Rp10 trillion and in the first rank as the “Best Bank” for the category Non Foreign Exchange Private National Bank.


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president commissioner’s report

kemal azis stamboel

annual report2017

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Standing for the development of productive underprivileged communities – through continued education and sustained empowerment – goes beyond our call of duties in 2017.

Bismillahirrahmannirrahim, in the Name of Allah, the most gracious and the most merciful

Assalammu’alaikum Warahmatullahi Wabarakatuh, may the peace, mercy, and blessings of Allah be with you

Dear Shareholders and all Stakeholders,

The commitment to provide access to financial services to our customers and empower them by imparting knowledge in a professional manner has been duly delivered in 2017. Serving this particular and distinct segment of communities has made us the only Sharia Bank with the mission of empowerment. Our appreciation to the involvement of all employees to reach out to our customers and empower. They are more than a banker, they are different, they are #bankirpemberdaya.

Performance of the Board of Directors

The Board of Commissioners would like to express our appreciation for the performance of the Board of Directors in 2017. In the midst of increasing pressures of the instability of the global and Indonesian economy which have surely impacted to the banking industry both the commercial and the sharia banking, the Board of Directors continues to deliver remarkable performance. The implementation of the strategic plan and policy has met the expectation as agreed by the Shareholders. Beyond financial performance, the achievement to bring the Bank to a higher level on a Sharia platform has also contributed to the

improvement of the lives of millions of productive underprivileged customers. The total financing of about Rp6.1 trillion as of December 2017 are 100% targeted to super-micro business or productive underprivileged customers who have never had any access to the banking services before. Today, the Bank has served more than 2.9 millions customers including East Indonesia region. The Bank has demonstrated outstanding performance as reflected in the indicators of Non-Performing Finance (NPF) 1.67% with the Capital Adequacy Ratio (CAR) of 28.9%. As of December 2017, the total assets of the Bank amounted to Rp9.2 trillion.

Good Corporate Governance Implementation

Beside the directing function of the Board of Commissioners to the Board of Directors, we are also responsible for the supervisory function; one of which is to ensure the implementation of good corporate governance. In 2017, the Board of Commissioners concluded that good corporate governance has been well implemented throughout all the operational activities of the Bank without undermining the importance of the need of continuous improvement in its future implementation by employees at all levels.

Outlook 2018

2018 will present different challenge. We believe, however, that all plan – breathed with spirit of passion – will always generate the energy, discipline and commitment to create a sharia ecosystem within which the productive underprivileged customers and their communities will operate to fulfill the daily needs (Sharia Digital Ecosystem for Unbanked).


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Productive and collaborative ecosystem is the key word. Only then, the whole elements of the overall system will work in collaboration to one another to effect changes in the grass root levels as they see that the gap in the community is the real challenge that needs to be bridged in simple and gentle manner. This is the absolute requirement to be a #bankirpemberdaya.

The Board of Commissioners believe that the key strategic initiatives of the Board of Directors in 2018 will become the real added values to the the productive underprivileged customers. Not only that our customers will have the opportunities to improve their standard of living but move forward to develop their business and have the capacity fulfilling the needs at the next levels. And the most important above all else is that all the efforts and achievement of the management and all employees as #bankirpemberdaya will be leading towards one shared vision, that is to contribute and bring real social impacts for better lives of millions of Indonesian.

Closure

The Board of Commissioners would like to express our gratitude for the trust extended by the shareholders and all stakeholders. We would like to also extend our appreciatiation to the Board of Directors and all the employees for the remarkable achievement.

The Board of Commissioners would like to say thanks also to Bapak KH. Drs. Amidhan and Bapak KH. Ahmad Cholil Ridwan who had served as the Chairman and Member of the Sharia Supervisory Board until March 2017 and we are pleased to welcome Bapak H. Ikhwan Abidin, MA. and Bapak H. Muhamad Faiz, MA. as the Chairman and Member of the Sharia Supervisory Board being effective from March 2017.

We would like to express our appreciation also to Bapak Harry A.S. Sukadis who had served as the President Director and Bapak Setiasmo Samami who had served as the Director of BTPN Syariah until March 2017.

We are pleased to welcome Ibu Maya Kartika as the Member of the Board of Commissioners and Bapak Mulia Salim and Bapak Arief Ismail as the Director of Bank BTPN Syariah. And congratulations to Ibu Ratih Rachmawaty who was appointed as the President Director BTPN Syariah being effective March 2017.

With all the progress to date, the Board of Commissioners is optimistic that the Bank will realize its vision as the best sharia bank doing good to all humanity and making a difference in the lives of millions of Indonesian.

Wassalammu’alaikum Warahmatullahi Wabarakatuh.

Kemal Azis Stamboelpresident commissioner (independent)

annual report2017

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Members of the Board of Commissioners

1. Kemal Azis Stamboel president commissioner/ independent commissioner

2. Dewie Pelitawati independent commissioner

3. Mahdi Syahbuddin commissioner

4. Maya Kartika commissioner

1

2 3

4


27

president director’s report

Bismillahhirrahmannirrahim. Assalamu’alaikum Warahmatullahi Wabarakatuh In the Name of Allah, the most gracious and the most merciful

Dear Shareholders and all Stakeholders,

It has been seven years that we have been steadfastly serving the segment that had never been served before by any banking services, the segment that we called productive underprivileged communities. Those particular customers used to be called unbankable, those who are not entitled for banking services due to their inability to provide financial records and collateral. This situation, however, presents an opportunity for us, which at the same time a calling, to contribute in ways that bring goodness to the society. We have two choices to serve them: first, to wait until (uncertain) time when they become bankable, or second, to redesign the process and services of the Bank as such that we can serve them with kindness and comfort. We are determined to choose the second. We have written it as our mission and vision that we echo to all employees. We build the process, services and people that are different from the banking in general. We make the previously unbankable, the productive underprivileged

communities, become our main customers. We are #bankirpemberdaya.

Achievement 2017

A number of institutions have awarded us various predicates as the Best Sharia Bank for the Category of Bank with total assets below Rp10 trillion. Bank Indonesia also award us as the the Best Bank Buku 2 serving Micro and Small Business (for Sharia and Conventional Banking) in Indonesia. In the international level, we are also awarded as the Best Islamic SME Bank by Global Islamic Finance Award. All are acknowledgement from Indonesia and the world.

All these are rooted in the excellent financial performance. We booked a total assets of Rp9.2 trillion by December 2017, increase by 25%. We also recorded financing growth as high as 21.1% making the total outstanding financing to Rp6.1 trillion. Funding grows by 21.5% to Rp6.5 trillion. This growth is above industry average. The profit in 2017 is Rp670.2 billion with well-maintained financial ratios: Non-Performing Finance (NPF) 1.67%; Capital Adequacy Ratio (CAR) at 28.9%; financing to deposit ratio (FDR) at 92.5%; Cost to Income Ratio of 68.8% and Return on Equity of 36.5%.

ratih rachmawaty

The funds deposited to us from the wealthy family, is totally chanelled to the productive underprivileged families, by thousands of the “Melati Putih Bangsa” (our field officers) in ways that are different from the other banking in general. Different, so that BTPN Syariah will become the main bank for the productive underprivileged families to grow for a better life. We are, #bankirpemberdaya.

annual report2017

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29

As #bankirpemberdaya, we keep on learning to build BTPN Syariah in order to better serve the productive underprivileged customers.

• The fund deposited by more than 6,000 wealthy customers has empowered more than 2.9 million productive underprivileged customers in remote areas of Indonesia.

• Building the organizational capacity to migrate the customers to a higher degree of economic independence by offering them more advanced financing program through individual financing.

• A more efficient operational processes through automation using M-Prospera (developed in house) and start building the ecosystem for which the Bank will serve not only the customers but also the families and the communities.

• Study the bigger social impacts for the future of the nations. The number of uneducated children decreased from 14% in 2016 to 10.2% in 2017 and the use firewood decreased from 11.7% to 8.2%.

We thank God for all the blessings that bring us to this point.

Future Plan

We are optimisitic for 2018. We are firm in our choice as the #bankirpemberdaya to create an ecosystem required to fulfill the needs for access to financial services in holistic manner, that is by serving productive underprivileged families and the surrounding communities with sharia-based products and services. We are aware of all the challenges along the way. God willing, we will be able to convert the challenges to become an avenue to improve our services to our customers.

Four important focus that we will continue in 2018 are: building automation process, migrating the customers, exploring fee-based income and strengthening the organization to keep it relevant current forward.

Lastly, for behalf of the Board of Directors, I would like to say thanks for the trust and continued support from all stakeholders: regulator, shareholders, the Board of Commissioners, the Sharia Supervisory Board and employees who have been tiredlessly working to build our beloved BTPN Syariah to become the main bank for the productive underprivileged families in Indonesia. Our appreciation and best regards also go to the families of our employees. Our deepest gratitude for our customers who have chosen BTPN Syariah for a more meaningful life.

Wassalamu’alaikum Warahmatullahi Wabarakatuh,

Ratih Rachmawatypresident director

annual report2017

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Member of the Board of Directors

1. Ratih Rachmawaty president director

2. Mulia Salim deputy president director

3. Taras Wibawa Siregar director

4. M. Gatot Adhi Prasetyo director

5. Arief Ismail compliance director

1

3

5

2

4


31

sharia supervisory board’s report

H. Ikhwan Abidin, MAchairman of the sharia supervisory board

H. Muhamad Faiz, MAmember of the sharia

supervisory board

annual report2017

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Doing good to society as reflected in the company vision and mission is the most fundamental thing in the implementation of Sharia Principles. Insya Allah, God willing, the Sharia Supervisory Board is pledged to ensure that the implementation of sharia principles is well maintained in all aspects of activities, products and services of the Bank.

Assalamu’alaikum Warahmatullahi Wabarakatuh. May the peace, mercy, and blessings of Allah be with you.

Doing good to society requires the active and dynamic participation of all stakeholders. The role of BTPN Syariah employees as the role model to empower all the customers is the accelerator of the transformation of the lives of productive underprivileged customers in Indonesia. This is the quintessence of the spirit of #bankirpemberdaya, Rahmatan Lil Alamin, the grace for the whole world.

Officially started the duties as the Sharia Supervisory Board upon the approval from Financial Services Authority in June 2017, we can conclude that the sharia principles has been implemented well in this Bank. This is based on our observation in the second half of 2017 through a number of visits to various cities Yogyakarta, Padang, Lampung and Denpasar.

Improving the overall supervision to the whole work processes including the completeness of financing document will surely increase the confidence of the broader community with regard to sharia principles implementation in every products and services of the Bank.

Management initiatives in 2018 to create an ecosystem to fulfill the daily needs of the customers and the communities in sharia-based digital services (Syariah Digital Ecosystem for Unbanked) is the plan that is endorsed by the Sharia Supervisory Board. A number key strategic initiatives, Insya Allah, God willing, will bring real impact in improving the lives of productive underprivileged communities in Indonesia.

And the aspiration of all #bankirpemberdaya who choose to be a different banker, to fulfill the heart-felt yearning to do good for all human being, Insya Allah, God willing,

will become a blessing, not only for themselves, but also for all the productive underprivileged customers and families and also for Indonesia.

May all of us always be in the protection and grace of Allah in the undertaking of our duties to take us to progress further in doing good to all humanity. Aamiin.

May Allah be pleased and satisfied. Aamiin YRA.

Wassalamu’alaikum Warahmatullahi Wabarakatuh,

H. Ikhwan Abidin, MAchairman of sharia supervisory board

H. Muhamad Faiz, MAmember of sharia supervisory board


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#bankirpemberdaya forever aims to create opportunities for growth and more meaningful life for all stakeholders

01company profile

35

Robiyanti, #bankirpemberdaya, Melati Putih Bangsa in Pondok Salam, Purwakarta, Jawa Barat doing it whole-heartedly for the goodness of all

annual report2017

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// company profile

about BTPN Syariah

Since 2011, BTPN through Unit Usaha Syariah has been focusing on serving the unbanked segment, that is the productive underprivileged segment. It has a big vision to improve the financial literacy of this particular segment by empowering the role of women in the families. It redesigns the banking products and services which are easily accessible by this specific type of customers and delivered with comfort and secure under the sharia principles to help them reach a more meaningful life.

On July 14, 2014, BTPN Syariah was officially registered as the 12th Sharia Bank in Indonesia, resulting from the spin of Unit Usaha Syariah PT Bank Tabungan Pensiunan Nasional Tbk (UUS BTPN) and the conversion of PT Bank Sahabat Purba Danarta (BSPD).

Today, BTPN Syariah is the only sharia bank in Indonesia which focuses on financial inclusion and targeting mainly to the empowerment of productive underprivileged segment. In so doing, the Bank specifically design the products and services to suit the situation and needs of the customers. This is the avenue through which the Bank believes will realize the vision to make a difference in the lives of millions of Indonesian and become the blessings for the whole world, Rahmatan Lil Alamin.

MissionTogether, we create opportunities for growth and a more meaningful life

VisionTo be the best sharia bank, for financial inclusion, making a difference in the lives of millions of Indonesian

Values“PRISMA” (professionalism, integrity, mutual respect and teamwork – the Indonesia acronym is PRISMA)


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organization structure

President Director

Deputy President Director

Information Technology

Operations Directorate

IT Planning, Strategy & Governance

Process Transformation & Digital Channel

IT Application Development

Organization Transformation Project

IT Business Alliance

IT Operation, Infrastructure & Service Delivery

Operation Services

Corporate Services

HC Services

annual report2017

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// company profile

Executives

Risk & Compliance Directorate Business Directorate

Internal Audit

Legal Tunas Usaha Rakyat (TUR) Business

Finance, Treasury & Corporate Planning

Compliance Business Planning & Support

Human Capital Corporate

Risk & Fraud Management Business Risk DAYA

& Communication

Retail Funding Sales & Distribution


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The attire of the management is the collaborative efforts of the customers of BTPN Syariah.

The woven cloth is the creation of Ibu Yohana Bauk Nenok, financing customer from Sentra Amanuban Tengah, Kupang, NTT. It was then designed and produced by Ibu Wieke Dwiharti, designer, funding customer of Menara Kadin Branch, Jakarta

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// company profile

president commissioner/independent commissioner

Indonesian citizen, 68 years old.

Kemal Azis Stamboel was reappointed as the President Commissioner and Independent Commissioner of PT Bank Tabungan Pensiunan Nasional Syariah (“BTPN Syariah”) pursuant to the Annual General Meeting of Shareholders on March 6, 2017 and the approval of the Financial Services Authority on February 24, 2014.

Starting his career in PT Indonesia Asahan Aluminium (1977-1982), he carries more than 40 years of experience in multiple organization and corporation. Kemal Aziz Stamboel was the former President Director of Price Waterhouse Coopers Consulting Indonesia (1982-2002) who then became the Indonesia Country Leader & Partner in IBM (from the legacy firm PwC, 2002-2004). He was actively involved in various organization, including Member of Supervisory Authority of the Aceh and Nias Rehabilitation and Reconstruction Agency (2005-2008), Deputy Chief Executive of the Board of National Information and Communication Technology (2006-2008), Independent Commissioner of PT Krakatau Steel (2007-2008) and PT Titan Petro Chemical (2006-2012), member of the House of Representatives Republic of Indonesia (2009-2012), Chairman of Commission I of the House of Representatives Republic of Indonesia (2009-2010), Commission XI of the House of Representatives Republic of Indonesia (2011-2012), Advisor to the Board of Directors of PT Indosat Tbk (2013 - January 1, 2018) and the Secretary General of Association of International Bank of Indonesia (2013-2017).

Along with BTPN Syariah, he also serves as Independent Commissioner of PT Holcim Indonesia Tbk. And Chairman of Board of Management of WWF Indonesia.

Holding a Bachelor of Psychology from Padjajaran University in 1974 and Master of Science in Business Management from Hult International Business School USA in 1985, Kemal Stamboel also attended various training program and conferences, amongst others are those organized by LSPP, Price Waterhouse Coopers, XXVI IAFEI World Congress ASEAN Federation of Accountants.

board of commissioners profile

Kemal Azis Stamboel


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member of the board of commissioners/independent


Dewie Pelitawati was reappointed as member of the Board of Comissioners and Independent Commissioner of PT Bank Tabungan Pensiunan Nasional Syariah (“BTPN Syariah”) pursuant to the Annual General Meeting of Shareholders on March 6, 2017 and the approval of the Financial Services Authority on February 24, 2014.

Starting the career in in PT Indosat (1985-1999), Dewie had various exposure in senior management positions in several organization, including: as Head of Chairman Office in Indonesia Bank Restructuring Agency (1999-2000), Secretary to Junior Minister in the Ministry of National Economic Restructuring-RI (2001), Commissioner of PT Indosat Mega Media Mobile and Commissioner of PT Satelindo (2002-2003), Chief Legal and Compliance in PT Indosat (2009-2010), Partners in Bahar and Partners Attorney At Law (2010-2013). Along with BTPN Syariah, she also serves as the Senior GM Corporate Legal, Governance and Compliance in PT XL-Axiata Tbk.

Holding a Bachelor Degree in Law in 1984 and Magister in Law from the Faculty of Law, Padjadjaran University in 2005, Dewi took several program for her professional development, including the programs conducted by LSPP, Indonesian Advocate Association, Dubai International Finance Center, Corporate Leadership Development Institute.

Dewie Pelitawati

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// company profile

member of the board of commissioners


Mahdi Syahbuddin was reappointed as member of the Board of Comissioners of PT Bank Tabungan Pensiunan Nasional Syariah (“BTPN Syariah”) pursuant to the Circular Resolution of Shareholders taken apart from the General Meeting of Shareholders on January 13, 2015 and the approval of the Financial Services Authority on December 23, 2014.

With more than 31 years of experience, prior to his appointment as the Member of the Board of Commissioners BTPN Syariah, Mahdi was the Former Human Capital Director of PT Bank Tabungan Pensiunan Nasional Tbk (“BTPN”) leading a number of strategic initiatives to transform the Human Capital through massive organizational alignment, redesign the human capital policy, processes and systems; and involve employees at various leadership levels to craft the vision, mission and values of the Bank.

Prior to Bank BTPN, Mahdi was the Former Director in Bank Permata from the legacy firm Bank Universal where he had held various positions in senior management level including Deputy President Director before he was then appointed as the Chairman of Implementation Team for the merger of several banks into Bank Permata.

Starting his intensive exposure in banking industry in 1989 with Citibank N.A. as the Manager of Asset Product Services, Mahdi’s first career step was as an Engineer in Atlantic Richfield and IPTN.

Mahdi holds a Bachelor Degree in Aerotechnics in 1987 from Bandung Institute of Technology.

Mahdi Syahbuddin


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member of the board of commissioners


Maya Kartika was appointed as member of the Board of Comissioners of PT Bank Tabungan Pensiunan Nasional Syariah (“BTPN Syariah”) pursuant to the Annual General Meeting of Shareholders on March 6, 2017 and the approval of the Financial Services Authority on June 14, 2017.

Today she serves as the Head of Human Capital at PT Bank Tabungan Pensiunan Nasional Tbk (BTPN).

Prior to joining BTPN, Maya Kartika has held various positions in several organization, including Director of Human Resources in HSBC Indonesia (July 2010 - December 2014), Country Head of Human Resources in RBS Bank (ABN AMRO Bank N.V.) Indonesia (June 2003 - June 2010), Head of Human Resources in Kalbefood (August 2002 - May 2003), Manager – People Solution in Arthur Andersen Business Consulting (April 2000 - August 2002), HR RM – Corporate & Institutional Banking in Standard Chartered Bank (May 1999 - March 2000), Recruitment & Training Manager in PT Ongko Multicopora (April 1994 - May 1999), and Experd Consulting (August 1990 - March 1994) as the starting point of her career.

Holding a Bachelor Degree in Psychology from University of Indonesia in 1990, Maya Kartika has attended a number of training programs including the programs in Ashridge Business School-UK, London Business School-UK, BSMR, LSPP, Karim Consulting and Rahardja Duta Solusindo.

Maya Kartika

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board of directors profile

president director/independent


Ratih Rachmawaty was appointed as the President Director of PT Bank Tabungan Pensiunan Nasional Syariah (“BTPN Syariah”) pursuant to the Annual General Meeting of Shareholders on March 6, 2017 and the approval of the Financial Services Authority on March 7, 2017. Prior to her appointment as the President, Ratih Rachmawaty had served as the Deputy President Director BTPN Syariah for three years.

Ratih is the founder and the architect of the Tunas Usaha Rakyat (TUR) which now becomes the backbone of the BTPN Syariah Business. This business was rooted in her previous role as the Sharia Business Unit Head of Bank BTPN since 2011 where she formulated a business model to serve the productive underprivileged customers to realize a better life through women empowerment by inculcating the spirit of Courage, Disciplined, Hardwork and Solidarity to the customers. When the Sharia Business Unit was spun off and transformed as BTPN Syariah on July 14, 2014; Ratih’s leadership in TUR Business had delivered a tremendous growth of the business with more than 1.2 million productive underprivileged customers served by more than 8,000 #bankirpemberdaya.

In September 2017, Ratih was awarded the TOP CEO Bank 2017 from Top Bank 2017.

Her expertise in Microbanking was dated back to her experience in Bank Danamon (2003-2008) when, as the founder of Mass Market Business (Danamon Simpan Pinjam – DSP), she built the design architecture of the business and managed to deliver the expected business performance. With a mission to develop the microbanking industry in Indonesia, Ratih then proceeded to Bank BTPN; where in her role as the Business Planning Head (2008-2011) she established a new business unit focusing on microbanking, Mitra Usaha Rakyat. Not only by means of leveraging her experience in Bank Danamon, Ratih had actively studied world class micro banking best practices in various countries in order to further develop the micro banking business. The benchmarking studies include countries such as India, Mexico, Peru and Latin America; and she has also actively built strategic alliance with institutions of financial inclusion and poverty eradication such as Grameen Foundation, IFC, and United Nation Capital Development Fund (UNCDF). To obtain the state-of-the-art of the microbanking knowledge and leadership, she attended world class microfinance conference, such as World Micro Credit Summit and leadership program from Harvard Business School, Boston, USA.

Holding a Bachelor Degree of the Faculty of Economics major in Accounting from Padjajaran University Bandung with cum laude predicate in 1994 and MBA from Melbourne Business School University of Melbourne with cum laude predicate in 2000, Ratih has attended a number of training in Harvard Business School USA, INSEAD Singapore, McKinsey, Risk Management Certification Board, Sharia Certification from Karim Business Consulting and LPPI, Stephen Covey, Dave Ulrich, Euro David International Limited, Auditors Club Perbanas, DDI, Perbanas Business School, FCG, TGMH Consulting, Bankers Club, Prof. Terry S. David, Grameen Foundation, Indonesian Banker Association, and Indonesian Institution for Commissioners and Directors, and Bank Indonesia.

Ratih Rachmawaty


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deputy president director


Mulia Salim was appointed as the Deputy President Director of PT Bank Tabungan Pensiunan Nasional Syariah (“BTPN Syariah”) pursuant to the Annual General Meeting of Shareholders on March 6, 2017 and the approval of the Financial Services Authority on June 14, 2017.

Prior to his appointment as the member of the Board of Directors BTPN Syariah, Mulia Salim had served as the Head of Micro Business, Business Director for Micro and Small Enterprise and Operations Director in PT Bank Tabungan Pensiunan Nasional Tbk (“BTPN”).

Before joining Bank BTPN in 2008, Mulia worked in Bank Danamon as the Executive Vice President–Finance, Operation & Collections Head, Cards Business and at the same time as Project Leader for acquisition and integration of American Express business into Bank Danamon; and in Citibank NA where he held various positions including Country Procurement Head, Cards Operations Head, Transaction Services Head and his last position was Vice President – Quality & Customer Service Director.

Holding a Bachelor Degree in Electrical Engineering from University of Indonesia in 1993, Mulia Salim had attend various courses including Citibank Asia Pacific Leadership Forum in Shanghai, Danamon Leadership Academy in Insead Singapore, Berkeley-Nanyang Advanced Management Program at Nanyang Technological University - Singapore and Haas School of Business, University of California Berkeley - USA and other education program such as Leading for Organizational Impact, SME Finance Forum, Risk Management, Information Technology and Basic Sharia Banking Training.

Mulia Salim

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director


Taras was reappointed as Director PT Bank Tabungan Pensiunan Nasional Syariah (“BTPN Syariah”) pursuant to the Annual General Meeting of Shareholders on March 6, 2017 and the approval of the Financial Services Authority on September 9, 2015. Taras had previously been assigned as the Compliance and Risk Director in BTPN Syariah.

Prior to his appointment as the Member of the Board of Directors in BTPN Syariah, Taras had served as the member of the Board of Commissioners BTPN Syariah (2014-2015) and had worked in PT Bank Tabungan Pensiunan Nasional, Tbk (“BTPN”) (2008-2015) – his last position was Deputy Chief Risk Officer. Prior to Bank BTPN Taras worked in several banks including Bank Danamon (2004-2008) with the last position as Credit Risk Head Divisi Self Employed Mass Market (DSP) and Citibank NA (1998-2004) – last position being Citi Financial Credit Risk Head. His starting point in the career was in PT Freeport Indonesia (1993-1996) as Senior Systems Analyst.

Taras holds the degree of Master of Business Administration from Tulane University – A.B. Freeman School of Business, Louisiana, USA (1998), Bachelor of Science (Faculty of Computer Science) and Bachelor of Arts (Faculty of Business Administration) from Washington State University, Washington, USA (1993).

Taras Wibawa Siregar


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director


Gatot Adhi Prasetyo was reappointed as Director of PT Bank Tabungan Pensiunan Nasional Syariah (”BTPN Syariah”) pursuant to the Annual General Meeting of Shareholders on March 6, 2017 and the approval of the Financial Services Authority on February 24, 2014.

Starting his professional career in 1987, Gatot has been exposed to various industries, including: Engineering Consultant (PT Infratama Yakti, PT Ripta Paripurna, PT Mirazh), general insurance (Asuransi Astra Buana), paid television (PT Direct Vision/Astro TV) and banking (Bank Pasific, Bank Universal, Bank Permata, Bank Sahabat Purba Danarta and BTPN Syariah) in a number of functions – Operations, Credit, System and Procedure Development, Human Capital and Board of Management).

Holding a Bachelor degree in Engineering from the Faculty of Geodesy, Bandung Institute of Technology – Geodetic Engineering in 1997, Gatot has attended a number of training programs from Center of Management Technology, IMPM Prasetya Mulya, Business Forum, Asia Pacific Institute, KPMG Management Consultant, Astra Management Institute of Development, Covey Leadership Center, Law Education & Training Hotman Paris, IBC Asia Limited, Care Consulting, Ministry of Finance Republic of Indonesia, Business Consulting, Directorate General of Land Transporation, Kellog School of Management, Plasmedia, Lawrence Walter Ng, SCB, Risk Management Certification, LPPI and LSPP.

M. Gatot Adhi Prasetyo

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compliance director


Arief Ismail was appointed as the Compliance Director of PT Bank Tabungan Pensiunan Nasional Syariah (“BTPN Syariah”) pursuant to the Annual General Meeting of Shareholders on March 6, 2017 and the approval of the Financial Services Authority on August 22, 2017.

Carrying more than 27 years of experience, Arief Ismail started his career in PT USI Jaya IBM before he then commenced his exposure in financial services industry with Citibank Global Consumer by joining its Management Associates Program, then as Credit Analyst, Credit Policy Manager and his last position was Direct Sales Manager (1990-1995). With this start, Arief continued to obtain exposure mostly in financial services and other industry, including GE Capital as the Global Consumer as the Director of Risk and his last position was Director of New Business (1995-1999), in PT Rahajasa Media Internet as Marketing Director (1999-2001), in PT Bank Danamon Indonesia as Card Center’s Credit Cycle Manager and his last position was Unsecured Risk Management Head (2001-2005), in ABN Amro as Head of Consumer Risk and his last position was Country Head of Risk and Head of Consumer Risk (2005-2010), in PT ANZ Panin Bank Indonesia as Head of Retail Credit Risk (2010-2011); then in HSBC Indonesia with the last position as Senior Vice President Head of Retail Banking & Wealth Management Risk (RBWM Risk) (2011-2017).

Holding a Bachelor Degree in Industrial Engineering from Bandung Institute of Technology in 1990, Arief has attended various courses and training program including Basic Sharia Banking, Risk Management and the Refreshment Courses, Process Improvement Process, RBS Orientation Program in United Kingdom, ABN Amro Leadership Program in Amsterdam, Corporate Financing for Consumer Banking in Amsterdam, Consumer Credit, Account Management, Business of Credit Card, Corporate Acquisition Process Simulation, GE Capital Risk University Program in Stamford, Connecticut, America, Change Acceleration Process, Performance Management, and Citibank Credit and Risk.

Arief Ismail


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sharia supervisory board profile

chairman of sharia supervisory board

Indonesia citizen, 52 years old.

H. Ikhwan Abidin was appointed as the Chariman of the Sharia Supervisory Board of PT Bank Tabungan Pensiunan Nasional Syariah (“BTPN Syariah”) pursuant to the Annual General Meeting of Shareholders on March 6, 2017 and the approval of the Financial Services Authority on June 13, 2017.

H. Ikhwan Abidin, at the same time, also serves as the member of Sharia Supervisory Board Bank Syariah Bukopin (2000 - present), PT Bahana TCS Investment Management (2004 - present), and Chairman of Sharia Supervisory Board PT Radana Finance (2013 - present), Sharia Supervisory Board in PT Asanusa Asset Management (2014 - present), lecturer in post-graduate program in Institute of Al Quranic Knowledge (2007 - present) and expert staff of the Board of Directors in Sharia Banking in LPPI (2004 - present).

Holding a Bachelor and Post-Graduate Degree in International of Islamic Economics Islamabad, Pakistan majoring in Islamic Economics (1992,1994) and in Jamiah Islamiah, Faisalabad, Pakistan majoring in Islamic Studies (1994). He also attended various workshops on Islamic Banking Practices held by Bank Islam Malaysia Berhaad (BMB), Institute of Research on Training Sdn Berhaad & Bank Indonesia in Association Islamic Development Bank (1999) and certified as the Sharia Supervisory Board for Financing Companies from Financial Services Authority (OJK) and National Sharia Board Indonesian Ulema Council (2015).

H. Ikhwan Abidin, MA

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member of sharia supervisory board

Indonesia citizen, 43 years old.

Muhamad Faiz was appointed as member of the Sharia Supervisory Board of PT Bank Tabungan Pensiunan Nasional Syariah (“BTPN Syariah”) pursuant to the Annual General Meeting of Shareholders on March 6, 2017 and the approval of the Financial Services Authority on May 2, 2017.

Muhamad Faiz, at the same time, also serves as the Chairman of the Sharia Supervisory Board Sharia Business Unit PT Bank Permata Tbk. (2008 - present), Chairman of the Sharia Supervisory Board PT IMFI Syariah (2012 - present), Deputy in PP Darul Rohman (2008 - present), Deputy Secretary of Fatwa Commission in Indonesian Ulema Council (2010 - present), and Deputy Chairman of Bahtsul Masail Institution in Nahdatul Ulama Board of Management – PBNU (2015 - present).

Holding a Bachelor Degree from Islamic Univerisy Madinah majoring in Sharia Law in 1997 and obtaining a Post-Graduate Degree from the University of Cairo majoring in Daarul Ulum in 2013, Muhamad Faiz was certified for Sharia Supervisory Board Sharia Banking Level I (2008) and Level II (2013) from National Sharia Board Indonesian Ulema Council and Bank Indonesia. He also attended The Workshop Pra Ijtima Sanawi to enhance the competency of Sharia Supervisory Board in Banking, Financing and Sharia Venture Capital (2016).

H. Muhamad Faiz, MA


51

board of commissioners committe profile

Risk Monitoring Committee Audit Committee

Nomination and Remuneration

Committee

Chairman:Dewie Pelitawati (Independent Commissioner)

Member:

1. Kemal Aziz Stamboel (President Commissioner/Independent)

2. Mahdi Syahbuddin (Commissioner)

3. Azis Budi Setiawan (Independent)

4. Muhammad Faisal Muchtar (Independent)

Chairman:Kemal Azis Stamboel (President Commissioner/Independent)

Member:

1. Dewie Pelitawati (Independent Commissioner)

2. Azis Budi Setiawan (Independent)

3. Muhammad Faisal Muchtar (Independent)

Chairman:Kemal Azis Stamboel (President Commissioner/Independent)

Member:


2. Mahdi Syahbuddin (Commissioner)

3. Maya Kartika (Commissioner)

4. Sulistyo Yuwono (Executive Officer Human Capital)

Composition Board of Commissioners Committee

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member of audit committee and risk monitoring committee


Muhammad Faisal Muchtar was appointed as the member of Audit Commitee and Risk Monitoring Committee BTPN Syariah since September 2014.

He obtained his Bachelor degree within three and a half years time frame ending in June 1998 from Al-Azhar University Cairo, Egypt, then continued to deepen the knowledge on ushul fiqh in magister level in the same University from 1998-2000. He also holds another Master degree in Islamic Economy graduted with cum laude from Islamic University of Indonesia in 2005.

Having exposed to a deepening in Compliance and Risk Management, he continued his study for a Doctoral Degree in Middle East in 2017.

Muhammad Faisal Muchtar has working experience in several companies in banking, insurance and Sharia multi finance; including:

• Corporate Secretary in Al Ijarah Indonesia Finance (ALIF) (2014-2015).

• Sharia Supervisory Board in Takaful Insurance Indonesia (2012-2013).

• Assistant General Manager Sharia Head Syarikat Takaful Malaysia Berhad (STMB) Malaysia (2011-2013).

• Senior Manajer Sharia Compliance in Bank Syariah Mega Indonesia (2007-2009).

• PT Bank Muamalat Indonesia as Business Development Officer (2005-2007).

Muhammad Faisal Muchtar


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member of audit committee and risk monitoring committee

Indonesian Citizen, 36 years old.

Azis Budi Setiawan was appointed as the member of Audit Commitee and Risk Monitoring Committee BTPN Syariah since September 2014.

He holds a Bachelor Degree in Sharia Banking in STEI SEBI in 2005 and Master Degree from Paramadina Graduate School of Business-Universitas Paramadina Magister Program in Islamic Business and Finance majoring in Sharia Banking in 2009. He had also completed Risk Management Certification Level IV from Risk Management Certification Board in Jakarta.

He currently serves several positions in several organization including:

• Deputy Chairman I in Academic Affairs STEI SEBI yang supervising Study Program of Sharia Banking and Sharia Accounting (2012 - present).

• Management in Association of Indonesian Islamic Economy Experts (IAEI) and Sharia Economic Community (2010 - present).

• Chairman of Study Program of Sharia Banking (2008 - 2012).

• Lecturer and researcher in Sharia Banking in STEI SEBI (2006 - present).

Azis Budi Setiawan

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member of nomination and remuneration committee

Indonesian Citizen, 44 years old.

Sulistyo Yuwono was appointed as the Remuneration and Nomination Committee BTPN Syariah since March 2017.

Holding Bachelor Degree in Economics majoring in Management from Gadjahmada University, he has 17 years of experience in the Human Capital areas when he joined BTPN Syariah in 2016 and currently serves as the Head of Human Capital Corporate, responsible to manage the core function of Human Capital including Resourcing, Learning & Talent Management, HC Business Partner, and Reward, Performance Management & HC Governance. His exposure in Human Capital covers several positions in a range of industries, including:

• Country Head of Human Resources RBS Indonesia (2011-2016).

• Head of Remuneration & Benefits and Head of HR Services ABN Amro Bank NV (2006-2008).

• Manager in PricewaterhouseCoopers (PwC) (2006).

• Ernst & Young (EY) (2005-2006).

• Arthur Andersen Business Consulting (AABC) (1999-2002).

• Member of Consulting Team in Center of Research and Development Gadjahmada University (1999).

Sulistyo Yuwono


55

shareholders composition BTPN Syariah

30%

PT Bank Tabungan Pensiunan Nasional Tbk

Number of Shares 4,853,330,000 shares

Nominal amount of paid-up capital Rp485,333,000,000 (Four hundred eighty five billion three hundred and thirty three million Rupiah)

PT Triputra Persada Rahmat

Number of Shares 2,080,000,000 shares

Nominal amount of paid-up capital Rp208,000,000,000 (Two hundred and eight billion Rupiah)

Shareholders Composition

BTPN Syariah

70%

According to Article No. 57/2017*, the composition of shareholders of BTPN Syariah is, as follows:

DescriptionNominal value of Rp100.- per share

Number of Shares

Nominal Value(Rp)

Percentage (%)

Authorized Capital 15,000,000,000 1,500,000,000,000

Issued and Paid-Up Capital

1. PT Bank Tabungan Pensiunan Nasional Tbk 4,853,330,000 485,333,000,000 70.00

2. PT Triputra Persada Rahmat 2,080,000,000 208,000,000,000 30.00

Total Issued and Paid-Up Capital 6,933,330,000 693,333,000,000 100.00

* Being effective at the date of the letter from the Financial Services Authority

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PT Triputra Persada Rahmat (Triputra)

Established by TP Rachmat and the late Benny Subianto, PT Triputra Persada Rahmat (Triputra) is a manifestation of concern to build a better Indonesia by empowering underprivileged communities to attain a better life by helping to build their economic freedom.

The motto “Less for self, More for Others, Enough for Everybody” is the spirit that enlightens the founders to build a financial institution towards micro-businesses, financing productive underprivileged families to start or develop their own micro-businesses and encouraging them to do saving as a means of asset accumulation to change their lives. The founders believe that this intention will be best realized by investing through stock ownership in BTPN Syariah (from the legacy PT Bank Sahabat Purba Danarta).

Inspired by Muhammad Yunus’ Grameen Bank, the founders – through their stock ownership in BTPN Syariah – not only aimed at gaining economic return on their investment, but most importantly to participate in the acceleration of micro-business development by financing and empowering the underprivileged communities to start and/or develop their own businesses to attain a better life.

PT Bank Tabungan Pensiunan Nasional Tbk (BTPN)

BTPN is a bank which focuses to serve and empower low-income communities including pensioners, micro-small-and medium enterprises, and productive underprivileged communities through BTPN Syariah. All those segments fall under the category mass market.

Established in Bandung, Jawa Barat, on 1958 with the name Bapemil, the Bank underwent several stages of transformation in its history, until it became PT Bank Tabungan Pensiunan Nasional in 1986. Now BTPN operates with Head Quarter in Jakarta, and as of 31 December 2017, BTPN has 1,147 distribution network consisting of Head Office, 84 Branch Offices, and 304 Branch Supporting Offices. Besides, BTPN also has 207 ATM machines and TCR, 357 Payment Points and 194 Functional Offices spread throughout Indonesia.

BTPN serves its target through six lines of businesses. The first is BTPN Purna Bakti which focuses on pensioners and pre-pensioners segment. The second is BTPN Mitra Usaha Rakyat which serves self-employed micro-business customers. The third is BTPN Mitra Bisnis serving small and medium enterprise customers. The fourth is BTPN Sinaya which focuses to acquire funding by serving the institutional market and high net-worth individuals.

The last two lines of business applies mobile banking platform as its main delivery channel. The first is BTPN Wow! Enables mass market to do banking transaction using simple cellular phone wherever they are. Through this line of business BTPN is able to reach out to customers in the remote areas which are currently not covered by any banking services. The second is Jenius – serving customers with higher level of income and more advanced needs for technology-based financial services which requires smartphone as the main device for financial transactions. The Jenius mobile banking services include mobile application and international debit card. Jenius offers three Unique Value Propositions, that is – making life simple, smartly managing financials and ensuring secure transaction.

BTPN believes that financial and social missions are inseparable two sides of a coin that an organization can only achieve the financial objectives by empowering the social communities. People empowerment is, therefore, an integrated element of the business model. It goes beyond a corporate social responsibility. Creating opportunities for growth and a more meaningful life for our customers is essentially the purpose of BTPN existence. The Bank believe that by serving the needs of millions it will ultimately attain a more meaningful life for all stakeholders.


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structure of ownership BTPN Syariah

The company is directly controlled by PT Bank Tabungan Pensiunan Nasional Tbk (“BTPN”). The structure of ownership of the company is, as follows:

SMFGJapan Trustee Services Bank, Ltd. 5.63%Public < 5% 94.37%

Sumitomo CorporationThe Master Trust Bank of Japan, Ltd. (trust account) 6.03%Public < 5% 93.97%

SMBC

PT Sukses Sarana Makmur

BTPN


Summit Global Capital

Management B.V.

BTPN Syariah

PT Triputra Investindo Arya

Public

100% 100%

40.00%

25.00%75.00%

20.00%

70.00%

30.00%

40.00%

Controlling Shareholders:

1. PT Bank Tabungan Pensiunan Nasional Tbk (BTPN).

2. PT Triputra Persada Rahmat (TPR).

Ultimate Controlling Shareholders:

1. Sumitomo Mitsui Financial Group (through Sumitomo Mitsui Banking Corporation).

2. Arif Rachmat (through PT Triputra Persada Rahmat).

(As of end of September 2017) (As of end of December 2017)

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information for shareholders

Address of Head Quarter and Corporate SecretaryMenara BTPN 12th Floor CBD Mega Kuningan Jl. Dr Ide Anak Agung Gde Agung Kav. 5.5-5.6 Jakarta Selatan 12950Tel : +62 21 300 26 400Fax : +62 21 292 72 096 (general)

Tax Payer Identification Number01.551.806.1-511-000

Certificate of Company Registration09.03.01.64.92406 dated July 16, 2019

Websitehttps://www.btpnsyariah.com/

Independent AuditorKantor Akuntan Publik Tanudiredja, Wibisana, Rintis dan Rekan (a member firm of PWC global network) Plaza 89 Jalan HR Rasuna Said Kav. X-7 No. 6 Jakarta 12940Tel : +62 21 521 2901Fax : +62 21 5290 5555

Brief History of BTPN Syariah

PT Bank Tabungan Pensiunan Nasional Syariah (“BTPN Syariah”) was built from the formerly established PT Bank Purba Danarta (BPD), based on Notarial Deed No. 10 dated March 7, 1991 which was the amended with Notarial Deed on Amendment on Article of Association No. 39 dated May 25, 1992 and Notarial Deed No. 25 dated July 11, 1992; all by Notary Haji Abu Jusuf, S.H. in Jakarta and had been approved by the Minister of Judiciary whose name was then changing from time to time and become the Minister of Law and Human Rights (“Menkumham”) in its decree No. C2.5839.HT.01.01-TH.92 dated July 21, 1992 and had been registered in the court registry office in Semarang on July 30, 1992 No. 206A/1992/II and had been published in State Gazette of the Republic of Indonesia No. 81 dated October 9, 1992, Additional No. 5020 (“Notarial Deed”) with the business license to perform business activities as a Commercial Bank pursuant to the Decree of Minister of Finance Republic of Indonesia No. 1060/KMK.017/1992 dated October 14, 1992.

The company then changed the name to Bank Sahabat Purba Danarta (BSPD) in 2009 and finally to PT Bank Tabungan Pensiunan Nasional Syariah pursuant to the Amendment of Articles of Association on August 27, 2013 on Notarial Deed No. 25 by Notary Hadijah, S.H. and was approved by the Minister of Law and Human Rights (“Menkumham”) of Republic of Indonesia (“RI”) in its Decree Nomor AHU-50529.AH.01.02. Year 2013 dated October 1, 2013 regarding the Approval of Ratifications of Company’s Article of Association and has been published in the State Gazette of the Republic of Indonesia No. 94 Year 2013, supplement to the State Gazette of the Republic of Indonesia No. 124084 dated November 22, 2013.


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Based on the Articles of Association, the structure of capital and shareholders of the Company in its establishment is, as follows:

Description Nominal Value of Rp10,000,000 Per Share

Number of Share Nominal Value (Rp) Percentage (%)

Authorized Capital

A-Series Shares 200 2,000,000,000

B-Series Shares 800 8,000,000,000

Issued and Paid Up Capital:

1. Djoenaedi Joesoef

A-Series Shares 198 1,980,000,000 19.8

B-Series Shares 800 8,000,000,000 80

2. Kwik Kian Gie

A-Series Shares 1 10,000,000 0.1

3. Frederik Bernard George Tumbuan

A-Series Shares 1 10,000,000 0.1

Total Issued and Paid Up Capital 1,000 10,000,000,000 100

Shares in Portfolio 0 0

Note: Pursuant to the Notarial Deed, the Share Serial A or Priority Shares offer special rights to the shareholders whereby the transfer of rights of the shares issued by the Company can only be administered upon the approval of the Meeting of the Shareholders of Share Serial A or Priority Shares.

On January 20, 2014, the Extra Ordinary General Meeting of Shareholders BTPN has approved the Unit Usaha Syariah PT Bank Tabungan Pensiunan Nasional Tbk (“UUS BTPN”), whereby the establishment of UUS BTPN had been agreed pursuant to the Letter of Bank Indonesia No. 10/2/DPIP/Prz/Bd dated January 17, 2008; from BTPN as stipulated in the Notarial Deed on the UUS BTPN Spin Off by Transfering the Rights and Obligations of the Company, No. 8 dated July 4, 2014 by the Notary Hadijah, S.H., M.Kn.,

in Jakarta Pusat. The spin off is in compliance to the Regulation of Bank Indonesia No. 11/10/PBI/2009 which was then amended with Regulation of Bank Indonesia No. 15/14/PBI/2013 concerning Sharia Business Unit. As stipulated in the Regulation of Bank Indonesia regarding Sharia Business Unit which specifically mentions about the Sharia Business Unit spin off; Bank BTPN decided to spin off the Sharia Business Unit by means of transfering the rights and obligations of the Sharia Business Unit to the established Sharia business entity.

After the decision on Sharia Business Unit BTPN was made in the Extra Ordinary General Meeting of Shareholders BTPN on January 20, 2014; BTPN then acquired 70% (seventy percent) of the Company shares, by taking part in the newly issued shares of the Company on January 30, 2014. The 70% acquisition of the Company shares had previously been agreed by Bank Indonesia pursuant to the Letter of Bank Indonesia No. 15/10/DPB1/PB1-5/Confidential dated

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July 19, 2013 on the condition of the conversion of PT Bank Sahabat Purba Danarta (now the Company) from the conventional into the Sharia Commercial Bank.

To execute the spin off decision, PT Bank Sahabat Purba Danarta (now the Company) must, as conditioned by Bank Indonesia approval on the 70% acquisition of the Company by BTPN, obtain the license to convert the business activities from the previously conventional commercial bank to become a Sharia commercial Bank. PT Bank Sahabat Purba Danarta (now the Company), was then granted the license by the Financial Services Authority to convert the business activities from the previously conventional commercial bank to become a Sharia commercial Bank pursuant the Letter of Financial Services Authority No. S-67/PB.131/2014 dated May 23, 2014 concerning the Decision to Grant the License to Convert the Conventional Commercial Bank Activities to Sharia Commercial Bank, issued by Director of Research, Development, Management and License of Sharia Banking.

Having obtained the license, the Company was then granted approval from Financial Services Authority with regard to the Sharia Business Unit BTPN Spin off to the Company,

pursuant to Letter of Financial Services Authority No. S-17/PB.1/2014 dated June 23, 2014 regarding the Request for Sharia Business Unit BTPN Spin off, issued by Deputy Commissioner Banking Supervision I Financial Services Authority

Since its establishment, the Article of Association of the Company has amended several times, and the latest amendment was in the Notarial Deed of the Shareholders Decision No. 57* dated November 16, 2017, by Notary Jose Dima, S.H. in Administrative City Jakarta Selatan, which was approved by the Minister of Law and Human Rights (“Menkumham”) of Republic of Indonesia (“RI”) in its Decree No. AHU-0024076.AH.01.02.TAHUN 2017 dated November 16, 2017 and registered in the List of Companies in the Ministry of Law and Human Rights No. AHU-0145670.AH.01.11.TAHUN 2017 dated November 16, 2017 and was notified to the Minister of Law and Human Rights upon the acknowledgement of the receipt of the Letter of Notification on Ratification of the Article of Association No. AHU-AH.01.03-0191730 dated November 16, November 2017 and was registered in the List of Companies in the Ministry of Law and Human Rights No. AHU-0145670.AH.01.11.TAHUN 2017 dated November 16, 2017 (“Deed No. 57/2017*”). The announcement of Deed No. 57/2017* in the State Gazette Repulic of Indonesia is now still in progress.

The Development of Shares Ownership upon Establishment

The development of capital structure and composition of shareholders of the Company upon its establishment during the last three years is, as follows:

According to the Notarial Deed No. 05 dated August 27, 2007 by Notary Winarty Lukman Widjaja, S.H., in Jakarta thas was approved by Minister of Law and Human Rights (“Menkumham”) of Republic of Indonesia (“RI”) in its Decree No. AHU-02507.AH.01.02.AH.01.02. of 2008 dated January 18, 2008, and registered in the List of Companies in the Ministry of Law and Human Rights No. AHU-0003867.AH.01.09.of 2008 dated January18, 2008 and was announced in the State Gazetter of the Republic of Indonesia No. 22 dated March 14, 2008, Additional No. 3032, the condition regarding the classification of Serial A and Serial B shares in the Articles of Associations of the Company has been omitted and therefor, converted into ordinary shares without classification.


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The capital structure and composition of shareholders of the Company within the last three years is, as follows:

In 20141. According to on the Notarial Deed No. 27 dated January 30, 2015, by Hadijah, S.H., in Jakarta, that was notified

to the Minister of Law and Human Rights according to acknowledgement of the receipt of the Letter of Notification on Ratification of the Article of Association No. AHU-AH.01.10-04338 dated February 12, 2014, and was registered in the List of Companies in the Ministry of Law and Human Rights No. AHU-0010537.AH.01.09.of 2014 dated February 12, 2014 (”Notarial Deed No.27/2014”), the shareholders of the Company agreed on the following:a. Increase the issued and paid-up capital of the Company from Rp160,000,000,000 to Rp533,333,000,000

by issueing 373,333 new shares, each with nominal value of Rp1,000,000 or the total nominal value of Rp373,333,000,000; and

b. Declare that all new shares will be taken, and the nominal value of Rp373,333,000,000 plus the agio of Rp226,667,000,000 will be paid up by BTPN.

That made the capital structure and composition of shareholders of the Company according to the Notarial Deed No. 27/2014 as follows:



Authorized Capital 640,000 640,000,000,000

Issued and Paid-Up Capital:

1. PT Bank Tabungan Pensiunan Nasional Tbk 373,333 373,333,000,000 70.00

2. PT Triputra Persada Rahmat 152,500 152,500,000,000 28.60

3. Yayasan Purba Danarta 7,500 7,500,000,000 1.40

Total Issued and Paid-Up Capital 533,333 533,333,000,000 100.00

Shares in Portfolio 106,667 106,667,000,000

The ownership of all the new shares by BTPN as agreed in the Notarial Deed No. 27/2014 that made BTPN the controlling shareholders was approved by the Governor of Bank of Indonesia pursuant to the Letter of the Governor of Bank of Indonesia No. 15/69/GBI/DPIP dated October 18, 2013.

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// company profile

2. According to Notarial Sale and Purchase Agreement No. 32 dated November 21, by the Notary Ronaldie Christie, S.H., M.Kn., in the District of Tangerang, Yayasan Purba Danarta has transfered all the shares in the Company of 7,500 shares to PT Triputra Persada Rahmat. The sale and purchase was approved by the shareholders of the Company pursuant to the Circular Resolution of Shareholders taken apart from the General Meeting of Shareholders No. 01 dated December 1, 2014, by the Notary Ashoya Ratam, S.H., M.Kn., in Jakarta Selatan, that was notified to the Minister of Law and Human Rights upn the Receipt of the of the Letter of Notification on Changes of Company Data No. AHU-45327.40.22.2014 dated December 5, 2014, and was registered in the List of Companies in the Ministry of Law and Human Rights No. AHU-0127848.40.80.2014 dated December 5, 2014 (”Deed No. 01/2014”).

According to Deed No. 01/2014, the composition of shareholders of the Company is, as follows:



Authorized Capital 640,000 640,000,000,000






With regard to sale and purchase, Yayasan Purba Danarta was granted approval from Cyrillus Harinowo, as the Supervisor of the Yayasan and BTPN as stated in the Letter No. S.615/DIR/CCS/X/2014 dated October 17, 2014 which mentioned that BTPN did not take any part in the offering of sales of all the shares by Yayasan Purba Danarta.

In 20153. According to the Circular Resolution of Shareholders taken apart from the General Meeting of Shareholders No. 98

dated June 23, 2015, by Notary Ashoya Ratam, S.H., M.Kn., in Jakarta, that was approved by the Minister of Law and Human Rights No. AHU-0938093.AH.01.02.of 2015 dated June 25, 2015, and was registered in the List of Companies in the Ministry of Law and Human Rights No. AHU-3524871.AH.01.11.of 2015 dated June 25, 2015 (”Deed No. 98/2015”), the shareholders agreed on the following:a. Increase the authorized capital of the Company from Rp640,000,000,000 to Rp1,500,000,000,000; and b. Increase the issued and paid-up capital of the Company from Rp533,333,000,000 to Rp693,333,000,000, that

was taken proportionally by the shareholders.


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That made the capital structure and composition of shareholders of the Company according to Deed No. 98/2015 as follows:

DescriptionNominal Value of Rp1,000,000 Per Share

Number of Shares Nominal Value (Rp) Percentage (%)

Authorized Capital 1,500,000 1,500,000,000,000






The changes in the composition of shareholders of the Company was affirmed by the Financial Services Authority in its letter No. S-376/PB.132/2015 dated December 3, 2015 concerning the Affirmation of of Report on Changes of Shareholders Composition of BTPN Syariah.

In 20174. According to the Notarial Deed No. 57/2017*, the composition of shareholders of the Company is, as follows:

Description Nominal Value of Rp100,- Per Share

Number of Shares Nominal Value (Rp) Percentage (%)

Authorized Capital 15,000,000,000 1,500,000,000,000


1. PT Bank Tabungan Pensiunan Nasional Tbk 4,853,330,000 485,333,000,000 70.00

2. PT Triputra Persada Rahmat 2,080,000,000 208,000,000,000 30.00

Total Issued and Paid-Up Capital 6,933,330,000 693,333,000,000 100.00

Shares in Portfolio 8,066,670,000 806,667,000,000

The Company has reported the changes of the composition of the nominal values of the shares according to Notarial Deed No. 57/2017* to the Sharia Banking Department Financial Services Authority through the Company Letter No. S.452/DIR/LG/XI/2017 dated November 23, 2017, that was received upon the acknowledgement of receipt from Financial Services Authority No. 012376 dated November 24, 2017.

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// company profile

Controlling Shareholder

Name

PT Bank Tabungan Pensiunan Nasional Tbk


Ultimate Controlling Shareholder

Company Ultimate Controlling Shareholder

PT Bank Tabungan Pensiunan Nasional Tbk Sumitomo Mitsui Financial Group (through Sumitomo Mitsui Banking Corporation)

PT Triputra Persada Rahmat Arif Rachmat (through PT Triputra Persada Rahmat)

Note:*Being effective on the effective date of the Financial Services Authority.


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#bankirpemberdaya in a cross functional collaboration working hand-in-hand to create products and services that are secure and simple to meet customers needs

02management discussion

and analysis

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Fitria Yulianingsih, #bankirpemberdaya from Pondok Indah Branch, Jakarta, committed to deliver service excellence

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// management discussion and analysis

financial review

Economic Review

In 2017, a rebound of the Indonesian economy was reported. A number of macroeconomic indicators reflected a recovery throughout the year.

Global economic rebound that had started since 2016 strengthened the composite index throughout the world in 2017. Along that line, Indonesian economy also started to rebound; a slight growth, if not stagnant, was reported. Indonesian economic growth in 2017 was 5.06% (yoy) or 3.18% (qtq), which was higher than the same period of the previous year of 5.01% (yoy). A number of economic indicators started to improve. Inflation rate in 2017 is well managed within the target inflation rate of the Bank of Indonesia. Consumer Price Index Inflation in December 2017 was reported at 0.71% (mtm) making the overall 2017 to 3.61% (yoy) which

was still within the range of the target inflation rate of 4+1% (yoy). The foreign exchange reserves at the end of December 2017 amounted to USD130.2 billion, higher than that of the previous year of USD116.3 billion. BI 7-day Reserve Repo Rate was maintained at 4.25% at the year end, a gradual decrease from 4.75% last year. Jakarta Composite Index showed a strenghtening trend that kept increasing throughout the year and closed at its highest point at 6,355.7. The bond performance in 2017 was very positive. This was attributed to the raise of Indonesian credit rating from two international rating agency, Standard & Poor’s (S&P) and Fitch Ratings. It contributed to the improvement of the nation’s investment climate that was conducive to the business growth.

This development will boost the economy even further and the distribution of income will be better in the future.

BTPN Syariah always invites and engages all the stakeholders to provide underprivileged communities with the access to enjoy banking services. All BTPN Syariah employees work hand in and hand to develop a range of products and services which empower this particular segment, because we are #bankirpemberdaya.


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Sharia Banking Overview

Sharia Banking Industry reported a very good financing growth of 15% by November 2017 with total financing of Rp277.6 trillion, way above the lending growth rate in the conventional banking which was only 8% at the same period. Third party funds grew even at a higher rate of 19% by November 2017 with the total funding of Rp322.7 trillion, way above the average growth of third party funds in the conventional banking which was reported at 10%. With this, the financing to deposit ratio in sharia banking reached a level of 86.9% in November 2017, reflecting a more liquid financial situation compared to the 89.3% in the previous year.

From financing quality perspective, the Non-Performing Financing ratio was recorded 4.32% in November 2017, a slight increase from 4.29% last year. The expense was better in 2017, as reflected in the operational efficiency ratio – Cost to Income Ratio – that decreased to 91.2% (November 2017) from 93.8% last year. All those financial performance brought the Capital Adequacy Ratio to improve to 17.0% from 16.6% in the previous year.

As of November 2017, the total number of Sharia Bank was 13 banks, the total number Sharia Business Unit was 21, and Sharia Rural Banks was 167. As the biggest moslem country in world with a total population of 261 million people, yet the total number of customers in sharia financial services is only 20 million, Indonesia presents huge market potential for sharia banking industry awaiting to be tapped. The Financial Services Authority reported that the market share of sharia banking compared to the total assets of conventional banking was 5.8% by November 2017. It was also mentioned by the President of Republic of Indonesia Joko Widodo in the inauguration of the National Commitee of Sharia Finance that the total number sharia financial institutions in Indonesia is the highest in the world. Besides, the development and improvement of sharia financial industry will become one of the main solution for the financing of development in Indonesia – which includes building the economy of the community developing infrastructure and financing poverty eradication programs as well as reducing the social disparity with the total number of underprivileged populations amounting to more than 30 million today.

For that purpose, an organizational transformation emphasizing on financial technology, particularly from the sharia perspective, must be placed within the context of financial inclusion to do good to the society.

One opportunity to realize this is by exploring the financing programs for productive underprivileged communities of which quite a few has access to financing programs from the banks today. There lies a huge number of productive underprivileged communities with a need for an easily accessible financing programs that are tailored to suit their specific characteristics, that is, lack of collateral, lack of financial administration records and lack of market understanding. The presence of a financing institution both bank and non-bank that is capable to empower those particular community to increase their capacity is, therefore, critically important.

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Financial Performance

In 2017, BTPN Syariah continues to grow, aligned with the development of sharia banking. From the 12th rank position at its inception, BTPN Syariah moved to the 9th rank in 2015 and moved even further to the 7th rank in 2017. The assets grow by 25% in 2017 making the total assets of Rp9.2 trillion.

This program, at the same, also supports the government initiatives to promote the policy of financial inclusion that is capable to reach all layers of society including those in the most remote areas.

Assets and Liabilities

As of December 31, 2017, BTPN Syariah booked a total assets of Rp9.2 trillion of which the total financing amounted to Rp6.1 trillion, all targeted to the productive underprivileged segment with akad Murabahah. To compare with, the total assets in 2016 was Rp7.3 trillion with the financing of Rp5.0 trillion. This reflected an annual growth rate of 21.1% in financing.

The rapid growth of assets was followed by a comparable growth in Third Party Funds which grew at 21.5% in 2017, making the Total Third Party Funds amounting to Rp6.5 trillion consisting of: Time Deposits 78.7%, Current Account and Saving Account 21.3%.

Profitability

In 2017, BTPN Syariah booked Net Profit After Tax of Rp670.2 billion representing a 62.5% increase of last year; making the Return on Asset (RoA) to increase to 11.2% from 9% last year and Return on Equity (RoE) to increase to 36.5% from 31.7% in 2016.

Cost to Income Ratio in 2017 showed improved efficiency of the Bank with 68.8% ratio compared to 75.1% last year. The operational cost was primarily driven by manpower cost as a direct consequence of the nature of banking services that focus of community empowerment which requires a large number of resources to attend the customers and communities through face to face interaction.

Solvability

In 2018, Fitch Rating granted BTPN Syariah for second time around an “AA(idn)” rating stable outlook. The National rank in “AA” category from Fitch Rating shows denotes expectations of a very low default risk. The credit risk of the Bank is only slightly different from the other bonds with the highest rating in Indonesia.

This rating also reflected BTPN support with 70% ownership of BTPN Syariah shares. The collaboration between the parent and subsidiary company includes operational integration in key areas of the Bank including risk management, information technology, senior management and utilization of BTPN network by BTPN Syariah. Fitch Rating is confident that the strong control of BTPN to the subsidiary and its strong commitment to support will keep the capital structure and funding profile of BTPN Syariah remain strong.

BTPN Syariah is established to serve the low-income communities or the segment that we call productive underprivileged people. This particular segment was not served by any bank before, neither conventional nor sharia banking. BTPN Syariah has been serving this specific market with its program Tunas Usaha Rakyat, a banking services specifically tailored to accommodate their unique needs and characteristics.


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Liquidity

Financing to Deposit ratio improved to 92.5% from 92.8% in the previous year. This growth is also supported by the presence of Sharia Banking Services in BTPN distribution network.

The Bank also maintained the liquid asset ratio (Quick Ratio) at 39.9% (compared to 2016 of 41.1%) which ensured adequate liquidity to anticipate a tightening liquidity in the domestic market.

Financing Quality

In 2017, the Bank contained the Non-Performing Financing at 1.67%, which slightly increased from 1.53% last year, but still below the average NPF in sharia banking which was reported at 5.1%.

Financial Impact

Capital Structure and Strategy

In 2017, the Bank closed the year with a net profit of Rp670.2 billion, making the total equity grow to Rp2.3 trillion and the capital adequacy ratio strengthened 28.9% much above the minimum requirement of 9-10%. High capital adequacy ratio enabled the Bank to improve the variety of products and services and strengthen the supporting infrastructure both in information technology and operations.

The composition of shareholders of BTPN Syariah currently consists of PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) with 70% ownership and PT Triputra Persada Rahmat (Triputra) 30%.

Infrastructure

Significant development happened in 2017 resulting from the on-going initial stage of transformation which made the whole bank infrastructure network better integrated with the network of the parent company. BTPN Syariah network itself consisted of 1 Head Office, 23 Sharia Branches, 3 Supporting Branches, 122 Operational Functional Offices and 3 Non-Operational Functional Offices and 9 ATMs. One of the critical development resulting from the transformation was a strengthened marketing force of the Bank supported by 120,000+ Branchless Banking Agents (Laku Pandai) through the use of technology BTPN Wow! iB application.

Important Changes to the Accounting Regulations and Policies

There were no changes to the accounting regulations and policies applied in the current year.

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Changes of Government Policies with Significant Impacts to BTPN Syariah

There were no changes of government policies which imposed significant impacts to BTPN Syariah.

Subsequent Events

There were no material activities affecting the Bank’s financial statement after closing the book at the end of 2017.

Business Outlook 2018

Economy and Business Prospect 2018

The economists, including Bank Indonesia and other international economic institutions, project Indonesian economy to grow at 5.2-5.3 in 2018, outpace that of the global economy which is predicted at 3.5-3.6%. Realization of government spending on basic infrastructure development and the rise of aggregate domestic consumption and the raise of commodity prices are the main drivers of the Indonesian economy next year.

Despite the uncertainty risk owing to the dynamics in the US foreign policy, continued raise of interest rate by US Federal Reserve and British initiative to leave European Union (Brexit) and the initial recovery of economy in some prominent European countries such as Germany and French, the stabilizing economy in China and Japan, and the sustained growth of Indian economy are believed to bring positive impacts to the Indonesian economy.

The price increase of primary commodity like mining and plantation will strengthen the Indonesian balance of trade and will eventually support the strengthening Rupiah exchange rates. Inflation rate is projected within Bank Indonesia target inflation rate at 3.5%+1%. The increasing trend of the Fed interest rate in 2018 will not give much room for Bank Indonesia to lower the benchmark interest rate.

The improving macroeconomy and preparation of local government general election as well as the national general election in 2019 will induce the growth of several economic sectors, such as consumption, infrastructure, service industries, transportation and warehousing, telecommunication and financial services. Small and Medium enterprises which has become the backbone of the economic growth is also projected to grow better.


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With the establishment of Sharia Financial National Commitee (Komite Nasional Keuangan Syariah – KNKS), formed by government in November 2016, chaired directly by the President of Republic of Indonesia, supported by the state institutions including Coordinating Ministry of Economy, National Development Body (Bappenas), Ministry of Finance, Ministry of Religious Affairs, Ministry of State Enterprise, Ministry of Cooperatives and Small and Medium Enterprise, Financial Services Authority, Bank Indonesia, LPS and MUI; the synergy of policy development amongst several authorities and the relevant stakeholders will be more effective and thus, improving their contribution in the economic growth.

Based on all the above factors, Bank Indonesia project that credit from the banks and other financing programs will grow at a higher rate, of 10%-11% in 2018, a raise from the credit realization which only grew at 8.0%-8.5% in 2017. The confidence remains strong in sharia banking, which is projected to grow better than 2017.

BTPN Syariah Priorities in 2018

In 2018 BTPN Syariah will undertake several key strategic initiatives in line with its vision and mission to be the best Sharia bank for financial inclusion.

The Bank key strategic initiatives in 2018 are, as follows:

1. Build Operational Excellence which ensures Optimum Operational Activities through process automation and operational process digitalization, including service processing to financing customers starting from acquisition stage to the bank transaction servicing. BTPN Syariah office network will be futher optimized by relocating several sharia branch and streamlining the Operational Functional Offices to make them better integrated with the network of the parent companny.

2. Develop new financing products to provide a more holistic range of products and services to meet the financial services needs of the customers and the family.

3. Explore fee-based income by collaborating with third party in developing non-banking products and services in order to meet the customers’ need in more holistic manner.

4. Strengthen the Bank organizational capability to remain agile and relevant, by streamlining organization structure and improving the infrastructure to ensure the transformation process progressing as planned.

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Powerful Real Impact Ibu Marni represents one of the millions of Indonesian women who struggle for the economy of the family

In 1998, Ibu Marni was terminated from the factory where she worked for a living. With some severance pay and basic know-how to make soy milk, Ibu Marni produced soy milk by herself and sold it door to door.

Her first challenge was the cash flow problem since she always ran out of capital in the middle of the month. Whereas, by the end of the month she had to buy raw materials to produce soy milk. She was offered some credit by several parties, but she was hesitated. “I do not have collateral and I heard a lot negative stories from people borrowing from loansharks. I dare not do it,” she said.

In 2011, she heard about BTPN Syariah. Once she knew that the Bank did not require collateral and instead only required the discipline to attend face to face meeting once every two weeks, she became so excited. For quite some time, Ibu Marni and her husband had been trying to find ways to get some capital. That year, Ibu Marni got Rp1 million financing from BTPN Syariah.

Now, Ibu Marni is more confident and able to pay installment of Rp13 million financing and have employed 3 workers to ensure the quality of the soy milk. She now owns the house that she rent before. Her soy milk is now distributed to Ciruas and Cilegon.

Ibu Marni is also an agent for Laku Pandai (Branchless banking). Not only use it to pay her own bills, she also serve the surrounding neighbours who are relunctant to go to he Village Center and queue to pay electricity bills. Ibu Marni admits that she got additional income from servicing those customers.

“We indeed have to work hard building a business. In the past, I only produced soy milk of 3 kg maximum. Now I can easily sell 5 kg. And now I am more courageous to do business.”

When she was asked about her dream that she will strive for, Ibu Marni smiled and said, “I want to buy a car so that I can go to my hometown with my staff, take them to holiday and make them happy.”

Ibu Marni, Serang, Banten, Jawa Barat BTPN Syariah Customer


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Ibu Hani Risau and family, ceramic craftwomen from Sentra Plered, Purwakarta, Jawa Barat, is one the millions of financing customers, who demonstrates the behaviors of Courage to Do Business, Discipline, Work Hard and Solidarity, so that she is able to grow her business and market her products to Jakarta and other cities.

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business review

In 2017, we keep our focus to mobilize the funds from wealthy families and channel them to the productive underprivileged families. The funding products for wealthy families is designed to meet specific characteristics of this segment and so is the financing products for the productive underprivileged segment.

This is in line with the vision of BTPN Syariah to be the best sharia bank for financial inclusion, making a difference in the lives of millions of Indonesian. Productive underprivileged segment not only presents a huge market potential, but the penetration in this segment is relatively low – leaving a big financing needs remain unserved. We take this as an opportunity to do good, do well.

Financing

Financing products provide the opportunities for productive underprivileged women to get access to capital and a series of training programs bundled in the financing facilities. Since 2010, BTPN Syariah becomes the pioneer to serve productive underprivileged segments with sharia principles.

Membership System• 5 customers per group,

selected by customers• Formal organization,

meeting once every 2 weeks• Mandatory saving• Shared liabilities

Daya Program for SustainabilityIntegrated in the Financial Solution:• Daya Sehat Sejahtera

(Daya for Health and Welfare)• Daya Tumbuh Usaha

(Daya to Grow Business)• Daya Tumbuh Komunitas

(Daya for Community Development)

Center Officers• Well-trained Center

Officers, as a role model of:- Honesty- Courtesy- Discipline

• Facilitator of Daya Program

4 Key Behavior:Courage to Do

Business, Discipline, Hardwork, Solidarity

Financing Program for

Business

Membership System

Center Officers

Financing Program for BusinessBundled Financing Solution:• Working Capital: 25 installments

every 2 weeks • Free Life Insurance• SavingFuture Benefits:• Entitlement for working capital

increase up to 100% upon completion of each cycle

• After the third year, entitled for house renovation and education financing

Financing Unique Value Proposition (UVP)


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BTPN Syariah financing products in principle consists of financing solution, daya program, membership system and empowerment – all together are packaged under the brand Paket Masa Depan (PMD).

The four core pillars are:a. Financing Program Customer is provided with the

working capital financing to start of grow a business or productive activity that generate income to be repaid in bi-weekly installment. The customers will also get additional benefits, that is life insurance for the customers and the husband, saving, and free installment during Ied Mubarak. After completion of the third cycle, entitled customers will be offered the facilities for house renovation and children education.

b. Daya Program A sustainability program

consists of Daya Sehat Sejahtera (Daya for Health and Welfare), Daya Tumbuh Usaha (Daya to Grow Business) and Daya Tumbuh Komunitas (Daya for Community Development); aiming at building the capacity of customers (skills and knowledge).

c. Membership System Customers are grouped

into a center (‘sentra’ in Indonesian language) whose members are chosen by the customers themselves.

d. Empowerment The customers are served and

empowered by well-trained employees of the Bank, those that are called “Melati Putih Bangsa”, who meet regularly with the customers in the centers.

The financing program is based on the wakalah wal murabahah agreement, which involves the financing to purchase new capital goods for the customers who have not done any business before, or supporting goods for the customers who intend to grow their business. The customers will do the purchase of the goods on behalf of

The Four core pillars of the PMD are all interrelated and designed to develop and nurture the four key characteristics of customers: Courage to do Business, Discipline, Hard Work and Solidarity. It is through the consistent practices of those behaviors that customers will be able to realize their dreams. Courage to do business is reflected in the business that the customers initiate and develop. Discipline is manifested in the routine attendance to the Center Meeting and timely payment of installment. Work hard is shown from the increase of saving, business income and financing limit. While solidarity is evident from the use of solidarity fund.

the Bank, in the wakalah agreement, detailing the purchased goods and the price. The customers will then be obliged to repay the purchase of the goods including agreed margin by means of installment within the specified tenure.

Funding

Funding products will provide the opportunities for the wealthy families segment to deposit their fund in BTPN Syariah. The customers can choose from a range of producst and services that meet their specific needs, including: Tabungan Citra iB, Taseto Premium iB, Deposito Berjangka iB, Taseto Mapan iB, Giro iB and Tabungan BTPN Wow! iB. Tabungan BTPN Wow! iB, is specially designed for financial inclusion initiative.

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The Funding products of BTPN Syariah are, as follows:1. Tabungan Citra iB A profit-sharing-agreement

(akad mudharabah mutlaqah) saving account with a minimum deposit. Customers will have access to do banking transactions in all BTPN Syariah Banking with free monthly administration fee.

2. Taseto Premium iB On top of the optimum return,

this profit-sharing-agreement (akad mudharabah mutlaqah) saving account offers the benefits of unlimited cash withdrawals and free monthly administration fee (terms and conditions applied).

3. Deposito Berjangka iB Time deposits with profit-sharing-

agreement (akad mudharabah mutlaqah) between the Bank (mudharib) and the customers who owns the fund (Shahibul maal) that offers various maturies ranging from 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 18, and 24 months.

BTPN Syariah funding products offer competitive return, service excellence, security and content – because by depositing their funds in BTPN Syariah, the customers indirectly participate in the empowerment of millions of productive underprivileged people in Indonesia.

A More Meaningful Life

Service Excellence

Optimum Return

Sustainable Excelent

Performance

Funding Unique Value Proposition (UVP)

I choose a bank that serves my aspiration, to do good to the society. I understand that this bank cares to improve the family welfare. For me support and motivation from the family generate incredible energy to realize my dreams. I have also participated in directly motivate a group of women – the financing customers in Serang, Banten, where I talked about the importance of dreams and aspirations. I hope this empowerment continue to grow and spread in the whole country. Let’s do good to society.

Yuanita Rohali – Finance Director Petromine Bakrie Sahabat Daya and Funding Customer Menara Kadin Branch, Jakarta


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4. Taseto Mapan iB A profit-sharing-agreement

(akad mudharabah mutlaqah) saving plan offering competitive yield with monthly or timed deposit option.

5. Giro iB Deposit of fund with wadiah

agreement, offering ease of transactions using cheque/giro.

6. Tabungan BTPN Wow! iB Saving account with electronic

banking facilities accessible through GSM (Global System for Mobile Communication) handphone. This financial inclusion product provides the customers with ease of transaction including bills payment, air time purchase, fund transfer, cash deposit and withdrawal through BTPN Syariah Agents or BTPN Syariah branches.

Poverty Probability Index® (PPI®) 2017

Poverty Probability Index® (PPI®) is a tool used by BTPN Syariah to ensure that our customers’ welfare are progressing, because we are #bankirpemberdaya.

About PPI®

Poverty Probability Index® (PPI®) is a tool to measure the welfare of the communities initially living below or at subsistent level. Developed by Grameen Foundation, this tool is to be used by organization or other business entities with the mission to serve underprivileged communities. The PPI is statistically sound – yet simple to administer.

Using this tool, an organization can easily identify the customer(s) that are most likely underprivileged.

PPI is country-specific. Currently, Indonesia use the PPI version referring to the National Socio-Economic Survey (SUSENAS) 2010, renewed by Mark Schreiner who developed PPI standards from Microfinance Risk Management L.L.C.

(source: www.progressoutofpoverty.org/country/indonesia).

PPI Report 2017PPI data analysis is presented in 2 types of reports, Poverty Outreach Report (POR) and Poverty Movement Report (PMR). The approach in the data analysis is normal and universal, that is:

• The percentage of underprivileged customers is assumed to be evenly distributed in the whole portfolio of BTPN Syariah customers.

• The national number of underprivileged communities is the multiplication of the number of household in one province with the poverty rate issued by Central Statistical Bureau through SUSENAS 2010.

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I. Poverty Outreach Report (POR) 2017

POR is the PPI reports which analyzes the outreach in serving underprivileged communities. The parameters to identify the underprivileged communities are:

• National Poverty Line (NPL) as the standard against which the underprivileged served by BTPN Syariah is benchmarked.

• Total expense below US$1.9/day

• Total expense below US$3.1/day

(sourcer: PPI scorecard and lookup table for Indonesia from www.progressoutofpoverty.org/country/indonesia).

Three important aspects in analyzing POR are:

• Concentration – representing the ratio of underprivileged customers to the total number of customers in BTPN financing portfolio.

• Scale – representing the indicator of Bank services distribution in a certain region.

• Penetration – indicating the Bank’s outreach in serving underprivileged communities in certain region.

Below is the overview of Poverty Outreach Report to 2017 portfolio*:

0%

5%5.0%

2.4%

10.1%

Below NPL Below $1.9/day Below $3.1/day

% L

iving

Bel

ow P

over

ty L

ine

5.4%10%

15%

20%

25%

30%

35%

40%

24.7%

35.1%

BTPN Syariah Clients Poverty Rates Indonesia Poverty Rates

* PPI survey to 1,185,579 customers of BTPN Syariah at the first financing cycle.

Through the Poverty Probability Indeks or PPI certification process that I administer with the team, I can measure the welfare of the customer and identify those customers whose lives are improving. Through this experience and this job, my aspiration to help people becomes so real.

Andrew AdhitiaBusiness Risk, #bankirpemberdaya


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From the previous chart, we can conclude that:• The Bank has served

underprivileged or privileged customers, of which 24.7% from the total financing portfolio fall under the category total expense below US$3.1/day. This is pretty close to the national situation in Indonesia, that is 35.1%. This means that the Bank has been targeting the right target market, the underprivileged communities.

• The Bank is present in the regions with high concentration of underprivileged communities, as evidenced by the fact that from the 10 provinces with the highest number of underprivileged communities (the underprivileged communities in those provinces is 73.6% of the total underprivileged people in Indonesia), the Bank’s outreach exist in 9 of the 10 provinces, including East Java, West Java and Central Java. Overall the Bank serves customers in 23 provinces in Indonesia.

*) Source: Number of Poor Population Table per Province 2017 www.bps.go.id)

The meetings are so exciting. We can talk about many things, also about business. We can learn a lot on how to grow our business, so that we can save more and children can go for higher education. Now I am courageous to add more capital to grow my business.

Ibu Umaiyah, owns a grocery shopFinancing Customer Sentra Umbul 1

II. Poverty Movement Report (PMR) 2017

Paket Masa Depan financing program is designed for sustainability, whereby the customers who have completed the first cycle is facilitated to continue to the next cycle. The evaluation of the progress of the customers’ welfare is presented in the Poverty Movement Report (PMR) analysis, of which the progress of customers’ welfare is concluded from the changes of concentration of underprivileged communities from the first cycle to the next cycle(s).

Below is the overview of Poverty Movement Report in 2017 portfolio*:

0%

5%

6.2%

3.1%5.4%

Below NPL Below $1.9/day Below $3.1/day

% L

iving

Bel

ow P

over

ty L

ine

2.6%

10%

15%

20%

25%

30%

35%

40%

28.3%26.1%

PPI1 PPI2 PPI3

4.5%2.1%

23.4%

* PPI survey to 300,003 customers in the third cycle financing.

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The chart on the side shows a decline in the concentration of underprivileged communities with total expenses below US$3.1/day, from 28.3% in the first PPI (first cycle financing) to 23.4% in the third PPI (third cycle financing). This is a good indicator which concludes that the customers’ welfare is progressing in every financing cycle. The progress can be attributed to a number of factors, one of which is the Bank financing.

Business Development Plan 2018

In 2018 BTPN Syariah will undertake several key strategic initiatives in line with its vision and mission to be the best sharia bank for financial inclusion. Taking into account the national economic condition, business performance, development of 2017 poverty outreach report and poverty management report, the business development plan of BTPN Syariah

in 2018 will focus on the following key strategic initiatives:

1. Build Operational Excellence which ensures Optimum Operational Activities through process automation and operational process digitalization, including service processing to financing customers starting from acquisition stage to the bank transaction servicing. BTPN Syariah office network will be futher optimized by relocating several sharia branch and streamlining the Operational Functional Offices to make them better integrated with the network of the parent company.

2. Develop new financing products to provide a more holistic range of products and services to meet the financial services needs of the customers and the family.

3. Explore fee-based income by collaborating with third party in developing non-banking products and services in order to meet the customers’ need in more holistic manner.

4. Strengthen the Bank organizational capability to remain agile and relevant, by streamlining organization structure and improving the infrastructure to ensure the transformation process progressing as planned.

With the above four strategic initiatives, the Bank will continue to strengthen the infrastructure to support more efficient operational activities, develop branchless banking (Laku Pandai), expand the number of agents to serve BTPN Wow! iB customers, develop new business and new products to expand the access to financial services for the customers and the families, supported by robust information technology, enhanced human capital capacity, improved management system with good quality assurance and control.

In 2018, the Bank will also plan to increase capital through Initial Public Offering (IPO) to strengthen the Bank capital structure to support future business growth.


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Fitria Widyaswara, Human Capital, #bankirpemberdaya, responsible for the recruitment of new employees, visits a lot schools to get the best high school graduates, the seeds of “Melati Putih Bangsa”.

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operational review

Employees as #bankirpemberdaya

All employees of BTPN Syariah carry the mandate to create opportunities for growth and better lives for millions of Indonesian. Translating this aspiration requires a thorough design of work processes and services that are specifically tailored to meet the unique characteristics of our customers, that is productive underprivileged communities. The process must be simple, yet within the acceptable risk tolerance. In a spirit of collaboration to achieve a shared vision, all employees and management work together to empower underprivileged communities and provide them with the access to financial services. United by this mindset, all employees from the front end – who directly interact with the customers – to the back end, are responsible to create the products, tools, and working system that are comfortable and effective for this particular segment and still within the acceptable risk tolerance of the Bank. #bankirpemberdaya is the identity of all the human capital in BTPN Syariah.

We are all aware that manpower who are capable to tackle the job of serving productive underprivileged communities within the Sharia banking platform is not readily available in the market. We, therefore, develop our own people by providing them with the education to provide with them with sharia banking knowledge, general banking knowledge and the fundamental skills to serve that particular segment. We open career opportunities for high school graduates and the equivalent to become #bankirpemberdaya who serve the customers directly in the centers, those that we call “Melati Putih Bangsa.”

Aspiration to empower is the characteristic of BTPN Syariah employees. The determination as #bankirpemberdaya is detected as early as the recruitment process and nurtured through a programmed employee development.

Human Resource


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26 - 30 years old

25%

8%

18%

≤ 20 years old

21 - 25 years old > 30 years old

employee composition

by age

49%

43.7%

0.2%

Permanent

Contractual with specified tenure

Probation

employee composition

by employment status

56.1%

43.2%10.3%

High school and equivalent

S1-S2

D1-D3

employee composition by education

46.5%

15%16%

13%

10%

< 3 months

6 months - < 1 year

3 - < 6 months

1 - < 2 years

≥ 2 years

employee composition by years of service

46%

2017 Achievement

Number of Employees

To serve millions of customers spread in 180,000 customer centers, BTPN Syariah engages 12,733 employees, majority are high school graduates and the equivalent as the marketing officers in the field, of which 56% are contractual employees with specified tenure. The Bank capability to recruit employees is one of the most important factors to ensure sustainability of service excellence to our customers. BTPN Syariah capacity to recruit employees is improving from time to time, from recruiting 4,700 employees in 2016 to more than 7,500 in 2017.

Competency Development and Employee Training

We have designed a competency model for each position for which specific training curriculum is designed according the required competency. The training goes beyond the class room training, significant portion of the learning is facilitated through job assignment and on the job training which enable direct and immediate skills transference. All these are aimed for a single objective, to deliver excellence as #bankirpemberdaya.

We are also aware that each individual is unique and endowed with specific talents and strengths. To explore this unique strengths of each employee so that we can fully leverage their strengths in their mission as #bankirpemberdaya, we use Gallup Strength Finder and Discovery Session.

Marketing

KFO

4% 4%5%

KCS

Head Office

employee composition by location

87%

6%

Female

Male

employee composition by gender

94%

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To accelerate learning process and generate the excitement of learning, the training is also delivered through gamification.

The mandatory training as required by compliance standard such as “Risk Management Certification”, “Sharia Banking”, “Anti Money Laundering” and “Counter Terrorism Financing” are always monitored on annual basis to ensure the implementation of good corporate governance.

Some of the training programs in BTPN Syariah are, as follows:

• Leadership program from senior management level by Center for Creative Leadership.

• Management and Business Development through “Developing Sense of Business” for all Business Coach.

• Personal Development through the program 7th Habit of Highly Effective People, Service Excellence and Communicating with Impact, Personal Empowerment and Driving Change.

• Developing technical skills such as Bond and Market Instruments, Project Fundamental, Microsoft Excel, and PSAK 71.

• Development program to build “agile team” through the program Networking for Enhanced Collaboration.

Plan 2018

In 2018, we will always ensure 100% fulfilment of the employees who perform direct interface in customer servicing. The people fulfillment is becoming easier and more efficient through the use of online recruitment or e-recruitment and by improving

employee competency to cope with changes. The rotation of talents (especially in Head Office) will be continued as it is the avenue to enhance the capacity of our talents and to strengthen collaboration. All those endeavours is because we believe that working in BTPN Syariah is to fulfill our yearning to do good for all humanity, because we are #bankirpemberdaya.

I am proud to be part of the mission to build the economy of the underprivileged communities as #bankirpemberdaya. I believe that what I do here is more than a career. It is about contribution. In my role to enhance employee productivity through optimum recruitment process from planning, development and process improvement, I am aspired to achieve our common goal in BTPN Syariah: that every single employee that we recruit aims to realize a more meaningful life for him/herself, for others and for environment.

Fitria Widyaswara Human Capital, #bankirpemberdaya


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Operational

To serve our customers in the centers, BTPN Syariah leverages the use of technology that ease the effort of our employees to empower our customers. It is because we are #bankirpemberdaya.

The significant improvement was attributed to a number of initiatives to optimize the office network in 2017, as follows:

a. Development of Branchless banking (Laku Pandai) agents through continues education to ensure the comfort of our customers in doing transaction through the agents.

b. Development of operational processes in the Branch Office and operational Functional Office with more effective use of human resources.

c. Optimize the branch office and sharia banking services.

In today’s era of digital technology, almost all businesses utilize technology in serving the customers, and so is the banking sector. In 2017, it was estimated that 1.7 billion people in the world converted to the use digital banking services.

This was also our main operational focus in 2017. The global trend to technology drove the operational strategy to deliver services in a simple and secure manner, one of which by making operational system standardized, centralized, paperless and use mobile technology.

Collaboration with other parties, both the parent company and the other third party in managing

cash was also strengthened, thus optimizing the Bank office network. Integrating process quality management to the Risk Taking Unit organization was aimed at ensuring compliance and managing operational risk in line with business growth and sustainability. The development of branchless banking agents (Laku Pandai) was reinforced to facilitate our customers to do banking transcation at anytime through our agents.

With strong execution disciplines, the operational performance in 2017 significantly improved compared to last year, as reflected in the decreasing Cost to Income Ratio to 68.8% which indicated better efficiency of the Bank operation.

Checking, approving financing proposal, and financing disbursement are my daily job. But what motivates me as #bankirpemberdaya is the determination and spirit of our “Melati Putih Bangsa” in serving our women customers. Our customers, awaiting with full of hopes, are what motives me and makes me determined to do the approval on time.

Wiwik Mardiningsih Approval Center, #bankirpemberdaya

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In 2018, simplification of service processing to the customers by providing technology-based equipment to the employees who directly serve the productive underprivileged customers will be done simultaneously

all over Indonesia. As such, the BTPN Syariah branches will be more optimum and employee productivity will increase so that the Bank can reach more productive underprivileged customers.

The initiative in the operational aspect is aimed at creating an easy service processing to the customers. Those changes are not that simple, especially in educating the customers. We will, however, continue those endeavor, because we are #bankirpemberdaya.


Not only building technology as the core banking system, BTPN Syariah also leverage the effective use of technology to serve productive underprivileged customers, and thus improving customer service processes; because we are #bankirpemberdaya.

The biggest challenge in information technology is to find ways to ensure that the technology solutions ia able to reach every single point where BTPN Syariah is operating, and to ensure its effectiveness in meeting the needs of productive underprivileged customers. In many cases, the wide coverage of the banking services which reach almost 4,000 villages in Indonesia and the inadequate and unstandardized infrastructure of the areas are the challenges that encourage the

Information Technology team to keep innovating to make information technology a reliable and effective supporting system.

In response to the upcoming challenges and to support the achievement of the Bank objectives, the Bank implements the Centralized Mobile Device Management System which ensure security and ease for the Information Technology team in managing the mobile devices in the field.


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Monthly monitoring to the Information Technology performance is facilitated by through IT Performance Dashboard and Service Meeting. IT Performance Dashboard serves as the media to continuously evaluate the process in all areas. The monitoring and control are also applied to the project implementation in the Information Technology. The monitoring result is reported to management on regular basis to enable immediate identification and implementation of follow up action. The overall monitoring is also reported to Risk Management Committee and IT Steering Committee of the Bank.

The Information Technology performance in 2017 was consistently above threshold and showed performance improvement from 95.7% in 2016 to 96.3% in 2017. In addition to that, Information Technology also successfully implemented 45 projects stated in the Bank strategic direction, which included, amongst others, the Bank data center relocation (along with the relocation of the Head Office of BTPN Syariah), BTPN Wow! iB branchless banking (Laku Pandai) capacity improvement, Information Technology capacity improvement through the implementation of Security Control Information

System, implementation of Desktop Management System to improve the quality of services and centralized control to the mobile devices, also Hardware Refreshment to ensure the use of the most updates technology to improve the capability, capacity and reliability of Information Technology services.

The above achievement was also followed by the successful development M-Prospera application to automate the customer acquisition process and transaction services of Tunas Usaha Rakyat business in the field and Head Office, implementation of supporting system for individual financing products in line with business strategy, implementation of Data Warehouse infrastructure as the foundation to build business analytics capability, improvement of M-Prospera application to support business growth and continuous development of the core banking system to improve the productivity in servicing the financing customers.

Human resources remains one of the main factor for Information Technolgy in achieving its objectives. Accordingly, the training and competency development for #bankirpemberdaya in Information Technology does not

only focus on building technical competency, but also improving leadership competency and banking business knowledge.

In 2018, Information Technology prepares a development plan that is in line with the Bank strategic pillar, as follows:

1) Build Operational Excellence, through:• Development of front-end

M-Prospera application using mobile technology to automate the acquisition and financing processes for productive underprivileged customers.

• Development of mobile front-end application (MyFriend) in tablet to ensure self-service capability for “Melati Putih Bangsa” as the #bankirpemberdaya in the field.

• Continue the collaboration of leveraging with BTPN to develop new features and services in BTPN Wow! iB product (Laku Pandai), particularly to improve the application for agents as the alternative service delivery channel for the customers.

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My role as facilitator to ensures that the information technology-based banking products that we develop is effective, easy and secure for customers give me a previous experience and learning. It feels awesome to be with the customers who strive to improve their economy and reach a better life through the use of technology.

Mario Information Technology, #bankirpemberdaya

2) Development to support business and new product development, which includes amongst others, building virtual account capability in Core Banking, integration capability with SISKOHAT and integrated service core financing product processor system to improve financing products.

3) Strengthen the infrastructure and governance of Information Technology as the business enabler, which includes amongst others: implementation of Mobile Device Management to ensure the security of the Bank asset embedded in the mobile devices,

improving Disaster Recovery Center (DRC) to ensure continuity and recovery of information technology services in the event of disaster, improving connectivity to the National Payment Gate by means of membership of two switching institution for each instrument and/or payment channel and improvement of infrastructure capacity, data back-up and Bank information assets in the form of reserve storage by means of virtual tape technology to anticipate the growth of the data of the Bank and the needs for data retention.

In 2018, the implementation of new technological devices will be done on national scale, that is the MyFriend application – the mobile front-end as the main device for Melati Putih Bangsa as #bankirpemberdaya in the field to improve their effectiveness the various activities involving interface with customers and head office. The activities accessible through MyFriend are, amongst others: recording human resources administration, leave request, salary slip request, the Bank policies and procedures, and employee and Company dashboard.


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Risk Management

In 2017, the implementation of risk management in BTPN Syariah was very robust. All #bankirpemberdaya actively participated to ensure high and adequate standard of risk management. This was reflected in BTPN Syariah risk profile rating of 2 (Low to Moderate). The rating of Risk Based Bank Rating assessment (RBBR) was also 2 (Healthy). This rating is an accumulation of several assessment including: Risk Profile, Good Corporate Governance, Solvency and Capital Adequacy.

The Bank has implemented risk management well by means of identifying, measuring, monitoring and controlling risks. Besides, BTPN Syariah also has very adequate Capital Adequacy Ratio to be able to absorb the probability of potential loss of the Bank and also to support the future business development initiatives.

The implementation of Risk Management in BTPN Syariah refers to the Financial Services Authority Regulation No. 65/POJK.03/2016 dated December 28, 2016 concerning “Risk Management Implementation for Sharia Bank

and Sharia Business Unit” which covers four activities, including: 1) active supervision by Board of Commissioners, Board of Directors and Sharia Supervisory Board; 2) adequacy of policies, procedures and risk limit setting; 3) adequacy of the following process: identification, measurement, monitoring and control of risk and risk management information system; and 4) holistic internal control system. The Risk Management implementation of BTPN Syariah also refers to the documents from Basel Committee on Banking Supervision.

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1. Organization Structure of Risk Management Executives in BTPN Syariah.

President Director

Annual General Meeting of Shareholders

Integrated Governance Committee

ALCONomination and Remuneration

Committee


Steering Committee

Risk Monitoring Committee

Risk Management Committee

Audit Committee

Human Capital Committee

SKAI

Business Committee

Sharia Supervisory Board

Board of Commissioners

Deputy President Director*

Operational Director**

Compliance and Risk

Management Director

Business Director

* Deputy President Director directly supervise Information Techonology.

** Operations Director is under the coordination of Deputy President Director.

2. Active Supervision by Board of Commissioners, Board of Directors and Sharia Supervisory Board

The Board of Commissioners – with the support of Audit Committee, Risk Monitoring Committee, and Nomination and Remuneration Committee – performs supervision to the work of the Board of Directors through the Board of Commissioners

meetings and other Committees meetings held on regular basis. The implementation of the recommendation of the meetings are monitored by the members of the Committees.

The Board of Directors, supported by the members of Assets and Liabilities Committee (ALCO), Risk Management Committee, Information Management Steering Committee and

Human Capital Committee; taking into consideration the advices from the Risk Management Unit and Compliance Unit, performs supervision to the Bank activities through the Board of Directors meetings and other Committees meetings held on regular basis. The implementation of the recommendation of the meetings are monitored by the members of the Committees.


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The Sharia Supervisory Board, supported by the Compliance Unit, performs supervision on the application of Islamic banking principles through management meetings or direct visits to the field. The implementation of the recommendation of the meetings are monitored by the Compliance Unit.

In 2017, a number of meetings were conducted in accordance to the prevailing regulations. The minutes of the meetings were well documented and the follow through of the meetings decision were well monitored.

3. Adequacy of Risk Management Policies, Procedures and Risk Limit Setting

BTPN Syariah has developed adequate risk management policies and procedures as the basis for operating the business, which included but not limited to: Risk Management Policy, Financing Policy, Market and Liquidity Risk Management Policy, and Operational Risk Management Policy. The Bank has reviewed the existing policies and procedures to ensure compliance with the authorities’ regulations, internal regulations and the prevailing conditions. The risk limit and risk tolerance were well documented in the Risk Management Policies.

4. Adequacy of Risk Identification, Measurement, Monitor and Control Process and Risk Management Information System

Risk Management Process was implemented by BTPN Syariah by identifying, measuring, monitoring and controlling of 10 (ten) types of risks: credit risk, market risk, liquidity risk, operational risk, strategic risk, reputation risk, legal risk, compliance risk, and rate of return risk. Under current circumstances of the Bank’s scope of business, BTPN Syariah is not exposed to any investment risk.

The measurement is performed through several processes: risk profile assessment, capital adequacy assessment or Internal Capital Adequacy Assessment process (ICAAP), and Risk Based Bank Rating assessment (RBBR).

On December 2017, the risk profile rating of the Bank was 2 (Low to Moderate). The Risk Based Bank Rating assessment (RBBR) on December 2017 was also 2 (Low to Moderate). This rating in an accumulation of several assessments including: Risk Profile, Good Corporate Governance, Rentability and Capital Adequacy.

The Bank’s Capital Adequacy Ratio on December 2017 was at 28.9%, improving by 5.1% year on year. The ATMR (risk-weighted asset) Operational Risk on

December 2017 was Rp2.6 trillion, while the operational loss at the same position was Rp3.5 billion or 0.1% of the ATMR Operational Risk; and the low quality financing portfolio at the same position was Rp100.8 billion or 2.1% of ATMR Credit Risk.

This proved that the Bank has managed the business in a prudent manner, backed by capital resilience that was strong enough to absorb the potential risks and at the same time gave enough room to expand the business.

The Bank managed the liquidity risk according to the regulations. The liquidity risk was managed well, as reflected on several ratios in December 2017, which included: Financing to Deposit Ratio at 92.5%; the top 25 depositors portfolio was 34.5% from the total funding, Liquidity Coverage Ratio at 155.9%. The Bank also conducted an integrated stress test to assess the impact of the worsening macroeconomy to the quality of portfolio, profitability, liquidity and capital resilience.

The Bank has developed and implemented Process, Risk & Control and Risk Grading Matrix to identify and assess the potential of operational risks inherent in each activities in the working unit. The Bank has also administered, governed and analyzed all the risk and loss events using Operational Risk Management System.

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To reinforce the operational risk monitoring and control, the Bank conducted risk awareness and fraud awareness education to all employees on regular basis to nurture the awareness on the importance of managing operational risk in every working unit. The Bank has also established Business Continuity Management and Contingency Funding Plan which ensures the continuity of business and operational activities in the emergency condition.

The Bank has the human capital, sufficient – in terms of quality and quantity – to operate the Bank’s business, managed an integrated human capital management and development plan. On regular

basis, the Bank conducts training and certification to enhance the human capital competencies.

5. Internal Control System The Bank applies 3 (three) lines of

defense in internal control. First, in the respective working unit assisted by the Quality Assurance (QA) function that is responsible to ensure the compliance of all the activities to the related procedures. The result of the QA process and the follow up action is presented and monitored in the Risk Management Committee meetings.

The second line of defense is Risk Management Unit and Compliance Unit, responsible

to define and maintain risk management methodology, to ensure the adequacy of risk mitigation, policy and procedures, and to coordinate and facilitate the implemention of overall risk management.

The third line of defense is Internal Control, independent from operating units – to ensure, in an independent manner, that all the residual risks are managed within the approved risk tolerance level. The control report was presented to the Board of Directors and the Board of Commissioners and was already followed through as an action for improvement of the Bank Performance.

Chart 3 Internal Control Principles

Board of Directors

Line Management Control (PUK) Risk Management Internal Audit (SKAI)

Quality Assurance (QA) Compliance

Risk Monitoring & Audit Committees

1st Line of Defense 2nd Line of Defense 3rd Line of Defense


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Managing 10 (Ten) Types of Risk1. Credit Risk

Credit Risk is the risk of default on a debt that may arise from a borrower failing to fulfil obligation (repayment) to the Bank as stated in the credit agreement. The Bank applies prudent principles in financing distribution by performing feasibility analysis of business prospect and assessment of customer’s ability to pay.

2. Market Risk

Market risk is the possibility of losses in positions (in balance sheet or administrative account) arising from the movements in market prices. One type of market risk is the risk of changes of values of traded or rented assets. Market risks include amongst others benchmark interest rate risk and exchange rate risk. As of today, the Bank is only exposed to the market risk related to Benchmark Rate Risk Banking Book (BRRBB), as the Bank does not maintain any portfolio in foreign exchange and does not perform any trading activities. The measurement and monitoring of BRRBB is performed on regular basis using the revenue approach and economic value approach.

3. Operational Risk

Operational Risk is the risk of losses due to inadequate internal processes, human error, system failure, and external event impacting the Bank operation.

The implementation of operational risk management framework in the Bank is performed in integrated manner, phased into several processes of Risk Identification, Measurement, Monitoring and Control.

In those processes, review on the overall risks of new products, systems and activities/process along with its changes, is conducted in stages; risk registration system is created and mitigation/control system is defined; the risk exposure and the level of discipline of the work unit in implementing control mechanism is continuously measured.

4. Liquidity Risk

Liquidity Risk is the risk that the Bank may be unable to meet short term obligation by using its source of fund and cash flow or liquidating high-quality pledgeable assets without creating a loss of capital and/or income in the process.

The Bank manages liquidity by maintaining sufficient level of liquid assets to anticipate cash withdrawals by depositors. The Bank also maintains contingency of liquidity funding as part of managing liquidity risk in the event of crisis. The Bank has also implemented the Liquidity Coverage Ratio (LCR) Basel III.

5. Legal Risk

Legal Risk is the risk of loss due to law suits or uncertainty in legal proceeding. The Bank has taken several measures to manage legal risk, including: ensuring that the clauses in every agreement protect the best interest of the Bank, monitoring maturing agreements and keep them updated, and ensuring proper documentation of the agreements.

6. Strategic Risk

Strategic Risk is the potential loss due to inaccuracy in decision making and/or implementing strategic decision and failure in anticipating changes in the business environment.

Periodically the Bank assess actual business achievement against the target stated in the Bank Business Plan. The probability of unachieved annual goals should always be predicted in advance – giving a chance for the Bank to set a new strategy to achieve the goals.

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7. Compliance Risk

Compliance is the potential loss resulting from the Bank’s incompliance to the prevailing laws and regulations and Islamic banking principles.

The development of policies and procedures which guides the governance and operation of the bank are in adherence to the laws and regulations of the banking authorities, including Regulations of Bank Indonesia, Regulations of Financial Services Authority (Otoritas Jasa Keuangan/OJK), and Indonesian Ulema Council (Majelis Ulama Indonesia). The Compliance Unit will monitor to ensure the timely submission of mandatory reports of the regulators.

8. Reputation Risk

Reputation risk is the potential loss resulting from the damages of the Bank’s reputation or the negative perception of the Bank causing the stakeholders to lose confidence to the organization. The Bank must respond to the customers’ complaint within the timeframe specified by the regulators. Every decision and action which carry potential reputation risk must be taken with a great precaution and necessary measures must be acted out to prevent the reoccurence of the risks.

9. Rate of Return Risk

Rate of Return Risk is the potential loss resulting from the changes in rate of return paid by the Bank to customers as a consequence of the changes of the rate of return received by the Bank from

financing activities, that may affect the behavior of the Bank’s third party fund customers. In determining the rate of return for customers, the Bank has taken into account several factors including the rate of return from its financing activities, interest rate paid by commercial banks and rate of return paid by Islamic Banks.

10. Investment Risk

Investment risk is the risk that occurs when the Bank partakes the loss of the customers’ business that is financed with a profit sharing agreement using the net revenue sharing or profit and loss sharing method.

The current business activities do not expose the Bank to investment risk, since the customer’s financing scheme is made under the murabahah agreement.

Monitoring, controlling and ensuring that all processes and activities are in compliance to the standard regulation within a specified level of risk tolerance are my ultimate duties. The undertaking of those duties has brought me and my team an understanding about the culture and characteristics of “Melati Putih Bangsa” that make them work in accordance to the rules and thus minimizing the potential problem in the field and ensuring a high standard of customer service excellence.

Ii Mulyaningsih Risk Management, #bankirpemberdaya


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daya business growth focus on developing customers business growth via effective training, sharing business information and new business opportunity

03daya

99

Fred Gaghauna, head office supporting team, #bankirpemberdaya, with Nisa Istiqomah, “Melati Putih Bangsa” from Kertasari, Majalaya, Jawa Barat, telling stories for the children of financing customers

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// daya

All BTPN Syariah employees have the opportunities to participate in the training program for our productive underprivileged customers. Improving their capacity is a shared the responsibility that is not only borne by our “Melati Putih Bangsa” who interact directly with the customers on daily basis, because we are #bankirpemberdaya.

Pillar

1

Empowering the productive underprivileged customers is operationalized through 4 pillars: financial access, membership, customer field assistance and training. Daya is the brand that differentiate BTPN Syariah training program from the other program in the market. The training is 100% dedicated for productive underprivileged customers inviting the employees and funding customers to participate in the facilitation of the programs. The Daya of BTPN Syariah goes beyond Corporate Social Responsibility, it is more than a program, it is the fundamental pillar the Bank’s interrelated 3 Unique Value Proposition in empowering and serving the productive underprivileged customers, namely:

Daya for Health and Welfare

Daya for Health and Welfare is the empowerment program aimed at promoting healthy living habits which maintain customers productivity in their daily activities. There are 4 programs in the Daya for Health and Welfare, including Daya Training, Health Champions, Sahabat Daya University and Social Work.

Daya Training

The training is delivered by our “Melati Putih Bangsa” during the Routine Center Meeting. The training is about practical and useful subjects designed in an easy-to-understand style, such as how to raise a child, how to do early detection and prevention of breast and cervical cancer, the danger of obesity, healthy eating habit, and the benefits of walking. To date, more than 1 million customers have enjoyed the benefits of program.

Health Champions

The Health Champion Program is aimed at delivering health services to customers with a special method since the Champions – living in the community – have more opportunities to interact with the customers and the surrounding society. This program was initiated in 2015 in cooperation with Medicine Community, Faculty of Medicine University of Indonesia. The main activity is regular health checking, health education on hypertension and breast cancer.

In 2017, the Health Champion program was conducted in Tasikmalaya, Jawa Barat, involving the Health Department of District of Tasikmalaya. 18 Health Champions selected from Subdistrict of Jamanis, Ciawi, Pagerageung and Rajapolah have served 7,981 customers of BTPN Syariah and 7,000 community during the Posyandu (integrated services units in villages) activity.


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Sahabat Daya University

This is a collaboration program with Faculty of Medicine Trisakti University to provide health education and health checking in Cilincing and Bantar Gebang, involving 172 doctors in 60 customer centers. The health education was about TBC, cancer, senile, hypertension, diabetes, and other chronical diseases with a total participaction of more than 300 customers.

Social Work

The social work for customers and public was performed in 13 cities involving activities such as health education on cervical cancer and health checking. Delivered in collaboration with Association of Indonesian General Physician (Persatuan Dokter Umum Indonesia – PDUI), this program has involved a participation of 3,853 customers and other 538 public communities. The health education was not only performed in collaboration with PDUI, it was also delivered by health champions from Subdistrict Jamanis, Ciawi, Pagerageung and Rajapolah in West Java, serving 215 customers and 331 other public communities.

Daya to Grow Business

Daya to Grow Business focuses on entrepreneurship to help the customers to grow the business through training on business practices, business information and new business opportunities. The program in 2017 included:

Daya Training

In the routine center meeting, the customers are trained to understand the steps to start, manage and grow business using practical tips such as “Economic Spending to Increase Saving”, “Dangerous Substance to be Avoided in Food Business”, “Reducing Children Pocket Money in order to Increase Saving”, “Starting a Business with Small Capital”, “How to Keep Growing the Business”, “How to Grow Food Business”. The training programs were conducted in customer centers and have been delivered to 501,981 customers.

I am proud to be part of Sahabat Daya and get an opportunity to meet with the weaver women in Middle Amanuban, South Central Timor, NTT. I shared knowledge about weave business and how to choose the yarns that did not easily fade, be consistent in quality and the most important was to maintain the trust of the customers by being honest. The weavers are incredible women, not only because they have a special skills and participate building the economy of the family; but they are the people who preserve the tradition and heritage of our ancestors. This is invaluable.

Wieke Dwiharti – Woven Clothing Designer Funding Customer, Menara Kadin Branch, Jakarta

Sahabat Daya University

The program was a collaboration with Brawijaya University Malang and Bogor Institute of Agriculture, aimed at improving the capacity of the customers to grow their business. In 2017, 95 students of both universities were involved in providing direct field assistance to 39 customers.

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// daya

Developing Market Access

Developing market access is a program to introduce the customers and their products to various stakeholders of BTPN Syariah and general public. Two activities were conducted in 2017, that is, ‘Bazar Selendang Mayang’, ‘The Making of Story of Book on Customers Products 2017’, that involved 125 customers and 8 communities.

For me, working is not only about earning a living, but also for the blessings. It is not only about pursuing materials, but how to share and make this life more meaningful. That is why I always feel energized everytime I visit the Wisma. I can motivate and inspire. On the other hand, I also learn about the persistence and spirit that empower our underprivileged society. In their success story, I feel proud for my share as #bankirpemberdaya that brings out the changes.

Agung Imami Internal Audit, #bankirpemberdaya

Sahabat Daya Individual

The opportunities to empower people are not only for #bankirpemberdaya of BTPN Syariah, rather they are widely opened for every individual through Sahabat Daya Individual, whereby the external volunteer can directly participate in the empowerment program.

In 2017, the Sahabat Daya volunteer participated in the empowerment program about preservation of Ikat woven culture for BTPN Syariah customers in Kupang and about batik business development for the customers in Cirebon. This kind empowerment does not only benefit the customers but also to our mobile marketing people. The internal employees of BTPN Syariah also benefited from the basic photography training delivered by the external Sahabat Daya program.

Daya for Community Development

Daya for Community Development is dedicated to empower the customer communities who shared the same interest and commitment to collaborate in reaching the potential market and promoting healthy living habit. In 2017, we developed 8 new communities in Garut, West Java and Jepara, Central Java with 94 customer community members. The communities consisted of Troso weaver, rattan craftman in Jepara, leather craftman, glove, apron and sandal in Garut. The community members were given training programs about group motivation, group management and effective leadership from Center for Women Development Jakarta.

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Melati Putih Bangsa, #bankirpemberdaya from Sepatan, Tangerang, Banten, consistently serves the customers in various different approaches guided by the principles and best practices of sharia banking

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good corporate governance (GCG) report

Indonesia GCG Award (GOLD) that was granted to BTPN Syariah in 2017 is an evidence of true acknowledgement of the external parties and the stakeholders for the Bank achievement in Good Corporate Governance.

Objectives of GCG Implementation in BTPN Syariah

The objectives of sustained GCG implementation in BTPN Syariah is to uphold the rights of the stakeholders and to consistently maintain the accountability and transparancy of BTPN Syariah that build the confidence of shareholders and prospective investors.

From the internal perspective, BTPN Syariah always strives to manage the business and operations in a professional manner according to the good corporate governance principles.

To the external stakeholders, BTPN Syariah ensures that the Bank operation maintains the integrity of healthy and fair business competition taking into account the potential risks and carrying the Bank vision and mission in keeping the Bank reputation by implementing good corporate governance according to the prevailing regulations.

The Result of GCG Implementation in BTPN SyariahThe implementation of GCG in BTPN Syariah manifested in the business growth of BTPN Syariah which delivered optimum result from good corporate governance implementation, including:

• CAR of 28.9%.

• RoE of 36.5%.

• Total Assets Growth of 25.0%.

• Financing disbursement of Rp6,1 trillion.

• Third Party Funds of Rp6.5 trillion.

• The Awards, both national and international, in 2017:

- Top Bank Syariah 2017, Top Laku Pandai 2017 and Top CEO 2017 by Top Bank Awards;

- The Most Reliable Bank, The Most Efficient Bank by Indonesia Banking Award;

- The Best Islamic Bank for SME Banking 2017 by Global Islamic Financial Awards (GIFA);

- 4th Rank for Non Publicly-Listed Best Commercial Bank 2017 by Anugerah Perbankan Indonesia;

- Best Sharia Bank 2017 for the Category Sharia Bank with total assets below Rp10 trillion by Investor Award;

- First Best Ranking for the Category Bank with total assets below Rp10 trillion by Infobank Award;

- First Rank for the Category the Best Bank in Non-Foreign Exchange Private National Bank, by Rating Bank Infobank;

- First Best Ranking for the Category Bank supporting Micro, Small and Medium Enterprise BUKU 1 and 2 by Bank Indonesia;

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// good corporate governance (GCG) report

- The Best of the Best Islamic Bank – The Magnificent Seven Special Award, The Best Islamic Bank – Islamic Full Fledge Bank (Buku II and III), The Most Efficient – Islamic Full Fledge Bank (Buku II and III), The Most Profitable – Islamic Full Fledge Bank (Buku II & III) by Karim Consulting Group;

- Very Good Predicate for the Category Sharia Bank with the Core Capital of Rp1 trillion to 5 trillion by Infobank Award;

- Top 100 Bankers by Info Bank Award;

- Indonesian Best Banking Award 2017 (Good Financial Performance category Islamic Banking);

- Sharia Republica Award 2017 (Best Performance Category), (Best Innovation Category) and (Best Performance and Innovation Category for Sharia Bank with total assets below Rp10 trillion).

GCG Implementation in BTPN SyariahImplementation of good corporate governance at all levels of organisation according to the prevailing regulation was the commitment of BTPN Syariah in 2017, including the following:

1. Fulfillment of Duties and Responsibilities of the Board of Commissioners, Sharia Supervisory Board, and the Board of Directors;

2. Fulfillment of Duties and Responsibilities of the Board of Commissioners Committee and the Board of Directors Committee;

3. Fulfillment of Duties and Responsibilities of Internal Audit Unit and Risk Management Unit;

4. Enactment of Compliance Function;

5. Selection of External Audit, implementation of Internal Audit;

6. Development of Business Plan and Key Strategic Initiatives BTPN Syariah;

7. Transparency in BTPN Syariah Financial and Non-Financial Reports.

Commitment for GCG Implementation in BTPN Syariah

The optimum growth in 2017 further reinforced the commitment of BTPN Syariah to consistently maintain the quality of GCG implementation in a sustained manner, for the best interest of the Company and the Stakeholders, with adherence to the prevailing regulations.

As it was approved by the shareholders of BTPN Syariah with regard to initial public offering and the implementation of its regulation in 2017, which included amongst others the appointment of members of the Board of Commissioners and member of the Board of Directors according to the regulation POJK No. 33/POJK.04/2014; it was confirmed that the members of the Board of Directors and the Board of Commissioners had fulfilled the requirement of the Board of Directors of Issuer of Public Company in adherence to POJK No. 33/POJK.04/2014. The Bank had also complied to the other regulations, that is POJK No. 35/POJK.04/2014 and the Board of Directors Decree of PT Bursa Efek Indonesia No. Kep-00001/BEI/01-2014 dated January 20, 2014 concerning the Amendment of Regulation No. I-A, whereby BTPN Syariah appointed a Corporate Secretary pursuant to the Circular Resolution of the Board of Directors No. 015/CIR/DIR/VIII/2017 dated August 22, 2017


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that was then stated in the Board of Directors Decree No. SK.012/DIR/LG/VIII/2017 concerning the Appointment of Corporate Secretary on August 22, 2017; the establishment of Audit Committee BTPN Syariah in adherence to POJK No. 55/POJK.04/2015 and the establishment of Nomination and Remuneration Committee BTPN Syariah according to POJK No. 34/POJK.04/2014.

From the internal control perspective, BTPN Syariah has reviewed, updated and amended the infrastructure of internal policy and standard operational procedures, including Good Corporate Governance Policy, Information Security Management Policy, Risk Management Policy, Financing Policy, Information Technology Policy, Charter of the Board of Commissioners, the Board of Directors, the Sharia Supervisory Board, Charter of the Board of Commissioners Committee and the Board of Directors Committee, the Decree concerning the Structure of Hierarchy, Induction Program on GCG for new Executive Officers and new employees, and routine refreshment of Code of Conduct to all employees. The control to the Risk Management implementation is conducted addressed by ensuring the fulfillment

of Risk Management Certification and the refreshment program by employees, Board of Directors, Board of Commissioners and Sharia Supervisory Board.

Reviews to internal documents were also performed to all Policies and Procedures in the Bank to ensure their compliance to prevaliling regulations, internal rules, and the surrounding circumstances.

Board of Commissioners, Board of Directors and Sharia Supervisory Board are all committed to perform self assessment on regular basis to nurture the culture of compliance in sustained and measured manner.

Standard Quality in the GCG Implementation in BTPN Syariah

The Implementation of standard quality starts from strong character of individual employee of BTPN Syariah supported by the GCG implementation in every aspect of organisation and in the business and operational activities of the company.

BTPN Syariah has continously made every effort to reduce the occurence of fraud by routine

dissemination of anti-fraud awareness and by “JAGA” portal to which the complaints can be sent to email address [email protected], the employee complaints can also be addressed to telephone channel (021) 300 26 400 (ext. 83553 and 86470) and 0878-8999 7494 (SMS only). In 2017, the system registered 298 complaints that have been followed through respectively.

The standard quality of GCG implementation through Internal Audit, an independent division reporting directly to the President Director, Internal Audit completed all the audit plan 2017 and the audit results was used as one of the reference in improving the management policy, business and operational processes, infrastructure and procedures adequacy and human capital management. Internal Audit provided recommendation for improvement to all working unit in the Bank through quality assurance and consulting practices, with reference to the Standard of Bank Internal Audit Function, Audit Charter and Audit Plan 2017. Internal Audit reported the summary of audit result to the President Director and the Board of Commissioners through Audit Committee.

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The standard quality of GCG implementation on prudent principles application in Risk Management has been performed by BTPN Syariah on a continuous basis by improving the implementation of internal Risk Management and coordinate the implementation of external Integrated Risk Management with the parent Bank as the Bank’s implementation of integrated Risk Management in Financial Conglomeration.

Board of Directors, Board of Commissioners and Sharia Supervisory Board as the organs of the Bank have implemented the principles of Good Corporate Governance by means of active supervisions by the Board of Commissioners and the Sharia Supervisory Board supported by the Board of Commissioners Committee. The Board of Directors has performed the management function supported by the Board of Directors Committee. The Board of Commissioners, Sharia Supervisory Board and the Board of Directors held corporate meetings on regular basis, in adherence to the prevailing corporate governance regulations, all meetings decisions’ were well documented and the follow up actions to the meeting decisions were well monitored. The organ of the Bank has also made routine visits to the field, to ensure the implementation of GCG and Sharia principles in the Branch Offices, Operational Functional Offices, Non-Functional Operational Offices, Wisma and customers centers.

From the perspective of adequacy in risk identification process, risk measurement, risk monitoring and risk control as well as risk management information system, BTPN Syariah has fulfilled the requirement, as indicated, amongst others, by a very good performance of Capital Adequacy Ratio. The Bank has also implemented Operational Risk Management System (ORMS) to monitor and control operational risks wherein all risk events are registered, governed, and analyzed in order to anticipate the potential of similar occurence of risk in the future.

The Bank has implemented internal control system through Quality Assurance (QA) Unit, Risk Management Unit and Internal Audit Unit.

The Benefits of the Implementation of GCG Principles in BTPN Syariah

BTPN Syariah believes that the implementation of GCG principles in BTPN Syariah according to the prevailing regulations is the benchmark and parameters in achieving the vision and mission of the Bank in a prudent manner with

the support of all stakeholders to the regulations. Transparency in information disclosure conducted in a professional and responsible manner is the company contribution in the undertaking of clean business activity which upholds the GCG principles for the best interest of all stakeholders.

GCG Policy in BTPN Syariah

Good Corporate Governance Policy (GCG Policy) is the main policy in BTPN Syariah as the Bank commitment to implement the Principles of Good Corporate Governance at all levels of the organization. In 2017, BTPN Syariah has reviewed, updated and amended the Good Corporate Governance Policy with reference to the prevailing rules and regulations.


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From the GCG perspective, the Board of Commissioners, Sharia Supervisory Board, the Board of Directors, Executive Officers and all employees have implemented the principles of Good Corporate Governance and there was no occurence of material violation of regulation.

The GCG Policy of BTPN Syariah includes:

Principles of Good Corporate Governance1. General Principles;

2. Values and Code of Conduct;

3. GCG Implementation Report;

4. Management Report;

5. Report to Parent Company.

Strategy1. Business Plan;

2. Key Strategic Initiatives;

3. Risk Appetite.

Company Organs1. Shareholders;2. Board of Commissioners;

3. Board of Directors;4. Sharia Supervisory Board (DPS).

General Meeting of Shareholders

BTPN Syariah held 1 (one) Annual General Meeting of Shareholders in 2017 and 2 (two) Extraordinary General Meeting of Shareholders in 2017.

BTPN Syariah General Meeting of Shareholders is attended by Public Notary as an independent party to perform quorum computation and to prepare the minutes of meeting.

The Annual General Meeting of Shareholders and Extraordinary General Meeting of Shareholders in BTPN Syariah are conducted according to the protocols of decision making as governed by GMS Charter which were also informed to the shareholders. That every shareholder or authorized representative has the right to ask questions or forward opinion to the Chairman of the Meeting prior to the decision is made for each item of the agenda of the meeting.

Internal Control 1. Risk Management;

2. Compliance;

3. Internal and External Audit;

4. Customer Protection in Financial Services Sector;

5. Legal Financing Limit;

6. Corporate Governance Officer (CGO);

7. Corporate Responsibilities to the Environment and Healthy and Safe Work Practices.

Compensation1. Principles and Structure.

Transparency and Disclosure of Information 1. Primary Principles;

2. Spokesperon;

3. Policy and Procedure on Transparency and Disclosure of Information;

4. Reporting for Transparency and Disclosure of Information;

5. Intellectual Property Rights.

Corporate Secretary 1. Terms of Reference;

2. Duties and Responsibilities;

3. Corporate Secretary Activities in 2017.

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Annual General Meeting of Shareholders 2017

BTPN Syariah held AGMS on March 6, 2017, attended by all members of the Board of Commissioners, the Sharia Supervisory Board and the Board of Directors.

No. Deed Concerning Subject Meeting Decisions

1. Notarial Deed No. 02 dated March 6, 2017 by Notary and PPAT Ashoya Ratam, SH.,Mkn, Administrative City of Jakarta Selatan

MINUTES OF ANNUAL GENERAL MEETING OF SHAREHOLDERS “PT BANK TABUNGAN PENSIUNAN NASIONAL SYARIAH”

First Agenda of the Meeting:Approval on Annual Report and Ratification of Financial Statement of the Company In book year ending on December 31, 2016 (thirty first of December twenty sixteen),including the Annual Supervision Reports of The Board of Commissioners and the Sharia Supervisory Board

a. Approved the Annual Report of BTPN Syariah including the Supervisory Report of the Board of Commissioners and the Sharia Supervisory Board for the book year ending December 31, 2016 (thirty first of December two thousand sixteen) that was presented by the Board of Directors and the Board of Commissioners in the meeting.

b. Approved the Financial Statements of BTPN Syariah for the book year ending on December 31, 2016 (thirty first of December two thousand sixteen) that had been examined and audited by the Public Accounting Firm (Kantor Akuntan Publik/KAP) TANUDIREDJA, WIBISANA, RINTIS dan Rekan (a member firm of PricewaterhouseCoopers Global Network) as stated in BTPN Syariah Annual Report 2016 (two thousand sixteen).

c. Granted full release and discharge (acquit et decharge) to the incumbent members of the Board of Directors of the Company during the book year ending December 31, 2016 (thirty first of December two thousand sixteen) for all acts of Management, and to the incumbent members of the Board of Commissioners and Sharia Supervisory Board for the supervision that had been performed during the book year ending on December 31, 2016 (thirty first of December two thousand sixteen), to the extent that such deeds are recorded in the Annual Report and the Financial Statement of the Company for the book year ending on December 31, 2016 (thirty first of December two thousand fifteen), except in the event of fraud, embezzlement or other criminal deeds

Realization/ Follow up

The Annual Report and Financial Statements of BTPN Syariah were approved by the Shareholders and published in the BTPN Syariah website.


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Second Agenda of the meeting:Determination on appropriation of the Company’s profit acquired in book year ending on December 31, 2016

a. Stated that according to the income statement of BTPN Syariah for the book year ending on December 31, 2016 (thirty first of December two thousand sixteen), the current year nett profit after tax earned by BTPN Syariah amounted to Rp412.495.068.191 (four hundred twelve billion four hundred ninety five milion sixty eight thousand one hundred and ninety one rupiah);

b. Approved the appropriation of all the Company’s nett profit after tax earned by BTPN Syariah for the book year ending on December 31, 2016 (thirty first of December two thousand sixteen) as follows: i. For the book year ending on December 31, 2016 (thirty first

of December two thousand sixteen), BTPN Syariah shall not distribute dividends to the shareholders;

ii. An amount of Rp5.000.000.000,- (five billion rupiah) is kept as additional reserve fund, making the total reserve fund of the Company amounting to Rp20.000.000.000 (twenty billion rupiah);

iii. The remaining net profit of Rp407.495.068.191,- (four hundred seven billion four hundred ninety five million sixty eight thousand one hundred and ninety one rupiah) shall be declared as retained earnings to strengthen the financial position of BTPN Syariah.


The remaining nett profit after tax of the Bank to increase the reserve fund had been realized and booked according to the meeting of the AGMS 2017.

Third Agenda of the Meeting: Appointment of the Public Accountant to audit the book of the Company for book year ending on December 31, 2017 and determination of amount of honorarium and other conditions of appointment of such Public Accountant

a. Granted full power and authority to the Board of Commissioners of the Company to appoint the Public Accounting Firm to examine and audit the Company bookkeeping and financial statements for the book year ending on December 31, 2017 (thirty first of December two thousand seventeen) and to determine the amount of honorarium and other terms and conditions for such the appointment, taking into consideration the recommendation of Audit Committee;

b. That the Appointment of Public Accounting Firm must be in accordance to the following conditions:i. The appointed Public Accounting Firm must be

registered as the Capital Market Supporting Professional in the Financial Services Authority and is experienced in auditing banks;

ii. The appointed Public Accounting Firm must be affiliated to the International Public Accounting Firm;

iii. Referring to the Regulations of Financial Services Authority POJK No. 6/POJK.03/2015 concerning Transparency and Publications of Reports of Sharia Commercial Bank and Sharia Business Unit, stipulating that the Bank is obliged to prepare consolidated Financial Statement with the Parent Company.

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1. The Board of Commissiners in the Board of Commissioners Circular Resolution No. 016/CIR/DEKOM/IX/2017 dated September 12, 2017 concerning The Approval of the Board of Commissioners for the Appointment of Public Accountant and/or Public Accounting Firm for the book year ending on December 31, 2017, taking into consideration the recommendation of Audit Committee in the Audit Committee Circular Resolution No. 004/CIR/AK/IX/2017 dated September 12, 2017 concerning Audit Committee Recommendation on the Appointment of Public Accountant and/or Public Accounting Firm for the book year ending on December 31, 2017;

2. The Report on the Appointment of Public Accountant and Public Accounting Firm to perform audit on the annual historical financial information on December 31, 2017 was submitted to Financial Services Authority in the letter No. S.376/DIR/LG/IX/2017 dated September 26, 2017 and the letter No. S.414/DIR/LG/X/2017 dated October 20, 2017;

3. On September 2017, the Board of Commissioners granted approval in the Circular Resolution of the Board of Commissioners No. 011A/CIR/DEKOM/VII/2017 dated July 26, 2017 concerning the Appointment of Public Accountant and/or Public Accounting Firm with regard to the Execution of Initial Public Offerings, taking into consideration the recommendation of Audit Committee in the Audit Committee Circular Decision No. 003/CIR/AK/VII/2017 dated July 26, 2017 concerning the the Appointment of Public Accountant and/or Public Accounting Firm with regard to the Execution of Initial Public Offerings of BTPN Syariah for the period ended September 30, 2017.

Fourth Meeting Agenda:To determine the amount of remuneration and allowance for the members of the Board of Directors and the amount of honorarium and allowance for the member of the Board of Commissioners and Sharia Supervisory Board of the Company.

1. Granted full power and authority to the Board of Commissioners of BTPN Syariah to determine the remuneration of the Board of Directors and Sharia Supervisory Board in 2017 that will be discussed upon the completion of the meeting and to decide its distribution for the members of the Board of Directors and the Sharia Supervisory Board, under the condition that in determining such total amount of remuneration and its distribution for the the members of the Board of Directors and the Sharia Supervisory Board, the Board of Commissioners is obliged to take into consideration the recommendation of the Nomination and Remuneration Committee of BTPN Syariah;

2. In accordance to the recommendation of the Nomination and Remuneration Committee state in the Minutes of Meeting of the Nomination and Remuneration Committee of the Company No. 002/CIR/KRN/III/2017 dated 02-03-2017 (Second of March two thousand seventeen), that was approved by the Board of Commissioners in the Circular Resolution of the Board of Commissioners No. 005/CIR/DEKOM/III/2017 dated 2-3-2017 (Second of March two thousand seventeen), it was decided that the total amount of gross remuneration for the members of the Board of Commissioners for the book year ending on December 31, 2017 (thirty first of December two thousand seventeen) did not exceed Rp5.600.000.000 (five billion six hundred million rupiah) and to grant full power and authority to the Board of Commissioners to determine, in the Circular Resolution of the Board of Commissioners, the distribution of the total amount of the honorarium, allowances and bonus to the members of the Board of Commissioners, under the condition that in determining such distribution of the total amount of the honorarium, allowances and bonus, the Board of Commissioners is obliged to take into consideration the recommendation of the Nomination and Remuneration Committee of BTPN Syariah.


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Granted full power and authority to the Board of Commissioners to determine the remuneration of the Board of Directors and Sharia Supervisory Board in 2017 and to decide its distribution amongst the members of the Board of Directors and the Sharia Supervisory Board, and the determination of the remuneration for the members of the Board of Commissioners and the distribution of such total amount of honorarium, allowances and bonus for the members of the Board of Commissioners was done by BTPN Syariah in accordance to the related decision.

Fifth Agenda of the Meeting:The appointment of the members of the Board of Directors, the members of the Board of Commissioners and the members of Sharia Supervisory Board.

Approved the appointment of the members of the Board of Directors, the members of the Board of Commissioners and the members of Sharia Supervisory Board, as proposed by the Shareholders of BTPN Syariah, as follows:Directors:1) Ratih Rachmawaty (President Director)*2) Mulia Salim (Deputy President Director)**3) Taras Wibawa Siregar (Director)4) Mohamad Gatot Adhi Prasetyo (Director)5) Arief Ismail (Director)**The Board of Commissioners:1) Kemal Aziz Stamboel (President Commissioners and

Independent Commissioner)2) Dewie Pelitawati (Independent Commissioner)3) Mahdi Syahbuddin (Commissioner)4) Maya Kartika (Commissioner)*Sharia Supervisory Board:1) H. Ikhwan Abidin, MA*2) H. Muhamad Faiz, MA*Under the following conditions: a. (*) To assume office subject to the approval of Financial

Services Authority;b. (**) To assume office upon the effective date of respective

resignation from the previous company and subject to the approval of Financial Services Authority;

c. The term of office of the members of the Board of Directors, the Board of Commissioners and the Sharia Supervisory Board will end at the closure of the Annual General Shareholders Meeting in 2020 (two thousand twenty) without reducing possible changes that may occur prior to the end of the term of office, with exception to Mr. Mahdi Syahbuddin whose term of office will end at the closure of the Annual General Shareholders Meeting in 2018 (two thousand eighteen).

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The composition of the members of the Board of Directors, the Board of Commissioners and Sharia Supervisory Board, as stated in the Deed Resolution of the Annual General Meeting of Shareholders of BTPN Syariah, as follows:a. Deed No. 26 dated March 14, 2017 (Appointment of President

Director) that was registered in the Ministry Law and Human Rights Republic of Indonesia in its Decree No. AHU.AH.01.03-0118678 dated March 16, 2017;

b. Deed No. 27 dated May 19, 2017 (Appointment of the Members of Sharia Supervisory Board) that was registered in the Ministry Law and Human Rights Republic of Indonesia in its Decree No. AHU.AH.01.03-0138034 dated May 19, 2017;

c. Deed No. 73 dated June 22, 2017 (Appointment of Deputy President Director and Chairman of Sharia Supervisory Board) that was registered in the Ministry Law and Human Rights Republic of Indonesia in its Decree No. AHU.AH.01.03-0149732 dated July 3, 2017;

d. Deed No. 17 dated July 12, 2017 (Appointment of Board of Commissioners) that was registered in the Ministry Law and Human Rights Republic of Indonesia in its Decree No. AHU.AH.01.03-0152969 dated July 14, 2017;

e. Deed No. 06 dated September 5, 2017 (Appointment of Compliance Director) that was registered in the Ministry Law and Human Rights Republic of Indonesia in its Decree No. AHU.AH.01.03-0168935 dated September 6, 2017.

Extra Ordinary General Meeting of Shareholders (EGMS) 2017

BTPN Syariah held Extra Ordinary General Meeting of Shareholders twice in 2017; on March 6, 2017, attended by all members of the Board of Commissioners, Sharia Supervisory Board and the Board of Directors and on November 16, 2017 that was held by Circular Resolution.

No. Deed Concerning Subject Meeting Decision

1. Deed No. 03 dated March 6, 2017 by Notary and PPAT Ashoya Ratam, SH.,Mkn, Administrative City Jakarta Selatan

MINUTES OF EXTRA ORDINARY GENERAL MEETING OF SHAREHOLDERS “PT BANK TABUNGAN PENSIUNAN NASIONAL SYARIAH”

The only agenda of the meeting:Refinement of Articles of Association BTPN Syariah and restatement of all Articles of Association BTPN Syariah

a. Approved the refinement of the Articles of Association of BTPN Syariah according to the concept that was presented in the meeting, as follows:i. Article 11 section 12 concerning the Duties and Authorities

of the Board of Directors;ii. Article 13 section 4 concerning the re-appointment of the

Board of Commissioners at the same position not requiring the approval of Financial Services Authority;

iii. Article 13 section 6 concerning the term of office of the Board of Commissioners;

iv. Article 16 section 9 concerning the term of office of Sharia Supervisory Board.

b. Granted full power and authority to the Board of Directors with substitution rights to exercise all the actions required to execute the meeting resolution, including preparing and restating all the Articles of Association BTPN Syariah in one single Notarial Deed and to inform the respective authorities to take all the measures for such purpose without any single exception, including to add and/or amend the Article of Association whenever such action is obligated by the Authorities.


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Approved and accepted the amendment and restatement of all the Articles of Association BTPN Syariah and granted full power and authority to the Board of Directors BTPN Syariah to restate the amendment and restate all the Articles of Association BTPN Syariah, as written in the Deed on Resolution of Extra Ordinary General Meeting of Shareholders BTPN Syariah No. 27 dated March 14, 2017 by Notary Ashoya Ratam, SH.,Mkn, Administrative City Jakarta Selatan, that was registered in the Ministry of Law and Human Rights Republic of Indonesia in its Decree No. AHU.AH.01.03-0121841 date March 27, 2017.

2. Deed of Shareholders Decision No. No. 57* Dated November 16, 2017, by Notary Jose Dima, S.H., M.Kn., Administrative City Jakarta Selatan

Statement of Decisions of Shareholders concerning the Amendment of the Articles of Association PT Bank Tabungan Pensiunan Nasional Syariah

In preparation of BTPN Syariah Initial Public Offerings and the Amendments of the Articles of Association of BTPN Syariah to become a Public Company according to the prevailing capital market laws and regulation In Indonesia

1. Approved the changes of the Company status from Closed Company to become a Public Company and change the name of the Company from PT Bank Tabungan Pensiunan Nasional Syariah to PT Bank Tabungan Pensiunan Nasional Syariah Tbk., and therefore, amend the Article 1 of the Company Article of Association;

2. Approved the changes of the intent and objectives as well as the business activity of the Company with regard to Core Business Activity and Supporting Activities that has already been done or to be done by the Company according to the Capital Market Supervisory Agency and Financial Institution No. IX.J.1 regarding the Essentials of the Articles of Association of the Company to conduct stock public offering both equity and public company, Attachment of Decision of Chairman of Capital Market Supervisory Agency and Financial Instituion No. Kep-179/BL/2008 dated May 14, 2008; which therefore, amend the Article 3 of the Company Article of Association;

3. Approved the changes of the nominal value of the company share from Rp1.000.000,00 (one million Rupiah) per share to Rp100,00 (one hundred Rupiah) per share, which therefore amend the Article 4 section (1) of the Company Article of Association;

4. Approved BTPN Syariah Initial Public Offering/IPO by issuing new shares from the shares portfolio of BTPN Syariah at the maximum of 770.370.000 shares with the nominal value per share of Rp 100,- per share to be offered to public in the teritorry of the Republic of Indonesia and to be listed the Indonesia Stock Exchange, including the allocation of the issued shares, at the maximum of 10% of the issued shares for the Initial Public Offerings (IPO) of the Company, for the Employee Stock Allocation (ESA) according to the terms and conditions to be further stipulated the Board of Directors Decree, with adherento the prevailing laws and regulations, including but not limited to, the laws and regulations of capital market in Indonesia and the regulations of Indonesian Stock Exchange where the Company shares are listed;

* Being effective on the effective date of the Financial Services Authority.

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5. Approved the release of the rights of the shareholders to take part of the new shares issued for the Company Initial Public Offerings (IPO); and

6. Approved the amendment of the entire Articles of Association of BTPN Syariah in order to become a public company to follow the laws and regulations of capital market in Indonesia;

7. Approved the appointment of Mrs. Ratih Rachmawaty as the Independent Director and President Director and therefore reaffirm and restate the composition of the Board of Directors, Board of Commissioners and Sharia Supervisory Board. Directors:1) Ratih Rachmawaty (President Director/Independent)2) Mulia Salim (Deputy President Director) 3) Taras Wibawa Siregar (Director)4) Mohamad Gatot Adhi Prasetyo (Director)5) Arief Ismail (Director)The Board of Commissioners:1) Kemal Aziz Stamboel (President Commissioner/

Independent)2) Dewie Pelitawati (Independent Commissioner)3) Mahdi Syahbuddin (Commissioner)4) Maya Kartika (Commissioner)Sharia Supervisory Board:1) H. Ikhwan Abidin, MA2) H. Muhamad Faiz, MA

8. Approved, delegated and granted the authority with substitution right, partially and entirely, to the Board of Commissioners BTPN Syariah to execute the Circular Resolution, including: a. to declare in the Notarial Deed concerning the addition

of issued and paid up capital BTPN Syariah in the issuance of new shares for the purpose of BTPN Syariah Initial Public Offerings, the amount if shares purchased in the BTPN Syariah Initial Public Offerings, and the composition of shareholders after the Initial Public Offerings and list the shares in the Indonesia Stock Exchange;

b. to approve the offering price as proposed by the Board of Directors BTPN Syariah;

c. to approve the exact amount of shares offerred as proposed by the Board of Directors BTPN Syariah.


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9. Approved and granted the authority with substitution right, partially and entirely, to the Board of Directors BTPN Syariah to exercise all the action necessary to execute the Initial Public Offerings of BPN Syariah, including but not limited to: a. to sign the statement of registration to be submitted to the

Financial Services Authority of the Republic of Indonesia;b. to negotiate and sign other agreements related to shares

issuance according to the terms and conditions that is confirmed by the Board of Directors BTPN Syariah to serve the best interest of BTPN Syariah;

c. to sign, print and/or publish Summarized Prospectus, Amendment and/or supplement of the Summarized Prospectus, Initial Prospectus, Prospectus, and/or all the agreements and/or the documents necessary for initial public officerings through capital market (go public);

d. to determine the offering price with the approval of the Board of Commissioners;

e. to determine the exact number of shares to be offerred with the approval of the Board of Commissioners;

f. to determine the ESA Program at the maximum of 10% (ten percent) of the new shares issued in the BTPN Syariah Initial Public Offerings;

g. to deposit the shares of BTPN Syariah in the collective depository PT Kustodian Sentral Efek Indonesia (“KSEI” – Indonesia Central Securities Depository) according to the prevailing laws and regulations, including but not limited to KSEI regulations, capital market and banking regulations in Indonesia;

h. to list the entire shares of BTPN Syariah that has been issued and entrusted to Indonesian Stock Exchange and offered to public through capital market and the shares owned by shareholders to the Indonesian Stock Exchange, with adherence to the pevailing laws and regulations, including but not limited the laws the regulations in capital market and banking in Indonesia;

i. to exercise all the measures and actions necessary to execute the Inital Public Offerings BTPN Syariah to the public through capital market, including those that are required by the prevailing laws and regulations;

j. to state one or more decisions in the Circular Decisions in one or more Notarial Deed both in entirety or in partial;

k. to affirm and bring about the declaration of the affirmation on one or more decisions in the Circular Decision in one or more Notarial Deed;

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l. to compose, prepare, refine, change and/or modify (by means of adding and/or reducing) the sentences and/or the words in the respective Notarial Deed and sign the Deeds;

m. to request for approval and/or notify the amendments of the Articles of Association of and/or changes of BTPN Syariah data and/or register or bring about its registration in the relevant authorities of one or more decisions in the Circular Decision, including but not limited to the approval of Financial Services Authority regarding the Initial Public Offerings of Commercial Bank;

n. to exercise all the other actions that are necessary and/or obligated to execute and finish the above mentioned and to achieve the intent and objectives of the decisions of the shareholders as declared in the Circular Decision, including all the actions authorized to the power of attorney and finish all matters related to the subjects, including but not limited to be in the presence of the Notary or other party; to give, acquire and/or receive information and/or document whatsoever, or create and bring about the creation of, put initials and/or sign any documents whatsoever.


The shareholders approved and accepted the amendment and restatement of the entire Articles of Association of BTPN Syariah in order to become a Public Company according to prevailing regulation in capital market in Indonesia; and granted full power and authority to the Board of Directors BTPN Syariah to restate the amendment and restatement of the entire Articles of Association of BTPN Syariah, as stated in the Deed of Shareholders Decisions No. 57 dated November 16, 2017, by Notary Jose Dima, S.H., M.Kn., in the Administrative City Jakarta Selatan, that was approved by the Minister of Laws and Human Rights in its Decree No. AHU-0024076.AH.01.02.TAHUN 2017 dated November 16, 2017 and registerd in the Compay List in the Ministry of Laws and Human Rights of the Republic of Indonesia (“Kemenkumham”) in No. AHU-0145670.AH.01.11.TAHUN 2017 dated November 16, 2017 and was notified to the Minister of Laws and Human Rights according to the Receipt of the Notification of Amendment of Articles of Association No. No. AHU-AH.01.03-0191730 dated November 16, 2017 and registered in the Company List in the Ministry of Laws and Human Rights No. AHU-0145670.AH.01.11.TAHUN 2017 dated November 16, 2017*.

* Being effective on the effective date of the Financial Services Authority.


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Follow Up – Annual General Meeting of Shareholders Meeting 2016

BTPN Syariah has realized the decisions of the Annual General Meeting of Shareholders and the Extra Ordinary General Meeting of Shareholders held in 2016, as follows:

No. Agenda Decision Status Remarks

1. Presentation of Annual Report and Endorsement of Financial Statements of BTPN Syariah for accounting book ended 31-12-2015 (thirty first of December two thousand fifteen) including the Annual Supervision Report of the Board of Commissioners and the Sharia Supervisory Board

Approved the Annual Report and ratification of Financial Statements of BTPN Syariah for book year ending December 31, 2015 (thirty first of December two thousand fifteen) including the Annual Supervision Report of the Board of Commissioners and the Sharia Supervisory Board

Completed Approved in the Annual General Meeting of Shareholders on May 2, 2016

Ratified the Financial Statements of BTPN Syariah for book year ending December 31, 2015 (thirty first of December two thousand fifteen) that have been audited by Public Accounting Firm Tanudiredja, Wibisana, Rintis dan Rekan (a member firm of PricewaterhouseCoopers Global Network) according to the report dated 26-2-2016 (twenty sixth of February two thousand sixteen) that was presented in the Annual Report 2015 (two thousand fifteen)


Granted full release and discharge (acquit et decharge) to the incumbent members of the Board of Directors of the Company during the book year ending on December 31, 2015 (thirty first of December two thousand fifteen) for all the deeds of managing the company, and to the incumbent members of the Board of Commissioners and Sharia Supervisory Board for the supervision that had been performed during the book year ending on December 31, 2015 (thirty first of December two thousand fifteen),


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2. To determine the appropriation of nett profit after tax of BTPN Syariah generated during the book year ending on December 31, 2015

a. Stated that according to the current year Income Statement of BTPN Syariah for the book year ending December 31, 2015 the total nett profit after tax of the current year earned by BTPN Syariah was Rp169.206.407.569 (one hundred sixty nine billion two hundred six million four hundred seven thousand five hundred and sixty nine rupiah);

b. Approve the appropriation of current year nett profit after tax earned by BTPN Syariah for the book year ending on December 31, 2015 (thirty first of December two thousand fifteen), as follows: (i) For the book year ending

on December 31, 2015 (thirty first of December two thousand fifteen), BTPN Syariah did not distribute dividends to the shareholders;

(ii) An amount of Rp7.794.324.858,- (seven billion seven hundred ninety four million three hundred twenty four thousand eight hundred and fifty eight rupiah) is kept as additional reserve fund, making the total reserve fund of BTPN Syariah amounting to Rp15.000.000.000,- (fifteen billion Rupiah);

(iii) The remaining nett profit will be booked as retained earning to strengthen the financial position of BTPN Syariah.



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3. Appointment of Public Accounting Firm for the book year ending on December 31, 2015 (thirty first of December two thousand fifteen) and determination of the amount of honorarium and other terms and conditions for such the appointment.

Approved granting full power and authority to the Board of Commissioners to appoint the Public Accounting Firm to examine and audit the bookkeeping and financial statements of BTPN Syariah for the book year ending on December 31, 2016 (thirty first of December two thousand sixteen) and to determine the amount of honorarium and other terms and conditions for such the appointment, taking into consideration the recommendation of Audit Committee and in accordance to terms and conditions presented in the meeting.

Completed a. Recommendation of Audit Committee stated in the Circular Resolution of BTPN Syariah Audit Committee No. 001/CIR/AK/X/2016 dated October 20, 2016 concerning the Approval of Audit Committee for the appointment of Public Accounting Firm for book year ending on December 31, 2016, that was then approved by the Board of Commissioners through

b. Circular Resolution of the Board of Commissioners BTPN Syariah No. 004/CIR/DEKOM/X/2016 dated October 20, 2016 concerning the Board Commissioners Approval for the apppointment of Public Accounting Firm for the book year ending on December 31, 2016.

4. Determination of the amount of remuneration and allowance for the members of the Board of Directors and the amount of honorarium and allowance for the member of the Board of Commissioners and Sharia Supervisory Board of BTPN Syariah.

Granted full power and authority to the Board of Commissioners of BTPN Syariah to determine the amount of of total salary and allowances that will be paid by BTPN Syariah to the members of the Board of Directors; and the honorarium and allowance for the Board of Commissioners and Sharia Supervisory Board for the book year ending on December 31, 2016, and the amount of total bonus for the members of the Board of Directors and Sharia Supervisory Board for the services rendered during the book year ending on December 31, 2015.

Completed a. Recommendation of Nomination and Remuneration Committee stated in the Resolution of Nomination and Remuneration Committee No. MOM.001/RNC/IV/2016 dated April 6, 2016; that was then approved by the Board of Commissioners through

b. Circular Resolution of the Board of Commissioners No. 003/CIR/DEKOM/IV/2016 dated April 6, 2016.

5. Re-appointment of the Sharia Supervisory Board of BTPN Syariah.

Approved the re-appointment of Mr. Kyai Hadi Doktorandus Amidhan and Mr. Kyai Haji Ahmad Cholil Ridwan, License as the members of the Sharia Supervisory Board, being effective upon the closure of the Annual General Meeting of Shareholders 2016. That the term of office of the Sharia Supervisory Board will end upon the closure of Annual General Meeting of Shareholders to be held in 2017 without reducing the possible changes that may occure prior to the end of the term of office.

Completed Approved in the Annual General Meeting of Shareholders on May 2, 2016.

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Follow up – Extra Ordinary General Meeting of Shareholders (EGMS) 2016

BTPN Syariah has realized the decisions of the Annual General Meeting of Shareholders and the Extra Ordinary General Meeting of Shareholders held in 2016, as follows:


1. Presentation of the Amendment to the Articles of Association

Approved the Amendment to the Articles of Association as stated in the Attachment of the Amendment to the Articles of Association BTPN Syariah, that had been distributed to the shareholders prior to the meeting, that is Article 2, Article 4 (section 2) and (section 4), Article 6 (section 4), Article 8 (section 5), Article 11 (section 6) and (section 12), Article 12 (section 7) and (section 17), and Article 13 (section 7).

Completed Deed No. 2 dated May 2, 2016 by Notary and PPATAshoya Ratam, S.H., MKn., Administrative City Jakarta Selatan.

2. To restate the decision made in the EGMS BTPN Syariah dated May 2, 2016, that is:In the only agenda of the meeting. The meeting in acclamation agreed to decide: To approve the amendment to the Company Articles of Association as stated in the attachment Amendment to the Articles of Association of BTPN Syariah, which had been distributed to the shareholders prior to the meeting, including: Article 2, Article 4 section (2) and section (4), Article 6 section (4), Article 8 section (5), Article 11 section (6) and (12), Article 12 section (7) and (17), and Article 13 section (7) of the Company Articles of Association.

Approved the description of the amendment of the articles was refined as follows:• The Time frame of the

Establishment of the Company (Article 2);

• Capital (Article 4)• Share Certificate and

Replacement of Share Certificate (Article 6)

• Transfer of Shares (Article 8)• Duties and Responsibilities of

the Board of Directos (Article 11)• Meeting of the Board of Directors

(Article 12)• Resignation of the Board of

Commissioners (Article 13)With the details as stated in the Deed No. 20 dated May 11, 2016.

Completed Deed No. 20 dated May 11, 2016 by Notary and PPAT Ashoya Ratam, S.H., MKn., Administrative City Jakarta Selatan.


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List of Attendance of the Board of Commissioners, Sharia Supervisory Board and the Board of Directors in the Annual General Meeting of Shareholders and Extra Ordinary General Meeting of Shareholders 2017

No. Name Position Attend Not Attend

Remarks

1. Kemal Azis Stamboel President Commissioner/ Independent

√ - -

2. Dewie Pelitawati Independent Commissioner √ - -

3. Mahdi Syahbuddin Commissioner √ - -

4. Maya Kartika Commissioner √ - -

5. H. Ikhwan Abidin, MA Chairman of Sharia Supervisory Board √ - -

6. H. Muhamad Faiz, MA Member of Sharia Supervisory Board √ - -

7. Ratih Rachmawaty President Director √ - -

8. Mulia Salim Deputy President Director √ - -

9. Taras Wibawa Siregar Director √ - -

10. M. Gatot Adhi Prasetyo Director √ - -

11. Arief Ismail Director √ - -

Board of Commissioners and Board of Directors

All members of the Board of Commissioners and the Board of Directors have met the requirement of Fit and Proper Test by the Financial Services Authorities as of December 31, 2017.

Board of Commissioners

According to the Good Corporate Governance Manual of BTPN Syariah, the Board of Commissioners is the company organ that – in an independent manner – performs the supervisory function in general and/or particular, in accordance to the Articles of Association and to advise the Board of Directors in managing the Bank under the principles of Good Corporate Governance.

Duties and Responsibilities of the Board of Commissioners

The Duties and Responsibilities of the Board of Commissioners according to the latest Charter of the Board of Commissioners are, as follows:

1. The Board of Commissioners is obliged to ensure the implementation of Good Corporate Governance in every business activitiy of the Bank at all layers of the organization;

2. The Board of Commissioners is obliged to perform supervision the the fulfillment of Duties and responsibilities of the Board of Directors and to advise the Board of Directors;

3. In performing the supervision, the Board of Commissioners is obliged to direct, monitor and evaluate the implementation of the Bank strategic policy, for which the the Board of Commissioners may require data and information from the Board of Directors;

4. In performing the supervision, the Board of Commissioners is not allowed to take part in the decision making of the Bank operational activities, with the exceptions in following:a. Provision of funds to certain

party, as stipulated in the Regulation of Bank Indonesia concerning Legal Lending Limit for Commercial Bank;

b. Other matters according to the Articles of Association or the prevailing laws and regulations.

5. Decision made by the Board of Commissioners do not negate the responsibilities of the Board of Directors in the management of the Bank;

6. The Board of Commissioners is obliged to allocate sufficient time to fulfill the Duties and responsibilities to the best of their capability;

7. The Board of Commissioners is obliged to ensure that the Board of Directors follow through the audit findings and recommendation of the internal audit of the Bank, external auditor, examination of Financial Services Authority and/or examination of other authorities;

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8. The Board of Commissioners is obliged to report to the Financial Services Authority no later than 7 (seven) days since the finding of:a. Violation of the Laws

concerning financial services and banking; and

b. Situation or prediction of situation that may jeopardize the sustainability of the business of the Bank.

9. The Board of Commissioners shall propose the candidates of the Sharia Supervisory Board, taking into consideration the recommendation of the Nomination and Remuneration Committee, for further endorsement from the Indonesia Ulama Council and approval from Financial Services Authority. The GMS may grant the authority to the Board of Commissioners to appoint the member of Sharia Supervisory Board.

Establishment of Committees

The Charter of the Board of Commissioners BTPN Syariah stipulates that, to support the effective fulfillment of its Duties and responsibilities, the Board of Commissioners shall establish Committees, which include at least the following:1. Audit Committee;2. Risk Monitoring Committee;3. Nomination and

Remuneration Committee.

The Board of Commissioners is obliged to ensure the effectiveness of the work of the committees. Each of the Board of Comissioners Committees will prepare a Committee Charter.

The Board of Commissioners Charter

The undertaking of Duties and responsibilities of the Board of Commissioners will always be governed within the principles stated in the Charter of the Board of Commissioners which is amended on regular basis to ensure adherence to the prevailing rules and regulations.

In 2017, the Board of Commissioners have reviewed and updated the the Charter of the Board of Commissioners by adding new chapter on “The Accountability of the Board of Commissioners”.

The current Charter of the Board of Commissioners is No.01/PedomanKerja/LG/VII/2017 dated July 14, 2017. The Charter includes:

1. Organization;

2. Independency;


4. Establishment of Committees;

5. The Function of the President Commissioner;

6. Work Ethics;

7. Office Hours;

8. Meetings;

9. Conflict of Interest;

10. Transparency/Disclosure;

11. Terms of Office;

12. Accountability of the Board of Commissioners;

13. Development;

14. Others.

The Composition and the Criteria of the Board of CommissionersThe Composition and the criteria of the members of the Board of Commissioners according to the Charter of the Board of Commissioners BTPN Syariah are, as follows:

1. The minimum number of the members of the Board of Commissioners shall consist of 3 (three) and the maximum is the same as the total number of members of the Board of Directors;

2. Member of the Board of Commissioners has the right to resign from the position by giving written notice of such the intent to the Company, minimum 30 (Thirty) days before the effective resignation date or at the latest 7 (seven) days prior to the invitation to AGMS. In the event where the resignation of the member of the Board of Commissioners leaves the total number of the Board of Commissioners to 2 (two) or less, the resignation will only be effective when and at the time by which the AGMS appoints the new member of the Board of Commissioners, which therefore


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maintains the requirement of the minimum number of the members of the Board of Commissioners as stipulated in the Articles of Association;

3. At least 1 (one) member of the Board of Commissioners shall domiciled in Indonesia;

4. The Board of Commissioners is chaired by the President Commissioner. The appointment of President Commissioners shall prioritize the Independent Commissioner;

5. The Board of Commissioners must at least consist of members with a mastery of knowledge in following: macro economy, banking and Sharia banking, legal, accounting and audit;

6. The Board of Commissioners shall maintain independency in performing its duties and responsibilities. To assure the adherence to the principle of independency, at least 50% (fifty percent) of the members of the Board of Commissioners is Independent Commissioner;

7. The candidate eligible to be appointed as the member of the Board of Commissioners shall be the individual who meet the following criteria at the date of appointment and during his/her term of office:a. Demonstrate good character,

morality and integrity;b. Capable to perform

legal action;

c. Within the past 5 years prior to the appointment and during the terms of office:i. Had never been

declared bankrupt;ii. Had never served as the

member of the Board of Directors or Board or the member of the Board of Commissioners who have adjudicated to have caused bankruptcy of a Company;

iii. Had never been sentenced for a criminal offense that caused financial loss to the country and/or the financial sector; and

iv. Had never served as the Member of the Board of Directors or the member of the Board of Commisioners with the following act during his/her term of office:a) Never had held

the Annual General Meeting of Shareholders;

b) Whose report of accountability as the member of the Board of Directors and/or the Board of Commissioners had not been accepted by the General Meeting of Shareholders or had not submitted report of accountabilitty as the member of the Board of Directors or the Board of Commissioners to the General Meeting of Shareholders; and

c) Had caused the company – with license, approval or registration from the Financial Services Authority – to fail to fulfill the obligation to submit the annual report and/or financial statements to the Financial Services Authority.

d. Is committed to comply with the laws and regulations;

e. Has the knowledge and/or skills in the areas required by an Issuer or Public Company.

Fulfillment of the above mentioned requirements shall be written a statement and submitted to the Bank. The bank shall hold AGMS to replace the member of the Board of Commissioners who does not meet the above mentioned criteria.

8. Any proposal for replacement and/or appointment of the member of the Board of Commissioners shall take into consideration the recommendation of the Nomination and Remuneration Committee;

9. All members of the Board of Commissioners must meet the requirement to pass the fit and proper test pursuant to Financial Services Authority Regulation concerning fit and proper test;

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10. The members of the Board of Commissioners are allowed to hold dual positions, restricted only for the following positions:

a. A member of the Board of Commissioners, the Board of Directors or Executive Officer in 1 (one) non-financial institution/company;

b. A member of the Board of Commissioners or the Board of Directors who perform supervisory role in 1 (one) subsidiary, non-sharia-bank financial institution owned by the Bank;

c. A member of the Board of Commissioners or Executive Officers in 1 (one) bank which is the shareholder of the Bank;

d. A member of the Board of Commissioners, Board of Directors or Executive Officers in 1 (one) non-financial institution which is the shareholder of the Bank; or

e. An Officer in the maximum of 3 (three) non-profit institution.

11. The majority of members of the Board of Commisioners are prohibited from having a family relationship up the second grade with the other members of the Board of Commissioners and/or with the members of the Board of Directors.

Independency of the Board of Commissioners

BTPN Syariah has complied with the laws concerning the independency of the Board of Commissioners.

The independency of the Board of Commissioners is fulfilled in the following:

1. The Board of Commissioners has fulfilled its Duties and responsibilities in an independent manner;

2. Independent Commissioner is the member of the Board of Commissioner who does not have financial relationship, management, shares ownership, and/or family relationship with the other members of the Board of Commissioners, the Board of Directors and/or Controlling Shareholders or other relationship of whatsover in nature, which may influence his/her ability to act in an independent manner.

3. The former member of the Board of Directors or the Bank Executive Officer or other party who has relationship with the Bank, that may influence the ability to act in an independent manner is not elligible to serve as the Independent Commissioner of the respective Bank before taking the cooling off period of 6 (six) months (Reference: PBI 11/33/PBI/2009, as amended in PBI No. 15/13/PBI/2013 concerning the Amendment to PBI No. 11/3/PBI/2009 regarding Sharia banking);

4. This condition, however, does not apply the former member of the Board of Directors or Executive Officer performing supervisory function;

5. The Independent Commissioner must fulfill the following requirements:

a. Is not a person who works or has the authority and responsibility to plan, lead, control or supervise the Bank activities during the past 1 (year), except for the reappointment as the Independent Commissioner of the Bank for the subsequent term;

b. Does not own the shares, either directly or indirectly, of the Bank;

c. Does not have affiliation relationship to the Bank, member of the Board of Commissioner, member of the Board of Directors or the Controlling Shareholder of the Bank;

d. Does not have direct or indirect relationship to the Bank activities.

6. Independent Commissioner who has served for 2 (Two) terms of office may be reappointed for the next terms as long as the Independent Commissioner declares his independency in the AGMS;


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7. The declaration of independency of the Independent Commissioner must be disclosed in the Annual Report;

8. In the case where the Independent Commissioner also serves as the Audit Committee, the respective Independent Commissioner can only be reappointed for next 1 (one) term of office of Audit Committee.

All members of the Board of Commissioners BTPN Syariah has fulfilled the number, composition, criteria, and independency according to the prevailing regulation. The total number of current Board of Commissioners is 4 (four) members of the Board of Commissioners – of which two of the members of the Board of Commissioners are Independent Commissioner.

Composition of the Board of Commissioners

The Composition of the Board of Commissioners as of December 31, 2017 was, as follows:

No. Name Position Approval of Authorities Effective Date

1. Kemal Azis Stamboel President Commissioner/ Independent Commissioner

February 24, 2014(KEP-8/D-03/2014)

May 22, 2014

2. Dewie Pelitawati Independent Commissioner February 24, 2014(KEP-9/D-03/2014)

May 22, 2014

3. Mahdi Syahbuddin Commissioner December 23, 2014 (KEP-128/D-03/2014)

January 13, 2015

4. Maya Kartika Commissioner June 14, 2017(KEP-102/D.03/2017

June 14, 2017

All the members of the Board of Commissioners BTPN Syariah has fulfilled the requirement as the Board of Commissioners according to the prevailing regulations.

Dual Positions of the Board of Commissioners

With regard to disclosure of dual positions held by the members of the Board of Commissioners as of December 31, 2017; the members of the Board of Commissioners do not hold dual positions as the member of the Board of Commissioners, the Board of Directors, and Executive Officers in bank, company or other institutions, that exceeds the maximum limit as stipulated in the prevailing laws and regulations. The description is, as follows:

No. Name Position Company Name Year

1. Kemal Azis Stamboel Independent Commissioner PT Holcim Indonesia Tbk 2013-Present

2. Dewie Pelitawati Senior GM Corporate Legal, Compliance and Governance

PT XL- Axiata Tbk 2013-Present

3. Mahdi Syahbuddin N/A N/A N/A

4. Maya Kartika Head of Human Capital PT Bank Tabungan Pensiunan Nasional Tbk

2015-Present

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OrientationThe President Director shall ensure that the newly apppointed members of the Board of Commissioners have the necessary information related to the Bank in order to fulfill their duties and obligation. The Compliance Director is responsible to provide such information.

In 2017, there was 1 (one) new member of the Board of Commissioner, Ibu Maya Kartika (Commissioner), taking the orientation program. The implementation of orientation program and the information dissemination were presented in a certificate.

BTPN Syariah also conducted Induction Program and Refreshment Program for all members of the Board of Commissioners, member of Sharia Supervisory Board and members of the Board of Directors in 2017, including:

1. Introduction to Sharia Banking;

2. Introduction to BTPN Syariah Product Knowledge;

3. Refreshment Program on Fraud Awareness, Anti Money Laundering and Counter Terrorism Financing;

4. Refreshment Program on Indonesian Banking and Macroeconomy;

5. Refreshment Program on Sharia Banking;

6. Refreshment Program on Business Industry in Indonesia;

7. Refreshment Program on Sharia Banking Condition and the Policy Direction;

8. Refreshment Program on Risk Management;

9. Compliance Certification Program for Compliance Director.

Supervision Report and Recommendation of the Board of Commissioners The Board of Commissioners has fulfilled its responsibility to oversee the management and operational of BTPN Syariah and provided recommendation to the Board of Directors and ensured the implementation of good corporate governance and compliance according to the Sharia Principles.

The Board of Commissioners has performed direct supervision to the bank, supported by the Board of Commissioners’ Committee.

In 2017, the Board of Commissioners has performed its supervisory function, including:

1. The Board of Commissioners reviewed and approved the Bank Business Plan and monitored the realization of the Bank Business Plan that were presented in the Report of the Board of Commissioners on Realization of the Bank Business Plan to the Authority;

2. The Board of Commissioners monitored the financial performance of the Bank on regular basis;

3. The Board of Commissioners reviewed and refined the adequacy of Bank infrastructure which included amongst others updating the Charter of the Board of Commissioners and the Board of Commissioners Committee;

4. The Board of Commissioners monitored the financial performance of the Bank through the regular meetings of the Board of Commissioners;

5. The Board of Commissioners approved to conduct the Annual General Meetings of Shareholders and Extra Ordinary Meeting of Shareholders in 2017, as proposed by the Board of Directors;

6. The Board of Commissioners approved the Annual Work Plan of the Board of Commissioners Committee, including amongst others the Annual Audit Plan;

7. The Board Commissioners executed the decisions made in the Annual General Meeting of Shareholders concerning the appointment of Public Accountant and Public Accounting Firm in 2017 by granting approval for the appointment of Public Accountant and Public Accounting Firm for the book year ending on December 31, 2017;

8. The Board Commissioners performed the supervision to ensure that the Board of Directors implemented the necessary corrective action warranted by findings of internal audit and external audit and as recommended by Internal Audit through the Audit Committee;


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9. The Board of Commissioners supervised the Bank in term of implementation of Good Corporate Governance, management of compliance risks and Risk Based Bank Rating-RBBR and the implementation of AML/CTF through the regular meetings with the established Board of Commissioners Committee;

10. The Board of Commissioners coordinated reviews to formulate recommendations regarding Internal Audit, Risk Management and Internal Control System of the Bank;

11. The Board of Commissioners conducted regular coordination meetings with the Sharia Supervisory Board to ensure the alignment of strategic direction to the Sharia Principles. The coordination was initiated in 2015, continued in 2016, 2017 and shall continue in 2018;

12. The Board of Commissioners supervised to ensure the implementation of prudent principles in the development of the Bank products and services, the formulation of strategic initiatives to respond to business competition, the development of information technology to support the Bank business development

and in the recommendation to the Board of Directors in policy matters, taking into consideration the aspiration of the shareholders and the prevailing regulations;

13. The Board of Commissioners recommended the amendments to the internal policy and procedures of the Bank to support the Bank business activities in delivering service excellence to the customers;

14. The Board of Commissioners supervised the support function of the Bank, to ensure that the Board of Directors took the strategic actions for the sufficiency of expertise and Human Capital and reviewed the implementation of training for all the employees of the Bank in line with the requirement of the job roles, granting the rewards for employees performance through various programs as proposed by the Board of Directors;

15. The Board of Commissioners supervised and advised the Board of Directors in the support function related to Information Technology, including amongst others IT architecture, implementation of process digitalization, security, capacity, support system, investment management, and strategic action to reduce operational cost;

16. The Board of Commissioners monitored the handling of fraud incidents according to the prevailing regulations;

17. The Board of Commissioners supervised the Board of Directors in fulfilling its commitent to th regulator with a prudent priciple and compliance culture;

18. The Board of Commissioners approved the implementation of Initial Public Offerings BTPN Syariah as proposed by the Board of Directors;

19. The Board of Commissioners approved the appointment of Public Accountant and Public Accounting Firm for the book year ending September 30, 2017 for the purpose of Initial Public Offerings;

20. The Board of Commissioners supervised and advised the Board of Directors on the implementation of Initial Public Offerings, including amongst others in the areas of Risk Management, Information Technology, Bank Strategic Plan, Legal, Compliance and Human Resources.

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The Board of Commissioners was granted full power and authority from the Shareholders in the General Meeting of Shareholders and had executed the Resolution of Shareholders in 2017, including amongst others:

1. Appointment of Public Accountant and Public Accounting Firm Tanudiredja, Wibisana, Rintis & Rekan (a member firm of PWC global network) as the External Auditor to examine and audit the book keeping and financial statements of BTPN Syariah for the book year ending on December 31, 2017 and the determination of honorarium and other conditions for such the appointment taking into consideration the recommendation of Audit Committee BTPN Syariah;

2. Determination of Remuneration and Allowances for the members of the Board of Directors, honorarium for the Sharia Supervisory Board and the Board of Commissioners Committee, and the honorarium and allowances for the members of the Board of Commissioners for book year ending December 31, 2017 taking into consideration the recommendation of Nomination and Remuneration Committee.

Sharia Supervisory Board

According to the Good Corporate Governance Policy of BTPN Syariah, Sharia Supervisory Board is the organ of the company which, in an independent manner, performs supervisory roles to the Board of Directors in general and/or in particular as stipulated in the Articles of Association with adherence to the Sharia Principles.

The Compliance Division maintains coordination with Sharia Supervisory Board on regular basis in matters pertaining to compliance to the Sharia Principles.

In performing its supervisory function, the Sharia Supervisory Board ensures the allocation of sufficient time to fulfill the Duties and responsibilities to the best of their capability.

Duties and Responsibilities of Sharia Supervisory Board

The Duties and responsibilities of Sharia Supervisory Board according its Charter are, as follows:

1. To fulfil the duties and responsibities according to the principles of Good Corporate Governance;

2. To advise the Board of Directors and supervise the Bank activities to ensure its adherence to the Sharia Principles;

3. To fulfill the duties and responsibilities of the Sharia Supervisory Board, which include amongst others:

a. To assess and ensure adherence to the Sharia Principles in the Bank’s operating procedures and products and services;

b. To supervise the development of new products of the Bank and ensure its adherence to fatwa of the National Sharia Board (DSN) and Indonesian Council of Ulama (MUI);

c. To request fatwa to DSN – MUI for new products for which MUI had not declared any fatwa;

d. To perform thorough assessment on the Sharia Principles application in the implementation of funding and financing services of the Bank;

e. To request data and information related to Sharia matters from the Compliance Director and/or the Compliance Unit in performing its duties and responsibilities;

f. To submit Supervision Report of Sharia Supervisory Board to the Financial Services Authority no later than 2 (two) months upon the end of the reporting period.


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g. Duties and responsibilities of Sharia Supervisory Board related to financing business activities includes at least the following:

1) Ensure the compliance of the Bank Financing Policy to Sharia Principles;

2) Request clarification and/or accountability of the Board of Directors in the occurence of deviation of the Bank Financing Policy to the Sharia Principles.

The Sharia Supervisory Board provides Sharia-based opinion for the products and services of the Bank through the regular meetings of the Sharia Supervisory Board. The Sharia Supervisory Board will require clarification of the Bank Officers in the Working Units and review on the adherence to the Sharia Principles, fatwa DSN-MUI and other prevailing regulations. Besides, the Sharia Supervisory Board and the Compliance Unit conduct regular visits to the branches to ensure that the execution of funding and financing activities and other services of the Bank in the Branches are always in adherence to the Sharia Principles. The Sharia Supervisory Board also holds coordination meetings with the Board of Commissioners on regular basis to ensure the alignment to the sharia principles.

The Charter of the Sharia Supervisory Board

The Sharia Supervisory Board refers to the Charter of the Sharia Supervisory Board in performing its Duties and responsibilities. The amendments to the Charter is made on regular basis according to the prevailing regulations.

The latest Charter of Sharia Supervisory Board is Number 012 /Pedoman Kerja/LG/XI/2017.

The Charter of the Sharia Supervisory Board include:

1. Organization;


3. Decision Making Process;


5. Work Ethics;

6. Access to Information;

7. Others.

Composition and Criteria of the Members of the Sharia Supervisory BoardThe Sharia Supervisory Board is appointed by the General Meeting of Shareholders and is at equal position with the Board of Commissioners. The Sharia Supervisory Board is obliged to report the fulfillment of its duties and responsibilities to the Financial Services Authority once every 6 (six) months through the Supervision Report of the Sharia Supervisory Board.

The organization of the Sharia Supervisory Board is structured to ensure effective and efficient decision making process. The composition and criteria of the Sharia Supervisory Board according to the Charter of the Sharia Supervisory Board BTPN Syariah are, as follows:

1. The minimum number of the members of the Sharia Supervisory Board is 2 (two) and the maximum is 50% of the total number of members of the Board of Directors;

2. The Sharia Supervisory Board is chaired by a Chairman, appointed from the members of the Sharia Supervisory Board;

3. Any proposal for replacement and/or appointment of the member of the Sharia Supervisory Board from the Board of Commissioners to the General Meeting of Shareholders shall take into consideration the recommendation of the Nomination and Remuneration Committee;

4. Every member of the Sharia Supervisory Board must meet the requirement and is recommended by Indonesia Ulama Council (MUI) and pass the fit and proper test by the Financial Services Authority;

5. The maximum term of office of the the Sharia Supervisory Board is the same as the term of office of the members of the Board of Directors or the Board of Commissioners;

6. The members of the Sharia Supervisory Board are only allowed to hold multiple positions in the maximum of 4 (four) other Sharia financial institutions.

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Every member of the Sharia Supervisory Board must abide by the Code of Conduct and other prevailing regulations. The Chairman of the Sharia Supervisory Board is responsible to coordinate the fulfilment of duties and responsibilities of the Sharia Supervisory Board and ensure that all members has the adequate information to perform its duties and responsibilities.

Independency of the Sharia Supervisory Board

As of December 31, 2017, no members of the Sharia Supervisory Board BTPN Syariah have financial, administrative, share ownership and/or family relationship of whatsoever in nature with other members of the Board of Commissioners, the Board of Directors and/or Controlling Shareholders. All members of the Sharia Supervisory Board has applied the principles of transparency and disclosure according to the GCG principles.

With regard to disclosure of multiple positions – for which the members of Sharia Supervisory Board are only allowed to hold multiple positions in the maximum of 4 (four) other Sharia financial institutions, the multiple positions held by the members of the Sharia Supervisory Board is in compliance to the prevailing regulations.

No. Name Position Company Name Year

1. H. Ikhwan Abidin, MA

Member of Sharia Supervisory Board

Bank Syariah Bukopin 2000 -Present

Chairman of Sharia Supervisory Board

PT Bahana Arta Ventura 2008- Present


PT Radana Finance 2013-Present


PT Asanusa Asset Management

2014-Present

2. H. Muhamad Faiz, MA


UUS PT Bank Permata, Tbk

2008-Present


PT IMFI Syariah 2012-Present

Composition of the Sharia Supervisory Board

The Composition of the Sharia Supervisory Board as of December 31, 2017 is, as follows:

No. Name Position Approval of Authority Effective Date

1. H. Ikhwan Abidin, MA


13 June 2017 (SR-25/PB.13/2017)

13 June 2017

2. H. Muhamad Faiz, MA


2 May 2017 (SR-23/PB.13/2017)

2 May 2017

All members of the Sharia Supervisory Board BTPN Syariah have fulfilled the requirement as the member of the Sharia Supervisory Board according to the regulations, including Bank Indonesia Regulation concerning Sharia Bank, Bank Indonesia Regulation concerning Fit and Proper Test and Bank Indonesia Regulations concerning Good Corporate Governance Implementation for Sharia Bank and Sharia Business Unit.

Meetings of Sharia Supervisory Board

In 2017, the Sharia Supervisory Board held 12 (twelve) meetings with the frequency of attendance of each member as follows:

No. Name Total number of meetings

Total attendance in 2017 meetings

1. K.H. Amidhan* 12 2/12

2. K.H. A. Cholil Ridwan* 12 2/12

3. H. Ikhwan Abidin, MA** 12 10/12

4. H. Muhamad Faiz, MA** 12 9/12Note:* The term of office of K.H. Amidhan and K.H. A. Cholil Ridwan ends by the closure of AGMS

on March 6, 2017.** H. Ikhwan Abidin, MA & Muhamad Faiz, MA were appointed as the members of Sharia

Supervisory Board on March 6, 2017 and assume position upon the approval of Financial Services Authority according the respective effective date.


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According to the Sharia Supervisory Board Charter, the meeting is to be held 1 (once) a month with mandatory attendance of all members of the Sharia Supervisory Board. The meetings held by the Sharia Supervisory Board in 2017 were, therefore, in compliance to the regulations.

Training for the members of the Sharia Supervisory Board in 2017To support the fulfillment of Duties and responsibilities, all members of the Sharia Supervisory Board attended a number of training and strategic seminars in 2017, including amongst others:

1. Sharing session with Mari Elka Pangestu about “Updates on Macro Economy and other Issues Relevant to BTPN Syariah on August 10, 2017;

2. Workshop Pra-Ijtima Sanawi (Annual Meeting) Sharia Supervisory Boards of Sharia Financial Institution 2017 in Sharia Banking and Sharia Financing Companies on October 3, 2017;

3. Sharing Session with Rhenald Kasali about “Winning in the Discruption Area” on October 5, 2017;

4. Workshop Pra-Ijtima Sanawi (Annual Meeting) 2017 – Sharia Supervisory Boards of Indonesia Sharia Financial Institution on October 3, 2017.

Supervision Report of Sharia Supervisory Board

The Sharia Supervisory Board has fulfilled its Duties and responsibilities in 2017 by providing advices through Sharia Supervisory Board Opinion and Approval on the following matters:

No. Sharia Supervisory Board Opinion and Approval in 2017

Concerning

1. No. 037/DPS/ODP/I/2017 Risk Management Policy

2. No. 038/DPS/ODP/VI/2017 Selling HP Inventories to the Employees and Other Parties in Cash

3. No. 039/DPS/ODP/VIII/2017 Marketing Language for TV Program for BTPN Wow! iB

4. No. 40/DPS/ODP/VIII/2017 Prizes Program for Customers and Agents of BTPN Wow! iB

5. No. 41/DPS/ODP/VIII/2017 Individual Paket Masa Depan (PMD)

6. No. 42/DPS/ODP/VIII/2017 Booking of Teller Cash Differences and/or Ownership Unidentified Funds in the Social Fund

7. No. 43/DPS/ODP/VIII/2017 Product Program Individual PMD

8. No. 44/DPS/ODP/IX/2017 Liquidity Financing for Agents of BTPN Wow! iB

9. No. 45/DPS/ODP/IX/2017 Product Program Financing for Agents of BTPN Wow! iB

10. No. 46/DPS/ODP/XI/2017 Financing for Agents of BTPN Wow! iB

11. No. 47/DPS/ODP/XI/2017 Financing Policy Version 02

12. No. 48/DPS/ODP/XII/2017 Product Program Liquidity Financing for Agents of BTPN Wow! iB (Qardhwal Ijarah)

13. No. 49/DPS/ODP/XII/2017 Updates of Product Program Paket Masa Depan (PMD)

Implementation of Sharia Principles in Funding and Financing Activities and Bank Services Delivery

The undertaking of funding, financing activities, bank services delivery and the development of new products of BTPN were in compliance to the sharia principles as reported in the Sharia Supervisory Board Supervision Report submitted to Financial Services Authority.

To ensure compliance to Sharia Principles in the operational activities of the Bank, the members of Sharia Supervisory Board conducted monitoring and visit to branch offices on regular basis and assessed the implementation of Sharia Principles in operational activities in the branches. In 2017, the Sharia Supervisory Board visit Branch Offices in Jakarta, Surabaya, Padang, Yogyakarta, Denpasar, and Lampung.

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The Board of Directors

According to the Good Corporate Governance Policy BTPN Syariah, the Board of Directors is the company organ with full responsiblity to execute the management of the Bank that serves the best interest of the Bank in line with the Bank intents and objectives and to represent the Bank in and outside the courts of justice as stipulated in the Articles of Association.

The Duties and Responsibilities of the Board of Directors

According to the latest Charter of the Board of Directors, the duties and responsibilities of the Board are:

1. The Board of Directors is fully responsible for the execution of the management of the Bank;

2. The Board of Directors is obliged to manage the Bank within its scope of responsibilities and authorities as stipulated in the Articles of Association according to prevailing laws and regulations;

3. The Board of Directors is obliged to comply with the GCG principles in the Bank business activities at all levels of the organization;

4. The Board of Directors is obliged to take follow up actions to the result of audit finding and recommendation of Internal Audit Unit, Sharia Supervisory Board, External Audit, and supervision report of Financial Services Authority/Bank Indonesia and/or other supervising authorities;

5. In implementing GCG principles, the Board of Directors shall establish, at least the following unit:

a. Internal Audit Unit;

b. Risk Management Unit;

c. Risk Management Committee;

d. Compliance Unit;

6. The Board of Directors is obliged to the conduct Annual General Meeting of Shareholders and other General Meeting of Shareholders as stipulated in the laws and regulations and in the Articles of Association;

7. The Board of Directors shall report its accountability in fulfilling duties and responsibilites to the Shareholders in the General Meeting of Shareholders;

8. The Board of Directors is obliged to disclose the Bank’s strategic policy in human resources to the employees;

9. The Board of Directors is prohibited from hiring an individual advisor and/or professional services as a consultant, unless under the following conditions:

a. Projects with Specific Characteristics;

b. With clear underlying contracts which cover at least the scope of work, responsibilities, time frame and investment;

c. Consultant is an independent party and qualified for the undertaking of the above mentioned project with specific characteristics;

10. The Board of Directors is obliged to provide accurate, relevant, and timely data and information to the Board of Commissioners;

11. To support the effectiveness in the undertaking of its duties and responsibilities, the Board of Directors shall establish Committees;

12. The Board of Directors shall evaluate the performance of the Committees at the end of the book year.

Scope of Work and Delegation of Dution amongst the Board of Directors

The Delegation of Duties, Authorities and Responsibilities amongst the Board of Directors is specifically stipulated in the Directors Decree concerning the Delegation of Duties, Authorities and Responsibilities amongst the Board of Directors, the latest Decree is Board of Directors Decree Nomor 013/DIR/LG/VIII/2017 dated August 22, 2017.

President Director

1. To coordinate the duties amongst the members of the Board and directly responsible for the following functions: Internal Audit, Human Capital, Finance, Treasury & Corporate Planning, Daya & Communication;

2. In collaboration with the Deputy President Director, to coordinate, provide strategic policy direction and supervise the respective member of the Board to ensure the effectiveness of the undertaking of their duties and responsibilities;


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3. To ensure the implementation of GCG Principles at all levels of the organization.


1. To directly supervise the Information Technology function;

2. To assist the President Director in coordinating and providing strategic policy direction to the Directors under supervision.

Operation Director

1. To coordinate and lead policy and strategy development in the areas of Operations;

2. To lead the development and innovation in the areas of operation to support the business process and business development of the Bank;

Business Director

1. To coordinate and lead policy and strategy development in financing and funding business;

2. To coordinate the initiatives in business incubation.

Compliance Director

1. To coordinate and lead the policy and strategy development in the areas of Compliance, Legal and Risk Management;

2. To ensure that all policies, systems and procedures as well as the Bank’s business activities are in accordance to the prevailing laws and regulations;

3. To ensure the implementation of GCG Principles at all levels of organization.

Charter of the Board of DirectorsThe undertaking of duties and responsibilities of the Board of Directors is governed through the Charter of the Board of Directors. The Charter is periodically reviewed and amended according to the prevailing laws and regulations. The updates in the 2017 Charter is by adding a section on obligation to report to the Parent Company as the Board of Directors commitment in reporting its accountability.

The latest amendment on the Charter was No. 05/PedomanKerja/LG/VII/2017 dated July 14, 2017.

The Charter of the Board of Directors covers:

1. Organization;

2. Independency;


4. Function of President Director;

5. Compliance Director;

6. Meetings;



9. Term of Office;

10. Report to the Parent Company;

11. Relationship with Stakeholders;

12. Work Ethics;

13. Office Hours;

14. Training;

15. Others.

Composition and Criteria of the Members of the Board of Directors

The Composition and Criteria of the Members of the Board of Directors according to the Charter of the Board of Directors are, as follows:

1. The Minimum number of members of the Board of Directors is 3 (three);

2. All members of the Board of Directors must be domiciled in Indonesia;

3. The Board of Directors is chaired by a President Director;

4. The person eligible to be appointed as the member of the Board of Directors shall be individual who meet the following criteria at the date of appointment and during his/her term of office: a. Demonstrate good character

of moral and integrity;b. Is capable to perform

legal action;c. During the last 5 (five) years

prior to appointment: 1) Had never been declared

bankrupt;2) Had never been the

member of the Board of Directors or the member of the Board of Commissioners who have adjudicated to have caused bankruptcy of a Company;

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3) Had never been sentenced for a criminal offense;

4) Had never been the Member of the Board of Directors or the member of the Board of Commisioners with the following act during his/her term of office:a) Never had held

the Annual General Meeting of Shareholders;

b) Whose report of accountability as the member of the Board of Directors or the Board of Commissioners had not been accepted by the General Meeting of Shareholders or had not submitted report of accountabilitty as the member of the Board of Directors or the Board of Commissioners to the General Meeting of Shareholders; and

c) Had caused the company – with license, approval or registration from the Financial Services Authority – fail to fulfill the obligation to submit the annual report and/or financial report to the Financial Services Authority.

5. All members of the Board of Directors are pledged to comply to the prevailing laws and regulations;

6. All members of the Board of Directors shall have capability in Banking in general and in particular in at least one of the areas of Sharia Banking and Finance, Economy, Human Resources, Legal, Technology, Accounting or Audit:a. One member of the Board of

Directors shall be appointed as the Compliance Director, to be responsible to ensure compliance to the Sharia Principles, OJK/BI Regulations and other laws and regulations concerning Compliance Director;

b. The Compliance Director shall perform compliance function – independent from operating unit;

c. In performing the compliance function, the Director must be supported by at least one individual who is knowledgeable and/or capable in Sharia Banking operation.

7. All members of the Board of Directors must have the capability to strategically manage the company in order to develop a strong and respectable Sharia banking;

8. All members of the Board of Directors must have the skills and knowledge in risk management implementation;

9. Any proposal for replacement and/or appointment of the member of the Board of Directors by the Board of Commissioners to the General Meeting of Shareholders shall take into consideration the recommendation of the Nomination and Remuneration Committee;

10. The majority of the members of Board of Directors must have at least 4 (four) years of experience as the Executive Officer in Banking one of which is as the Executive Officer in Sharia Bank or Sharia Business Units and its changes;

11. Every member of the Board of Directors must meet the requirement to pass the fit and proper test in accordance to the Financial Services Authority regulation;

12. The members of the Board of Directors are prohibited to hold multiple positions as the member of the Board of Commissioners, the member of the Board of Directors or Executive Officer in other Bank, company and/or other institution, except under the following circumstances:

a. Director who is responsible to oversee the Sharia Bank’s placement in subsidiary company by performing functional duties as the member of the Board of Commissioners in the non-bank subsidiary company controlled by the Sharia Bank; and/or

b. Director holds position in the maximum of 2 (two) non-profit institutions.


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13. The members of the Board of Directors, either individually or jointly, are prohibited from having ownership of more than 25% (twenty five percent) of the paid up capital of the Bank and/or other company;

14. The majority of members of the Board of Directors are prohibited from having a family relationship up the second grade with the other members of the Board of Directors and/or with the members of the Board of Commissioners;

15. The members of the Board of Directors are prohibited from granting power of attorney to other parties that shall escalate transfer of duties and functions of the Board of Directors.

IndependencyWith regard to transparency of information and disclosure of relationship and management according to the GCG principles, it is stipulated as follows:1. The Board of Directors must be

independent according to that stipulated in the GCG Manual;

2. The President Director must be an independent party to the Controlling Shareholder;

3. The independency criteria according to Bank Indonesia Regulation concerning GCG Implementation for Sharia Bank is a party who does not:a. have any financial relationship,

management, share ownership and/or family relationship with the controlling shareholder, the other members of the Board of Commissioners, and/or the members of the Board of Directors;

b. Financial relationship and/or relationship of share ownership of BTPN Syariah.

OrientationThe President Director shall ensure that the newly appointed member(s) of the Board of Directors have the adequate information about the Bank in order to fulfill his/her duties and responsibilities. The Compliance Director is responsible to provide such information. In 2017, there were 2 (two) new member of the Board of Directors, that is Mr. Mulia Salim as the Deputy President Director and Mr. Arief Ismail as the Compliance Directors who took the orientation program. The orientation program and dissemination of information was presented in a Certificate of Orientation.

BTPN Syariah also conducted Induction Program and Refreshment Program for all members of the Board of Commissioners, members of Sharia Supervisory Board and members of the Board of Directors in 2017, including:

1. Introduction to Sharia Banking;

2. Introduction to BTPN Syariah Product Knowledge;

3. Refreshment Program on Fraud Awareness, Anti Money Laundering and Counter Terrorism Financing, Compliance;

4. Refreshment Program on Indonesian Banking and Macroeconomy;

5. Refreshment Program on Sharia Banking;

6. Refreshment Program on Business Industry in Indonesia;

7. Refreshment Program on Sharia Banking Condition and Policy Direction;

8. Refreshment Program on Risk Management;

9. Compliance Certification Program for Compliance Director.

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Composition of the Board of Directors

The Composition of the Board of Directors as of December 31, 2017 is, as follows:

No. Name Position Approval of Authorities Effective Date

1. Ratih Rachmawaty President Director/ Independent

March 7, 2017(KEP-38/D.03/2017)

March 7, 2017

2. Mulia Salim Deputy President Director June 14, 2017(KEP-101/D.03/2017)

July 1, 2017

3. Taras Wibawa Siregar Director September 9, 2015(KEP-57/D-03/2015)

September 9, 2015

4. M. Gatot Adhi Prasetyo Director February 24, 2014 (KEP-16/D-03/2014)

February 24, 2014

5. Arief Ismail Compliance Director August 22, 2017(KEP-69/D.03/2017)

August 22, 2017

All members of the Board of Directors BTPN Syariah fulfilled the requirement as the members of the Board of Directors according to the prevailing regulations, including the Laws concerning Limited Liability Company, Bank Indonesia Regulation concerning Sharia Banking, Bank Indonesia Regulations concerning Fit & Proper Test and Bank Indonesia Regulations concerning GCG Implementation for Sharia Bank and Sharia Business Unit.

With regard to disclosure of dual positions held by the members of the Board of Directors as of December 31, 2017; the members Board of Directors BTPN Syariah do not hold dual positions as the member of the Board of Commissioners, the Board of Directors, and Executive Officers in bank, company or other institutions, that exceeded the maximum limit as stipulated in the prevailing laws and regulations.

Report of the Board of Directors

The Board of Directors is fully responsible for the management of the Bank. The execution of duties and responsibilities of the Board of Directors BTPN Syariah in 2017 included amongst others:

1. Monitoring the performance of the Bank;

2. The Board of Directors evaluated the target achievement of the business and the implementation of new business initiatives;

3. The Board of Directors reviewed the internal policies and procedures of the Bank;

4. The Board of Directors prepared and approved the Bank Business Plan and formulate Key Strategic Initiative;

5. On a regular basis, the Board of Directors monitored the realization of the Bank Business Plan and Key Strategic Initiatives through the Board of Directors

Meetings, Coordination Meeting and Strategic Meetings, which were routinely reported to the Board of Commissioners. The Board of Directors reported the realization of the Bank Business Plan regularly to the respective authorities.

6. The Board of Directors managed the Bank business activities in accordance to the principles of Good Corporate Governance, which included amongst others, proposed to conduct the Annual General Meeting of Shareholders and Extra Ordinary General Meeting of Shareholders for the approval of the Board of Commissioners and reviewed the overall infrastructure of the Bank by means of amendment and refinement of internal policies and procedures of the Bank according to the prevailing regulations;

7. The Board of Directors monitored the implementation of risk management, compliance culture and internal control;


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8. The Board of Directors made follow up actions to the audit findings and recommendation of internal audit unit of the Bank, external auditor, supervision report of Financial Services Authority and/or supervision report of other authorities;

9. The Board of Directors conducted reviews and evaluations on the implementation of anti-money laundering and counter terrorism financing (AML/CTF) on regular basis, anti-fraud through JAGA, for the purpose of internal control and monitoring;

10. The Board of Directors conducted evaluation on the implementation of training program and DAYA program for customers and community empowerment;

11. The Board of Directors approved performance bonus and salary adjustment for the employees;

12. The Board of Directors approved training program for the Employees and the follow up actions for development;

13. The Board of Directors reviewed the overall bank operational activities, which included amongst others monitoring of operating expenses, improvement in customer service delivery, development of new businesses, and strengthening the Bank synergy;

14. The Board of Directors reviewed, monitored and evaluated the overall implementation of branchless banking product BTPN Wow@ iB and ensure the compliance of the whole process to the prevailing regulations.

15. The Board of Directors followed up the decisions of General Meeting of Shareholders according to the prevailing regulations;

16. The Board of Directors proposed to conduct the Initial Public Offerings to get approval from the Board of Commissioners and Shareholders to be further followed up according to the laws and regulations;

17. The Board of Directors monitored, reviewed and evaluated the overall process of Initial Public Offerings according to the laws and regulations, including the timely report submission to the Board of Commissioners, Sharia Supervisory Board and respective Authorities.

Pursuant to the Resolutions of Shareholders in the Annual General Meeting of Shareholders in 2017, the Board of Directors had implemented the Resolution of Shareholders which included amongst others the appointment of Public Accountant and Public Accounting Firm Tanudiredja, Wibisana, Rintis & Rekan (a member firm of PWC global network) as the External

Auditor taking into consideration the recommendation of the Audit Committe and approved by the Board of Commissioners.

Performance Evaluation of the Board of Directors• The Board of Directors shall

review its performance in managing the Bank during the book year and shall report to the Shareholders at least once a year;

• The Board of Directors shall ensure the fulfillment of the composition and qualification as well as the effectiveness of the Board of Directions function during the book year taking into account the recommendation and advices from the Board of Commissioners;

• The performance evaluation of the Board of Directors is reported to the shareholders in the Annual General Meeting of Shareholders in the form of Annual Report;

• The Nomination and Remuneration Committee conducted performance evaluation to the members of the Board of Directors, taking into consideration the input from the President Director;

• That the nomination and remuneration of the Board of Direction is determined according to the result of performance evaluation of the respective member of the Board of Directors.

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Training for the Board of Commissioners and the Board of Directors in 2017To support the fulfillment of duties and responsibilities, the members of the Board of Commissioners and the Board of Directors attended training, conferences and strategic seminars in 2017 including amongst others;

a. Risk Management Certification Refreshment Program Level 5 (for the Board of Commissioners) by Banking Professional Certification Agency on February 13, 2017 in Jakarta;

b. Seminar “Cyber Security and Integrating Operational Risk with the Mitigating Factors, and Digital Payment a New Era in the Way We Do Payments”, conducted by IBI, LSPP and BARA on February 16, 2017 in Jakarta;

c. Preparation Program for candidates of the new members of Board of Commissioners and the candidates of the new members of the Board of Directors on February 22, 2017 in Jakarta;

d. Risk Management Certification Refreshment Program Level 4 (for the Board of Directors) by Banking Professional Certification Agency on February 23, 2017 in Jakarta;

e. Risk Management Certification Refreshment Program Level 5 (for the Board of Directors) by Banking Professional Certification Agency on February 23, 2017 in Jakarta;

f. Refreshment Program International Islamic Risk Management Refreshment Program for Executives “Strengthening the Resilicene of Islamic Banking Sector Amidst the Ever-Changing Landscape”, conducted by LSPP, IBI, Asbisindo, on May 4, 2017 in Jakarta;

g. Risk Management Certification Refreshment Program Level 4 (for the Board of Directors) by Banking Professional Certification Agency on May 10, 2017 in Jakarta;

h. Leadership Strength by Executive Coach Indonesia on July 25, 2017 in Jakarta;

i. Introduction to the Basics of Sharia Banking by Karim Consulting Indonesia, on July 26, 2017 in Jakarta;

j. Compliance Certification Program for Compliance Director by Banking Professional Certification Agency on October 14, 2017 in Jakarta.

Meetings of the Board of Commissioners and the Board of Directors

The Board of Commissioners holds meeting with the Board of Directors on periodic basis as part of its effective supervisory roles to the strategic, financials, operation, compliance and good governance aspects.

In 2017, the Board of Commissioners BTPN Syariah conducted 7 (seven) meetings, issued 18 (eighteen) Circular Resolution of the Board of Commissioners.

The members of the Board of Commissioners and the Board of Commissioners Committee made 5 (five) visits to the branch offices in Makasar, Kendari, Mojokerto, Surabaya, Banjarmasin, Tambun Selatan (Bekasi) and special visit by the Board of Commissioners to Garut on Risk Monitoring.

In 2017 the Board of Directors conducted 33 (thirty three) meetings and issued 19 (nineteen) Circular Resolution of the Board of Directors and each member of the Board of Directors made field visits to the branch offices on regular basis.


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The frequency of attendance of each member of the Board of Commissioners and the Board of Directors in the meetings was, as follows:

The Board of Comissioners and Board of Directors Meeting

No. Name The Board of Commissioners

Meeting

The Board of Commissioners Meeting (inviting

Board of Directors)

The Board of Directors Meeting

The Board of Directors Meeting

(inviting Board of Commissioners)

Board of Comissioners

1. Kemal Azis Stamboel 7/7 7/12

2. Dewie Pelitawati 7/7 1/12

3. Mahdi Syahbuddin 7/7 8/12

4. Maya Kartika (f) 5/7 4/12

Board of Comissioners

1. Ratih Rachmawaty (a) 7/7 29/33

2. Harry A.S. Sukadis (b) 1/7 2/33

3. Taras Wibawa Siregar 6/7 31/33

4. Setiasmo (c) 1/7 4/33

5. M. Gatot Adhi Prasetyo 7/7 32/33

6. Mulia Salim (d) 6/7 27/33

7. Arief Ismail (e) 5/7 21/33Note : (a) Ratih Rachmawaty was appointed as President Director on March 6, 2017 and being effective in office on March 7, 2017.(b) The term of office of Harry A.S. Sukadis as the President Director ended on March 6, 2017. (c) The term of office of Setiasmo as Director ended on March 6, 2017.(d) Mulia Salim was appointed as Deputy President Director on March 6, 2017 and being effective in office on July 1, 2017.(e) Arief Ismail was appointed as Compliance Director on March 6, 2017 and being effective in office on August 22, 2017.(f) Maya Kartika was appointed as member of the Board of Commissioners on March 6, 2017 and being effective in office on June 14, 2017.

According to the Charter of the Board of Commissioners BTPN Syariah, the meeting of the Board of Commissioners shall be held minimum once every 2 (two) months of which at least 2 (two) meetings must be physically attended by all members of the Board of Commissioners.

According to the Charter of the Board of Directors BTPN Syariah, the meeting of the Board of Directors shall be held anytime deemed necessary and shall reach quorum and be authorized for binding adoption of the decision if more than ½ (half) of members of the Board of Directors are present and represented in the meeting.

According to the Charter of the Board of Commisioners and the Board Directors BTPN Syariah, the frequency and quorum of the meetings of the Board of Commisioners and the Board Directors BTPN Syariah attended by the Board of Commisioners and the Board Directors in 2017 were in compliance with the prevailing regulations.

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Financial, Family and Management Relationship

Name Position Period Financial, Family, and Management relationship with

The Board of Commissioners


Shareholders

Yes No Yes No Yes No

Kemal Azis Stamboel

President Commissioner/ Independent

2014 - Present

√ √ √

Dewie Pelitawati Independent Commissioner

2014 - Present

√ √ √

Mahdi Syahbuddin Commissioner 2015 - Present

√ √ √

Maya Kartika Commissioner 2017 - Present

√ √ √

H. Ikhwan Abidin, MA


2017 - Present

√ √ √

H. Muhamad Faiz, MA


2017 - Present

√ √ √

Ratih Rachmawaty President Director/ Independen

2017 - Present

√ √ √

Mulia Salim Deputy President Director

2017 - Present

√ √ √

Taras Wibawa Siregar

Director 2015 - Present

√ √ √

M. Gatot Adhi Prasetyo

Director 2014 - Present

√ √ √

Arief Ismail Director 2017 - Present

√ √ √


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Remuneration Policy

Determination of remuneration and other facilities are pursuant to the Resolution of Shareholders in the General Meeting of Shareholders taking into consideration the recommendation of the Nomination and Remuneration Committee.

According to the latest Charter of Nomination and Remuneration Committee BTPN Syariah No.03/PedomanKerja/LG/IX/2017 dated September 11, 2017, the flow process of the remuneration for the member of the Board of Commissioners, the Board of Directors and the Sharia Supevisory Board of BTPN Syariah is, as follows:

1. Survey to obtain remuneration benchmark data for the Board of Commissioner and the Board of Directors from several banks in Indonesia. As necessary, the Comittee may appoint/work with a consultant/independent Party in order to obtain more valid data.

2. The Committee reviews the results of the survey/benchmark data.

Based on benchmark data (External) and the Company’s performance data (Internal), the Committee prepares remuneration proposals and recommendations for each member of the Board of Commissioners, Board of Directors and Sharia Supervisory Board.

1. The decision of the Board of Commissioners concerning the remuneration for the members of the Board of Commissioners, Board of Directors and Sharia Supervisory Board.

2. General Meeting of Shareholders approval on the total remuneration for the Board of Commissioners, Board of Directors and Sharia Supervisory Board.

Review Proposal and Recommendation Decision

Remuneration for the Board of Commissioners, Sharia Supervisory Board and the Board of Directors

Type of Remuneration and Other Facilities Total Amount Received in 1 (one) year

The Board of Commissioners


The Sharia Supevisory Board

Number of People

In Million Rupiah

Number of People

In Million Rupiah

Number of People

In Million Rupiah

1. Remuneration (salary, bonus, routine allowance, tantiem & other facilities in cash form)

3 4,815 7* 23,28 4* 504

2. Other facilities received in cash form (housing, transportation, health insurance, etc.)

a. Can be owned 3 1,237 7* 4,105 0 0

b. Cannot be owned 3 24 7* 105 0 0

Total 3 6,077 7* 27,338 4* 504* Converted into Rupiah equivalent. The calculation is based on the remuneration for 7 members of the Board of Directors and 4 members of

Sharia Supervisory Board due to the changes of the composition in the current year.

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The total number of members the Board of Commissioners, the Board of Directors and the Sharia Supervisory Board receiving remuneration package in 1 (one) year grouped according to the income level.

Total remuneration received per person in 1 (one) year*

Number of Commissioners

Number of Directors

Number of Sharia

Supervisory Board

Members

Above Rp2 billion 1 5

Above Rp1 billion up to Rp2 billion

2 2

Above Rp500 million up to - Rp1 billion

Rp500 million and below 4* Received in cash.

Highest to Lowest Salary Ratio

Description Ratio

Highest to lowest employee salary ratio 60.7

Highest to lowest director salary ratio 1.5

Highest to lowest commissioner salary ratio 2.0

Highest Director Salary to Highest Employee Salary Ratio 1.6

Disclosure of Shares Ownership, Financial Relationship and Family Relationship of the Members of the Board of Commissioners and the Board of Directors

As of Desember 31, 2017, no member of the Board of Commissioners and the Board of Directors owns as much as 5% shares in BTPN Syariah and in other Banks, financial institutions or companies domicilied in Indonesia or overseas.

All members of the Board of Commissioners and the Board of Directors do not have family relationship up to the second degree with the other members of the Board of Commissioners, Board of Directors and/or Controlling Shareholders of BTPN Syariah.

All Independent Commissioners and members of the Board of Directors do not have any financial relationship with the Controlling Shareholders of the Bank.

External Auditor

In preparing the audited financial statements 2017, BTPN Syariah appointed Public Accountant and Public Accounting Firm registered in the Financial Services Authority, Tanudiredja, Wibisana, Rintis dan Rekan (a member of PwC global network). Such the appointment of the Public Accountant and Public Accounting Firm is pursuant to the Resolution of Shareholders in the Annual General Meeting of Shareholders which has granted full power and authorization to the Board of Commissioners for such appointment, taking into consideration the recommendation of the Audit Committee.

The appointment of Tanudiredja, Wibisana, Rintis & Rekan (a member of PwC global network) as the external auditor of BTPN Syariah was applied since the book year 2014.

The Public Accountant and Public Accounting Firm have completed the duties independently in accordance to the public accountant professional standards and within the terms and condition and specified scope of audit.

Below is the list of the Public Accountant and Public Accounting Firm that have audited BTPN Financial Statements in the book year 2017:

Book Year Public Accounting Firm Period of the Public

Accounting Firm

Public Accountant

Period of Public

Accountant

2017 Tanudiredja, Wibisana, Rintis dan Rekan (a member of PwC global network)

4 Drs. M. Jusuf Wibisana,

M. Ec., CPA

2


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Internal Fraud

BTPN Syariah pledge to prevent the occurence of any form of fraud and ensure good implementation and monitoring of anti-fraud strategy in the Bank which includes amongst others ensuring the adequacy and effectiveness of control mechanism such as Prevention, Detection, Investigation, Reporting and Witness, Monitoring, Evaluation and Follow Up, according to the Anti-Fraud Policy BTPN Syariah which covers:

1. Ensuring the adequacy of internal control system to prevent and control fraud, including creating and implementing risk management, nurturing anti-fraud culture and applying deterrent sanction (zero tolerance) for fraudster;

2. Improving the effectiveness of Internal Control by continuously refining the internal control and supervision process to ensure sustained improvement;

3. Implementing Know Your Employee and identifying fraud potential in every work process in all unit;

4. Implementing employee awareness program, for example conducting training on fraud awareness;

5. Creating positive working environment which upholds the values of the Bank and the Code of Conduct and complies to all internal regulations of the Bank as well as the prevailing laws and regulations;

6. Implementing zero tolerance to fraud by applying consequences and deterrent sanction to any employee involved in fraudulent incidents;

7. Conducting “Anti-Fraud Campaign” on a continuous basis through printing or electronic media and echoing moral suassion through email, portal, poster and wallpaper to employees conveying various topics/issues related to fraud including anti-fraud education to all employees;

8. The Bank has conducted dissemination of Anti Fraud Strategy Policy and Whistleblowing “JAGA” on continuous basis.

Whistle Blowing

BTPN Syariah is committed to provide facilities for employees to report any indication of fraud incidents through Whistle Blowing System called “JAGA” (Jalankan, Awasi, Gali, Ajukan Laporan – Execute, Control, Probe and Report).

Aimed at encouraging employees participation in preventing, reporting and handling fraud in an effective and efficient manner, BTPN Syariah provides ease of access through several channels and media to report any indication of fraud incidents while maintaning the confidentiality and providing protection guarantee to the information provider. Several media channels to report fraud includes: hotline, email, mail, and SMS which can be easily accessed by employees.

BTPN has developed guidelines and operating procedures on “whistle blowing” which is updated on regular basis. Those guidelines and procedures provides rules and principles for the Fraud Management Units and other related units so that the incoming reports of alleged fraud incidents through Whistle Blowing media “JAGA” shall be administered according to the standards and well documented.

Any indication of fraud incidents can be reported through hotline, email, mail and SMS.

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JAGA Whistleblowing Escalation Process

Information to Fraud Management Unit (FMU)

Mail to FMU, Gedung Menara BTPN, 12th Floor

Hotline to 021-30026400 ext. 83553/86470

Email: [email protected]

SMS to: 087 88 999 7494

Reporting Media Addressed to Investigation

and Follow up

InformerFraud

Management Unit

(FMU)

Related to fraud

Non-Fraud

Investigative Audit (RTU/SKAI)

Fraud Committe (for cases proven as fraud)

Confirmation to Informer (case closed)

Code of ConductCode of Conduct in BTPN Syariah serves as guidelines of attitude and behavior for the Board of Commissioners, the Sharia Supervisory Board, the Board of Directors, Independent Parties, and all Employees in undertaking their duties and responsibilities and in decision making which ensures congruence with the values, Vision

and Mission of BTPN Syariah and other prevailing regulations.

The guidelines of attitude and behaviour according to the Code of Conducts include amongst others:

1. Vision, Mission, Corporate Values, Objectives of the Code of Conduct, and Scope of the Code of Conduct;

2. Compliance and Risk Management;


4. Creating Conducive Working Environment (including Fair Treatment to all Employees, Anti-Discrimination and Anti-Harrassment, Work Safety, the Use of Company Facility, Outside-Work Activity, the Use of Social Media);


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5. Information Security and Management;

6. Relationship with Customers and Stakeholders (including Relationship with Customers, Relationship with Vendors, Relationship with Regulators, Bribery and Corruption, Giving and Receiving Gift, Anti Money Laundering);

7. Enforcement of Code of Conduct (including Roles and Responsibilities, Violations of the Code of Conduct).

Enforcement of Code of Conduct

BTPN Syariah pledge to enforce code of conduct as a way to implement the good corporate governance and to shape the behavior of the employees according to the ethical standards. For that purpose, a number of initiatives are taken to disseminate Code of Conduct through email blast to all employees for which the employees have to respond by confirming the receipt of the information and affirming the commitment for its implementation. It is also done by distributing Code of Conduct books to all employees in the Induction Program for Executive Officers and new officers. The dissemination of Code of Conduct will be conducted on regular basis. The updates of the Code of Conducted is made periodically.

BTPN Syariah applies deterrent sanctions for every fraud and violations of the the code of conduct.

Self Assessment Report on Good Corporate Governance Implementation PT Bank Tabungan Pensiunan Nasional Syariah (”BTPN Syariah”)

The summary of self assessment of BTPN Syariah as of December 2017 is presented in the following table:

Self Assessment of GCG Implementation

Rating Rating Definition

Individual 2 Good

Consolidated - -

Governance StructureIn order to implement good corporate governance; the structure and infrastructure in BTPN Syariah were constructed according to the prevailing regulations on good corporate governance. The Bank governance structure involves amongst others:• The structure of Organ of the Bank

- Fulfillment of quantity, composition and competency of the Board of Commissioners according to the prevailing regulation. Currently the total number of members of the Board of Commissioners is 4 (four), of which 2 (two) are Independent Commissioners. In 2017, there were changes of the composition of the Board of Commissioners that were made in accordance to the prevailing regulations and with reference to the good corporate governance principles;

- Fulfillment of quantity, composition and competency of the Board of Directors according to the prevailing regulation. Currently the total number of members of the Board of Directors is 5 (five). All members of the Board of Directors have the competencies in various areas including financial industry and sharia banking. The Board of Directors has also made the efforts to improve the compliance culture and GCG implementation. In 2017, there were changes of the composition of the Board of Directors that were made in accordance to the prevailing regulations and with reference to the good corporate governance principles;

- Fulfillment of quantity, composition and competency of Sharia Supervisory Board according to the prevailing regulation. Currently the total number of members of the Sharia Supervisory Board is 2 (two) and have performed the supervision roles and responsibility well. In 2017, there were changes of the composition of the Sharia Supervisory Board that were made in accordance to the prevailing regulations and with reference to the good corporate governance principles;

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• The supporting structure for the fulfillment of duties and responsibilities of the Board of Commissioners, the Board of Directors and Sharia Supervisory Board:- Establishment of the Board of

Commissioners Commitee, the Board of Directors Committee according to the prevailing regulations. Each Committee has its own Charter which is amended regularly;

- Establishment of Integrated Governance Committee to implement the integrated governance in financial conglomeration in the areas of governance and risk management with the parent bank and the shareholders of the parent bank that are part of the financial conglomeration group;

- According to the respective function, each working unit submits report of accountability to the Board of Commissioners in the meeting of the Board of Commissioners or the meeting of Board of Commissioners Committee, that is Audit Committee, Nomination and Remuneration Committee, and Risk Monitoring Committee and to the Board of Directors in the meeting of the Board of Directors and the Board of Directors Committee, that is Business Commitee,

Human Capital Committee, Information Technology Steering Committee, Risk Management Committee, and Asset & Liabilities Committee (ALCO);The establishment of Working Units for business development, operational, implementation of risk management and internal control have been conducted. The Bank internal working units are Internal Audit Unit, Risk Management Unit, Compliance Unit, completed with Business Team, Operational Team, Information Technology Team, Human Capital Team and Legal. In 2017, there was a replacement of Internal Audit Head for regeneration purpose in accordance to the prevailing regulations and good governance principles and were reported to the Authorities.

• Governance Structure to Manage Conflict of Interest in BTPN Syariah:To manage conflict of interest, BTPN Syariah develops a complete policy and procedures to solve conflict of interest. Managing conflict of interest is also stipulated in the Charter of the Board of Commissioners and the Charter of the Board of Directors; and for employees in company code of conduct.

• Governance Structure to implement Compliance Function in BTPN Syariah:- Compliance Unit works

independently from the operating Unit;

- The selection, recommendation and appointment of the members of the Board of Commissioners, Sharia Supervisory Board and the Board of Directors is according to the structure and prevailing regulations;

- The appointment of Compliance Director is according to structure and good corporate governance;

- Strengthening the compliance structure in order to implement compliance culture by means of the completion of Compliance Certification by the new Compliance Director according to the prevailing regulations;

- Strengthening the internal structure for the implementation of other Compliance referring to the new regulations of Financial Services Authority that governs the engagement of Public Accountant and Public Accounting Firm in Financial Services; BTPN Syariah has conducted internal dissemination regarding the regulations concerning the the fulfillment and selection of Public Accountant and Public Accounting Firm that audit the Bank bookkeeping in 2017. The appointment


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is objective in nature taking into consideration the recommendation of the Audit Committee and have fulfilled the legal aspects and the professional standard of public accountant to perform auditing;

- Included in such fulfillment is the fulfillment of obligatory report on such appointment of Public Accountant and Public Accounting Firm that was submitted to Financial Services Authority starting from 2017.

• Governance structure for Internal Audit Function, Internal Audit Unit:- Implementation of internal

audit function according to the prevailing regulation, independent from other operating unit and aligned with the Bank Business Plan;

- Internal Audit Unit has developed the Standard Implementation for the Bank Internal Audit Function completed with Internal Audit Charter and the policy and procedures for risk-based auditing. Internal Audit Unit is supported by qualified people;

- Training program and professional certification for Internal Audit Unit employees such as CBIA, CIA and CISA.

• Governance structure of the Bank Business Plan:- The development of the Bank

Business Plan according to the Vision and Mission

of BTPN Syariah and was submmitted to the Financial Services Authority on periodic basis. The Strategic Plan of BTPN Syariah was reviewed and approved by the Board of Commissioners and approved by shareholders;

- Conduct strategic meetings on regular basis in order to improve control in the implementation of the bank business plan by the Board of Commissioners, Sharia Supervisory Board and the Board of Directors, with the support of related working unit;

- The development of Information Technology Plan and Information Technology Policy, governing the preparation of strategic plan for Information Technology development in BTPN Syariah and aligned with the latest four strategic action of BTPN Syariah according to the Bank Business Plan, including building operational excellence, developing new asset-based business through new financing products, exploring fee based income and strengthening organizational capability;

- The development of supporting policies and procedures that are reviewed on yearly basis as necessary to ensure adherence to the prevailing regulations.

Governance Process

Good corporate governance practices have been implemented well in BTPN Syariah, including amongst others:

• The implementation of good corporate governance by mean of supervisory function of the Board of Commissioners includes amongst others:- The supervisory function of the

Board of Commissioners worked effectively through the meetings of the Board of Commissioners and the Board of Commissioners Committee that were held on regular basis and well documented;

- The Board of Commissioners received report of implementation and recommendations that were discussed and decided in the meetings in the respective units that carried out the implementation of the recommendation. In the event that decisions were made outside the meeting, it was assured that the decision made outside the meeting of the Board of Commissioners and its Committee were always in accordance to the prevailing regulations and the Articles of Association;

- The Board of Commissioners has performed its supervisory roles and provided advices, and also provided direction, monitoring and evaluation to the implementation of strategic policy to the Board of Directors. The

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Board of Commissioners also monitored the follow up action by the Board of Directors to the audit findings both internal and external audit. The Board of Commissioners also evaluated the compliance function;

- Supervisory roles were also performed through the Board of Commissioners visits to a number of branches, Mobile Marketing Sharia and Sentra (Center) to ensure that good governance was well implemented throughout the organization.

• The implementation of good corporate governance by mean of supervisory function of Sharia Supervisory Board includes amongst others:- Implementation of good

corporate governance by means of supervision also performed by Sharia Supervisory Board. The function and responsibility of Sharia Supervisory Board were executed by setting meeting agenda, conducting routine monthly meeting that issued opinion and approval of Sharia Supervisory Board for new products and services of the Bank;

- The Sharia Supervisory Board performed direct supervision to the Bank business activities by making routine visits to a number branches, Mobile Marketing Sharia and Sentra (Center) to ensure that good governance is well implemented

throughout the organization and is in accordance with the sharia principles;

• The implementation of good corporate governance by mean of supervision by the Board of Directors includes amongst others:- The fulfillment of duties and

responsibilities of the Board of Directors BTPN Syariah was in adherence to the GCG principles and have been delivered effectively by which all members of the Board of Directors were able to act and make decision with independency;

- The implementation of good corporate governance practices have been implemented well by the Board of Directors by means of the Board of Directors meetings with its Committee that were held in an effective and efficient manner according to the prevailing regulations;

- In the event that decisions were made outside the meeting of the Board of Directors and its Committee, it was assured that the decision made outside the meeting were always in accordance to the prevailing regulations and the Articles of Association;

- The Board of Directors performed supervision to the overall operational activities of the Bank by visiting branches, Mobile Marketing Sharia and Sentra to ensure that

good governance was well implemented. The visits were also intended to capture the aspiration of the employees as an important reference in formulating the strategic policies of the Bank;

- The Board of Directors followed up the recommendations of the Board of Commissioners that were presented in the meetings of the Board of Commissioners and the Board of Commissioners Committee and were well governed by the responsible Unit.

• The implementation of good corporate governance with respect to transparency and independency was exercised by disclosure of information of the dual positions and share ownership of the Board of Commissioners, Sharia Supervisory Board and the Board of Directors that were presented in the Annual Report;

• In 2017, there was no records of conflict of interest in BTPN Syariah;

• The implementation of good corporate governance by means of improving the implementation of Compliance Culture included amongst others:- In 2017, the Compliance Unit

has applied the relationship concept with the other Working Unit through intensive communication and coordination to build synergy in improving Compliance Culture across the organization;


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- The improvement of the governance system for the regulations issued by the Regulators were communicated through Compliance Update Media and Progress Report with continuous monitoring in its implementation;

- The Compliance Unit continuously strives to improve the quality of infrastructure to cope with the changes by ensuring the availability of database as the source of information on the latest regulations that can be easily accessed by all employees of BTPN Syariah who need such information;

- The implementation anti money laundering and counter terrorism financing was also well administered as part of induction program and refreshment for all employees of BTPN Syariah.

• The implementation of good corporate governance by Internal Audit Unit included amongst others:- BTPN Syariah ensured that

the role of Internal Audit Unit was independent of operational unit;

- In performing the audit process, the Internal Audit Unit has implemented risk-based audit which covers governance process, risk management and internal control. The Internal Audit Unit consistently improve the Compliance Culture, and the Risk Management Unit continuously educate awareness of risk;

- All the working unit in the Bank worked in collaboration to assist the Board of Directors in ensuring that the implementation of good corporate governance remains focus on its objectives;

• The implementation of good corporate governance by External Auditor included amongst others:- BTPN Syariah ensured that

the process to appoint the Public Accountant and Public Accounting Firm were according to The implementation of good corporate governance by the prevailing regulations, with reference ot the Shareholder Resolution in the General Meeting of Shareholders regarding such appointment of Public Accountant and Public Accounting Firm, taking into consideration the recommendation of Audit Committee;

- The process of auditing financial statements were performed by Public Accountant and Public Accounting Firm that were registered in the Financial Services Authority and capable to work independently and meet the professional standards of public accountant;

• The implementation of good corporate governance by means of Risk Management Function included amongst others:- The supervision of the

Board of Commissioners and the Board of Directors to the risk management

framework through Risk Management Committee and Risk Monitoring Committee;

- The establishment of Quality Assurance function in each Directorate of the Bank in order to maintain compliance to the policies and procedures;

- Continuous dissemination of risk awareness and fraud awareness to all risk taking units both through in-class training and other communication media such as bulletin, poster, email and other channels;

• The implementation of good corporate governance in the implementation of the Bank Business Plan included amongst others: preparation and supervision of the Bank Strategic Plan according the prudent principles in order to promote a healthy operation of the Bank that considers all potential risks from internal and external and fully supported by the Controlling Shareholders;

• The implementation of good corporate governance in the corporate actions included amongst others by ensuring the overall process of Initial Public Offerings, as stated in the Bank Business Plan, is in accordance to the prevailing regulations. The IPO implementation requires that BTPN Syariah maintains a good corporate governance, for which a periodic reviews are very important and becomes one of the key priorities of the Bank.

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Governance Outcome

Supervisory Board and the Board of Directors work in collaboration in all aspects to ensure sustained commitment to implement good corporate governance in BTPN Syariah, which includes amongst others:

• Governance Outcome in the Bank Performance:- Significant improvement in

financial performance of the Company compared to the previous year;

- A number of awards both from national and international which acknowledged significant growth of BTPN Syariah Performance;

- Good corporate governance was implemented well in BTPN Syariah and acknowledged by external party by honoring BTPN Syariah with Indonesia GCG Awards in 2017;

• Governance outcome with respect to the organ of the Bank which included amongst other:- The accountability report of

the Board of Commissioners, Sharia Supervisory Board and the Board of Directors in 2016 were presented in the Annual Report and was well received by the Shareholders;

- There were no conflict of interest amongst the Board of Commissioners, Sharia Supervisory Board and the Board of Directors;

- Improved performance was supported by the Board of Commissioners, Sharia Supervisory Board and the Board of Directors and also Shareholders.

• Governance outcome with respect to fulfillment the Bank obligations which includes amongst others:- To nurture a compliance

culture, BTPN Syariah was committed for timely submission of obligatory reports to Financial Services Authority and other authorities;

- Build compliance awareness by regular dissemination of new regulations in order to reduce violations of regulations;

- In implementing Internal Audit function, the Board of Directors ensured the availability of the report of Internal Audit Function of the Bank that were presented in the Annual Report;

- Internal Audit Unit has performed objective audit processes according to audit policies and procedures taking into consideration the risk level in each working unit with reference to the principles in the Implementation Standards for Bank Internal Audit;

- External Audit Unit has performed objective audit processes and the audit results within the specified audit scope reflected the condition of BTPN Syariah and the audit result was submitted on time to Financial Services Authority;

- The fulfillment of duties and responsibilities of Committee on Risk Governance of the Board of Commissioners and the Board of Directors has delivered active supervision to the implementation of risk management in BTPN Syariah by conducting routine monthly meetings and submitting mandatory reports;

- Fulfillment of obligation to conduct self assessment once every 6 (six) months;

- Fulfillment of obligation through Integrated Governance Committee to deliver annual mandatory reports and self assessment once every 6 (six) months;

- BTPN Syariah applied transparency in communicating information on products and services, implemented effective customer complaints handling and maintained private information and data of the customers according to the prevailing regulations;


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• Governance outcome with respect to improvement of human resources quality, which included amongst others:- Along with the business

growth of the Bank, BTPN Syariah managed human resources development on a continuous basis to support a sustained implementation of good corporate governance of the Bank by conducting induction program, training, refreshment and certification for all employees;

- Conducted Development and Refreshment Program for the Board of Commissioners, Sharia Supervisory Board and the Board of Directors in general and specific knowledge through a number of programs in 2017 both from internal as well as external organization;

- Delivered DAYA program which provided training and value adding services for customers, as concrete initiatives to realize the social responsibilities of BTPN Syariah. In 2017 and for the years ahead, the Bank has prepared various programs and activities that integrated business mission and social mission in the products, services and daily activities to serve underprivileged families in Indonesia;

- Provided incentive programs for employee achievement;

- Provided Employee Stock Allocation for core employees as the appreciation of the Bank.

BTPN Syariah is pledged to continuously improve the governance outcome as well as the governance quality in all layers of the organization so that the process and the outcome are always in accordance to the prevailing regulations and in line with the vision and mission.

The Board of Commissioners, Sharia Supervisory Board and the Board of Directors are committed to ensure the implementation of good corporate governance principles on a sustained basis.

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Internal Audit is the third line of defense in the Internal Control System that plays an important role in performing assurance and consulting in an independent and objective manner in order to evaluate and improve the effectiveness of Governance, Risk and Control (GRC) of the company in achieving its vision and mission.

The Internal Audit function is performed by Internal Audit Unit by referring to Regulations of Bank Indonesia No. 1/6/PBI/1999 dated September 20, 1999 concerning Assignment of Compliance Director and Implementation of Implementation Standards for Bank Internal Audit (SPFAIB) and BAPEPAM & LK Regulation No.Kep-496/BL/2008 dated November 2008 concerning the Guidelines to Establish Internal Audit.

Internal Audit Charter

Implementation of Internal Audit Process is governed in an Internal Audit Charter, signed by the President Director and approved by the Board of Commissioners with latest amendments on August 20, 2017.

internal audit report

Internal Audit – Vision and Mission

Vision

To be the Bank’s Strategic Partner in monitoring the Governance Process, Risk Management and Control (GRC) performed by competent and professional auditors who applies audit standards according to best practices.

Mission

To provide assurance to the Bank in achieving the Bank’s objectives through independent and objective assurance and consultation which delivers added value to the Bank and improve Bank performance.

Independency and Position of Internal Audit Organization

As an independent unit, Internal Audit BTPN Syariah reports directly to the President Director and may communicate directly to the Board of Commissioners to inform matters pertaining to audit. The information to the Board of Commissioners must be reported to the President Director copy furnished to the Compliance Directors.

Internal Audit BTPN Syariah, therefore, do not hold any responsibilities or reporting relationship to the management or the other operating units of the Bank which may influence its independency in presenting audit result. The independency also manifests in the appointment and termination of Internal Audit Head by the President Director with approval from the Board of Commissioners.

Several conditions are applied to ensure the independency of internal audit function including amongst others that the members of Internal Audit Unit shall not hold dual positions or perform the other operational activities, and shall not involved in the operational decision making but only to provide recommendation, the assignment of Internal Audit members must be free from conflict of interest both actual or potential; and that Internal Audit Unit has the right to decide and apply the audit method according to professional standards and generally accepted audit standards.

Scope of Internal Audit

The scope of work of Internal Audit covers assurance and consulting activities regarding the adequacy and effectiveness of the governance process, risk management and internal control in all aspects of the Bank activities.


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Authorities of Internal Audit Unit

In fulfilling its duties and responsibilities, Internal Audit is empowered with the following authorities:

1. Is granted unlimited access to all functions of the organization – record, employee data, resources, funds and other Bank Assets as required in the implementation of audit process;

2. To allocate resources, determine the frequency, subject and scope of audit process to achieve audit objectives;

3. To apply the audit method according to professional standard and generally accepted auditing standards with necessary adjustment to the situation in the work place;

4. To obtain assistance from personnels in the audited units and experts both from internal and external of the organization;

5. To communicate directly with the Board of Directors, the Board of Commissioners, and Audit Committee.

Duties and Responsibilities of Internal Audit

According to the mission of Internal Audit, the duties and responsibilities of Internal Audit are, as follows:

1. To prepare annual audit plan;

2. To implement the approved audit plan as independent and objective assurance and consulting activities in order to the deliver value added and improve the performance of the Bank;

3. To assist the Bank in achieving its objectives by applying systematic and disciplined approach to evaluate and improve the effectiveness of Governance Process, Risk Management and Control;

4. To prepare report of audit result and submit the report to the President Director and the Board of Commissioners copy furnished to Compliance Director;

5. To submit report on periodic basis to the President Director and to the Board of Commissioners through the Audit Committee, which sumarrizes the result of audit activities, with a copy furnished to the Compliance Director;

6. To monitor and report the progress of the follow up actions of audit results including the follow up actions of the audit results of Bank Indonesia;

7. To perform special audit whenever deemed necessary;

8. To work in collaboration with the external auditor to deliver a comprehensive audit result;

9. To develop program to evaluate the quality of Internal Audit activities.

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Organization Structure of Internal Audit Unit

According to the mission of Internal Audit Unit, duties and responsibilities of Internal Audit Unit are, as follows:

Internal Audit Head

Business Audit Head

HO & IT Audit Head

Audit Planning & Support Head

Funding Audit Financing Audit

Investigative Audit

Head office Audit

Audit Methodology

& QAIT Audit Remote Audit

There are three elements in the Internal Audit Unit, each performing the following functions:

1. Business Audit

Responsible to perform audit on business area, conduct audit investigation on the suspect areas and monitor the follow up actions of the audit results.

2. Head Office & Information Technology Audit

Responsible to perform audit on Head Office areas which includes the support functions that serve all the Bank; perform audit on Information Technology and monitor the follow up actions of the audit results.

3. Audit Planning & Support

Responsible to facilitate the process of Annual Audit Planning, development of Audit Methodology & Tools, Auditor Development, Audit Quality Assurance, Remote Audit, Data Support & MIS, Internal & External Regular Reporting, and Administration Support.

Audit Implementation 2017

In 2017, Internal Audit Unit has implemented the audit plan and program, including:

1. Conducted thematic audit focusing on the implementation of strategic initiatives of the Bank and high-risk areas;

2. Conducted audit on distribution channels (Areas and Branches);

3. Conducted mandatory audit on the Bank Payment System and Internal Capital Adequacy Assessment Process (ICAAP).


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The audit results was used as the basis for evaluation and improvement in a number of areas, such as policy, business processes, operational processes, infrastructure or human capital management perspectives. Internal Audit monitored the follow up actions to ensure that every problem was solved and that every risk was properly mitigated. To assure this, the audit result and the progress of the follow up actions are reported to the Board of Directors and the Board of Commissioners through the Audit Committee. At the end of 2017, the follow up actions for improvement have been timely executed as scheduled.

Implementation Standards and Quality Development

Implementation of audit refers to the Implementation Standards for the Bank Internal Audit Function (SPFAIB) and the Internal Audit Policy BTPN Syariah. To improve the audit quality, Internal Audit continues to develop audit methodology and refine the audit program according the development of business processes and best practices such as The Institute of Internal Auditors (IIA) and Information System Audit and Control Association (ISACA).

In 2017, Internal Audit Unit BTPN Syariah has developed Audit Management System and Remote Audit. Internal Audit has also conducted external review with regard to conformance to the the Implementation Standards for the Bank Internal Audit Function, with the review result “Generally Conform”.

Internal Audit also has Code of Conduct as the guiding principles for all auditors in performing the duties, including the obligation to uphold integrity and objectivity, maintain confidentiality and continuously improve competency. To signify the commitment, every year each Auditor is obliged to sign the Code of Conduct of Internal Audit.

Organization and Human Capital

Along with the growth of the Bank and to improve the function and roles of Internal Audit, a number of initiatives have been made in 2017 to improve the organization capacity and develop the human capital of Internal Audit. Improvement of organizational capacity is done by recruiting a several key positions including Remote Audit Team Leader, IT Audit Team Leader, and Head Office Auditor.

Human Capital Development of Internal Audit is done by way of improving skills and competencies of auditor through a series of training program both internal and external. Several in-house training programs that have been conducted for auditors in 2017 were, amongst others Overview The 4 Discipline of Execution (4DX), Workshop PSAK 71, Audit Technique Refreshment, Data Analytics, IT for Non-IT Training and several other training program. To certify competency, several auditors have attend training as preparation for certicification examination, including Certified Internal Audit (CIA), Certified Information System Auditor (CISA) and Certified Bank Internal Audit (CBIA).

By the end of 2017, Internal Audit was supported by auditor with professional certification including amongst others: Certified Information Systems Auditor (CISA) 1 person, Qualified Internal Audit (QIA) 2 persons, Certified Bank Internal Audit (CBIA) 7 persons, and Chartered Accountant (CA) 3 persons.

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compliance report

Entering the third year of operations, BTPN Syariah continues to improve Compliance Culture. A number of activities such as better coordination amongst working units are done in order to improve Compliance Culture. Good management of compliance risk will manifest in good financial ratios, such as:

• Non Performing Financing (NPF) managed under the tolerable limit according to regulation;

• Reserve Requirement maintained according to regulations;

• KPMM maintained above minimum requirement;

• No violations or excess of BMPD;

• CKPN allocated according to requirement.

It was stated that Governance Structure, Governance Process and Governance Outcome for compliance purposes have been implemented well.

All the achievement of the Bank was amongst others attributed to a more structured regulations from the authorities (POJK, SEOJK, PBI, SEBI and others) that facilitates the Bank in implementing the rules. The changes of PBI to POJK Compliance Function further clarifies the steps that must be taken for a Bank in developing Compliance Culture.

In 2017, Compliance Unit has applied relationship concept with the other working unit, which facilitates a more focused communication and dissemination of information, and therefore effecting a be better Compliance Culture across the organization.

The changes in management and Sharia Supervisory Board, Alhamdulillah, have been well managed according to General Meeting of Shareholders on March 2017. The newly appointed Sharia Supervisory Board has conducted number of activites to support the improvement of Compliance Culture, particularly with regard to the implementation of Sharia Principles, which included amongst others:

• Performed “Uji Petik” in Yogyakarta, Padang, Denpasar and Lampung. The areas for improvement in financing business was the completeness of financing document and the use financing funds to ensure its conformance to the initial purpose; which currently only shown by relatively quite a few number of customers from the sample.

• Provided opinion for a number of products and activities, such as Individual Paket Masa Depan, Customer Prizes Program and BTPN Wow! iB Agents and a number of other communication programs.

A number of regulations issued by the Regulators have been well governed through Compliance Update and Progress Report in order to monitor the implementation in the field.

The implementation of AML/CFT as the focus of OJK, PPATK, Police Department and Tax Office were well governed. Monitoring of new customer account opening and its transactions were conducted in a structured manner thus preventing the Bank from being abused for facilitation of money laundering and terrorism financing.

The new management team as approved by the General Meeting of Shareholders in March 2017 has further reinforced the implementation of Compliance Culture in all layers in the organizations. Direction and evaluation will be continuously maintained to ensure the implementation of regulations by the Bank according to the mandatory requirement.

The appointment of Compliance Director who has experience in various banking business has further strengthened the fulfillment of mandatory compliance principles.

With a well-nurtured Compliance Culture, the bank continues to improve the quality of infrastructure to anticipate future changes. One of which is to build the reliable database of regulations and updates that can be easily accessed by all the Bank employees who need information about regulations.


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With this initiative, the Bank ensured that internalization of regulations will go well and that Compliance Culture will be further improved so that the compliance risk will always be well mitigated.

Strengthening communication and capability/skills of the employees in Compliance Unit is one of the keys to build a solid Compliance Culture.

Communication with OJK and other regulations will be further improved to support a common understanding and perception of the regulations. As such Compliance Culture will continue to improve and compliance risk will well managed.

Compliance Work Plan

Good Corporate Governance is an absolute requirement for the Bank to grow fast and healthy.

The transformation that has started in 2017 will continue in 2018. Various process innovation and infrastructure that will be built must be continously monitored to ensure its alignment with the regulations. In this context, the relationship concept to nurture compliance culture in all layers of organization by means of improving collaboration, coordination, communication and synergy under the direction of the vision and mission of the Bank becomes the key priority.

Relationship concept will position the compliance unit as a reliable partner for the business unit and other operational unit to support the Bank to grow fast and health. In addition to that, a number of other things need to be done, including:

1. Improve the process to monitor the issuance of external regulations and immediately conduct internalization efforts so that the Bank will always comply with the regulations;

2. Develop regulations database both internal and external and the interconnectedness between the two that facilitate the users to find the required regulations;

3. Ensure compliance to corporate governance;

4. Fulfill the mandatory training and certification;

5. Measure compliance risk profile by means of a structured Compliance Assessment and the evaluation of measurement parameter periodically.

The above activities are expected to create a good Compliance Culture as compliance is a shared responsibility of all parts of organization. Compliance to the prevailing regulations is a reflection of a good corporate governance and at the same is the foundation for the Bank to grow fast and healthy.

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The Board of Commissioners Committee

According to the good corporate governance principles, the Board of Commissioners shall establish Committees to support the Board in fulfilling its duties and responsibilities. The Board of Commissioners Committees in BTPN Syariah are, as follows:

Risk Monitoring Committee

Composition of Risk Monitoring Committee

The latest Composition of Risk Monitoring Committee BTPN Syariah is referring to the Board of Directors Decree No. SK.011/DIR/LG/VIII/2017 dated August 7, 2017.

The Composition of Risk Monitoring Committee BTPN Syariah as of December 31, 2017 is, as follows:

No Name Position Date of Appointment

1. Dewie Pelitawati(Member of the Board of Commissioners/ Independent Commissioner)

Chairman of the Committee and Member

June 13, 2014

2. Kemal Azis Stamboel(President Commissioner / Independent Commissioner)

Member of the Committee

April 17, 2015

3. Mahdi Syahbuddin(Commissioner)


October 1, 2015

4. Azis Budi Setiawan (Independent Party)


September 15, 2014

5. Muhammad Faisal Muchtar(Independent Party)


September 15, 2014

The establishment of Risk Monitoring Committee has met all the competency requirement and in accordance to the good corporate governance principles.

committee report

Duties and Responsibilities of Risk Monitoring Committee

According to the latest Charter of the Committee, No.04/PedomanKerja/LG/VII/2017 dated July 14, 2017, the main duties and responsibilities of the Risk Monitoring Committee is to provide independent professional opinion to the the Board of Commisioners concerning the reports and other matters presented by the Board of Directors to the Board of Commissioners and to identify matters requiring attention of the Board of Commissioners, including amongst others:

1. To prepare annual Work Plan of the Committee and obtain approval of the Board of Commissioners;

2. To provide independent professional opinion to the the Board of Commisioners concerning the reports and other matters pertaining to risk management presented by the Board of Directors to the Board of Commissioners and to identify matters requiring attention of the Board of Commissioners;

3. To evaluate risk appetite and risk limit to be approved by the Board of Commissioners;

4. To analyze the effectiveness of Risk Management Unit and Risk Management Committee;

5. To evaluate the conformity between the Bank risk management policy and its implementation;

6. To monitor and evaluate the work of the Risk Management Committee and the Risk Management Unit in order to provide recommendation to the Board of Commissioners;


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7. To evaluate the Bank Risk Management Policy at least once a year;

8. To evaluate the Risk Management Policy Implementation Report of the Board of Directors at least on quarterly basis;

9. To keep the confidentiality of all the data and information document of the Bank;

10. To conduct investigation or grant the authority to conduct investigation in certain matters within the respective scope of work;

11. To work in collaboration with the external consultant, accountant or other external party who provide advices to the committee or provide direction with regard to the investigation, and searching for information from employees of the collaborating partners upon the request of the Committee;

12. Duties other than the above mentioned, as tasked by the Board of Commissioners to the Committee according to its function and duties whenever deemed necessary.

Authority of Risk Monitoring Committee

1. The Committee is authorized to obtain full, free and unlimited access to information on employees, funds, assets and other Bank resources in fulfilling its duties and responsibilities;

2. In exercising the authority, the Committee shall be working with the Risk Management Unit and/or other unit as deemed necessary.

Independency of Risk Monitoring Committee

1. Independent Commissioner is the member of the Board of Commissioner who does not have financial relationship, management, shares ownership, and/or family relationship with the other members of the Board of Commissioners, the Board of Directors and/or Controlling Shareholders or other relationship of whatsoever in nature, which may influence his/her ability to act in an independent manner.

2. Independent Party is the party outside the Bank who does not have financial relationship, management, shares ownership, and/or family relationship with the members of the Board of Commissioners, the Board of Directors and/or Controlling Shareholders or other relationship of whatsoever in nature, which may influence his/her ability to act in an independent manner.

Risk Monitoring Committee Report

The Risk Monitoring Committee has been actively providing recommendation to the Board of Commissioeners. As of December 31, 2017; the Risk Monitoring Committee held 6 (six) meetings and made 2 (two) visits to the Branches in Makasar, Kendari, Mojokerto, Surabaya, Banjarmasin, South Tambun (Bekasi) and special visit

Garut with the Chairman of Risk Monitoring Committee for supervision related to risk monitoring.

During 2017, the Committee discussed and provided recommendation which included amongst others:

1. The Committee prepared and approved the work plan and program for 2017;

2. The Committee conducted review and evaluation to the policy and implementation of risk management;

3. The Committee conducted supervision to the work of Risk Management Committee and Risk Management Unit and risk monitoring in each business unit;

4. The Committee conducted evaluation and analysis of the Bank risk profile;

5. The Committee conducted supervision to the implementation of Internal Capital Adequacy Assessment Process (ICAAP) in a thorough and consistent manner;

6. The Committee conducted supervision and monitoring to the handling of internal fraud incidents;

7. The Committee conducted supervision and monitoring to Risk Based Bank Rating (RBBR);

8. The Committee conducted reviews on the Charters on periodic basis;

9. The Committee performed control to the implementation of the Bank’s strategic actions and implementation of the Bank’s product from the risk perspective.

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Audit Committee

Composition of Audit Committee

The latest composition of Audit Committee BTPN Syariah is according to the Board of Directors Decree No.010/DIR/LG/VIII/2017 date August 7, 2017.

The latest composition of Audit Committee BTPN Syariah as of December 31, 2017 is, as follows:


1. Kemal Azis Stamboel (President Commissioner / Independent Commissioner)


13 June 2014



April 17, 2015

3. Azis Budi Setiawan (Independent Party)


September 15, 2014

4. Muhammad Faisal Muchtar(Independent Party)


September 15, 2014

The establishment of Audit Committee has met all the requirement and competency and in accordance to the good corporate governance principles.

Duties and Responsibilities of Audit Committee

The Audit Committee, according to latest Charter No.02/PedomanKerja/LG/VIII/2017 dated August 20, 2017 is responsible to perform monitoring and evaluation of the external audit implementation and monitoring of the follow actions of audit result in order to assess the adequacy of internal control including the adequacy of financial reporting process.

The Committee is tasked to provide independent professional opinion to the the Board of Commisioners concerning the reports and other matters presented by the Board of Directors to the Board of Commissioners and to identify matters requiring attention of the Board of Commissioners, including amongst others:

1. To prepare annual activity plan to be approved by the Board of Commissioners;

2. To monitor and evaluate the implementation of internal and external audit and the respective follow up actions to ensure the adequacy of internal control including the adequacy of financial reporting process;

3. To review the financial information issued by the Bank, including financial statements, financial projection and other financial information; and ensure that the financial statements is in accordance to the prevailing accounting standards;

4. To analyze the Bank compliance to the laws and regulations in capital market and the other prevailing regulations;

5. To provide recommendation on the appointment of Public Accountant to the Board of Commissioners, taking into account the following factors – independency, scope of work, and fee – and ensure that the implementation of audit by the public accountant is in accordance to the audit standards;

6. To analyze the objectivity of the Public Accounting Firm and the compliance of the audit process by the Public Accounting Firm to the audit standards;

7. To analyze the adequacy of examination by the Public Accounting Firm to ensure that all risks have been properly considered;

8. To monitor and evaluate the follow up actions of the Board of Directors to the findings of Internal Audit Unit and the supervision results from the Financial Services Authority and Bank Indonesia in order to provide recommendation to the Board of Commissioners;

9. To analyze claim against the Bank and report it to the Board of Commissioners;

10. To review complaints related to accounting processes and the Bank financial reporting;


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11. To keep the confidentiality of all document, data and information of the Bank;

12. To conduct investigation or grant the authority to do investigation in certain matters whenever deemed necessary;

13. To work in collaboration with the external consultant, accountant or other external party who provide advices to the committee with regard to the investigation, and asking for information and cooperation from the employees of the collaborating partners upon the request of the Committee;

14. The Audit Committee provides independent opinion in the event of dispute between the management and public accounting for the services rendered.

Authority of Audit Commitee


2. In exercising the authority, the Committee shall be working with the Internal Audit Unit and/or other unit as deemed necessary.

3. To involve independent party outside the Audit Committee to assist the undertaking of its duties whenever deemed necessary.

Independency of the Audit Committee


2. Independent Party is the party outside the Bank who does not have financial relationship, management, shares ownership, and/or family relationship with the members of the Board of Commissioners, the Board of Directors and/or Controlling Shareholders or other relationship of whatsover in nature, which may influence his/her ability to act in an independent manner.

Audit Committee Report

The Audit Committee has been actively providing recommendation to the Board of Commissioners. As of December 31, 2017; the Audit Committee held 6 (six) meetings and issued 4 (four) Circular Decision of the Committee and made 2 (two) visits

to the Branches in Makasar, Kendari, Mojokerto, Surabaya, Banjarmasin, South Tambun (Bekasi).

In 2017, the Audit Committee discussed and provided recommendations, amongst others in the following matters:

1. The Committee prepared and approved the work plan and program for 2017;

2. The Committee monitored and evaluated the Bank financial performance periodically;

3. The Committee reviewed the proposed Financial Statements of the Bank for book year;

4. The Committee provided recommendation regarding external auditor appointment and discussed the external audit plan 2017;

5. The Committee monitored and evaluated the implementation of Internal Audit in 2017 and monitored the follow actions of the audit findings;

6. The committee provided strategic recommendation that supported the implementation of duties and responsibilities of Internal Audit Unit;

7. The Committee reviewed Audit Plan 2018 and provide recommendation to the Board of Commissioners from the review;

8. The Committee monitored the Bank’s compliance to the prevailing regulations;

9. The Committee monitored the action to handle internal fraud incidents;

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10. The Committee conducted reviews on the Charters on periodic basis;

11. The Committee monitored the implementation of the Bank’s strategic actions.

Nomination and Remuneration Committee

Composition of Nomination and Remuneration Committee

The latest composition of Nomination and Remuneration Committee BTPN Syariah according to the Directors Decree No. 006/DIR/LG/VII/2017 dated July 1, 2017 concerning the Composition of Nomination and Remuneration Committee is:


1. Kemal Azis Stamboel (President Commissioner/Independent Commissioner)


June 13, 2014

2. Dewie Pelitawati (Member of the Board of Commissioner/ Independent Commissioner)


June 13, 2014

3. Mahdi SyahbuddinMember of the Committee


April 7, 2015

4. Maya KartikaMember of the Committee


July 1, 2017

5. Sulistyo Yuwono(HC Head)

Member of the Committee and Secretary

March 13, 2017

The establishment of Nomination and Remuneration Committee has met all the requirement and competency and accordance to the good corporate governance principles.

Duties and Responsibilities of Nomination and Remuneration Committee

The duties and responsibilities of the Nomination and Remuneration Committee, according to latest Charter of the Committee No. 03/PedomanKerja/LG/IX/2017 dated September 11, 2017, the Committee is responsible to provide independent professional opinion to the the Board of Commissioners concerning the reports and other matters presented by the Board of Directors to the Board of Commissioners and to identify matters requiring attention of the

Board of Commissioners, including amongst others:

1. Regarding Remuneration Policy:

a. To evaluate the remuneration policy;

b. To evaluate the conformity between the remuneration policy and its implementation; and

c. To provide recommendation to the Board of Commissioners regarding Remuneration Policy for the Board of Commissioners, the Board of Directors and Sharia Supervisory Board;

d. To conduct reviews and provide recommendation to the Board of Commissioners regarding high level Remuneration Policy for employees taking into consideration internal and external factors.

2. Regarding nomination policy:

a. To provide recommendation to the Board of Commissioners regarding the composition of the Board of Directors and/or the Board of Commissioners;

b. To provide recommendation regarding the system and procedure for selection and/or replacement of the Board of Commissioners and the Board of Directors to the Board of Commissioners to be presented to the General Meeting of Shareholders;


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c. To provide recommendation regarding the candidate(s) of the member(s) of the Board of Commissioners, the Board of Directors, and the Sharia Supervisory Board to the Board of Commissioners to be presented to the General Meeting of Shareholders;

d. To provide recommendation regarding the Independent Party to be the member of the Audit Committee and Risk Monitoring Committee to the Board of Commissioners;

e. To assist the Board of Commissioners in conducting performance evaluation of the Board of Directors and/or the Board of Commissioners;

f. To prepare development program for the members of the Board of Directors and/or the Board of Commissioners.

3. The Committee shall ensure that the remuneration policy will at least conform to the following:

a. financial performance;

b. fulfillment of the statutory reserves as set forth in the prevailing laws and regulations;

c. internal fairness; and

d. the Bank long term strategy and objectives.

4. To keep the confidentiality of all document, data and information of the Bank;

5. Duties other than the above mentioned, as tasked by the Board of Commissioners to the Committee according to its function and duties whenever deemed necessary.

Authorities of the Nomination and Remuneration Committee


2. In exercising the authority, the Committee shall be working with the Director in charge of Human Capital and the other units. The Committee is also authorized to appoint consultant whenever deemed necessary.

Independency of the Nomination and Remuneration Committee


2. Independent Party is the party outside the Bank who does not have financial relationship, management, shares ownership,

and/or family relationship with the members of the Board of Commissioners, the Board of Directors and/or Controlling Shareholders or other relationship of whatsoever in nature, which may influence his/her ability to act in an independent manner.

Nomination and Remuneration Committee Report

In 2017, the Nomination and Nomination Committee has held 3 (three) Nomination and Remuneration Committee Meetings and issued 6 (six) Circular Decision provided the following recommendations:

1. Committee Recommendation to the Board of Commissioners to determine the Annual Remuneration 2017 for the Board of Commissioners, Sharia Supervisory Board, the Board of Directors BTPN Syariah;

2. Committee Recommendation to the Board of Commissioners regarding the nominations for the new member(s) of the Board of Commissioners, Sharia Supervisory Board, and the Board of Directors;

3. Committee Recommendation to the Board of Commissioners regarding the Appointment of Independent Director in relation to the Initial Public Offerings of BTPN Syariah;

4. Committee Recommendation to the Board of Commissioners regarding Employee Stock Allocation (ESA) Program;

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The Board of Commissioners’ Committee Meetings

In 2017, the frequency of meetings and and members attendance in the meetings of the Board of Commissioners Committee are, as follows:

No Name Audit Committee Risk Monitoring Committee

Nomination and Remuneration

Committee

1 Kemal Azis Stamboel 6/6 6/6 3/3

2 Dewie Pelitawati 6/6 5/6 3/3

3 Mahdi Syahbuddin 6/6 6/6 3/3

4 Azis Budi Setiawan 5/6 5/6 -

5 M. Faisal Muchtar 6/6 6/6 -

6 Maya Kartika 4/6 3/6 1/3

7 Ratna Maya Sari Soeharto(a)* - - 2/3

8 Sri Wulan P. Lestari(b)* 4/6 - -

9 Gatot Prasetyo (d)* 2/6 - -

10 Hari Pudjo Santoso* - 6/6 -

11 Sulistyo Yuwono (c)* - - 1/3Notes:(a) Ratna Maya Sari Soeharto no longer served as the secretary of the Nomination and Remuneration Committee since March 13, 2017. (b) Sri Wulan P. Lestari no longer served as the secretary of the Audit Committee since March 13, 2017. (c) Sulistyo Yuwono was appointed as the member of the Nomination and Remuneration Committee and Secretary of the Committee since

March 13, 2017 to replace Ratna Maya Sari Soeharto;(d) Gatot Prasetyo was appointed as the Secretary of Audit Committee being effective since June 1, 2017.

Integrated Governance Committee

The implementation of corporate governance in BTPN Syariah refers to Bank Indonesia Regulation (PBI) No.11/33/PBI/2009 dated December 7, 2009 concerning Implementation of Good Corporate Governance for Sharia Bank and Sharia Business Unit and PBI No.15/13/PBI/2013 concerning Amendment on PBI No. 11/3/PBI/2009 regarding Sharian Bank.

Establishment of Integrated Governance CommitteeAs obliged by POJK No.17/POJK.03/ 2014 dated November 19, 2014 and POJK No.18/POJK.03/2014 dated November 18, 2014 concerning Implementation of Integrated Governance for Financial Conglomeration, and SE OJK No.15/SEOJK.03/2015 dated May 25, 2015 concerning Implementation of Integrated Governance for Financial Conglomeration, Sumitomo Mitsui Bank Corporation (SMBC) Group has

issued a letter dated March 31, 2015 which determined the members of Financial Conglomeration of SMBC Group as follows:

1. PT Bank Sumitomo Mitsui Indonesia (SMBCI) as the Main Entity;

2. PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) as the Member Entity;

3. PT Bank Tabungan Pensiunan Nasional Syariah (BTPN Syariah) as the Member Entity.


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Duties and Responsibilities of the Integrated Governance Committee

According to its Charter, the Integrated Governance Committee is at least tasked with the following duties and responsibilities:

1. To evaluate the implementation of Integrated Governance, by at least assessing the adequacy of integrated internal control and integrated compliance function; and

2. To provide recommendation to the Board of Commissioners of the Main Entity to refine the Integrated Governance Charter.

The Composition of Integrated Governance Committee

BTPN Syariah has nominated the latest members of the Integrated Governance Committee, refering to the Letter No. S.241/DIR/LG/V/2017 dated May 30, 2017 addressed to BTPN and Letter No.S.242/DIR/LG/V/2017 dated May 30, 2017 addressed SMBCI concerning Nomination of the Members of Integrated Governance Committee BTPN Syariah 2017.

The latest composition of Integrated Governance Committee is, as follows:

No Name Position

1. Bramono Dwiedjanto (Komisaris Independen SMBCI)

Chairman

2. Irwan Mahjudin Habsjah (Komisaris Independen BTPN)

Member

3. Ninik Herlani (Komisaris Independen SMBCI)

Member

4. Dewie Pelitawati (Komisaris Independen BTPN Syariah)

Member

5. H. Muhamad Faiz, MA(Anggota Dewan Pengawas Syariah BTPN Syariah)

Member

Integrated Governance Committee Meetings

In 2017, the Integrated Governance Committee has held 2 (two) meetings which discussed amongst others:

1. Schedule and Work Plan of the Integrated Governance Committee 2017;

2. The Committee Charter 2017;

3. Implementation of Schedule and Work Plan 2017 in the form of Evaluation on the Implementation of Integrated Governance Semester II 2016 through Integrated Compliance Report, Integrated Internal Audit Report and Integrated Governance Report;

4. Report on Integrated Risk Profile and Integrated Capital Adequacy as of December 31, 2016;

5. The latest Composition of Integrated Governance Committee 2017;

6. Charter of Integrated Governance Committee 2017;

7. Implementation of Schedule and Work Plan 2017 in the form of Evaluation on the Implementation of Integrated Governance through Integrated Compliance Report, Integrated Internal Audit Report and Integrated Governance Report;

8. Review of Integrated Governance Assessement Report and the conclusion regarding the rating of Integrated Governance of SMBC Group Financial Conglomeration as of June 20, 2017;

9. Preparation of the Accountability Report of the Committee for Semester I 2017 to the Commissioner of the Main Entity (SMBCI);

10. Progress of Committee Recommendation from the previous period (Semester II 2016);

11. Draft of Regulation of Financial Services Authority regarding Parent Company of Financial Conglomeration and the discussion result to be reported to the Committee.

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Integrated Governance Committee ReportIn 2017, the Integrated Governance Committee has prepared the following reports:

1. Self Assessment on Integrated Governance including Assessment Result, Governance, Compliance Function, Internal Audit and Fraud Analysis (Semester I);

2. Self Assessment on Integrated Governance including Assessment Result, Governance, Compliance Function, Internal Audit and Fraud Analysis (Semester II);

3. Integrated Governance Committee Report of SMBC Group Financial Conglomeration to the Board of Commissioners of the Main Entity of SMBC Group Financial Conglomeration (Semester I 2017) and the Committee Report Semester II will be submitted on January 2018.

The Board of Directors Committee

According to GCG Principles, the Board of Directors established the following Committes to support them in its fulfilment of duties and responsibilities:

Asset and Liabilities Committee/ALCO

According to the latest Decree of the Board of Directors, No.014/DIR/LG/VIII/2017 dated August 28, 2017 concerning the Composition of ALCO Committee, that the membership of the Committee is ex officio, which shall consist of at least:

No. Position Membership – Ex Officio

1 Chairman of the Committee

Director in charge of Finance, Treasury and Corporate Planning

2 Secretary of the Committee

Executive Officer in Treasury appointed by Director in charge of Finance, Treasury and Corporate Planning

3 Member of the Committee

Director in charge of Business


Executive Officer in Finance, Treasury & Corporate Planning


Executive Officer in Risk Management


Executive Officer in Financing Business


Executive Officer in Funding Business

Regular Invitee

Officers in charge of Liquidity & Market Risk who is appointed by Executive Officer in Risk Management

Regular Invitee

Officers in charge of Financing Business who is appointed by Director in charge of Business

The establishment of ALCO has met all the competency requirement and in accordance to the good corporate governance principles.

Duties and Authorities of ALCO

Duties and Authorities of ALCO according to the latest ALCO Charter No.06/PedomanKerja/LG/III/2017 dated March 13, 2017 are:

1. To review, develop and determined the strategy, guidelines and policy of Asset Liability Management (ALMA);


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2. To monitor the liquidity position of the Bank on regular basis by managing the primary and secondary reserves;

3. To monitor the development and strategy of third party fund and financing;

4. To study the development and projection of the overall economy as the basis to set the policy direction;

5. To determine the boundaries and guidelines in managing and controlling risks that impact to Liquidity Risk and Market Risk;

6. To evaluate and set the pricing of financing rate and funding rate and Funds Transfer Price (FTP) or incentives for inter office accounts to optimize the return of deposits, minimize cost of fund, and preserve the Bank’s balance sheet structure in line with the Bank’s ALMA strategy;

7. To evaluate the position of the Bank’s rate of return risk and evaluate ALMA Strategy which ensures that the Bank’s risk-taking position is consistent with its objectives in managing rate of return risk;

8. To review the performance and asset and liabilities position of the Bank to assess the impact of the previous Committee decision to the Bank’s objectives;

9. To evaluate the actual achievement against the budget or the Bank Business Plan;

10. To inform the Board of Directors about changes in regulations which may impact ALMA strategy and policy.

ALCO Committee Report

In 2017, ALCO has held 12 (twelve) meetings every second week of the month. Whenever deemed necessary, any member of the ALCO Committee may ask to convene a meeting.

In every meeting the following subjects were discussed – the condition of macro economy, pricing of funding and financing, liquidity indicators, determination of gross yield, managing secondary reserves and development of money market.

ALCO Committee Meetings

No Name Frequency of Attendance in 12 ALCO meetings in 2017

1 Ratih Rachmawaty (a) 11/12

2 Harry A.S. Sukadis (b) 1/12

3 Taras Wibawa Siregar (c) 5/12

4 Shita Satyawati P. 9/12

5 Hari Pudjo Santoso 6/12

6 Roy Iskandar 9/12

7 Johanes Hermawan 11/12

8 Syaifullah * 10/12Note:(a) Ratih Rachmawaty was appointed as the Chairman of ALCO Committee on March 13, 2017 (b) The terms of office of Harry A.S Sukadis as the Chairman of ALCO Committee ended on

March 6, 2017 (c) Taras Wibawa Siregar was appointed as member of the Committee on March 13, 2017 * Secretary of the Committee

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Information Technology Steering Committee

According to the latest Decree of the Board of Directors No.015/DIR/LG/VIII/2017 dated August 28, 2017 concerning the Composition of Information Technology Steering Committee which stated that the membership of the Committee is ex officio consisting of at least the following:

No Committee Composition

Ex Officio Member


Director in charge of Information Technology


Executive Officer in Information Technology


Director in charge of Finance, Treasury & Corporate Planning


Director in charge of Operations





Regular Invitee Executive Officer in Operations Development

The establishment of Information Technology Steering Committee has met all the requirement and in accordance to the good corporate governance principles.

Duties and Authorities of Information Technology Steering Committee

Duties and Authorities of Information Technology Steering Committee according to the latest Charter No.07/PedomanKerja/LG/VII/2017 dated July 1, 2017 are to provide the recommendation to the Board of Directors in matters pertaining to:

1. Information Technology Strategic Plan in line with the Bank Strategic Plan;

2. Conformity of the Information Technology projects with the Information Technology Strategic Plan, requirement for management information system and the need of the Bank business activities;

3. Conformity of the implementation of the Information Technology projects with the project charter;

4. The effectiveness of efforts to minimize risks of the Bank’s investment on Information Technology as such that the investment contributes to the achievement of the Bank’s business objectives;

5. Monitoring the Information Technology performance and its continuous improvement;

6. Providing effective, efficient and timely solutions to Information Technology problems that remained unresolved by the users.

Information Technology Steering Committee Reports

In 2017, the Information Technology Steering Committee held 5 (five) meetings that provided recommendation to the Board of Directors regarding:

1. Develop and strengthen core business supporting system to support the development of core business of BTPN Syariah;

2. Initiate the roll out of Mobile Prospera as mobile-technology-based front end to help improve business productivity as part sustained efficiency process;

3. Develop BTPN Wow! services by means of leveraging with BTPN (parent company) in financial inclusion customer servicing;

4. Monitor the governance, Risk Management, and performance of information technology in carrying out its mission to support BTPN Syariah strategy within the corridor of Good Corporate Governance;

5. Approve the investment plan and annual plan of Information Technology in 2018 to achieve the initiatives of strategic pillars BTPN Syariah.


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Information Technology Steering Committee Meetings

No. Name Frequency of Attendance in 5 (five) Information Technology Steering Committee Meetings in 2017

1. Ratih Rachmawaty (a) 5/5

2. Mulia Salim (b) 4/5

3. Setiasmo (c) 1/5

4. Harry A.S. Sukadis (d) 1/5

5. Taras W. Siregar 2/5

6. M. Gatot Adhi Prasetyo 4/5

7. Yudi Sukendro (e) 4/5

8. Her Purwoko (f) 5/5

9. Ahmad Yani (g) 4/5

10. Hari Pudjo Santoso 5/5

11. Sinarwaty Murtiningsih (h) 4/5

12. Mohammad Rizal 3/5

13. Johannes H. Sugianto 2/5

14. Shita Satyawati Priandani 1/5

15. Rizal Muska Kamil * 5/5

Note: (a) Ratih Rachmawaty was appointed as the Chairman of

the Committee on March 13, 2017. (b) Mulia Salim was appointed as the Chairman of

the Committee on July 1, 2017 to replace Ratih Rachmawaty.

(c) The term of office of Setiasmo as the Chairman of the Committee ended on March 6, 2017.

(d) The term of office of Harry A.S. Sukadis as member of the committee ended on March 6, 2017.

(e) Yudi Sukendro was appointed as member of the Committee, being effective since April 1, 2017.

(f) Her Purwoko was appointed as member of the Committee, being effective since March 13, 2017.

(g) Ahmad Yani no longer serve as the member of the Committee, being effective since March 13, 2017.

(h) Sinarwaty Murtiningsih was appointed as member of the Committee, being effective since March 13, 2017.

* Secretary of the Committee

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Human Capital Committee

According to the latest Decree of the Board of Directors No. SK.018/DIR/LG/VIII/2017 dated August 28, 2017 concerning the Composition of the Human Capital Committee, the membership of the committee is ex officio which includes at least the following:

No. Committee Composition Ex Officio Member


Director in charge of Human Capital


Executive Officer in Human Capital who is appointed by Director in charge of Human Capital


President Director




Director in charge of Finance



Regular Invitee Director in charge of Risk Management

The establishment of the Human Capital Committee has met all the requirements and competency and in accordance to the good corporate governance principles.

Duties and Authorities of Human Capital Committee

Duties and Authorities of Human Capital Committee according to the latest Charter of the Committee No. 08/PedomanKerja/LG/IX/2017 dated September 25, 2017 include:

1. To establish the policy, strategy and objectives in the area of Human Capital;

2. To approve the implementation of Human Capital remuneration program;

3. To approve the recommendations that were beyond the authority of Division Head and/or Director in charge of Human Capital.

Human Capital Committee Reports

In 2017, the Human Capital Committee held 4 (four) meetings which discussed amongst others the following:

1. Recommendation on salary increase scheme 2017;

2. Result of Performance Appraisal 2016 and Salary Increase 2017;

3. Review of Recruitment Process;

4. Result of Mid-Year Performance Appraisal 2017.


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Human Capital Committee Meetings

No. Name Frequency of Attendance in 4 (four) Human Capital Committee Meetings in 2017

1. Ratih Rachmawaty (a) 4/4

2. Harry A.S Sukadis (b) 2/4

3. Taras Wibawa Siregar (c) 1/4

4. Ratna Maya Sari Soeharto (d) 2/4

5. Mulia Salim (f) 1/4

6. Sulistyo Yuwono (e) * 4/4Note:(a) Ratih Rachmawaty was appointed as the Chairman of the Committee on March 13, 2017.(b) The term of office of Harry A.S Sukadis as the Chairman of the Committee ended on March 6, 2017.(c) Taras Wibawa Siregar was appointed as member of the Committee on March 13, 2017. (d) The term of office of Ratna Maya Sari Soeharto as member of the Committee ended on March 13, 2017.(e) Sulistyo Yuwono was appointed as member of the Committee and Secretary on March 13, 2017. (f) Mulia Salim was appointed as member of the Committee on July 1, 2017.

Risk Management Committee

According to the latest Decree of the Board of Directors No.017/DIR/LG/VIII/2017 dated August 28, 2017 concerning the Composition of the Risk Management Committee, the membership of the committee is ex officio which includes at least the following:

No. Committee Composition Ex Officio Membership

1. Chairman of the Committee

Director in charge of Risk Management

2. Secretary of the Committee


3. Member of the Committee Director in charge of business

4. Member of the Committee Director in charge of Operations

5. Member of the Committee Executive Officer in Finance, Treasury & Corporate Planning

6. Member of the Committee Executive Officer in Human Capital

7. Member of the Committee Executive Officer in Operations

8. Member of the Committee Executive Officer in Information Technology

Regular Invitee Head of Internal Audit Unit

Regular Invitee Executive Officer in Business Risk

Regular Invitee Executive Officer in Operations responsible for Operations Risk

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The establishment of the Risk Management Committee has met all the requirements and considered the competency and in accordance to good corporate governance principles.

Duties and Authorities of Risk Management Committee

According to the latest Charter of the Risk Management Committee No.09/PedomanKerja/LG/III/2017 dated March 13, 2017 the duties and authorities of the Risk Management Committee are, as follows:

1. To prepare the risk management policy and strategy, including risk limit and its updates, revision and refinement;

2. To evaluate the conformity to risk management policy in its implementation;

3. To evaluate and provide recommendation on transactions or activities which require the Board of Directors approval;

4. To evaluate and provide recommendation on transactions or activities which deviate from normal procedures.

Risk Management Committee Report

In 2017, Risk Management Committee held 8 (eight) meetings and issued 2 (two) Circular Resolution which discussed monitoring to the implementation of Risk Management by the Bank which includes 10 types of risks. The result of the meetings was presented to the Board of Directors.

In order to monitor risk, as the subsidiary, BTPN Syariah is obliged to submit to the Parent Bank the consolidated report on 10 types of risk and the report on consolidated risk profile, RBBR and ICAAP in accordance to regulations of Financial Services Authority.

Risk Management Committee Meetings

No. Name Frequency of Attendance in 8 (eight) Meetings of Risk Management Committee

in 2017

1. M. Gatot Adhi Prasetyo (a)(h) 8/8

2. Arief Ismail (i) 4/8

3. Taras Wibawa Siregar (b) 5/8

4. Ratih Rachmawaty (c) 1/8

5. Roy Iskandar 7/8


7. Sulistyo Yuwono (e) 6/8

8. Dharma Putera (f) 2/8

9. Gatot Prasetyo (g) 6/8

10. Yudi Sukendro (j) 1/8

11. Mohamad Rizal (k) 6/8

12. Rizal Muska Kamil 5/8

13. Hari Pudjo Santoso* 7/8

Note:(a) M. Gatot Adhi Prasetyo was appointed as the Chairman of the Committee on

March 13, 2017.(b) The term of office of Taras Wibawa Siregar as the Chairman of the Committee ended

on March 13, 2017.(c) The term of office of Ratih Rachmawaty as member of the Committee ended on

March 13, 2017.(d) The term of office of Ratna Maya Sari Soeharto as member of the Committee ended

on March 13, 2017.(e) Sulistyo Yuwono was appointed as member of the Committee on March 13, 2017.(f) The term of office of Dharma Putra as member of the Committee ended on March 13, 2017.(g) Gatot Prasetyo was appointed as member of the Committee on June 1, 2017.(h) The term of office of M. Gatot Adhi Prasetyo as Interim Compliance Director and therefore

served as the Chairman of the Committee, ended on August 22, 2017. (i) Arief Ismail as the new Compliance Director, served as the Chairman of the Committee

on August 22, 2017, replacing M. Gatot Adhi Prasetyo.(j) Yudi Sukendro was appointed as member of the Committee on March 13, 2017.(k) Mohamad Rizal was appointed as member of the Committee on March 13, 2017.


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Business Committee

According to the latest Decree of the Board of Directors No.016/DIR/LG/VIII/2017 dated August 28, 2017 concerning the Composition of the Business Committee, the membership of the committee is ex officio which consists of at least the following:

No. Committee Composition Ex Officio Membership

1. Chairman of the Committee Director in charge of Business

2. Secretary of the Committee Executive Officer in Financing Busines

3. Member of the Committee Director in charge of Finance, Treasury & Corporate Planning

4. Member of the Committee Executive Officer in Funding Business

5. Member of the Committee Executive Officer in Operations

6. Member of the Committee Executive Officer in Human Capital

7. Member of the Committee Executive Officer in Information Technology

Regular Invitee Executive Officer in Finance, Treasury & Corporate Planning

Regular Invitee Executive Officer in Business Risk

Regular Invitee Executive Officer in Product Development

Regular Invitee Executive Officer in Operations Development

The establishment of the Business Committee has met all the requirement and competency and in accordance to the good corporate governance principles.

Duties and Authorities of Business Committee

According to the latest Charter of the Risk Managemetn Committee No.010/Pedoman Kerja/LG/III/2017 dated March 13, 2017 the duties and authorities of the Business Committee are, as follows:

1. To monitor the development and strategy of Third Party Fund and Financing on regular basis;

2. To monitor Business Financial Performance, Business Process, Business Risk and Human Capital on regular basis;

3. To review proposal of new product or new initiative prior to its presentation to the Board of Directors to secure approval;

4. To develop business strategy, policy and guidelines – and ensure its regular updates and review;

5. To study the development and projection of the overall economy as one consideration in setting policy direction.

Business Committee Report

In 2017, Business Committee has held 8 (eight) meetings and issued 1 (one) Circular Decision in line with the meeting agenda and in accordance to the Committee Charter. At anytime whenever deemed necessary, meeting may be convened considering the internal condition of the Bank, upon request of any member of the Committee.

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In the meeting, the following topics were discussed: financing performance, funding performance, financing risk, mobile banking BTPN Syariah, and BTPN Wow! iB.

Business Committee Meetings

No. Name Frequency of Attendance in 8 (eight) Business Committee Meetings in 2017

1. Taras Wibawa Siregar (a) 8/8

2. Ratih Rachmawaty (b) 7/8

3. Harry A.S Sukadis (c) 1/8


5. Shita Satyawati P. 6/8

6. Mohamad Rizal 4/8

7. Denny Siauw (e) 5/8

8. Sulistyo Yuwono(f) 5/8

9. Johanes Hermawan* 8/8Note:(a) Taras Wibawa Siregar was appointed as the Chairman of the Committee on March 13, 2017.(b) The term of office of Ratih Rachmawaty as the Chairman of the Committee ended on March 6, 2017.(c) The term of office of Harry A.S Sukadis as the member of the Committee ended on March 6, 2017..(d) The term of office of Ratna Maya Sari Soeharto as the member of the Committee ended on March 13, 2017.(e) Denny Siauw was appointed as the member of the Committee on March 13, 2017.(f) Sulistyo Yuwono was appointed as the member of the Committee on March 13, 2017.* Secretary


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social system, environment and management

Embodying the social mission of BTPN Syariah, DAYA is a platform for empowerment to improve the quality of life of productive underprivileged customers. The activities of empowerment program are conducted in a sustained and measureable manner, focusing on Health, Business Growth and Community Development.

In 2017, on top of the empowerment activities by Pembina Sentra, the Daya programs were also implemented through collaborations with third party and the volunteers of Sahabat Daya who were directly involved in the field. There were 588.985 customers and 7.869 non-customers enjoyed the benefits of the Daya program activities.

Daya for Health and Welfare

Focusing on Health, Daya for Health and Welfare is aimed at promoting healthy living habits to maintain customers productivity in their daily activities.

The programs implemented in 2017 were, as follows:

• Daya Training

The training is delivered by Pembina Sentra during the Routine Center Meeting to educate the discipline of saving through practical and easy-to-understand tips such as raise a child, how to do early

understanding and prevention of breast, the danger of obesity, healthy eating habit, the benefits of walking, healthy living habits that prevents breast cancer, understanding and preventing cervical cancer. Those programs have been conducted in centers with total participation of 74,397 customers.

• Health Champion

The Health Champion Program is aimed at delivering health services to customers with a special and unique method for which certain approach is required to ensure that the program achieved the objectives according to the customers’ needs. This program was initiated in 2015 in cooperation with Faculty of Medicine, University of Indonesia. The main activities are regular health checking, health education on hypertension and breast cancer. The advantage of this program is that the Champion have more opportunities to interact with the customers and the surrounding community.

In 2017, the Health Champion program was conducted in Tasikmalaya, Jawa Barat, involving the Health Department of District of Tasikmalaya. 18 Health Champions selected from Subdistrict of Jamanis,

Ciawi, Pagerageung and Rajapolah have served 7.981 customers of BTPN Syariah and 7,000 community during the Posyandu (integrated health services units in villages) activity.

The main activity was health education on hypertension and breast cancer and routing health checking. Beside the routine services, Social Work programs was also conducted on December 2017 in the four villages with a total participation of 215 customers and 331 non-customers.

• Sahabat Daya University

This is a collaboration program with Faculty of Medicine Trisakti University to provide health education and health checking in the centers in the areas of Cilincing and Bantar Gebang, involving 172 doctors in 60 customer centers. The health education was about TBC, cancer, senile, hypertension, diabetes, and other chronical deseases with a total participaction of more than 300 customers.

• Social Work

During the Umroh awarding for the winners of BTPN Syariah Wow! iB, Daya conducted social work activities for customers and general public. The program was implemented in 13 cities

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with health education activities such as cervical cancer and health checking for customers and general public. Delivered in collaboration with Association of Indonesian General Practitioners (Persatuan Dokter Umum Indonesia – PDUI), this program has involved a participation of 3,853 customers and other 538 public community.

Daya to Grow BusinessDaya to Grow Business focuses on entrepreneurship to help the customers to start and grow the business through training on business practices, business information and new business opportunities. The program in 2017 included:

• Daya Training

Delivered by Pembina Sentra in the Routine Center Meeting, the training shared practical tips that are easy to understand for the customers, such as “Economic Spending in order to Increase Saving”, “Dangerous Substance to be Avoided in Food Business”, “Reducing Children Pocket Money in order to Increase Saving”,

“Starting a Business with Small Capital”, “How to Keep Growing the Business”, “How to Grow Food Business”. The training programs were conducted in customer centers with a total participation of 501,981 customers.

• Sahabat Daya University

In 2017, this program was conducted in collaboration with Brawijaya University Malang and Bogor Institute of Agriculture, aimed at improving the capacity of the customers to grow their business. As many as 95 students of both universities were involved in providing direct field assistance to 39 customers.

• Developing Market Access

Developing market access is a program to introduce the customers and their products to various stakeholders of BTPN Syariah and general public. Two activities were conducted in 2017, that is, ‘Bazar Selendang Mayang’, ‘The Making of Story of Book on Customers Products 2017’, that involved 125 customers and 8 communities.

• Sahabat Daya Individual

Through Sahabat Daya Individual, the external volunteers participated in the empowerment program about preservation of Ikat woven culture for BTPN Syariah customers in Kupang and about batik business development for the customers in Cirebon. Sahabat Daya Individual does not only benefit the customers but also to our mobile marketing people, for example the Basic Photography Training held by External Volunteer that were attended by 13 MMS.

Daya for Community Development

Daya for Community Development is dedicated to empower the customer communities who shared the same interest and commitment to collaborate in reaching the potential market and promoting healthy living habit. In 2017, we developed 8 new communities in Garut, West Java and Jepara, Central Java with 94 customer community members.


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Transparancy on Financial Condition and Non-Financial Condition

List of Consultant and Advisors in 2017

Name of Consultant

Objective Contract Period Scope of Work

UNDER THE SUPERVISION OF HUMAN CAPITAL

Eri Yunasri & Partner

To provide legal advice and/or legal opinion on legal aspects in employment

July 11, 2017- July 11, 2018 1. To provide legal advice and/or legal opinion on legal aspects in employment. Other legal advices rendered include criminal and civil laws related to banking or employment.

2. To study, review and provide input to the employment document used and/or made and/or signed for and on behalf of BTPN Syariah, which include amongst others agreement, forms, terms and condition set by BTPN Syariah.

3. To provide explanation and legal opinion on laws and regulations in employment.

DDI - Agate Developing the Content of “Fun Way Onboarding BTPN Syariah”

October 20, 2017- February 26, 2018

1. To develop the content of On-boarding Program in a digital format through games.

2. Provide the application “Fun Way On-Boarding” for BTPN Syariah that can be used, accessed and operated well.

3. To provide maintenance and repair service with certain Service Level Agreement to the application “Fun Way On-Boarding” for BTPN Syariah.

UNDER THE SUPERVISION OF INFORMATION TECHNOLOGY

Quality Kiosk System (Singapore) PTE, LTD

Conduct performance testing for Prospera Core application and mProspera++ to ensure the stability of the application

May 23, 2017- May 22, 2018

1. To conduct performance testing for Prospera Core application and mProspera++ to ensure the stability of the application and accessible by a number of users in each application.

2. The performance testing includes Load Test, Soak Test, Stress Test, WAN Test that were done consecutively starting from discovery, scripting, execution, fine tuning.

3. To provide recommendation for improvement in order to optimize Prospera Core and mProspera++ Application.

PT Pricewaterhouse Coopers Consulting Indonesia

May 23, 2017- May 22, 2018

February 14, 2017- June 13, 2017

1. To conduct a thorough review on the overall governance of IT Directorate using COBIT5 framework.

2. To review the overall use of IT based on Regulations of Financial Services Authority (OJK).

3. To review the utilization of of services performed by IT service provider.

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Name of Consultant


PT Xynexsis International

To review user access, activity log and data storage

July 6, 2017 – July 5, 2018 1. To review user access, activity log and data storage with deliverables including HPU OS & Database, HPU Network Devices, HPU DC/DR, Vulnerability Assessment and Configuration Checking.

2. Perform security function for the Bank to keep and secure the information assets of the Bank.

UNDER THE SUPERVISION OF FINANCE

PT McKinsey Indonesia

To facilitate business and operational transformation for cost efficiency and productivity improvement

24 months starting from June 27, 2016

1. To review on-going process flow;2. To provide recommendation for strategic initiatives and

steps;3. To analyze market condition and the necessary

solution.

Tanudiredja, Wibisana, Rintis dan Rekan (Public Accounting Firm)

Audit Financial Reports BTPN Syariah as of December 31, 2017

October 11, 2017 - March 2018

1. To audit Balance Sheet of BTPN Syariah as of December 31, 2017 and Profit & Loss and Other Comprehensive Income Statement, Statement of Changes in Equity, Cash Flow Statement, Statement of Income and Yield Reconciliation, Statement of Sources and Allocation of Zakat (Alms), Statement of Sources and Use of Benevolent Funds for the above mentioned ending date according to the Indonesian Standards of Financial Accounting;

2. And to perform the necessary procedures on certain information as obligated by the Regulations of Financial Services Authority, POJK Nomor 13/POJK.03/2017 dated March 27, 2017 and the Letter of Financial Services Authority SE OJK No. 36/SEOJK.03/2017 dated July 1, 2017.

UNDER THE SUPERVISION OF LEGAL

Tanudiredja, Wibisana, Rintis dan Rekan (Public Accounting Firm)

Professional Agency for Corporate Action

October 11, 2017 - March 2018

1. To audit Balance Sheet of BTPN Syariah as of September 30, 2017 and Profit & Loss and Other Comprehensive Income Statement, Statement of Changes in Equity, Cash Flow Statement, Statement of Income and Yield Reconciliation, Statement of Sources and Allocation of Zakat (Alms), Statement of Sources and Use of Benevolent Funds for the above mentioned ending date according to the Indonesian Standards of Financial Accounting;

2. To prepare and agree the reliance letter that is required to prepare local comfort letter related to offering activities;

3. To issue comfort letter and, whenever applicable, additional comfort letter or update (on several dates as required) addressed to OJK and copy furnished to the Board of Directors of the Company with respect to local prospectus;

4. To conduct a thorough review on the prospectus;5. To re-generate audit report and financial statements

and other accounting documents, with regard to the acceptance of comments from Financial Services Authority (OJK);

6. To provide assistance by reviewing the response of management to the question of OJK during the review of financial information contained in the prospectus;

7. To review the management representative letters with regard to the Offering.


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Name of Consultant


Assegaf Hamzah & Partners (Legal Consultant)

Professional Agency to Support Corporate Action

July 5, 2017-March 2018

A. Checking from Legal Perspective1. Conduct checking from the Legal Perspectives of

the Company and analizing all the documentations in the scope of the checking from the legal perspective assuming that AHP had performed Checking to the Company which represented the latest Checking from the Legal Perspective of the Company, including: a. Corporation document of the Compay, including

Articles of Association and all the amendments from time to time until present;

b. all the general license and operational license of the Company to conduct business activities;

c. legal documents related to ownership and/or the control of assets owned/controlled by the Bank;

d. insurance policy owned by the Company with regard to the closing of insurance over the assets owned/ controlled by the Company;

e. Employment document such company regulations, working agreement, contract with key employees and other related employment documents of the Company;

f. important agreement with third party, including but not limited to financing document, collateral, affiliation transaction and/or operational agreement;

g. litigation cases involving the Company;h. Other documents that obligated or required

for checking from legal perspective related to Transaction Plan; and

i. coordinate information and necessary involvement from the other supporting professionals that are involved in the Transaction Plan to ensure conformity to issuance schedule and for the purpose of checking from legal perspective.

2. Attend management session, interview with parties related to the Company, conference all, and other meetings as part of the Transaction Plan and checking from legal perspective; and

3. To prepare legal opinion based on checking from legal perspective as obligated by the Regulation of Indonesian Capital Market

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Name of Consultant


B. Structure and Documentation1. To assist the Company in checking and preparing

prospectus from the legal perspective with regard to Transaction Plan;

2. To provide advices and responses to the Company regarding the preparation and/or checking to the documents required for Transaction Plan, including but not limited to Underwriter Agreement, Collective Depository Agreement, and other documents required for the Transaction Plan in Indonesia;

3. To assist the Company in preparing and submitting the statement of registration document and legal supporting document that are obligated by the prevailing regulations, including responding to the questions of the authorities related to the registration statement;

4. To provide assistance to the Company in communicating and/or cooperating directly (if required) with the other support professional and institutions involved and/or with regard to the Transaction Plan, including Indonesian government institution;

5. To provide legal advices related to the Laws of Republic of Indonesia that are relevant to the Transaction Plan; including regulations of OJK and Indonesian Stock Exchange (Bursa Efek Indonesia/BEI);

6. To attend meetings with the Company, consultant and other supporting professionals appointed by the Company, and Indonesian government Institutions including but not limited to OJK and BEI; and

7. To assist the Company in fulfilling every requirement of good corporate governance for the purpose Transaction Plan.


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Name of Consultant


Jose Dima Satria, SH., MKn. (Notary)


July 2017-March 2018 Prepare the agreements for the Public Offerings, including: 1. Underwriter Agreement and the Amendment. 2. Statement of Warrant Issuance.3. Agreement of Shares Administration and the

Amendment.4. Agreement of Warrants Administration Management

and the Amendments. 5. Other Agreements.

PT Trimegah Sekuritas Indonesia Tbk (Underwriter)


July 24, 2017-June 30, 2018

1. The Underwriter guarantees the selling of shares offered in the Initial Public Offerings as mutually agreed.

2. The Underwriter plays the central role in the public offering by the Issuance, by which on top of underwriting services, the underwriter also provides consulting services in the preparation process until the end of offering process, even including preparation of the required documents.

PT Datindo Entrycom (Shares Administraion Bureau – Biro Administrasi Efek (BAE)


July 2017-March 2018 A. Primary Market Administration1. Preparing the Company to Go Public – Provide

consultation and assist the preparation and planning of the Company to Go Public.

2. Implementation of Initial Public Offering. 3. Registration Process of FPPS.4. Allotment Process.5. Shares Distribution in Shares Account in the

Indonesia Central Securities Depository for the purpose of scriptless trading.

6. Preparation of Primary Market Report.B. Secondary Market Administration

1. Maintainance of Shareholders Data. 2. Assistance in conducting General Meeting of

Shareholders – preparing List of Shareholders according to the specified recording date.

3. Preparing the distribution of dividend and bonus shares.

4. Assistance in Investor Relation Program.

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Name of Consultant


Public Appraisal Services Firm Iskandar dan Rekan (Independent Appraiser)


July 2017-March 2018

1. Provide an appraisal report that is complete, detailed, and objective according to the objective of the appraisal.

2. Responsible for the appraisal report and final conclusion of the appraisal in line with the objective of the appraisal.

3. Maintain the confidentiality of the data of the Assigning Party.

4. Not responsible to the other parties, except to BTPN Syariah and the User of Report as specified in the appraisal report according to the appraisal objectives.

Number of Internal Fraud Incidents and the Solutions

In 2017, there was no internal fraud incident that significantly impact the financial condition of BTPN Syariah.

Number Cases in Civil and Criminal Laws and the Solutions

In 2017, there was no case in civil nor criminal laws that significantly impact the financial condition of BTPN Syariah.

Litigation Cases

Litigation cases covers the civil and criminal cases that are brought to the legal proceedings in the court. In 2017, there was no litigation case that significantly impact the financial condition of BTPN Syariah.

Conflict of Interest

Conflict of interest is the situation in which the economic interest of the Bank is in conflict with the personal economic interest of the members of the Board of Commissioners, the Board of Directors, Major Shareholders or the affiliates of the Board of Commissioners, the Board of Directors or Major Shareholders. In 2017, there was no transaction containing conflict of interest in BTPN Syariah.

Fund Allocation for Social Activities and Halal and Non-Halal IncomeAccording to the Letter of Bank Indonesia Surat Edaran Bank Indonesia No.12/13/DPbS dated April 30, 2010 concerning the implementation of GCG for Sharia Bank and Sharia Business Unit, BTPN Syariah is obliged to disclose non-halal income and the use of it in Sharia Bank in the Annual Report of GCG Implementation.

Non-Halal Income that is used as the sources of social funds in BTPN Syariah consists of:

1. Income from current account received from the Bank’s current account in the Conventional Bank;

2. Income from the account closing before maturity dates.


185

Report of Sources and Use of Benevolent Funds PT Bank Tabungan Pensiunan Nasional Syariah dated December 31, 2017:

No. Description December 31, 2017 December 31, 2016

1. Benevolent Fund in the beginning of the period 169 141

2. Source of Benevolent Fund

a. Infaq

b. Shadaqah

c.Return of productive benevolent fund

d. Penalty 52 44

e. Non-halal Income 550 81

f. Others

Total Benevolent Funds 602 125

3. The Use of Benevolent Funds

a. Productive Benevolent Funds

b. Charity

c. Other Use for Public Interest (224) (97)

Total Use of Benevolent Funds (224) (97)

4. Increase (Decrease) of Benevolent Funds 378 28

5. Benevolent Funds at the End of the Period 547 169

Corporate Secretary

Profile of Corporate Secretary in BTPN Syariah

The Role of Corporate Secretary in BTPN Syariah is assumed by the Compliance Director, who is responsible for the dissemination of material information regarding the company performance.

To fulfil the regulations POJK No. 35 and the implement the Board of Director Decree of PT Bursa Efek Indonesia No. Kep-00001/BEI/01-2014 dated January 20, 2014 regarding the Amendments of Regulations No. I-A, BTPN Syariah has appointed Corporate Secretary, according to the Circular Decision of the Board of Directors No. SK.012/DIR/LG/VIII/2017 concerning the Appointment of Officer of Corporate Secretary dated August 22, 2017.

The term of office of Corporate Secretary in BTPN Syariah started from the signing of the Board of Directors Decree No. SK.012/DIR/LG/VIII/2017, until the Annual General Meeting of Shareholders in 2020 (correspond to the term of office of the Board of Directors appointed pursuant to the Shareholders Resolution in the Annual General Meeting of Shareholders on March 14, 2017).

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Below is brief description of Corporate Secretary:Address: Menara BTPN, 12th Floor,

CBD Mega Kuningan, Jl. DR. Ide Anak Agung Gde Agung Kav. 5.5-5.6, Jakarta Selatan 12950

Phone: (021) 3002 6400Fax.: (021) 2927 2096Email: [email protected]

Duties and Responsibilities of Corporate Secretarya. To follow the development of

Capital Market, particularly the prevailing laws and regulations in Capital Market;

b. To provide advices to the Board of Directors and the Board of Commissioners of the Issuer or Public Company to comply to the laws and regulations in Capital Market;

c. To assist the Board of Directors and the Board of Commissioners in the implementation of good corporate governance, including:1. Disclosure of information to

the public including providing information in the website of the issuer or Public Company;

2. Timely report submission to OJK;

3. Implementation and documentation of General Meeting of Shareholders;

4. Implementation and documentation of meetings of the Board of Directors and/or the Board of Commissioners;

5. Implementation of orientation program for the Board of Directors and/or the Board of Commissioners.

d. As the liaison between the Issuer or Public Company with the shareholders of the Issuer or Public Company, OJK and other stakeholders.

Activities of Corporate Secretary in 2017

1. Implementation of Extra Ordinary General Meeting of Shareholders on November 16, 2017;

2. Execution of secretarial duties in the meeting of the company;

3. Participation in the training programs.

The Training Programs attended including:

No. Training Program Organizer Time and Place

1. Introduction to Sharia Banking Karim Consulting Indonesia February 14, 2017, Jakarta

2. Cyber Security and Intergrating Operational Risk with the Mitigating Factors and Digital Payment A New Era in the Way We do Payments

IBI, LSPP, BARA February 16, 2017, Jakarta

3. Banking Risk Management Certification (Refreshment) Level 4 LSPP February 23, 2017, Jakarta

4. Induction Program in Sharia Banking for the new Board of Directors and the Board of Commissioners and other relevant issues

Karim Consulting Indonesia July 26, 2017, Jakarta

5. Banking Compliance Certification LSPP October 14, 2017, Jakarta


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#bankirpemberdaya is the most important asset for the Bank, not only for their relentless dedication in serving the customers, but also for their competence and excellence in each specific areas of expertise

05company data

189

executive officers

No. Name Position Description

1. Larasati Moerdijat Head of Daya & Communication Joined since 2015. Previous employment were in Saatchi & Saatchi Indonesia, VSO Uganda, OgilvyOne Indonesia, and JWT Singapore.

2. Fachmy Achmad Project Advisor for Organization Transformation

Joined since 2017. Previous employment in Pricewaterhouse and Standard Chartered Bank.

3. R. Dewo Triatmoko Head of Process Transformation & Digital Channel

Joined since 2017. Previous employment in Bank BCA Syariah, Bank UIB, Bank NISP and Bank BTPN.

4. Gatot Prasetyo Head of Internal Audit Joined since 2017. Previous employment in Barclays Bank and Bank BTPN.

5. Roy Iskandar Head of Finance, Treasury & Corporate Planning

Joined since 2008. Previous employment in HSBC and Bank Danamon.

6. Sulistyo Yuwono Head of HC Corporate Joined since 2016. Previous employment in The Royal Bank of Scotland.

7. Dra. Rena Mutia Indriani Head of Compliance Joined since 2014. Previous employment Bank BRI Syariah and Bank Permata.

8. Hari Pudjo Santoso Head of Risk & Fraud Management

Joined since 2009. Previous employment in Bank ABN Amro and Citibank.

9. Yunita Cahaya Haerani, SH.H.HUM

Head of Legal Joined since 2013. Previous employment in Citibank and AIA Financial.

10. Yudi Sukendro Head of Information Technology Joined since 2017. Previous employment in Bank Mega Syariah, GE Finance and Bank BTPN.

11. Mohamad Rizal Head of Operation Services Joined since 2008. Previous employment in Bank Mega and Bank Danamon.

12. Pyandi Nugroho Head of Corporate Services Joined since 2008. Previous employment in Bank Danamon.

13. Johanes Hermawan Sugianto Head of TUR Business Joined since 2008. Previous employment in Bank Danamon.

14. Shita Satyawati Priandani Head of Retail Funding Sales & Distribution

Joined since 2009. Previous employment in Bank Mega Syariah and Bank Mandiri.

15. Dewi Nuzulianti Head of Business Planning & Support

Joined since 2009. Previous employment in Bank Permata.

16. Andrew Adhitia (PJS) Head of Business Risk Joined since 2014. Previous employment in Bank Danamon and Standard Chartered Bank.

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// corporate data

product and services

Funding

1. Tabungan Citra iBA profit-sharing-agreement (akad mudharabah mutlaqah) saving account with a minimum deposit. Customers will have access to do banking transactions in all BTPN Syariah Banking with free monthly administration fee.

2. Taseto Premium iBOn top of the optimum return, this profit-sharing-agreement (akad mudharabah mutlaqah) saving account offers the benefits of unlimited cash withdrawals and free monthly administration fee*)

*) Terms and conditions applied.

3. Deposito Berjangka iBTime deposits with profit-sharing-agreement (akad mudharabah mutlaqah) between the Bank (mudharib) and the customers who owns the fund (Shahibul maal) that offers various maturies ranging from 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 18, and 24 months.

4. Taseto Mapan iBA profit-sharing-agreement (akad mudharabah mutlaqah) saving plan offering competitive yield with monthly or timed deposit option.

5. Giro iBFund deposit product with wadiah agreement, offering ease of transactions using cheque/giro.

6. Tabungan BTPN Wow! iBSaving account with electronic banking facilities accessible through GSM (Global System for Mobile Communication) handphone. This financial inclusion product provides the customers with ease of transaction including bills payment, air time purchase, fund transfer, cash deposit and withdrawal through BTPN Syariah Agents or BTPN Syariah branches.

Financing

Paket Masa Depan (PMD) iBDesigned for underprivileged women with sale and purchase agreement (akad wakalah wal murabahah), this financing product focuses on character development by educating the customers to nurture the habits of Courage to Do Business, Discipline, Hardwork and Solidarity.


191

office network

Non-Operational Head OfficeMenara BTPN, Lt. 12 CBD Mega Kuningan, Jl. Dr. Ide Anak Agung Gde Agung Kav. 5.5-5.6, Kel. Kuningan Timur, Kec. Setiabudi, Jakarta Selatan Phone. 02130026400

KFNO DinoyoJl. Dinoyo No. 21, Kel. Keputran, Kec. Tegalsari, Kota Surabaya, Prov. Jawa Timur Phone. 0315663316

KFNO CikawaoJl. Cikawao No. 46, Kelurahan Cikawao, Kecamatan Lengkong, Kota Bandung, Provinsi Jawa Barat Phone. 02220526901

KFNO Wisma BCAWisma BCA 2nd Floor, BSD City Kavling CBD Lot 13, Jl. Kapten Soebianto Djojohadikusumo Kel. Lengkong Gudang, Kec. Serpong, Kota Tangerang Selatan, Propinsi Banten, 15321 Phone. 02129661101

KC Semarang-PamularsihJl. Pamularsih No. 17 Semarang Phone. 0247622280

KFO Ungaran BaratJl. Gatot Subroto No. 94 Kel. Bandarjo, Kec. Ungaran Barat, Kab. Semarang, Jawa Tengah Phone. 02476510190

KFO TemanggungJl. Pahlawan No. 95, Kel. Temanggung II, Kec. Temanggung, Temanggung Phone. 0293491779

KFO SurakartaJl. Honggowongso 57, Ruko B 8, Surakarta Phone. 0271633557/0271636009

KFO SidorejoRuko Salatiga Regency, Jl. Fatmawati No. 188, Blotongan, Sidorejo, Salatiga Phone. 02986031903 / 02986031952

KFO Klaten UtaraJl. Dr. Wahidin Sudiro Husodo, RT 03 RW 005, Kel. Sekarsuli, Kec. Klaten Utara, Kab. Klaten, Jawa Tengah Phone. 02723359809

KFO Sragen KotaJl. Sukowati 37 (Ruko Harlin Sragen Blok A-3 and Blok A-4), Kel. Sine, Kec. Sragen, Kab. Sragen, Jawa Tengah Phone. 02718825069

KFO BoyolaliJl. Perintis Kemerdekaan Gp 13, Kampung Kebonso, Kelurahan Pulisen, Kel. Boyolali, Kec. Boyolali, Jawa Tengah Phone. 0276320134

KFO WonogiriJl. Raden Mas Said No. 19, Kel. Singodutan, Kec. Selogiri, Kab. Wonogiri, Jawa Tengah Phone. 02733201070

KFO PurwodadiJl. Ahmad Yani 269, Kel. Kuripan, Kec. Purwodadi, Kab. Grobogan, Jawa Tengah Phone. 0292425135

KFO BloraJl. Gatot Subroto No. 120, Kel. Sonoredjo, Kec. Blora, Kab. Blora, Jawa Tengah Phone. 02964319107

KFO KendalJl. Soekarno Hatta 99 B, Desa Cipiring, Kec. Cipiring, Kab. Kendal, Jawa Tengah Phone. 02943690027

KFO PatiJl. Master Iskandar No. 65 (Ruko D & Ruko E), Desa Blaru, Kec. Pati, Kab. Pati, Jawa Tengah Phone. 0295382794

KFO JeparaJl. Pemuda No. 15, Kel. Panggang, Kec. Jepara, Kab. Jepara, Jawa Tengah Phone. 02914260079

KFO DemakJl. Raya Demak-Kudus, Kel. Bintoro, Kec. Demak, Kab. Demak, Jawa Tengah Phone. 02916910172

KFO Kudus KotaJl. Ahmad Yani No. 128, Getas Pejaten, Jati, Kudus Phone. 02914101904

KFO RembangJl. Sudirman No. 81, RT 02 RW 01, Desa Kabongan Kidul, Kec. Rembang, Kab. Rembang, Jawa Tengah Phone. 0295693501

KFO KaranganyarJl. Raya Solo Karanganyar KM 7, Kel. Triagan, Kec. Mojolaban, Kab. Sukoharjo, Jawa Tengah Phone. 02717881232

KFO Karang GedeJl. Tegal Rayung, RT 014, RW 04, Desa Pelem, Kecamatan Simo, Jawa Tengah, 57377 Phone. 0276327965

KFO WonosoboJl. Mayor Jendral Bambang Sugeng Sidojoyo Blok A7 & A8, RT 01 RW 04, Kelurahan Pagerkukuh, Kecamatan Wonosobo, Kabupaten Wonosobo, Jawa Tengah Phone. 02863301612

ATM KC Semarang-PamularsihJl. Pamularsih No. 17 Semarang

KC Tegal-KudaileJl. Flores Baru RT 02 RW 04, Kel. Kudaile, Kec. Slawi, Kab. Tegal. Jawa Tengah Phone. 02834562195

KCP Pekalongan-Tanjung KulonJl. Mandurorejo RT 01 RW 01, Ds. Tanjung Kulon, Kec. Pekalongan Phone. 02853830041

KFO PekalonganJl. Kurinci No. 9 Kel. Bendan Kec. Pekalongan Barat, Kab. Pekalongan Phone. 02854460034

KFO BrebesJl. Raya Klampok Wasana Wanasari Brebes Phone. 02836172328 / 02836172326

KFO Dukuh TuriJl. Gajah Mada (Komp. Ruko Gajahmada Town Square) No. 9, RT 004 RW 002, Kel. Mintaragen, Kec. Tegal Timur, Kota Tegal, Jawa Tengah Phone. 02834532685

KFO LimpungJl. Raya Limpung Banyu Putih No. 201 (Ruko B,C,D), Kec. Limpung, Kel. Sempu, Kab. Batang, Jawa Tengah Phone. 02856681009

KFO CilacapJl. Gatot Subroto (Ruko Gatsula) No. 2 & 3, RT 004 RW 008, Kel. Gunungsimping, Kec. Cilacap Tengah, Kab. Cilacap, Jawa Tengah Phone. 02825561194

KFO PurwokertoJl. Jend. Sudirman Barat No. 89, RT 01 RW 07, Kel. Bantarsoka, Kec. Purwokerto Barat, Kab. Banyumas, Jawa Tengah Phone. 02816512117

KFO BanjarnegaraJl. Kolektor Primer, RT 004 RW 005, Kelurahan Bawang, Kecamatan Bawang, Kabupaten Banjarnegara, Jawa Tengah Phone. 02865988503

KFO PurbalinggaJl. M.T. Haryono Purbalingga No. 5B, Kel. Kandanggampang, Kec. Purbalingga, Purbalingga Phone. 0281894458

KC Jakarta-Menara KadinMenara Kadin Indonesia, Jl. H.R. Rasuna Said Blok X-5 Kav. 2 & 3, Jakarta 12950 Phone. 0215274601

ATM KC Jakarta-Menara KadinMenara Kadin Indonesia, Jl. H.R. Rasuna Said Blok X-5 Kav. 2 & 3, Jakarta 12950

KC Bandung-SundaJl. Sunda No. 27 D, Kelurahan Kebon Pisang, Kecamatan Sumur Bandung, Kota Bandung Phone. 0224234241

KFO JatibarangJl. Raya Bulak No. 66 Kel. Bulak, Kec. Jatibarang, Kab. Indramayu Phone. 0234355899

KFO M. TohaM. Toha No. 97/97 A RT 001 RW 04, Kelurahan Cigereleng, Kecamatan Regol, Bandung Phone. 0225222389

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// corporate data

KFO JatiwangiKawasan Komersial Ruko Jatiwangi Square A No. 18 & 19. Jl. Ahmad Yani, RT 002 RW 008, Desa Sutawangi, Kec. Jatiwangi, Kab. Majalengka, Jawa Barat 45454 Phone. 0233888291

KFO Gunung JatiJl. Raya Pasindangan Komplek Ruko depan Rumah Sakit Tangkil No. 5, Desa Pasindangan, Kec. Gunungjati, Kab. Cirebon, Jawa Barat Phone. 02318308454

KFO SoreangJl. Raya Soreang Banjaran No. 356 D/E Desa Soreang, Kec. Soreang, Kab. Bandung, Jawa Barat Phone. 02285876002

KFO RengasdengklokDusun Jati RT 002 RW 005, Desa Rengasdengklok Utara, Kec. Rengasdengklok, Kab. Karawang, Jawa Barat Phone. 0267484620

KFO PurwakartaJl. Ibrahim Singadilaga No. 16, RT 009 RW 002, Kel. Nagrikaler, Kec. Purwakarta, Kab. Purwakarta, Jawa Barat Phone. 02648301510

KFO MajalayaJl. Raya Laswi Km. 16 (Perumahan Puri Mega Citra) No. 10-11, Kel. Ciheulang, Kec. Ciparay, Bandung, Jawa Barat Phone. 02285966036

KFO PadalarangJl. Nasional Blok Tamiang Resik, RT 002 RW 001, Desa Gadobangkong, Kec. Ngamprah, Kabupaten Bandung Barat, Jawa Barat Phone. 0226635100

KFO SubangJl. Otto Iskandardinata (Otista) No. 92, Kel. Karanganyar, Kec. Subang, Kab. Subang, Jawa Barat Phone. 02607605221

KFO CibadakJl. Siliwangi No. 123, RT 01/17, Kel. Cibadak, Kec. Cibadak, Kab. Sukabumi Phone. 02667160007

KFO TanjungsariJl. Raya Bandung-Sumedang, RT 01 RW 07, Ds. Hegarmanah Phone. 0227797115

KFO CimalakaJl. Prabu Geusan Ulun No. 98A RT 004 RW 02, Kel. Regolwetan, Kec. Sumedang Selatan, Kab. Sumedang, Jawa Barat Phone. 02612401243

KFO KandanghaurJl. Blok Tjodong No. 196, Desa Eretan Wetan, Kec. Kandanghaur, Kab. Indramayu, Jawa Barat Phone. 02347145008

KFO IndramayuPerumahan “Jangkar Mas Regency” Blok A1 No. 5-6, Kel. Karanganyar, Kec. Indramayu, Kab. Indramayu, Jawa Barat Phone. 02347120053

KFO SingaparnaJl. Blok Borolong, Desa Cilampunghilir, Kec. Padakembang, Kabupaten Tasikmalaya, Jawa Barat Phone. 02657540061

KFO BanjarJl. Sudiro W, RT 03 RW 001, Kelurahan Banjar, Kec. Banjar, Kota Banjar, Jawa Barat Phone. 0265743236

KFO TamansariJl. Perintis Kemerdekaan, Kelurahan Tugujaya, Kec. Cihedeung, Kota Tasikmalaya, Jawa Barat Phone. 0265332335

KFO CiamisJl. Pasir Manis No. 44, Kel. Ciamis, Kec. Ciamis, Kab. Ciamis, Jawa Barat Phone. 0265775237

KFO BayongbongJl. Ciledug No. 92 A, Kel. Regol, Kec. Garut Kota, Kab. Garut, Jawa Barat Phone. 0262231921

KFO Jampang KulonJl. Raya Surade RT 016 RW 006, Kel. Surade Phone. 0266490048

KFO PamanukanJl. Raya Ion Martasasmita RT 016 RW 006, Desa Rancasari, Kec. Pamanukan, Kab. Subang, Jawa Barat Phone. 02607544055

KFO SagarantenJl. Raya Baros RT 01 RW 06, Desa Baros, Kec. Baros, Kota Sukabumi, Jawa Barat Phone. 02666243910

KFO Gunung PuyuhJl. Jendral Sudirman RT 03 RW 03, Kelurahan Gunung Parang, Kecamatan Cikole, Kota Sukabumi, Jawa Barat Phone. 02666244126

KFO CianjurJl. Hos Cokroaminoto No. 102, RT 01 RW 01, Kel. Muka, Kec. Cianjur, Kab. Cianjur, Jawa Barat Phone. 02632284040

KFO PalimananJl. Otto Iskandar Dinata No. 3, Desa Klangenan, Kec. Klangenan, Kab. Cirebon, Jawa Barat Phone. 02318825046

KFO PangenanJl. Pangeran Sutajaya No. 22, RT 001 RW 003, Desa Pabuaran Wetan, Kec. Pabuaran, Kab. Cirebon, Jawa Barat Phone. 02318840161

KFO CiawigebangJl. Raya Sindangagung, Blok Ciseureuh, Desa Sindangagung, Kec. Sindangagung, Kabupaten Kuningan, Jawa Barat Phone. 02328900188

KFO KuninganJl. Veteran RT 07 RW 03, Blok Lempuyangan, Kel. Kuningan, Kec. Kuningan, Kab. Kuningan, Jawa Barat Phone. 023289000228

KFO MajalengkaJl. Babakan Jawa Blok Giri Asih, Kel. Majalengka Wetan, Kec. Majalengka, Jawa Barat Phone. 02338291244

KFO Jawa Barat 3-KadungoraJl. Raya Kadungora No. 97/Sukamaju RT 02/02 Ds. Kadungora, Kecamatan Kadungora, Kabupaten Garut, Jawa Barat Phone. 0262454500

KFO Jawa Barat 1-Ciawi TasikJl. Pelita I/Cidemang, Ds. Pakemitan, Kecamatan Ciawi, Kabupaten Tasikmalaya, Jawa Barat, 46156 Phone. 0264272717

KFO Jawa Barat 2-PleredBlok Warungkandang, RT 017 RW 004, Ds. Sindangsari, Kecamatan Plered, Kabupaten Purwakarta, Jawa Barat Phone. 02657545042

LSB Bank BTPN KC A. YaniJl. Jend. Achmad Yani 618, Bandung Phone. 02292759172

LSB Bank BTPN KC CirebonJl. Dr. Wahidin Sudirohusodo 72 Cirebon Phone. 02319111657

LSB Bank BTPN KC DagoJl. Ir. H. Juanda No. 8 Bandung Phone. 0224206749

LSB Bank BTPN KC TasikmalayaJl. K.H.Z. Mustofa No. 289, Tasikmalaya Phone. 02659113893

ATM KC Bandung-SundaJl. Sunda No. 27 D, Kelurahan Kebon Pisang, Kecamatan Sumur Bandung, Kota Bandung

KC Surabaya-DarmahusadaJl. Darmahusada No. 136 Kota Surabaya Phone. 0315956259

KFO WiyungJl. Menganti Kramat No. 25, Kel. Jajartunggal, Kec. Wiyung, Surabaya Phone. 0317672886

KFO PareJl. Panglima Sudirman No. 4 Pare, Kediri Phone. 0354390900


193

KFO BlitarJl. Tanjung Blok A Kav. 02, Kel. Sukorejo, Kec. Sukorejo, Blitar Phone. 03426817697

KFO RambipujiJl. Brawijaya, Kabupaten Jember Phone. 0331425472

KFO BanyuwangiJl. A. Yani No. 96, Kel. Penganjuran, Kec. Banyuwangi, Kab. Banyuwangi, Jawa Timur Phone. 0333421654

KFO GentengJl. Raya Genteng, Ds. Genteng Wetan, Kec. Genteng, Kab. Banyuwangi, Jawa Timur 68465 Phone. 0333843962

KFO BondowosoRuko Crown Plaza, No. 1, Jl. Kyai Haji Wahid Hasyim No. 168, Kelurahan Blindungan, Kecamatan Bondowoso, Kabupaten Bondowoso, Jawa Timur Phone. 0622697879

KFO TapenJl. Raya No. 51, RT 024 RW 006, Ds. Lumutan Phone. 0332561052

KFO SitubondoJl. Ahmad Yani No. 110 A-B, Kel. Dawuhan Phone. 03383893529

KFO SidoarjoJl. Lingkar Barat No. 1, Kel. Pagerwojo, Kec. Sidoarjo, Kab. Sidoarjo, Jawa Timur Phone. 03199701018

KFO BojonegoroJl. Veteran (Ruko CCBD), Desa Sukorejo, Kec. Bojonegoro, Kab. Bojonegoro, Jawa Timur Phone. 03535254322

KFO Kediri KotaJl. Joyoboyo No. 16, Desa Kemasan, Kec. Kota Kediri, Kotamadya Kediri, Jawa Timur Phone. 0354697220

KFO BalungJl. Panglima Besar Sudirman No. 26, RT 002 RW 005, Desa Tanggulwetan, Kecamatan Tanggul, Kabupaten Jember, Jawa Timur Phone. 0336445466

KFO KalisatJl. Raya Raung, RT 001 RW 001, Desa Tegalrejo, Kecamatan Mayang, Kabupaten Jember, Jawa Timur Phone. 0331592257

KFO MadiunJl. Diponegoro No. 110, Kel. Madiun Lor, Kec. Manguharjo, Madiun, Jawa Timur Phone. 03514770444

KFO BangkalanJl. Soekarno Hatta (seberang GOR Bangkalan), RT 002 RW 02, Kel. Mlajah, Kec. Bangkalan, Kab. Bangkalan, Jawa Timur Phone. 0313062255

KFO Duduk SampeyanJl. R.A. Kartini No. 108, RT 001 RW 005, Kel. Sidomoro, Kec. Kebomas, Kab. Gresik, Jawa Timur Phone. 03199006533

KFO SumenepJl. Trunojoyo No. 214 Blok 1, Komplek Ruko Arya Wiraraja, Sumenep Phone. 03286771037

KFO MojosariJl. Bhayangkara No. 101 A, Kelurahan Jagalan, Kecamatan Magersari, Kota Mojokerto, Jawa Timur Phone. 03215885573

KFO SingosariJl. Letjen Sutoyo No. 116B, Kel. Purwantoro Phone. 03414352322

KFO KepanjenJl. Achmad Yani No. 2B RT 003 RW 001, Kel. Ardirejo, Kec. Kepanjen, Kab. Malang Phone. 0341393370

KFO ProbolinggoJl. Sukarno Hatta, Kelurahan Tisnonegaran, Kecamatan Kanigaran, Kota Probolinggo, Jawa Timur Phone. 0335426224

KFO PonorogoJl. Batoro Katong No. 73 RT 001 RW 001, Kelurahan Cokromenggalan, Kecamatan Ponorogo, Kabupaten Ponorogo, Jawa Timur Phone. 03523592002

LSB Bank BTPN KC MadiunJl. Salak Raya No. 65, Madiun Phone. 0351453310

LSB Bank BTPN KCP BlitarJl. Tentara Gene Pelajar 23, Blitar Phone. 0342801014

LSB Bank BTPN KC DarmoJl. Raya Darmo No. 29 A, Surabaya Phone. 0315621172

LSB Bank BTPN KCP Bukit Darmo GolfKomp. Office Park Bukit Darmo Golf B2 No. 19 Phone. 0317320152

LSB Bank BTPN KC KediriJl. Brigjen Katamso 32, Kediri Phone. 0354685990

LSB Bank BTPN KCP Manyar KertoarjoJl. Manyar Kertoarjo No. 19, Surabaya, 60285 Phone. 0315910298

LSB Bank BTPN KC SurabayaJl. Indrapura No. 1 E-F-G, Surabaya Phone. 0321322761

ATM KC Surabaya-DharmahusadaJl. Darmahusada No. 136 Kota Surabaya

KC Palembang-A.rivaiJl. Kapten A. Rivai No. 403 D, Kelurahan 26 Ilir, Kecamatan Ilir Barat I, Palembang Phone. 0711373595

KFO Palembang KotaJl. M.P. Mangkunegara RT 01 RW 01, Kelurahan 8 Ilir, Kecamatan Ilir Timur II, Kota Palembang, Sumatera Selatan Phone. 0711814827

KFO SekayuJl. Kolonel Wahid Udin RT 01 RW 01, Kelurahan Balai Agung, Kecamatan Sekayu, Kabupaten Musi Banyuasin, Sumatera Selatan Phone. 0714323016

KFO Muara EnimJl. Sultan Mahmud Badarudin II, RT 02 RW 04, Kelurahan Pasar II Muara Enim, Kecamatan Muara Enim, Kabupaten Muara Enim, Sumatera Selatan Phone. 0734422041

KFO Kayu AgungJl. Yusuf Singedekane, RT 007 RW 000, Kelurahan Jua-jua, Kecamatan Kota Kayu Agung, Kabupaten Ogan Komiring Ilir, Sumatera Selatan Phone. 0712 321377

LSB Bank BTPN KC CindeJl. Kolonel Atmo No. 581/1119 - 1120 - Palembang Phone. 0711358781

ATM KC Palembang-A. RivaiJl. Kapten A. Rivai No 403 D, Kelurahan 26 Ilir, Kecamatan Ilir Barat I, Palembang

KC Lampung-Jendral SudirmanJl. Jendral Sudirman No 55, Kelurahan Rawa Laut, Kecamatan Tanjung Karang Timur, Kota Bandar Lampung Phone. 0721242941

KFO LampungJl. Hayam Wuruk No 103, Kelurahan Sawah Lama, Kecamatan Tanjung Karang Timur, Kota Bandar Lampung, Propinsi Lampung Phone. 07215602806

KFO Bandar JayaJl. Proklamator Raya No.8, Kel. Bandar Jaya Timur, Kec. Terbanggi Besar, Kab. Lampung Tengah, Provinsi Lampung Phone. 072525187

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// corporate data

KFO MetroJl. AH. Nasution No 67 B-C, Kelurahan Yosorejo, Kecamatan Metro Timur, Kota Metro, Provinsi Lampung Phone. 0725-7851268

KFO PringsewuJl. Jend. Ahmad Yani 67 D/E, Kelurahan Pringsewu Utara, Kecamatan Pringsewu, Kabupaten Pringsewu, Provinsi Lampung Phone. 072924599

KFO KotabumiJl. Alamsyah Ratu Perwira Negara No.1-2 RT. 06 RW. 01, Kelurahan Kelapa Tujuh, Kecamatan Kotabumi Selatan, Kabupaten Lampung Utara, Provinsi Lampung Phone. 0724-23602

KC Padang-PemudaJl. Pemuda No. 24, Kelurahan Olo, Kecamatan Padang Barat, Padang – Sumatera Barat Phone. 075121001

KFO Padang Kota-Pesisir SelatanDs. Kanigarian Surantih, Kec. Sutera, Kabupaten Pesisir Selatan, Propinsi Sumatera Barat Phone. 0756453030

KFO PayakumbuhJl. Soekarno Hatta No 183 B, RT 001, RW 002, Kelurahan Bulakan Balai Kandi, Kecamatan Payakumbuh Barat, Kota Payakumbuh, Propinsi Sumatera Barat, Kode Pos 26225 Phone. 0756453030

KC DIY-Seturan PlazaKomplek Seturan Plaza Hall Utara Jl. Seturan Raya, Desa Catur Tunggal, Kecamatan Depok, Sleman – Yogyakarta Phone. 02744332615

KCP Sleman-SinduadiJl. Magelang-Yogja KM 5.5 (Ruko No. 72 A), Ds. Sinduadi, Kec. Mlati, Kab. Sleman, Daerah Istimewa Yogyakarta Phone. 0274623685

KCP Bantul-Wahid HasimJl. Wahid Hasim,Gose,Ringinharjo, Kec. Bantul Phone. 0274367626

KFO Magelang Selatan Jl. Soekarno Hatta No. 18, Magelang Selatan Phone. 02933218582

KC Banda Aceh-SafiatuddinJl. Sri Ratu Safiatuddin,Gampong Peunayong, Kecamatan Kuta Alam, Banda Aceh Phone. 065121276

KFO Pidie-Mutiara TimurJl. Banda Aceh- Medan Gampong Blang Liliue, Kecamatan Mutiara, Kabupaten Pidie, Propinsi Aceh Phone. 0653821631

KC Medan-SetiabudiJl. Setiabudi, Komplek Setiabudi Blok B.1 A, Kelurahan Tanjung Rejo, Kecamatan Medan Sunggal, Medan – Sumatera Utara Phone. 0618225528

KFO Medan Jl. Amir Hamzah 9/34 B, Kec. Medan Barat, Kota Medan Phone. 06180033611

KFO Lima PuluhJl. Kartini Kel. Perdagangan I, Kec. Bandar, Kab. Simalungun, Sumatera Phone. 0332429557

KFO Simpang EmpatJl. Teuku Umar no 55 D Lk-III, Kel. Tanjung Balai Kota I, Kec. Tanjung Balai Selatan, Kota Tanjung Balai, Propinsi Sumatera Utara, Phone. 06234562779

ATM KC Medan-SetiabudiJl. Setiabudi, Komplek Setiabudi Blok B.1 A, Kelurahan Tanjung Rejo, Kecamatan Medan Sunggal, Medan – Sumatera Utara

KC Kupang-OeboboJl. W. J. Lalamentik RT.013 RW.005, Kel.Oebobo, Kec.Oebobo, Kota Kupang, Provinsi Nusa Tenggara Timur Phone. 0380821487

KC Mataram-Panca UsahaJl. Panca Usaha No. 31, Kelurahan Cakranegara Barat, Mataram – Nusa Tenggara Barat Phone. 0370639409

KFO SelongJl. Prof. Moh. Yamin, SH, Lingkungan Kampung Baru, Kel.Majidi, Kec. Selong, Kab. Lombok Timur, NTB Phone. 03762991123

KFO BimaJl. Sultan Hasanudin, RT.06 RW.02, Kel. Paruga, Kec. Rasane Barat, Kota Bima, Nusa Tenggara Barat Phone. 03746648687

KFO CakranegaraJl. Selaparang, Lingkungan Sweta Timur, Kel. Mayura, Kec. Cakranegara, Kota Mataram Phone. 03706173949

KC Pekanbaru-TambusaiJl. Tuanku Tambusai No 320, Pekanbaru, Riau Phone. 076131422

KFO PekanbaruJl. Arifin Ahmad Blok D/05, Kel. Sidomulya Timur, Kec Marpoyan Damai, Kota Pekanbaru, Propinsi Riau Phone. 07618418778

KFO Kota BangkinangJl. Sisingamangaraja, Kel. Bangkinang, Kec. Bangkinang Kota, Kab. Kampar, Riau Phone. 076221231

KFO Kota DuriJl. Hang Tuah No. 29, RT 005, RW 005, Desa Tambusai Batang Dui, Kecamatan Mandau, Kabupaten Bengkalis, Riau Phone. 07655630020

KC Jakarta-Pondok Indah Rukan Plaza 5 Pondok Indah Kav. A.12, Jl. Marga Guna, RT 004/RW 015, Kelurahan Gandaria Utara, Kecamatan Kebayoran Baru, Jakarta Selatan Phone. 02129428280

KFO ParungJl. Raya Parung, Kel. Curug, Kec. Bojongsari Phone. 02518618058

KFO CimoneJl. Otista No.82D, Kel Gerendeng, Kec. Karawaci, Tanggerang, Banten Phone. 02155798057

KFO CilegonJl. Letjend Suprapto No 26 G, Kel. Ramanuju Kec. Purwakarta, Cilegon, Banten Phone. 0254385678

KFO KaduhejoJl. Raya Cikuya RT 002, RW 007, Kel. Sukaratu, Kec. Majasari, Kab. Pandeglang, Banten Phone. 02535213642

KFO CikupaPerum Citra Raya, Citra Raya Blok C1 No.3 R,Kel. Cikupa, Kec. Cikupa, Kabupaten Tangerang, Provinsi Banten Phone. 02159404045

KFO TalagasariJl. Syech Quro RT 004 RW 02, Desa Telagamulya, Kec. Telagasari, Kab. Karawang, Jawa Barat Phone. 0267484621

KFO DramagaJl. H. Encep Nawawi, RT. 02 RW.11, Kel. Bubulak, Kec. Bogor Barat,Kab.Bogor, Jawa Barat Phone. 02518422656

KFO CipocokJl. Abdul Hadi Lingkungan Kebon Jahe (Depan Ratu Hotel BIDAKARA) No. 96, RT.03, RW.14, Kel. Cipare, Kec. Serang, Serang, Banten Phone. 02547911546


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KFO Cikarang BaratJl. Industri A No. 01, Rt.05 Rw.06, Ds. Pasirgombong, Kec.Cikarang Utara Kab. Bekasi, Jawa Barat Phone. 02189836623

KFO MalingpingJl. Raya Simpang/Pasir Geleng, Desa Sukamanah, Kec. Malingping, Kab.Lebak, Provinsi Banten Phone. 02525604005

KFO RangkasbitungJl. By Pass Soekarno Hatta, Ds. Kaduagung Timur, Kec. Cibadak, Kab. Lebak, Provinsi Banten Phone. 02525550642

KFO PanimbangJl. Jendral Sudirman Kampung Muncang (sebelah solite), RT 02, RW 09, Desa Labuan, Kec. Labuan, Kab. Pandeglang, Banten Phone. 02535808152

KFO CiawiJl. Raya Tajur No.118A, RT.01/06, Kel. Pakuan, Kec. Bogor Selatan, Kota Bogor, Propinsi Jawa Barat

KFO Tambun SelatanTambun City, Jl. Sultan Hasanuddin, No. 263 - 265, Desa Tambun, Kec. Tambun Selatan, Bekasi, Jawa Barat Phone. 02188338391

LSB Bank BTPN KCP Gajah MadaJl. Gajah Mada No.112-112A Jakarta 11140 Phone. 0216497545

LSB Bank BTPN KCP Mangga DuaWisma Eka Jiwa No. RM/16 Jl. Arteri Mangga Dua, Jakarta Pusat 10730 Phone. 0216257600

LSB Bank BTPN KCP Taman PalemTaman Palem Lestari Blok D1 No. 1 E – F, Cengkareng – Jakarta Barat 11730 Phone. 08121061228

LSB Bank BTPN KCP PIKRukan Cordoba Blok D No. 8 - 9, Bukit Golf Mediterania, Jl. Marina Raya, Pantai Indah Kapuk, Jakarta - 14470 Phone. 02156983648

LSB Bank BTPN KCP PluitKomplek CBD Pluit, Blok S No. 6 Jl. Pluit Selatan Raya, Jakarta Utara 14440 Phone. 02166677043

LSB Bank BTPN KCP Roxy MasKomplek Ruko ITC Roxy Mas, Blok E1 No. 5 – Jakarta Pusat 10150 Phone. 08121061689

LSB Bank BTPN KCP Tanah AbangJl. KH Fachrudin 36 Blok BB No. 1, Jakarta – 10250 Phone. 02198497986

LSB Bank BTPN KC BogorJl. Raya Pajajaran No.63 Bogor Phone. 02519241301

LSB Bank BTPN KC Panglima PolimJl. Panglima Polim Raya No. 67 A-B, Kebayoran Baru, Kelurahan Melawai, Kecamatan Kebayoran Baru, Jakarta Selatan 12160 Phone. 02198497987

LSB Bank BTPN KCP Kelapa GadingRukan Kelapa Gading Jl. Raya Boulevard Barat, Blok LC 7 No. 8-9, Kelapa Gading, Jakarta Utara 14240 Phone. 02198497985

LSB Bank BTPN KCP Pondok IndahRuko Pondok Indah Plaza I, blok UA No.64, Jl. Metro Pondok Indah, Jakarta 12310 Phone. 02191274087

LSB Bank BTPN KCP SunterRuko Sunter Puri Mutiara, Perumahan Puri Mutiara Blok A Kav 72-73 Phone. 02165310510

LSB Bank BTPN KCP BSDRuko Bidex Blok C No. 1-2, BSD City, Lengkong Gudang, Serpong, Tangerang Selatan 15321 Phone. 0267416022

LSB Bank BTPN KCP Central ParkRuko Garden Shopping Arcade 8 No. ED - EE, Jl. Tanjung Duren Raya Kav. 5-9, Central Park, Jakarta Barat Phone. 02129206345

LSB Bank BTPN KCP Kebon Jeruk InterconKomplek Ruko Intercon Plaza Kebon Jeruk, Blok A No 6, Kembangan, Jakarta Barat - 11630 Phone. 02158904843

LSB Bank BTPN KCP Puri KencanaRukan Puri Niaga I Komplek Puri Kencana Blok K7/2L Kembangan, Jakarta Barat 11610 Phone. 0215823182

LSB Bank BTPN KCP TomangJl. Tomang Raya No 32, Tomang, Jakarta Barat Phone. 02129414731

ATM KC Jakarta-Pondok Indah Rukan Plaza 5 Pondok Indah Kav. A.12, Jl. Marga Guna, RT 004/RW 015, Kelurahan Gandaria Utara, Kecamatan Kebayoran Baru, Jakarta Selatan

KC Banjarmasin-Ahmad YaniJl. Ahmad Yani Km. 3,5 No 69, Banjarmasin Phone. 0511327662

KC Kendari-Sao SaoJl. Sao-Sao No. 207, Kota Kendari Phone. 04013193746

KFO Kendari-UnaahaJl. Sapati, Kelurahan Ambekairi, Kecamatan Unaaha, Kabupaten Konawe, Propinsi Sulawesi Tenggara, Kode Pos 93411 Phone. 04082422514

KC Makassar-HertasningJl. Hertasning 88 C, Kelurahan Tidung, Kecamatan Rappocini, Makassar Phone. 0411885572

KFO Makassar-LimbungJl. Poros Gowa - Takalar, Lingkungan Mata Allo, Desa Mataallo, Kecamatan Bajeng, Kabupaten Gowa, Propinsi Sulawesi selatan Phone. 0411842023

ATM KC Makassar-HertasningJl. Hertasning 88 C, Kelurahan Tidung, Kecamatan Rappocini, Makassar

KC Palangkaraya-Ahmad YaniJl. Ahmad Yani No. 2, Kecamatan Pahandut, Palangkaraya Phone. 05364200409

KC Pontianak-Ahmad YaniJl. Ahmad Yani No. 38 B, Pontianak Phone. 0561571444

KC Samarinda-Dr. SutomoJl. Dr. Sutomo No. 8A, Kota Samarinda Phone. 0541739193

KC Denpasar-DiponegoroJl. Diponegoro No. 129, Kelurahan Dauhpuri Kelod, Kota Denpasar Phone. 03614723055

KFO Denpasar-MengwiRuko Sekar Jiwa (Ruko F & G), Jl. Cokroaminoto No 963, Desa Ubung Kaja, Kecamatan Denpasar Utara, Kota Denpasar, Propinsi Bali, Kode Pos 80116 Phone. 03619374184

ATM KC Denpasar-DiponegoroJl. Diponegoro No. 129, Kelurahan Dauhpuri Kelod, Kota Denpasar

KC Jambi-Orang Kayo PingaiJl. Orang Kayo Pingai No 43 A RT 09, Kelurahan Talang Banjar, Kecamatan Jambi Timur, Jambi Phone. 074135888

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// corporate data

statement of the board of commissioners and the board of directors regarding the responsibility for the annual report 2017 PT Bank Tabungan Pensiunan Nasional Syariah

We, the undersigned hereby declare that all the information in the Annual Report 2017 PT Bank Tabungan Pensiunan Nasional Syariah has been fully complete and are fully responsible for ensuring the accuracy of the content of this Annual Report.

This statement is written in truth.

board of commissioners

board of directors

Kemal Azis Stamboelpresident commissioner/independent commissioner

Dewie Pelitawatiindependent

commissioner

Mahdi Syahbuddincommissioner

Maya Kartikacommissioner

Ratih Rachmawatypresident director

Mulia Salimdeputy president director

Arief Ismaildirector

Taras Wibawa Siregardirector

M. Gatot Adhi Prasetyodirector


197

// statement


Laporan Keuangan / Financial Statements

31 Desember / December 2017

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// financial statement


199

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201

PT BANK TABUNGAN PENSIUNAN NASIONAL SYARIAH

Catatan atas laporan keuangan merupakan bagian yang tidakterpisahkan dari laporan keuangan secara keseluruhan.

The accompanying notes form an integral partof these financial statements.

Halaman 1/1 Page

LAPORAN POSISI KEUANGANPADA TANGGAL 31 DESEMBER 2017(Dinyatakan dalam jutaan Rupiah,kecuali dinyatakan lain)

STATEMENT OF FINANCIAL POSITIONAS AT 31 DECEMBER 2017

(Expressed in millions of Rupiah,unless otherwise stated)

Catatan/Notes 2017 2016

ASET ASSETS

Kas 4 228,525 191,662 Cash

Giro dan penempatan pada Current account and placementsBank Indonesia 2f,5 1,448,883 1,548,277 with Bank Indonesia

Pendapatan yang akan diterima dari Accrued income of placementspenempatan pada Bank Indonesia 15,762 590 with Bank Indonesia

1,464,645 1,548,867

Giro pada bank lain 2h,6 Current account with other banks- Pihak ketiga 1,735 538 Third parties -- Pihak berelasi 2d,37 36,708 33,952 Related parties -

38,443 34,490

Investment inInvestasi pada surat berharga 2i,7 38,872 - marketable securitiesPendapatan yang akan diterima dari Accrued income of investment

investasi pada surat berharga 292 - in marketable securities

39,164 -

Efek-efek yang dibeli dengan Securities purchasedjanji dijual kembali under resell agreements(reverse repo) 2j,8 983,401 - (reverse repo)

Pendapatan yang akan diterima dari Accrued income ofreverse repo 1,478 - reverse repo

984,879 -Piutang murabahah

setelah dikurangi pendapatan yang Murabahah receivablesditangguhkan sebesar Rp 1.456.861 dan net deferred margin incomeRp1.239.596 pada tanggal of Rp 1,456,861 and Rp 1,239,596,31 Desember 2017 dan 2016 as at 31 December 2017 and 2016- Pihak ketiga 2k,9 6,053,105 4,996,722 Third parties -

Pendapatan yang akan diterima dari Accrued income of murabahahpiutang murabahah 75,112 57,917 receivables

Dikurangi: Cadangan kerugian Less: Allowance for impairmentpenurunan nilai 2e (157,657) (113,856) losses

5,970,560 4,940,783

Pinjaman qardh pihak ketiga 2l 168 90 Funds of qardh third parties

Biaya dibayar dimuka 2m,10 71,297 70,805 Prepayments

Aset tetap 2n,11 434,479 349,964 Fixed assetsDikurangi: Akumulasi penyusutan (244,215) (163,626) Less: Accumulated depreciation

190,264 186,338

Aset tak berwujud 2n,12 68,976 55,130 Intangible assetsDikurangi: Akumulasi amortisasi (31,272) (18,714) Less: Accumulated amortisation

37,704 36,416

Aset pajak tangguhan 2w,17c 68,689 37,975 Deferred tax assets

Aset lain-lain - bersih 2o,13 62,184 275,921 Other assets - net

JUMLAH ASET 9,156,522 7,323,347 TOTAL ASSETS

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LIABILITIES, TEMPORARYLIABILITAS, DANA SYIRKAH SYIRKAH FUNDS AND

TEMPORER DAN EKUITAS EQUITY

LIABILITAS LIABILITIES

Liabilitas segera 2p,14 20,406 79,655 Liabilities due immediately

Bagi hasil yang belum dibagikan 15 13,747 12,320 Undistributed revenue sharing

Simpanan nasabah - pihak ketiga 2q,16 Deposits from customers - third parties- Giro wadiah 95,169 13,400 Wadiah demand deposits -- Tabungan wadiah 1,202,662 979,450 Wadiah saving deposits -

1,297,831 992,850

Utang pajak 17a Tax payable- Pajak penghasilan 85,696 66,403 Income taxes -- Pajak lain-lain 10,033 7,793 Other taxes -

95,729 74,196

Liabilitas lain-lain 18 28,484 56,831 Other liabilities

Akrual 19 64,720 27,103 Accruals

Liabilitas imbalan kerja karyawan 2v,36 132,911 92,962 Employee benefit liabilities

JUMLAH LIABILITAS 1,653,828 1,335,917 TOTAL LIABILITIES

DANA SYIRKAH TEMPORER TEMPORARY SYIRKAH FUNDS

Bukan bank Non-bank

Tabungan mudharabah 2r,20 Mudharabah saving deposits- Pihak ketiga 92,925 63,641 Third parties -- Pihak berelasi 2d, 37 763 361 Related parties -

93,688 64,002

Deposito mudharabah 2r,21 Mudharabah time deposits- Pihak ketiga 5,147,649 4,324,203 Third parties -- Pihak berelasi 2d, 37 6,711 6,509 Related parties -

5,154,360 4,330,712

JUMLAH DANA SYIRKAH TOTAL TEMPORARY SYIRKAHTEMPORER 5,248,048 4,394,714 FUNDS


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EKUITAS EQUITY

Modal saham 22 Share capitalNilai nominal Rp 100 per saham Nominal value Rp 100 per share

(2016 : Rp 1.000.000) (nilai penuh), (2016 : Rp 1,000,000) (full amount),Modal dasar 15.000.000.000 saham Authorized 15,000,000,000 shares

(2016: 1.500.000 saham) (2016: 1,500,000 shares)Modal ditempatkan dan disetor Issued and fully paid - capital

penuh 6.933.330.000 saham 6,933,000,000 shares(2016: 693.333 saham) 693,333 693,333 (2016: 693,333 shares)

Tambahan modal disetor 188,456 188,456 Additional paid-in capital

Cadangan pembayaran Share-based paymentberbasis saham 2x,24 17,612 11,586 reserve

Cadangan revaluasi aset 2n 5,239 5,239 Asset revaluation reserve

Saldo laba Retained earnings- Dicadangkan 23 20,000 15,000 Appropriated -- Belum dicadangkan 1,330,006 679,102 Non-appropriated -

JUMLAH EKUITAS 2,254,646 1,592,716 TOTAL EQUITY

JUMLAH LIABILITAS, TOTAL LIABILITIES,DANA SYIRKAH TEMPORER, TEMPORARY SYIRKAHDAN EKUITAS 9,156,522 7,323,347 FUNDS, AND EQUITY

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LAPORAN LABA RUGI DAN PENGHASILANKOMPREHENSIF LAINUNTUK TAHUN YANG BERAKHIR PADA31 DESEMBER 2017(Dinyatakan dalam jutaan Rupiah,kecuali dinyatakan lain)

STATEMENT OF PROFIT OR LOSS AND OTHERCOMPREHENSIVE INCOME

FOR THE YEAR ENDED31 DECEMBER 2017



KEGIATAN SYARIAH SHARIA BUSINESSPendapatan pengelolaan Income from fund management

dana oleh Bank sebagai Mudharib 2s by the Bank as MudharibPendapatan dari jual beli Income from sales and purchases-

marjin murabahah 2,833,239 2,177,556 murabahah marginPendapatan usaha utama lainnya 26 72,014 48,926 Other main operating income

2,905,253 2,226,482Hak pihak ketiga atas

bagi hasil dana syirkah return of temporarytemporer 2t,27 (345,600) (290,310) syirkah funds

Hak bagi hasil milik bank 2,559,653 1,936,172

PENDAPATAN OPERASIONALLAINNYA 2u,28 7,046 4,895 OTHER OPERATING INCOME

BEBAN OPERASIONAL LAINNYA 2u OTHER OPERATING EXPENSEBeban tenaga kerja 29 (833,539) (771,058) Personnel expensesBeban umum dan administrasi 30 (528,446) (452,830) General and administrative expensesPembentukan cadangan kerugian Provision for allowance of

penurunan nilai aset produktif impairment losses on earningdan non-produktif 2e,31 (235,183) (118,559) and non-earning assets

Beban operasional lainnya 32 (61,270) (43,791) Other operating expenses

(1,658,438) (1,386,238)

PENDAPATAN OPERASIONAL-BERSIH 908,261 554,829 NET OPERATING INCOME

Pendapatan non-operasional - Non-operating incomebersih 33 437 914 - net

LABA SEBELUM PAJAKPENGHASILAN 908,698 555,743 INCOME BEFORE TAX

BEBAN PAJAK TAX EXPENSE- Kini 2w,17b (264,471) (165,531) Current -- Tangguhan 2w,17b 25,955 22,283 Deferred -

(238,516) (143,248)

LABA BERSIH TAHUN BERJALAN 670,182 412,495 NET PROFIT FOR THE YEAR


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LAPORAN LABA RUGI DAN PENGHASILANKOMPREHENSIF LAINUNTUK TAHUN YANG BERAKHIR PADA31 DESEMBER 2017(Dinyatakan dalam jutaan Rupiah,kecuali dinyatakan lain)

STATEMENT OF PROFIT OR LOSS AND OTHERCOMPREHENSIVE INCOME




PENGHASILAN KOMPREHENSIF OTHER COMPREHENSIVELAIN: INCOME:

Pos yang tidak akan direklasifikasi Items that will not be reclassifiedke laba rugi to profit or lossKeuntungan revaluasi aset tetap 11 - 5,480 Surplus of asset revaluation

Remeasurement fromPengukuran kembali imbalan post-employment benefit

pasca kerja 36 (19,037) 6,318 obligationBeban pajak terkait 4,759 (1,820) Related income tax

Penghasilan komprehensif lain Other comprehensive incometahun berjalan, setelah pajak (14,278) 9,978 for the year, net of tax

JUMLAH LABA KOMPREHENSIF TOTAL COMPREHENSIVETAHUN BERJALAN, INCOME FOR THE YEAR,SETELAH PAJAK 655,904 422,473 NET OF TAX

LABA BERSIH PER SAHAM BASIC/DILUTED EARNINGSDASAR/DILUSIAN PER SHARE(NILAI PENUH) *) 2z,35 97 59 (FULL AMOUNT) *)

*) Laba persaham dasar dan dilusian periode sebelumnyatelah disajikan kembali untuk mencerminkan dampak ataspemecahan nilai nominal saham (Catatan 1 dan 22).

*)been restated to reflect the impact of the change in par

value per share (Note 1 and 22).

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LAPORAN ARUS KASUNTUK TAHUN YANG BERAKHIR PADA31 DESEMBER 2017(Dinyatakan dalam jutaan Rupiah,kecuali dinyatakan lain)

STATEMENT OF CASH FLOWSFOR THE YEAR ENDED

31 DECEMBER 2017(Expressed in millions of Rupiah,

unless otherwise stated)


ARUS KAS DARI AKTIVITAS CASH FLOWS FROM OPERATINGOPERASI ACTIVITIES

Penerimaan pendapatan dari Receipt of income from fundpengelolaan dana 2,871,114 2,211,796 management

Pembayaran bagi hasil Payment of profit sharing fordana syirkah temporer (344,173) (289,142) temporary syirkah funds

Penerimaan pendapatan administrasi 6,557 1,423 Receipt of administrative incomePenerimaan dari piutang yang Receipts from recovery of

dihapusbukukan 6,956 7,601 receivable written offPembayaran beban tenaga kerja (779,922) (713,686) Payment of personnel expensesPembayaran beban usaha lainnya (644,557) (427,806) Payment of other operating expensePenerimaan Receipt of

non-operasional - bersih 1,158 742 non-operational - netPembayaran pajak penghasilan badan (245,178) (132,674) Payment of corporate income tax

Arus kas sebelum perubahan Cash flows before changes indalam aset dan liabilitas operasi 871,955 658,254 operating assets and liabilities

Perubahan dalam aset Changes in operatingdan liabilitas operasi: assets and liabilities:Penurunan/(kenaikan) Decrease/(increase) in operating

aset operasi: assets:Penempatan pada Bank Indonesia Placements with Bank Indonesia

dan bank lain (705,000) - and other banksPiutang murabahah (1,082,271) (1,396,147) Murabahah receivablesPinjaman qardh (78) (30) Funds of qardhAset lain-lain 184,825 (206,844) Other assets

(Penurunan)/kenaikan (Decrease)/increaseliabilitas operasi: in operating liabilitiesLiabilitas segera (57,010) 71,519 Liabilities due immediatelySimpanan nasabah 304,981 234,301 Deposits from customer

Increase in temporaryKenaikan dana syirkah temporer 853,334 1,343,296 syirkah funds

Arus kas bersih diperoleh dari Net cash flows provided fromaktivitas operasi 370,736 704,349 operating activities

ARUS KAS DARI CASH FLOWS FROM INVESTINGAKTIVITAS INVESTASI ACTIVITIES

Hasil penjualan aset tetap 11 2,433 439 Proceeds from sale of fixed assetsPembelian aset tetap 11 (100,628) (90,404) Purchase of fixed assetsPembelian aset tak berwujud 12 (13,846) (22,542) Purchase of intangible assetsInvestasi pada surat berharga 7 (38,872) - Investment in marketable securities

Arus kas bersih digunakan untuk Net cash flows used inaktivitas investasi (150,913) (112,507) investing activities

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LAPORAN ARUS KASUNTUK TAHUN YANG BERAKHIR PADA31 DESEMBER 2017(Dinyatakan dalam jutaan Rupiah,kecuali dinyatakan lain)

STATEMENT OF CASH FLOWSFOR THE YEAR ENDED




KENAIKAN KAS DAN NET INCREASE IN CASH ANDSETARA KAS 219,823 591,842 CASH EQUIVALENTS

KAS DAN SETARA KAS CASH AND CASH EQUIVALENTSAWAL TAHUN 1,724,429 1,132,587 AT BEGINNING OF THE YEAR

KAS DAN SETARA KAS CASH AND CASH EQUIVALENTSAKHIR TAHUN 1,944,252 1,724,429 AT END OF THE YEAR

Kas dan setara kas akhir Cash and cash equivalents attahun terdiri dari: end of the year consist of:Kas 4 228,525 191,662 Cash

Current accounts withGiro pada Bank Indonesia 5 363,983 275,777 Bank IndonesiaGiro pada bank lain 6 38,443 34,490 Current accounts with other banksPenempatan pada Bank Indonesia*) 5 329,900 1,222,500 Placements with Bank Indonesia*)Efek efek yang dibeli Securities purchased

dengan janji dijual kembali*) 8 983,401 - under resell agreements*)

1,944,252 1,724,429

*) Efek-efek yang dibeli dengan janji dijual kembali dan penempatanpada Bank Indonesia dan Bank lain dalam jangka waktu jatuhtempo tiga bulan atau kurang sejak tanggal perolehandiklasifikasikan sebagai kas dan setara kas (Catatan 2a).

Securities purchased under resell agreements and placement *)Bank Indonesia and other Bank's with maturity of three month

or less from acquisition date are classified as cash and cashequivalents (Note 2a)


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LAPORAN REKONSILIASI PENDAPATANDAN BAGI HASILUNTUK TAHUN YANG BERAKHIR PADA31 DESEMBER 2017(Dinyatakan dalam jutaan Rupiah,kecuali dinyatakan lain)

STATEMENT OF RECONCILIATION OF INCOMEAND REVENUE SHARINGFOR THE YEARS ENDED




Pendapatan pengelolaan dana Income from fund managementoleh bank sebagai mudharib by the bank as mudharibPendapatan dari jual beli 2s 2,833,239 2,177,556 Income from sales and purchasesPendapatan usaha utama lainnya 26 72,014 48,926 Other main operating income

2,905,253 2,226,482

Pengurang DeductionsPendapatan tahun berjalan yang kas Current year income in which

dan setara kasnya the cash and cash equivalentsbelum diterima: were not received:Pendapatan dari jual beli Income from sales and purchases

marjin murabahah (75,112) (57,917) murabahah marginPendapatan usaha utama lainnya (17,532) (590) Other main operating income

(92,644) (58,507)

Penambah AdditionsPrior year income in which

Pendapatan tahun sebelumnya the cashyang kasnya diterima pada were received duringtahun berjalan: the current year:Penerimaan pelunasan pendapatan Receipt of settlement from

keuntungan murabahah 57,917 41,749 murabahah margin incomePendapatan usaha utama lainnya 590 2,072 Other main operating income

58,507 43,821

Pendapatan yang tersedia Available income foruntuk bagi hasil 2,871,116 2,211,796 revenue sharing

Bagi hasil yang menjadihak Bank Syariah 2,525,516 1,921,486 revenue sharing

Bagi hasil yang menjadihak pemilik dana 2t,27 345,600 290,310 revenue sharing

Dirinci atas: Details of:Hak pemilik dana atas bagi hasil

yang sudah dibagikan 331,853 277,990 distributed revenue sharingHak pemilik dana atas bagi hasil

yang belum dibagikan 15 13,747 12,320 undistributed revenue sharing

345,600 290,310

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LAPORAN SUMBER DANPENYALURAN DANA ZAKATUNTUK TAHUN YANG BERAKHIR PADA31 DESEMBER 2017(Dinyatakan dalam jutaan Rupiah,kecuali dinyatakan lain)

STATEMENT OF SOURCES ANDDISTRIBUTION OF ZAKAT FUNDS




Saldo awal dana zakat - - Beginning balance of zakat funds

Sumber dana zakat Sources of zakat fundsZakat dari Bank - - Zakat from BanksZakat dari pihak luar bank - - Zakat from non-bank parties

- -

Penyaluran dana zakat 2y - - Distribution of zakat funds

Kenaikan dana zakat - - Increase in zakat funds

Saldo akhir dana zakat - - Ending balance of zakat funds


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LAPORAN SUMBER DAN PENGGUNAANDANA KEBAJIKANUNTUK TAHUN YANG BERAKHIR PADA31 DESEMBER 2017(Dinyatakan dalam jutaan Rupiah,kecuali dinyatakan lain)

STATEMENT OF SOURCES AND USESOF QARDHUL HASAN FUNDS




Beginning balance ofSaldo awal dana kebajikan 2y 169 141 qardhul hasan funds

Sumber dana kebajikan Source of qardhul hasan fundsPendapatan non-halal 550 81 Non-halal incomeDenda 52 44 Penalty

Jumlah 602 125 Total

Penggunaan dana kebajikan 2y (224) (97) Use of qardhul hasan funds

Kenaikan sumber dana kebajikan 378 28 Increase in qardhul hasan funds

Ending balance ofSaldo akhir dana kebajikan 547 169 qardhul hasan funds

annual report2017

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CATATAN ATAS LAPORAN KEUANGAN31 DESEMBER 2017(Dinyatakan dalam jutaan Rupiah,kecuali dinyatakan lain)

NOTES TO THE FINANCIAL STATEMENTS31 DECEMBER 2017


Halaman 8/1 Page

1. INFORMASI UMUM 1. GENERAL INFORMATION

a. Pendirian bank dan informasi umum a. Bank establishment and generalinformation

PT Bank Tabungan Pensiunan Nasional

didirikan dengan nama PT Bank Sahabat

tersebut didasarkan pada perubahan terhadapseluruh Anggaran Dasar sebagaimana termuatdalam Akta Notaris No. 25 tanggal 27 Agustus2013 juncto Akta Notaris No. 30 tanggal 25September 2013 keduanya dibuat oleh NotarisHadijah, S.H., M.Kn. dan telah mendapatpersetujuan dari Menteri Hukum dan Hak

kum

No. AHU-50529.AH.01.02. tahun 2013 tanggal1 Oktober 2013 tentang PersetujuanPerubahan Anggaran Dasar Perseroan dansudah diumumkan dalam Berita NegaraRepublik Indonesia Nomor 94 tahun 2013,tambahan Berita Negara Republik IndonesiaNo. 124084 tanggal 22 November 2013.

PT Bank Tabungan Pensiunan Nasional

initially established under the name of PT Bank

in name was based on the changes to theentire Articles of Association as set forth inNotarial Deed No. 25 dated 27 August 2013juncto Notarial Deed No. 30 dated 25September 2013 of Notary Hadijah, S.H.,M.Kn. and was approved by the Minister ofLaw and Human Rights of the Republic ofIndonesia in its decision letter No. AHU-50529.AH.01.02 year 2013 dated 1 October2013 regarding Approval of Amendment to theArticles of Association and has been publishedin the State Gazette No.94 year 2013, insupplement of the State Gazette No. 124084dated 22 November 2013.

Pada tanggal 20 Januari 2014, Rapat UmumPemegang Saham Luar Biasa BTPN yangdiaktakan dengan Akta Notaris No. 8 dariNotaris Hadijah, S.H., M.Kn. telah menyetujuipemisahan Unit Usaha Syariah PT Bank

dengan mengacu kepada Peraturan BankIndonesia No. 11/10/PBI/2009 yang telahdiubah dengan PBI No. 15/14/PBI/2013tentang Unit Usaha Syariah. Pendiriantersebut dilakukan dengan izin Bank Indonesiamelalui dua tahap, yaitu persetujuan izinkonversi dan izin pemisahan.

Pada tanggal 22 Mei 2014, Bank telahmendapatkan izin dari Bank Indonesia untukmelaksanakan konversi PT Bank SahabatPurba Danarta berdasarkan surat KeputusanDewan Komisioner Otoritas Jasa Keuangan(OJK) No.Kep-49/D-03/2014. Izin perubahankegiatan usaha bank umum konvensionalmenjadi bank umum yang melaksanakankegiatan usaha berdasarkan prinsip syariah.

Pada tanggal 23 Juni 2014, Bank memperolehizin pemisahan dari Otoritas Jasa Keuangan(OJK) berdasarkan Surat OJK No: S-17/PB.1/2014. Pemisahan UUS BTPNdilakukan dengan Akta Pemisahan No. 8tanggal 4 Juli 2014 yang dibuat di hadapanHadijah, S.H., M.Kn. Notaris di Jakarta.Selanjutnya, pemisahan terjadi secara efektifpada tanggal 14 Juli 2014 dan pertama kalinyaBank memulai kegiatan usaha berdasarkanprinsip syariah, sebagaimana yang dilaporkan

S.031/DIR/LG/VII/2014 tanggal 17 Juli 2014perihal Laporan Pelaksanaan PembukaanBank Umum Syariah Hasil Pemisahan.

Extraordinary General Meeting of BTPN whichwas notarised by Notarial Deed No. 8 of NotaryHadijah, S.H., M.Kn. approved the spin-off ofthe sharia business unit of PT Bank TabunganPensiunan Nasional Tbk ("UUS BTPN") fromPT Bank Tabungan Pensiunan Nasional Tbk("BTPN") The spin-off was made withreference to Bank Indonesia RegulationNo.11/10/PBI/2009 which has been amendedby PBI No. 15/14/PBI/2013 regarding ShariaBusiness Unit. The establishment has beenapproved by Bank Indonesia in two stages, theapproval of the conversion permit and spin-offpermit.

On 22 May 2014, the Bank has received itspermit from Bank Indonesia regardingconversion of PT Bank Sahabat Purba Danartabased on the Decision Letter of Board ofCommissioner of Financial Service Authority(OJK) No.Kep-49/D-03/2014. The change itsbusiness activities from conventionalcommercial bank to commercial bank whichconduct business activities based on shariaprinciple.

On 23 June 2014, the Bank has received itsspin-off permit from Financial Service Authoritybased on the Letter of Financial ServiceAuthority No: S-17/PB.1/2014. The spin-off ofUUS BTPN was made under Spin-off DeedNo. 8 dated 4 July 2014 and was notarised byHadijah, S.H., M.Kn. Notary in Jakarta.Furthermore, the spin-off became effective on14 July 2014 and started its operational activitybased on sharia principles, as reported to

S.031/DIR/LG/VII/2014 dated 17 July 2014regarding the Report on the Implementation ofthe Opening of Commercial Sharia BankResulting from the Spin-Off.


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1. INFORMASI UMUM (lanjutan) 1. GENERAL INFORMATION (continued)

a. Pendirian bank dan informasi umum(lanjutan)

a. Bank establishment and generalinformation (continued)

Setelah menjadi Bank Umum Syariah, Banktelah melakukan beberapa kali perubahanAnggaran Dasar. Perubahan Anggaran Dasarterakhir tercantum dalam Akta No. 57 tanggal16 November 2017, yang dibuat di hadapanJose Dima Satria, S.H., M.Kn., Notaris di KotaAdministrasi Jakarta Selatan, mengenaiPernyataan Keputusan Pemegang Saham,Perubahan Anggaran Dasar dan perubahanmodal dalam rangka pemecahan nilai nominalsaham Perusahaan (Catatan 22). Akta tersebuttelah memperoleh persetujuan Menteri Hukumdan Hak Asasi Manusia Republik Indonesiaberdasarkan Keputusan No. AHU-0024076.AH.01.02.TAHUN 2017 tanggal 16November 2017 dan Surat PenerimaanPemberitahuan Perubahan Anggaran DasarNo. AHU-AH.01.03-0191730 tanggal 16November 2017.

Association have beenamended several times, after became ShariaBank. The latest changes Articles ofAssociation as stated in the deed No. 57 dated16 November 2017, which notarised by JoseDima Satria, S.H., M.Kn., administrated inSouth Jakarta, regarding Statement of

Association and capital changes related to thechange in par value per share

(Note 22). The deed subsequently approve bythe Minister of Law and Human right of theRepublic of Indonesia through its letter NoAHU-0024076.AH.01.02.year 2017 dated 16November 2017 and the Letter of Acceptanceof the changes to Article of Association No.AHU-AH.01.03-0191730 dated 16 November2017.

Sesuai dengan pasal 3 Anggaran Dasar BankBTPNS, maksud dan tujuan serta kegiatanBank adalah melakukan kegiatan usahadibidang perbankan berdasarkan prinsipsyariah.

In accordance with Article 3 of BTPNS Article

activities is to engage in banking based onsharia principles.

PT Bank Tabungan Pensiunan Nasional, Tbk.adalah pemegang saham pengendali danpemegang saham akhir Perusahaan. Kantorpusat Bank berlokasi di Menara BTPN CBDMega Kuningan, Jalan Dr. Ide Anak AgungGde Agung Kav 5.5 5.6, Kuningan, JakartaSelatan 12950.

PT Bank Tabungan Pensiunan Nasional, Tbk.acted as controlling shareholder and ultimateshareholder of the Company.office is located at Menara BTPN CBD MegaKuningan, Jalan Dr. Ide Anak Agung GdeAgung Kav 5.5 5.6, Kuningan, JakartaSelatan 12950.

b. Akuisisi Bank b. Bank acquisition

Pada tanggal 19 Juli 2013, Bank Indonesia

melakukan akuisisi sebesar 70% sahamPTmelalui suratnya No. 15/10/DPB1/PB1-5/Rahasia dengan syarat dilakukan perubahanatas kegiatan usaha dari BSPD yang semulamerupakan bank konvensional menjadi bankumum berdasarkan prinsip syariah.

approved the plan of BTPN to acquire 70%shares of PT Bank Sahabat Purba Danarta

15/10/DPB1/PB1-5/Rahasia which subject tothe changes of BSPD business activities froma conventional bank into a commercial bankunder sharia principle.

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b. Akuisisi Bank (lanjutan) b. Bank acquisition (continued)

Berdasarkan Akta Notaris No. 25 tanggal 27Agustus 2013 juncto Akta Notaris No. 30tanggal 25 September 2013 yang keduanyadibuat oleh Notaris Hadijah, S.H., M.Kn.,dimana BSPD mengubah namanya menjadiPT Bank Tabungan Pensiunan Nasional

mendapat persetujuan dari Menteri Hukumkumham

Republik Indonesia melalui Surat KeputusanNo. AHU-50529.AH.01.02 Tahun 2013tertanggal 1 Oktober 2013 tentang PersetujuanPerubahan Anggaran Dasar Bank dan sudahdiumumkan dalam Berita Negara RepublikIndonesia No. 94 Tahun 2013, tambahanBerita Negara Republik Indonesia No. 124084tanggal 22 November 2013.

Based on Notarial Deed No. 25 dated 27August 2013 juncto Notarial Deed No. 30dated 25 September 2013, both were made byHadijah, S.H., M.Kn., where BSPD changed itsname to PT Bank Tabungan Pensiunan

above was subsequently approved by theMinister of Law and Human rights of theRepublic of Indonesia through its letter No.AHU-50529.AH.01.02 Year 2013 dated 1October 2013 regarding Approval of

Association and has been published in the theState Gazette No. 94 Year 2013, SupplementNo. 124084 dated 22 November 2013.

Berdasarkan akta notaris dari Notaris Hadijah,S.H., M.Kn., No. 26 dan No. 27 tanggal 30Januari 2014, BTPN telah melakukan akuisisiatas BTPNS dan menjadi pemegang sahammayoritas dari BTPNS. Hal ini telah diketahuioleh Kementerian Hukum dan Hak AsasiManusia Republik Indonesia melalui surat No.AHU-AH.01.10-04338 tertanggal 12 Februari2014.

Based on notarial deed of Notary Hadijah S.H.,M.Kn., No. 26 and No. 27 dated 30 January2014, BTPN has acquired BTPNS and hasbecome majority shareholders of BTPNS. Itwas acknowledged by the Ministry of Law andHuman Rights of Republic Indonesia throughits letter No. AHU-AH.01.10-04338 dated 12February 2014.

Pada tanggal 4 Februari 2014, BTPN telahmelakukan pembayaran terkait akuisisisebesar Rp 600.000 yang terdiri dari modaldasar dan agio saham masing-masing sebesarRp 373.333 dan Rp 226.667.

On 4 February 2014, BTPN has paid the totalconsideration of the acquisition amounting toRp 600,000 in the form of authorised capitaland paid in capital amounting to Rp 373,333and Rp 226,667, respectively.

c. Dewan Komisaris, Direksi, DewanPengawas Syariah, Komite Audit,Sekertaris Perusahaan, Satuan Kerja AuditInternal dan Karyawan

c. Board of Commissioners, Board ofDirectors, Board of Sharia SupervisoryCommittees, Audit Committee, CorporateSecretary, Internal Audit Unit, andEmployee

Susunan Dewan Komisaris dan Direksi Bankpada tanggal 31 Desember 2017 dan 2016adalah sebagai berikut:

The compositions of the Boards ofCommissioners and Directors as at31 December 2017 and 2016 is as follows:

2017 2016Dewan Komisaris Board of CommissionersKomisaris Utama/Independen Kemal Azis Stamboel Kemal Azis Stamboel President/Independent CommissionerKomisaris Independen Dewie Pelitawati Dewie Pelitawati Independent CommissionerKomisaris Mahdi Syahbuddin Mahdi Syahbuddin CommissionerKomisaris Maya Kartika*) - Commissioner

Dewan Direksi Board of DirectorsDirektur Utama Ratih Rachmawaty**) Harry A.S. Sukadis President DirectorWakil Direktur Utama Mulia Salim***) Ratih Rachmawaty Deputy President DirectorDirektur Kepatuhan dan Director of Compliance and

Manajemen Risiko Arief Ismail****) Taras Wibawa Siregar Risk managementDirektur M. Gatot Adhi Prasetyo M. Gatot Adhi Prasetyo DirectorDirektur Taras Wibawa Siregar Setiasmo Director

*) Efektif berlaku pada tanggal 14 Juni 2017**) Efektif berlaku pada tanggal 7 Maret 2017***) Efektif berlaku pada tanggal 1 Juli 2017****) Efektif berlaku pada tanggal 22 Agustus 2017

Become effective as at 14 June 2017 *)Become effective as at 7 March 2017 **)

Become effective as at 1 July 2017 ***)Become effective as at 22 August2017 ****)


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c. Dewan Komisaris, Direksi, DewanPengawas Syariah, Komite Audit,Sekertaris Perusahaan, Satuan Kerja AuditInternal dan Karyawan (lanjutan)

c. Board of Commissioners, Board ofDirectors, Board of Sharia SupervisoryCommittees, Audit Committee, CorporateSecretary, Internal Audit Unit, andEmployee (continued)

Perubahan susunan Dewan Komisaris danDewan Direksi telah disetujui oleh OtoritasJasa Keuangan.

The change in composition of the Board ofCommissioners and Directors has beenapproved by Financial Service Authority.

Susunan Dewan Pengawas Syariah Bankpada tanggal 31 Desember 2017 dan 2016adalah sebagai berikut:

The composition of the Sharia SupervisoryBoard as at 31 December 2017 and 2016 areas follows:

2017 2016

Dewan Pengawas Board of Sharia SupervisorySyariah Committee

Ketua H. Ikhwan Abidin, MA *) Drs. H. Amidhan ChairmanAnggota Muhamad Faiz **) KH. Ahmad Cholil Ridwan,Lc Member

*) Efektif berlaku pada tanggal 13 Juni 2017**) Efektif berlaku pada tanggal 2 Mei 2017

Become effective as af 13 June 2017 *)Become effective as at 2 May 2017 **)

Susunan Komite Audit yang ditetapkan olehDewan Komisaris adalah sebagai berikut:

The composition of Audit Committeeestablished by the Board of Commissionersare as follows:

2017 2016

Komite Audit Audit CommitteeKetua Kemal Azis Stamboel Kemal Azis Stamboel ChairmanAnggota Dewie Pelitawati Dewie Pelitawati MemberAnggota - Mahdi Syahbuddin MemberAnggota Aziz Budi Setiawan Aziz Budi Setiawan MemberAnggota Muhammad Faisal Muchtar Muhammad Faisal Muchtar Member

Pada tanggal 31 Desember 2017, SekretarisPerusahaan Bank adalah Arief Ismail. secretary was Arief Ismail.

Berdasarkan Surat Keputusan No.009/SK-PK/HCOPS/VII/2014 tanggal 14 Juli 2014yang berlaku efektif pada tanggal yang sama,Kepala Satuan Kerja Audit Internal padatanggal 31 Desember 2016 adalah Sri WulanPurnomo Lestari.

Based on the Decision Letter No.009/SK-PK/HCOPS/VII/2014 dated 14 July 2014 thateffective on the same date, the Head ofInternal Audit as at 31 December 2016 is SriWulan Purnomo Lestari.

Efektif berlaku pada tanggal 1 Juni 2017berdasarkan Keputusan Sirkuler DireksiNo.006/CIR/DIR/V/2017 tanggal 18 Mei 2017,Kepala Satuan Kerja Audit Internal pada31 Desember 2017 adalah Gatot Prasetyo.

Effective as at 1 June 2017, based on the

o Directors No.006/CIR/DIR/V/2017 dated 18May 2017, the Head of Internal Audit as at31 December 2017 is Gatot Prasetyo.

Jumlah karyawan Bank pada tanggal31 Desember 2017 dan 2016 masing-masingadalah 12.760 orang dan 11.804 orang. (tidakdiaudit)

As at 31 December 2017 and 2016, the Bankhas 12,760 and 11,804 permanent employees,respectively. (unaudited)

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2. KEBIJAKAN AKUNTANSI 2. ACCOUNTING POLICIES

Laporan keuangan BTPN Syariah ini disusun olehDireksi dan diotorisasi untuk terbit oleh Direksipada tanggal 24 Januari 2018.

The financial statements of BTPN Syariah wereprepared by Board of Directors and authorisedfor issuance by the Board of Directors on 24January 2018.

Kebijakan akuntansi utama yang diterapkan dalampenyusunan laporan keuangan Bank adalah sepertidijabarkan di bawah ini:

The principal accounting policies adopted in

out below:

a. Dasar penyusunan laporan keuangan a. Basis of financial statements preparation

Laporan keuangan untuk tahun yang berakhirpada tanggal 31 Desember 2017 telah disusundan disajikan sesuai dengan Standar AkuntansiKeuangan di Indonesia, Pedoman Akuntansi

2013), dan Keputusan Ketua Bapepam-LK(efektif 1 Januari 2013, Otoritas JasaKeuangan (OJK) telah mengambil alih fungsidari Bapepam-LK) No. KEP-347/BL/2012tanggal 25 Juni 2012 yang merupakanperubahan terakhir atas Keputusan KetuaBapepam-LK No. KEP 554/BL/2010 tanggal 30Desember 2010 dan Keputusan KetuaBapepam-LK No. KEP-06/PM/2000 tanggal 13Maret 2000 yaitu Peraturan No. VIII.G.7

Keuangan".

The financial statements for the year ended 31December 2017 has been prepared andpresented in accordance with IndonesianFinancial Accounting Standards, AccountingGuidelines for Indonesian Sharia Banking

Bapepam-LK (effective 1 January 2013,Financial Service Authority takes over thefunction of Bapepam-LK) No. KEP-347/BL/2012 dated 25 June 2012 which is thelatest change of the Decree of the Bapepam-LK No. KEP 554/BL/2010 dated 30 December2010 and the Decree of the Bapepam-LK No.KEP-06/PM/2000 dated 13 March 2000 on

Statements Presentation Guideline

Berdasarkan PSAK No. 101 (Revisi 2016),laporan keuangan bank syariah yang lengkapterdiri dari komponen-komponen sebagaiberikut:

Based on SFAS No. 101 (Revised 2016), acomplete sharia bank financial statementsconsist of the following components:

(i) Laporan posisi keuangan;(ii) Laporan laba rugi dan penghasilan

komprehensif lain;(iii) Laporan perubahan ekuitas;(iv) Laporan arus kas;(v) Laporan rekonsiliasi pendapatan dan

bagi hasil;

(i) Statement of financial position;(ii) Statement of profit or loss and other

comprehensive income;(iii) Statement of changes in equity;(iv) Statement of cash flows;(v) Statement of reconciliation of income

and revenue sharing;(vi) Laporan sumber dan penyaluran dana

zakat;(vii) Laporan sumber dan penggunaan dana

kebajikan; dan(viii) Catatan atas laporan keuangan.

(vi) Statement of sources and distribution ofzakat funds;

(vii) Statement of sources and uses ofqardhul hasan funds; and

(viii) Notes to the financial statements.

Laporan posisi keuangan, laporan laba rugi danpenghasilan komprehensif lain, laporanperubahan ekuitas, dan laporan arus kas,merupakan laporan keuangan yangmencerminkan kegiatan komersial Bank sesuaiprinsip syariah.

Statements of financial positions, statementsof profit or loss and other comprehensiveincome, statements of changes in equity andstatements of cash flows, are the financialstatements reflecting the Bank's commercialactivities in accordance with sharia principle.


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2. KEBIJAKAN AKUNTANSI (lanjutan) 2. ACCOUNTING POLICIES (continued)

a. Dasar penyusunan laporan keuangan(lanjutan)

a. Basis of financial statements preparation(continued)

Laporan keuangan disusun berdasarkankonsep harga perolehan, kecuali untukbeberapa akun yang dinilai menggunakan dasarpengukuran lain sebagaimana dijelaskan dalamkebijakan akuntansi masing-masing akuntersebut, dan disusun dengan dasar akrual,kecuali laporan arus kas dan laporanrekonsiliasi pendapatan dan bagi hasil.

The financial statements have been preparedunder the historical cost convention, except forcertain accounts which have been valued onanother measurement basis as explained inthe accounting policy of such accounts, andprepared under the accrual basis, except forthe statement of cash flows and statement ofreconciliation of income and revenue sharing.

Laporan arus kas disusun denganmenggunakan metode langsung denganmengelompokkan arus kas dalam aktivitasoperasi, investasi dan pendanaan. Untukpenyajian laporan arus kas, kas dan setara kasterdiri dari kas, giro pada Bank Indonesia, giropada bank lain, penempatan pada BankIndonesia dan bank lain, dan efek-efek yangdibeli dengan janji untuk dijual kembali yangjatuh tempo dalam 3 (tiga) bulan dari tanggalpenempatan.

The statements of cash flows are preparedusing the direct method by classifying cashflows into operating, investing and financingactivities. For the presentation of cash flowsstatement, cash and cash equivalents consistof cash, current accounts with Bank Indonesia,current accounts with other banks placementswith Bank Indonesia and other banks, andsecurities purchased uder resell agreementwith maturities of 3 (three) months from thedate of placement.

Laporan rekonsiliasi pendapatan dan bagi hasilmerupakan rekonsiliasi antara pendapatan banksyariah yang menggunakan dasar akrual(accrual basis) dengan pendapatan yangdibagihasilkan kepada pemilik dana yangmenggunakan dasar kas (cash basis).

Statements of reconciliation of income andrevenue sharing represents the reconciliationbetween income of sharia bank under accrualbasis with income distributed to depositorsunder cash basis.

Laporan sumber dan penyaluran dana zakatdan laporan sumber dan penggunaan danakebajikan merupakan laporan keuangan yangmencerminkan peran Bank sebagai pemegangamanah dana kegiatan sosial yang dikelolasecara terpisah.

Statements of sources and distribution of zakatfunds and statements of sources and uses ofqardhul hasan funds represent the financialstatementsmandate holder of social activity funds whichare separately managed.

Laporan sumber dan penyaluran dana zakatmerupakan laporan yang menunjukkan sumberdan penyaluran dana zakat dalam jangka waktutertentu, serta dana zakat yang belumdisalurkan pada tanggal tertentu.

Statements of sources and distribution of zakatfunds show the sources and distribution ofzakat funds for a certain period, and theundistributed zakat funds in a particular date.

Laporan sumber dan penggunaan danakebajikan menunjukkan sumber danpenggunaan dana kebajikan dalam jangkawaktu tertentu serta saldo dana kebajikan padatanggal tertentu.

Statements of sources and uses of qardhulhasan funds shows the sources and uses ofqardhul hasan funds for a certain period, andqardhul hasan funds balance in a particulardate.

Mata uang pelaporan yang digunakan dalamlaporan keuangan adalah mata uang Rupiah(Rp), yang juga merupakan mata uangfungsional Bank. Angka-angka yang disajikandalam laporan keuangan kecuali dinyatakanlain, adalah dibulatkan dalam jutaan Rupiah.

The reporting currency used in the financialstatements is Rupiah (Rp), which also the

The figurespresented in the financial statements, unlessotherwise stated, are rounded in millions ofRupiah.

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b. Perubahan pada pernyataan standarakuntansi keuangan dan interpretasipernyataan standar akuntansi keuangan

b. Changes to the statement of financialaccounting standards and interpretationsof statement of financial accountingstandards

Dewan Standar Akuntansi Keuangan Ikatan-

atas beberapa standar akuntansi yang berlakuefektif pada tanggal 1 Januari 2017 sebagaiberikut:

Financial Accounting Standard Board of-

has issued revision of the following accountingstandards which are effective as at 1 January2017 as follows:

- atas Ruang Lingkup

-

-Laporan Keuangan Syariah

-Murabahah

-

-Istishna

- Ijarah

-

- Amandemen PSAK 3 Laporan Keuangan

-

- Tidak Lancaryang Dimiliki untuk Dijual dan Operasi yang

-

-

- of The Scope ofSFAS 13 : Investment Property

-

-Sharia Financial

-A

-

-

-

-

-

-

- Amendment to SFAS 58 -currentassets held for sale and discontinued

-

-

Implementasi dari standar-standar tersebuttidak menghasilkan perubahan substansialterhadap kebijakan akuntansi perusahaan danjumlah yang dilaporkan di periode berjalan atautahun sebelumnya.

The implementation of the above standardsdid not result in substantial changes to the

amounts reported for current or prior financialyears.

c. Instrumen keuangan c. Financial instruments

Aset keuangan Financial assets

Bank mengklasifikasikan aset keuangannyahanya dalam dua kategori yaitu pinjaman yangdiberikan dan piutang dan aset keuangan yangdimiliki hingga jatuh tempo. Bank tidak memilikiaset keuangan yang diukur pada nilai wajarmelalui laporan laba rugi, dan aset keuangantersedia untuk dijual. Klasifikasi ini tergantungdari tujuan perolehan aset keuangan tersebut.Manajemen Bank menentukan klasifikasi asetkeuangan tersebut pada saat awalpengakuannya.

The Bank classifies its financial assets onlyinto two category of loans and receivables,and held-to maturity financial assets. TheBank does not have financial asset classifiedas fair value through profit or loss, andavailable-for-sale financial assets. Theclassification depends on the purpose forwhich the financial assets were acquired.Bank management determines theclassification of its financial assets at initialrecognition.


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c. Instrumen keuangan (lanjutan) c. Financial instruments (continued)

Aset keuangan (lanjutan) Financial assets (continued)

(a) Pinjaman yang diberikan dan piutang (a) Loans and receivables

Pinjaman yang diberikan dan piutangadalah aset keuangan non-derivatif denganpembayaran tetap atau telah ditentukandan tidak mempunyai kuotasi di pasar aktif,kecuali:

Loans and receivables are non-derivativefinancial assets with fixed or determinablepayments which are not quoted in anactive market, except:

- yang dimaksudkan oleh Bank untukdijual dalam waktu dekat, yangdiklasifikasikan dalam kelompokdiperdagangkan, serta yang pada saatpengakuan awal ditetapkan sebagaidiukur pada nilai wajar melalui laporanlaba rugi;

- yang pada saat pengakuan awalditetapkan dalam kelompok tersediauntuk dijual; atau

- dalam hal pemilik mungkin tidak akanmemperoleh kembali investasi awalsecara substansial kecuali yangdisebabkan oleh penurunan kualitaspinjaman yang diberikan dan piutang.

- those for which the Bank intends tosell immediately or in the short term,which are classified as held fortrading, and those that the Bank uponinitial recognition designates as at fairvalue through profit or loss;

- those for which the Bank upon initialrecognition designates as available-for-sale; or

- those for which the holder may notrecover substantially all of its initialinvestment, other than because ofnon-performing loans andreceivables.

Pada saat pengakuan awal, pinjaman yangdiberikan dan piutang diakui pada nilaiwajarnya ditambah biaya transaksi danselanjutnya diukur pada biaya perolehandiamortisasi dengan menggunakan metodeimbal hasil efektif. Pendapatan marjin dariaset keuangan dalam kelompok pinjamanyang diberikan dan piutang dicatat di dalamlaporan laba rugi dan dilaporkan sebagai

Loans and receivables are initiallyrecognised at fair value plus transactioncosts and subsequently measured atamortised cost using the effective rate ofreturn method. Margin income on financialassets classified as loans and receivablesis included in the profit or loss and isreported a

Dalam hal terjadi penurunan nilai, kerugianpenurunan nilai dilaporkan sebagaipengurang dari nilai tercatat aset keuangandalam kelompok pinjaman yang diberikandan piutang, dan diakui di dalam laporanlaba rugi seba

In the case of impairment, the impairmentloss is reported as a deduction from thecarrying value of the financial assetsclassified as loan and receivablesrecognised in the profit or loss as

(b) Aset keuangan dimiliki hingga jatuh tempo (b) Held-to-maturity financial assets

Investasi dalam kategori dimiliki hinggajatuh tempo adalah aset keuangannonderivatif yang dapat dikuotasikandengan pembayaran tetap atau telahditentukan dan jatuh temponya telahditetapkan dimana Bank mempunyai intensipositif dan kemampuan untuk memiliki asetkeuangan tersebut hingga jatuh tempo dantidak ditetapkan pada nilai wajar melaluilaporan laba rugi atau tersedia untuk dijual.Investasi yang dimiliki untuk periode yangtidak dapat ditentukan, tidak dikategorikandalam klasifikasi ini.

Held-to-maturity investments consist ofquoted non-derivative financial assets withfixed or determinable payments and fixedmaturity which the Bank has the positiveintention and ability to hold until maturityand which are not designated at fair valuethrough profit or loss or available for sale.Investments intended to be held for anundetermined period of time are notincluded in this classification.

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Aset keuangan (lanjutan) Financial assets (continued)

(c) Pengakuan (c) Recognition

Pembelian dan penjualan aset keuanganyang lazim (reguler) diakui pada tanggalperdangangan, yaitu tanggal dimana Bankberkomitmen untuk membeli dan menjualaset.

Reguler purchases and sale of financialassets are recognised on the trade date,which the date when the Bank commit topurchase or sale the asset.

Pembelian atau penjualan aset keuanganyang memerlukan penyerahan aset dalamkurun waktu yang telah ditetapkan olehperaturan dan kebiasaan yang berlaku dipasar (pembelian secara reguler) diakuipada tanggal penyelesaian.

Purchases or sales of financial assets thatrequire delivery of assets within a timeframe established by regulation orconvention in the market place (regularway purchases) are recognized on thesettlement date.

Liabilitas keuangan Financial liabilities

Bank mengklasifikasikan liabilitas keuangandalam kategori liabilitas keuangan yang diukurdengan biaya perolehan diamortisasi.

The Bank classifies its financial liabilities in thecategory of financial liabilities measured atamortised cost.

Liabilitas keuangan yang tidak diklasifikasikansebagai liabilitas keuangan yang diukur padanilai wajar melalui laporan laba rugidikategorikan ke dalam liabilitas keuangan yangdiukur dengan biaya perolehan diamortisasi.Pada saat pengakuan awal, liabilitas keuanganyang diukur dengan biaya perolehandiamortisasi diukur pada nilai wajar dikurangibiaya transaksi.

Financial liabilities which are not classified asat fair value through profit or loss iscategorised into financial liabilities measuredat amortised cost. Financial liabilitiesmeasured at amortised cost are initiallyrecognised at fair value less transaction costs.

Selama tahun berjalan dan pada tanggallaporan posisi keuangan, Bank tidak memilikiliabilitas keuangan yang diklasifikasikansebagai liabilitas keuangan yang diukur padanilai wajar melalui laporan laba rugi. Olehkarena itu, kebijakan akuntansi yang berkaitandengan liabilitas keuangan ini tidakdiungkapkan.

During the year and at the statement offinancial position date, there are no financialliabilities classified as financial liabilities at fairvalue through profit or loss. Therefore, theaccounting policies related to such financialliabilities are not disclosed.

Penentuan nilai wajar Determination of fair value

Nilai wajar adalah harga yang akan diterimauntuk menjual suatu aset atau harga yang akandibayar untuk mengalihkan suatu liabilitasdalam transaksi teratur antara pelaku pasarpada tanggal pengukuran di pasar utama atau,jika tidak terdapat pasar utama, di pasar yangpaling menguntungkan dimana Bank memilikiakses pada tanggal tersebut. Nilai wajarliabilitas mencerminkan risiko wanprestasinya.

Fair value is the price which would be receivedto sell an asset or paid to transfer a liability inan orderly transaction between marketparticipants at the measurement date in theprincipal market or, in its absence, the mostadvantageous market to which the Bank hasaccess at that date. The fair value of a liabilityreflects its non-performance risk.


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Penghentian pengakuan Derecognition

Penghentian pengakuan aset keuangandilakukan ketika hak kontraktual atas arus kasyang berasal dari aset keuangan tersebutberakhir, atau ketika aset keuangan tersebuttelah ditransfer dan secara substansial seluruhrisiko dan manfaat atas kepemilikan aset telahditransfer (jika secara substansial seluruh risikodan manfaat tidak ditransfer, maka Bankmelakukan evaluasi untuk memastikanketerlibatan berkelanjutan atas pengendalianyang masih dimiliki tidak mencegahpenghentian pengakuan). Liabilitas keuangandihentikan pengakuannya ketika liabilitas telahdilepaskan atau dibatalkan atau kadaluwarsa.

Financial assets are derecognised when thecontractual rights to receive the cash flowsfrom these assets have ceased to exist or theassets have been transferred and substantiallyall the risks and rewards of ownership of theassets are also transferred (if substantially allthe risks and rewards have not beentransferred, the Bank evaluates to ensure thatcontinuing involvement on the basis of anyretained powers of control does not preventderecognition). Financial liabilities arederecognised when they have been redeemedor otherwise extinguished.

Reklasifikasi aset keuangan Reclassification of financial assets

Aset keuangan yang diukur pada nilai wajarmelalui laporan laba rugi (jika aset keuangantidak disyaratkan untuk diklasifikasikan sebagaidiperdagangkan pada saat pengakuan awal)dapat direklasifikasikan ke pinjaman yangdiberikan dan piutang jika memenuhi definisipinjaman yang diberikan dan piutang danentitas memiliki intensi dan kemampuanmemiliki aset keuangan untuk masa mendatangyang dapat diperkirakan atau hingga jatuhtempo.

Financial assets at fair value through profit orloss (if had not been required to be classifiedas held for trading at initial recognition) couldbe reclassified as loans and receivables if itmet the definition of loans and receivablesand entity has the intention and ability to holdthe financial assets for foreseeable future oruntil maturity date.

Bank tidak diperkenankan mengklasifikasikanaset keuangan sebagai investasi dimiliki hinggajatuh tempo, jika dalam tahun berjalan ataudalam kurun waktu dua tahun sebelumnya,telah menjual atau mereklasifikasi investasidimiliki hingga jatuh tempo dalam jumlah yanglebih dari jumlah yang tidak signifikan sebelumjatuh tempo (lebih dari jumlah yang tidaksignifikan dibandingkan dengan total nilaiinvestasi dimiliki hingga jatuh tempo), kecualipenjualan atau reklasifikasi tersebut:

The Bank shall not classify any financialassets as held-to-maturity if during the currentfinancial year or during the two preceedingfinancial years, sold or reclassified more thanan insignificant amount of held-to-maturityinvestments before maturity (more thaninsignificant in relation to the total amount ofheld-to-maturity investments) other than salesor reclassifications that:

(a) dilakukan ketika aset keuangan sudahmendekati jatuh tempo atau tanggalpembelian kembali dimana perubahan sukubunga tidak akan berpengaruh secarasignifikan terhadap nilai wajar asetkeuangan tersebut;

(b) terjadi setelah Bank telah memperolehsecara substansial seluruh jumlah pokokaset keuangan tersebut sesuai jadwalpembayaran atau Bank telah memperolehpelunasan dipercepat; atau

(c) terkait dengan kejadian tertentu yangberada di luar kendali Bank, tidak berulang,dan tidak dapat diantisipasi secara wajaroleh Bank.

(a) are so close to maturity or the financialasset's call date when changes in themarket rate of interest would not have asignificant effect on the financial asset'sfair value;

(b) occur after the Bank has collectedsubstantially all of the financial asset'soriginal principal through scheduledpayments or prepayments; or

(c) are attributable to an isolated event that isbeyond the Bank control, is non-recurringand could not have been reasonablyanticipated by the Bank.

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Reklasifikasi aset keuangan (lanjutan) Reclassification of financial assets(continued)

Reklasifikasi aset keuangan dari kelompokdimiliki hingga jatuh tempo ke kelompoktersedia untuk dijual dicatat sebesar nilaiwajarnya. Keuntungan atau kerugian yangbelum direalisasi tetap dilaporkan dalamkomponen ekuitas sampai aset keuangantersebut dihentikan pengakuannya, dan padasaat keuntungan atau kerugian kumulatif yangsebelumnya diakui dalam ekuitas harus diakuipada laporan laba rugi.

Reclassification of financial assets from held-to-maturity classification to available-for-sale isrecorded at fair value. Unrealised gains orlosses are recorded as part of equitycomponent until the financial assets isderecognised, at which time the cumulativegain or loss previously recognised in equityshall be recognised in profit or loss.

Reklasifikasi aset keuangan dari kelompoktersedia untuk dijual ke kelompok dimiliki hinggajatuh tempo dicatat pada nilai tercatat.Keuntungan atau kerugian yang belumdirealisasi harus diamortisasi menggunakanmetode imbal hasil efektif sampai dengantanggal jatuh tempo instrumen tersebut.

Reclassification of financial assets fromavailable-for-sale to held-to-maturityclassification is recorded at carrying amount.The unrealised gains or losses are amortisedby using effective rate of return method up tothe maturity date of that instrument.

Klasifikasi atas instrumen keuangan Classification of financial instruments

Bank mengklasifikasikan instrumen keuanganke dalam klasifikasi tertentu yangmencerminkan sifat dari informasi danmempertimbangkan karakteristik dari instrumenkeuangan tersebut.

The Bank classifies the financial instrumentsinto classes which reflects the nature ofinformation and take into account thecharacteristic of those financial instruments.

Saling hapus instrumen keuangan Offsetting financial instruments

Aset keuangan dan liabilitas keuangan salinghapus dan nilai bersihnya disajikan dalamlaporan posisi keuangan jika memiliki hak yangberkekuatan hukum untuk melakukan salinghapus atas jumlah yang telah diakui tersebutdan terdapat intensi untuk menyelesaikansecara neto atau untuk merealisasikan aset danmenyelesaikan liabilitasnya secara bersamaan.

Financial assets and liabilities are offset andthe net amount reported in the statements offinancial position when there is a legallyenforceable right to offset the recognisedamounts and there is an intention to settle ona net basis or realise the asset and settle theliability simultaneously.

Hak berkekuatan hukum tersebut haruslah tidakbergantung pada kondisi masa depan dan haktersebut harus dapat tetap didapatkan dalamkondisi bisnis normal dan dalam hal terjadinyakegagalan, ketidakmampuan membayarmaupun kebangkrutan dari Bank ataupun pihakrekanan.

The legally enforceable right must not becontingent on future events and must beenforceable in the normal course of businessand in the event of default, insolvency orbankruptcy of the Bank or the counterparty.

d. Transaksi dengan pihak-pihak berelasi d. Transactions with related parties

Bank melakukan transaksi dengan pihakberelasi. Sesuai dengan PSAK No. 7 (revisi

-Pihak

berelasi adalah orang atau entitas yang berelasidengan entitas pelapor sebagai berikut:

The Bank has transactions with related parties.In accordance with SFAS No. 7 (revised 2015)

meaning of a related party is a person or entitywhom is related to a reporting entity as follow:


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d. Transaksi dengan pihak-pihak berelasi(lanjutan)

d. Transactions with related parties(continued)

a. Orang atau anggota keluarga terdekatnyaberelasi dengan entitas pelapor jika orangtersebut:

a. A person or a close member of that

entity if that person:i. memiliki pengendalian atau

pengendalian bersama terhadapentitas pelapor;

ii. memiliki pengaruh signifikanterhadap entitas pelapor; atau

iii. personal manajemen kunci entitaspelapor atau entitas induk pelapor;

i. has control or joint control over thereporting entity;

ii. has significant influence over thereporting entity; or

iii. is member of the key managementpersonnel of the reporting entity or aparent of the reporting entity;

b. Suatu entitas berelasi dengan entitaspelapor jika memenuhi hal-hal sebagaiberikut:i. entitas dan entitas pelapor adalah

anggota dari kelompok usaha yangsama (artinya entitas induk, entitasanak dan entitas anak berikutnyaterkait dengan entitas lain);

ii. suatu entitas adalah entitas asosiasiatau ventura bersama bagi entitaslain (atau entitas asosiasi atauventura bersama yang merupakananggota suatu kelompok usaha,dimana entitas lain tersebut adalahanggotanya);

iii. kedua entitas tersebut adalahventura bersama dari pihak ketigayang sama;

iv. suatu entitas adalah venturabersama dari entitas ketiga danentitas yang lain adalah entitasasosiasi dari entitas ketiga;

b. An entity is related to a reporting entity ifany of the following conditions applies:

i. the entity and the reporting entity aremembers of the same company(which means each parent,subsidiary and fellow subsidiary isrelated to the others);

ii. one entity is an associate or jointventure of the other entity (or anassociate or joint venture of memberof a company of which the otherentity is a member);

iii. both entities are joint ventures of thesame third party;

iv. one entity is a joint venture of a thirdentity and the other entity is anassociate of the third entity;

v. entitas tersebut adalah suatuprogram imbalan pasca kerja untukimbalan kerja karyawan dari suatuentitas pelapor atau entitas yangterkait dengan entitas pelapor;

vi. entitas yang dikendalikan ataudikendalikan bersama oleh orangyang diidentifikasi dalam butir (a);

vii. orang yang diidentifikasi, dalambutir (a) (i) memiliki pengaruhsignifikan terhadap entitas atauanggota manajemen kunci entitas(atau entitas induk dari entitas).

viii. entitas, atau bagian dari grupdimana entitas merupakananggotanya, menyediakan personalmanajemen kunci kepada entitaspelapor atau kepada pemegangsaham dari entitas pelaporan.

v. the entity is a post-employmentbenefit plan for the benefit ofemployees of either the reportingentity or an entity related to thereporting entity;

vi. the entity controlled or jointlycontrolled by a person identified in(a);

vii. a person identified in (a) (i) hassignificant influence over the entityor is a member of the keymanagement personel of the entity(or of a parent of the entity).

viii. the entity, or any member of a groupof which it is a part, provides keymanagement personnel services tothe reporting entity or to the parentof the reporting entity.

Jenis transaksi dan saldo dengan pihak-pihakberelasi diungkapkan dalam catatan ataslaporan keuangan (Catatan 37).

The nature of transactions and balances ofaccounts with related parties are disclosed inthe notes to the financial statements (Note 37).

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e. Cadangan kerugian penurunan nilai asetkeuangan

e. Allowance for impairment losses offinancial assets

Cadangan kerugian penurunan nilai ataspiutang murabahah dihitung berdasarkan PSAK55, Instrumen Keuangan: Pengakuan danPengukuran.

The allowance for impairment losses onmurabahah receivables is calculated inaccordance with SFAS 55, FinancialInstruments: Recognition and Measurement.

Bank melakukan evaluasi penurunan nilaisecara kolektif karena manajemen beranggapanbahwa seluruh piutang murabahah memilikikarakteristik risiko kredit yang serupa dansecara individual memiliki nilai tidak signifikan.

The Bank performs impairment evaluationcollectively as the management believes thatthe murabahah receivables have similar creditrisk characteristics and are individuallyinsignificant in amount.

Cadangan kerugian penurunan nilai ataspiutang murabahah yang dinilai secara kolektifdihitung berdasarkan pengalaman kerugianhistoris. Pengalaman kerugian historisdisesuaikan menggunakan dasar data yangdapat diobservasi untuk mencerminkan efekdari kondisi saat ini terhadap Bank danmenghilangkan efek dari masa lalu yang sudahtidak berlaku saat ini.

Calculation of allowance for impairment losseson murabahah receivables are collectivelyevaluated on the basis of historical lossexperience. Historical loss experience isadjusted on the basis of current observabledata to reflect the effects of current conditionsaffecting the Bank and to remove the effects ofconditions in the historical period which do notcurrently exist.

Bank menggunakan metode analisis modelstatistik yaitu flow rate analysis method untukmenilai cadangan kerugian penurunan nilai.

The Bank applies statistical model analysismethod, which is flow rate analysis method, toassess the allowance for impairment losses.

Kerugian penurunan nilai atas aset keuanganyang dicatat pada biaya perolehan diamortisasidiukur sebesar selisih antara nilai tercatat asetkeuangan dengan nilai kini estimasi arus kasmasa datang yang didiskonto menggunakantingkat imbal hasil efektif awal dari asetkeuangan tersebut.

Impairment losses on financial assets carriedat amortised cost are measured as thedifference between the carrying amount of thefinancial assets and present value of estimatedfuture cash flows discounted at the financialassets' original effective rate of return.

Ketika pembiayaan yang diberikan tidaktertagih, pembiayaan tersebut dihapus bukudengan menjurnal balik cadangan kerugianpenurunan nilai. Pembiayaan tersebut dapatdihapus buku setelah semua prosedur yangdiperlukan telah dilakukan dan jumlah kerugiantelah ditentukan. Beban penurunan nilai

When a finacing is uncollectible, it is writtenoffagainst the related allowance for impairmentlosses. Such financing are written-off after allnecessary procedures have been completedand the amount of the loss has beendetermined. Impairment charges relating to

Penerimaan kembali atas pembiayaan yangtelah dihapusbukukan pada tahun berjalandikreditkan pada akun pembentukan cadangankerugian penurunan nilai. Penerimaan kembaliatas pembiayaan yang telah dihapusbukukanpada tahun sebelumnya dicatat sebagaipendapatan operasi lainnya.

Subsequent recoveries of financing written offin the current year are credited to theallowance for impairment losses. Subsequentrecoveries of financing written off in previousyear are recognised as other operatingincome.

f. Giro dan penempatan pada Bank Indonesia f. Current accounts and placements withBank Indonesia

Giro dan penempatan pada Bank Indonesiadinyatakan sebesar saldonya.

Current accounts and placements with BankIndonesia are stated at their outstandingbalances.


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g. Giro wajib minimum g. Statutory reserves

Sesuai dengan Peraturan Bank Indonesiamengenai Giro Wajib Minimum Bank Umumpada Bank Indonesia dalam Rupiah dan matauang asing, Bank diwajibkan untukmenempatkan sejumlah persentase atassimpanan nasabah.

In accordance with prevailing Bank Indonesia

Statutory Reserves Requirement with BankIndonesia in Rupiah and foreign currency, TheBank is required to place certain percentage ofdeposits from customers.

h. Giro pada bank lain h. Current accounts with other banks

Giro pada bank lain dinyatakan sebesar saldogiro dikurangi dengan cadangan kerugianpenurunan nilai. Bonus yang diterima Bank daribank umum syariah diakui sebagai pendapatanusaha utama lainnya. Penerimaan jasa giro daribank umum konvensional (jika ada) tidak diakuisebagai pendapatan Bank dan digunakan untukdana kebajikan (qardhul hasan).

Current accounts with other banks are statedat their outstanding balances, net of allowancefor impairment losses. Bonuses received fromsharia commercial banks are recognised asother main operating income. Interest incomefrom conventional commercial banks (if any)

are used as part of the qardhul hasan funds.

i. Investasi pada surat berharga i. Investment in marketable securities

Surat Berharga Syariah adalah surat buktiinvestasi berdasarkan prinsip syariah yanglazim diperdagangkan di pasar uang syariahdan/atau pasar modal syariah antara lainobligasi syariah (sukuk) dan surat berhargalainnya berdasarkan prinsip syariah.

Sharia Securities are proof of investmentbased on sharia principles that are commonlytraded in the sharia money market and/orsharia capital markets, including sharia bonds(sukuk) and other securities following Shariaprinciples.

Bank menentukan klasifikasi investasi padasurat berharga, khususnya sukuk, berdasarkanmodel usaha yang ditentukan sesuai dengan

Sukuk" sebagai berikut:

The Bank defined the classification ofInvestment in marketable securities,specifically sukuk, based on business model inaccordance with SFAS No. 110 (Revised2015) on "Accounting for Sukuk" as follows:

1) Diukur pada biaya perolehan. Investasitersebut dimiliki dalam suatu model usahayang bertujuan utama untuk memperoleharus kas kontraktual dan terdapatpersyaratan kontraktual dalam menentukantanggal tertentu atas pembayaran pokokdan atau hasilnya. Pada saat awalpengakuan, investasi pada sukuk diukurpada biaya perolehan termasuk biayatransaksi. Selisih antara biaya perolehandan nilai nominal diamortisasi secara garislurus selama jangka waktu sukuk.

1) Measured at amortized cost. Theinvestment is held in a business modelwhereby the primary goal is to obtaincontractual cash flows and has contractualterms in determining the specific date ofprincipal payments and or the results. Atthe initial recognition, investments in sukukare measured at cost, including transactioncosts. The difference between theacquisition cost and the nominal value isamortized on a straight-line basis over theperiod of the sukuk.

2) Diukur pada nilai wajar melalui penghasilankomprehensif lain. Investasi tersebutdimiliki dalam suatu model usaha yangbertujuan utama untuk memperoleh aruskas kontraktual dan melakukan penjualansukuk, terdapat persyaratan kontraktualdalam menentukan tanggal tertentu ataspembayaran pokok dan/atau hasilnya.

2) Measured at fair value through othercomprehensive income. The investment isheld in a business model whereby theprimary goal is to obtain contractual cashflows and to sell the sukuk, and hascontractual terms in determining thespecific date of principal payments and orthe results.

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i. Investasi pada surat berharga (lanjutan) i. Investment in marketable securities(continued)

Pada saat awal pengakuan, investasi padasukuk diukur pada biaya perolehantermasuk biaya transaksi. Selisih antarabiaya perolehan dan nilai nominaldiamortisasi secara garis lurus selamajangka waktu sukuk dan diakui dalam labarugi. Keuntungan atau kerugian dariperubahan nilai wajar diakui dalampenghasilan komprehensif lain setelahmemperhitungkan saldo selisih biayaperolehan dan nilai nominal yang belumdiamortisasi dan saldo akumulasikeuntungan dan kerugian nilai wajar yangtelah diakui dalam penghasilankomprehensif lain sebelumnya. Ketikainvestasi sukuk dihentikan pengakuannya,akumulasi keuntungan atau kerugian yangsebelumnya diakui dalam penghasilankomprehensif dipindahkan ke laba rugi.

At the initial recognition, investments insukuk are measured at cost, includingtransaction costs. The difference betweenacquisition cost and the nominal value isamortized on a straight-line basis over theperiod of the sukuk and is recognized inprofit or loss. Gain or loss from changes offair value is recognized in othercomprehensive income after consideringunamortized difference of acquisition costand nominal value and accumulated gain orloss of fair value which has previouslyrecognized in other comprehensive income.When sukuk is derecognized, accumulatedgain or loss which has previouslyrecognized in other comprehensive incomeis reclassified to profit or loss.

3) Diukur pada nilai wajar melalui laba rugi.Pada saat awal pengakuan, investasi padasukuk diukur pada nilai wajar sebesar biayaperolehan tidak termasuk biaya transaksidan selanjutnya diukur pada nilai wajar.Selisih antara nilai wajar dan jumlahtercatat diakui dalam laba rugi pada tahunyang bersangkutan.

3) Measured at fair value through profit orloss. At the initial recognition, investmentsin sukuk are measured at fair value atacquisition cost excluding transaction costwhich subsequently measured at fair value.The difference between fair value and thecarrying value is recognized in current yearprofit or loss.

j. Efek-efek yang dibeli dengan janji dijualkembali (reverse repo)

j. Securities purchased under resellagreements (reverse repo)

Efek efek yang dibeli dengan janji dijual kembalimerupakan transaksi pembelian surat berhargasyariah dengan janji dijual kembali denganharga dan waktu yang telah disepakati. Efek-efek yang dibeli dengan janji untuk dijualkembali disajikan sebagai aset dalam laporanposisi keuangan sebesar harga beli ditambahdengan pendapatan yang sudah diakui tapibelum diterima, dikurangi dengan cadangankerugian penurunan nilai, jika diperlukan.

Securities purchased under resell agreementsare purchase transactions of syariah compliantsecurities with agreements to resell at acertain price and time. Securities purchasedunder resell agreements are presented as anasset in the statement of financial position atthe purchase price added with incomerecognised but not yet received, lessallowance for impairment losses, whereappropriate.

Pada saat pengakuan awal, efek-efek yangdibeli dengan janji untuk dijual kembali diukursebesar jumlah yang dibayarkan. Setelahpengakuan awal, selisih antara harga beli danharga jual kembali diperlakukan sebagaipendapatan yang ditangguhkan dan diakuisebagai pendapatan selama periode sejak efek-efek tersebut dibeli hingga dijual secara garislurus.

At initial recognition, securities purchasedunder resell agreements are measured atamounts paid. After initial recognition, thedifference between the purchase price and theresell price is treated as unearned income, andrecognised as income over the period startingfrom when those securities are purchased untilthey are sold on a straight line basis.


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k. Piutang murabahah k. Murabahah receivables

Murabahah adalah transaksi penjualan barangdengan menyatakan harga perolehan dankeuntungan (marjin) yang disepakati olehpenjual dan pembeli. Piutang murabahahdisajikan sebesar nilai bersih yang dapatdirealisasi, yakni saldo piutang dikurangicadangan kerugian. Keuntungan murabahahyang ditangguhkan disajikan sebagai pos lawanpiutang murabahah.

Murabahah is sales transaction for goodswhich states the purchase price and marginagreed by both buyer and seller. Murabahahreceivables are stated at net realisable value,that is, balance of the receivables lessallowance for impairment losses. Deferredmurabahah margin is presented as a contraaccount of murabahah receivables.

l. Pinjaman qardh l. Funds of qardh

Pinjaman qardh adalah penyediaan dana atautagihan yang dapat dipersamakan dengan ituberdasarkan persetujuan atau kesepakatanantara peminjam dan Bank yang mewajibkanpeminjam melunasi hutangnya setelah jangkawaktu tertentu.

Funds of qardh represents funds provided orsimilar claims based on an agreement orcontract between the borrower and the Bank,wherein the borrower should repay the loanafter a specified period of time.

Pinjaman qardh diakui sebesar total dana yangdipinjamkan pada saat terjadinya. Bank dapatmenerima imbalan namun tidak diperkenankanuntuk dipersyaratkan didalam perjanjian.Imbalan tersebut diakui pada saat diterima.

A funds of qardh is recognised in the amountlent at the transaction date. The Bank mayreceive a fee, however, this should not bestated in the agreement. The fee is recognisedupon receipt.

Pinjaman qardh disajikan sebesar saldonyadikurangi penyisihan kerugian.

Funds of qardh is stated at its outstandingbalance less allowance for possible losses.

m. Biaya dibayar di muka m. Prepayments

Biaya dibayar di muka adalah beban yang telahdikeluarkan tetapi belum diakui sebagai bebanpada periode terjadinya. Biaya dibayar di mukaakan diakui sebagai beban pada laporan labarugi pada saat diamortisasi sesuai dengan masamanfaatnya dengan menggunakan metodegaris lurus.

Prepayments are expenses which have beenincurred but have not been recognised as anexpense in the related period. Prepaymentsare recognised as expenses in the statementof profit or loss when it is amortised inaccordance with the expected period ofbenefit by using straight-line method.

n. Aset tetap dan aset tak berwujud n. Fixed assets and intangible assets

Aset tetap dinyatakan sebesar biaya perolehandikurangi akumulasi penyusutan dan rugipenurunan nilai (jika ada). Biaya perolehantermasuk biaya penggantian bagian aset tetapsaat biaya tersebut terjadi, jika memenuhikriteria pengakuan. Semua biaya pemeliharaandan perbaikan yang tidak memenuhi kriteriapengakuan diakui dalam laporan laba rugi padasaat terjadinya. Pada setiap akhir tahun buku,nilai residu, umur manfaat, dan metodepenyusutan ditelaah kembali dan jika sesuaidengan keadaan, disesuaikan secaraprospektif.

Fixed Assets are stated at cost lessaccumulated depreciation and impairmentlosses (if any). Acquisition cost includes thecost of replacing parts of fixed assets when thecost is incurred, if the recognition criteria aremet. All other repairs and maintenance costwhich do not meet the recognition criteria arerecognised in the statement of profit or loss asincurred. At end of the period, the residualvalue, useful lives, and depreciation methodare reviewed and if appropriate with thecondition, adjusted prospectively.

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n. Aset tetap dan aset tak berwujud (lanjutan) n. Fixed assets and intangible assets(continued)

Aset tetap Fixed assets

Tanah tidak disusutkan. Sejak 28 Februari2016, tanah dinilai dengan metode revaluasi.Tanah disajikan sebesar nilai wajarberdasarkan penilaian yang dilakukan olehpenilai independen eksternal yang telahterdaftar di Otoritas Jasa Keuangan (OJK).Penilaian atas aset tersebut dilakukan secaraberkala untuk memastikan bahwa nilai wajaraset yang direvaluasi tidak berbeda secaramaterial dengan jumlah tercatatnya.

Land is not depreciated. Since 28 February2016, land is measured using revaluationmethod. Land is shown at fair value, based onvaluation performed by external independentvaluer which is registered in Financial ServiceAuthority. Valuations are performed withsufficient regularity to ensure which the fairvalue of a revalued asset does not differmaterially from its carrying amount.

Jika aset yang direvaluasi dijual, jumlah yangdicatat di dalam ekuitas dipindahkan ke saldolaba.

Aset tetap, selain tanah, disusutkan selamataksiran masa manfaat ekonomis aset tetapdengan metode garis lurus dan diakui sebesarharga perolehan setelah dikurangi denganakumulasi penyusutan.

When revalued assets are sold, the amountsincluded in equity are transferred to retainedearnings.

Fixed assets, except land, are depreciatedover their expected useful lives using straight-line method and are stated at cost lessaccumulated depreciation.

Taksiran masa manfaat ekonomis aset tetapadalah sebagai berikut:

The expected useful lives of fixed assets areas follows:

Tahun/Years Tarif/Rates

Gedung 20 5% BuildingsGolongan I: Class I:

Kendaraan bermotor 4 25% VehiclesPerlengkapan kantor 4 & 8 25% & 12.5% Office equipment

Golongan II: Class II:Kendaraan bermotor 3 33.3% VehiclesPerlengkapan kantor 5 & 8 20% & 12.5% Office equipment

Leasehold improvement sesuai masa sewa/ sesuai masa sewa/ Leasehold improvementaccording to lease according to lease

period period

Perlengkapan kantor terdiri dari perabotan danperlengkapan, instalasi, perangkat keraskomputer, peralatan komunikasi dan peralatankantor lainnya.

Office equipments consist of furniture andfixtures, installation, computer hardware,communication and other office equipment.

Jumlah tercatat aset tetap dihentikanpengakuannya pada saat dilepaskan atau saattidak ada manfaat ekonomis masa depan yangdiharapkan dari penggunaan ataupelepasannya. Laba atau rugi yang timbul daripenghentian pengakuan aset (dihitung sebagaiperbedaan antara jumlah neto hasil pelepasandan jumlah tercatat dari aset) dimasukkan kedalam laporan laba rugi pada periode asettersebut dihentikan pengakuannya.

The carrying amount of fixed assets isderecognised upon disposal or when no futureeconomic benefits are expected from its use ordisposal. Any gain or loss arising onderecognition of the fixed assets (calculated asthe difference between the net disposalproceeds and the carrying amount of theassets) is included in the statements of profitor loss in the period when the assets arederecognised.


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n. Aset tetap dan aset tak berwujud (lanjutan) n. Fixed assets and intangible assets(continued)

Aset tetap (lanjutan) Fixed assets (continued)

Bank menelaah apakah terdapat indikasipenurunan nilai aset pada tanggal laporanposisi keuangan. Apabila terdapat indikasipenurunan nilai aset, Bank mengestimasijumlah yang dapat diperoleh kembali dari asettersebut. Kerugian penurunan nilai diakuisebagai beban pada laporan laba rugi.

The Bank reviews whether there areindications of impairment on the statements offinancial position date. If there are anyindications of impairment, the Bank estimatesthe recoverable amount of the asset.Impairment losses are charged to thestatements of profit or loss.

Aset tak berwujud Intangible assets

Piranti lunak diakui sebesar harga perolehandan selanjutnya dicatat sebesar hargaperolehan dikurangi akumulasi amortisasi.

Software is recognised at acquisition cost andsubsequently carried at cost less accumulatedamortisation.

Biaya yang terkait dengan pemeliharaanprogram piranti lunak diakui sebagai bebanpada saat terjadinya. Biaya pengembanganyang dapat secara langsung diatribusikan dalampembuatan dan pengujian produk piranti lunakyang dapat diidentifikasi oleh Bank diakuisebagai aset tak berwujud.

Costs associated with maintaining softwareprograms are recognised as expense whenincurred. Development costs, which aredirectly attributable to the design and testing ofidentifiable by the Bank, is recognised asintangible assets.

Biaya yang dapat diatribusikan secara langsungdikapitalisasi sebagai bagian produk pirantilunak mencakup beban pekerja pengembangpiranti lunak dan bagian overhead yang relevan.

Directly attributable costs are capitalised aspart of the software product which include thesoftware development employee costs and anappropriate portion of relevant overheads.

Pengeluaran pengembangan yang lain yangtidak memenuhi kriteria ini diakui sebagai bebanpada saat terjadinya. Biaya pengembanganyang sebelumnya diakui sebagai beban tidakdapat diakui sebagai aset pada periodeberikutnya.

Other development expenditures, which do notmeet these criteria, are recognised as anexpense as incurred. Development costspreviously recognised as an expense are notrecognised as an asset in a subsequentperiod.

Biaya pengembangan piranti lunak diakuisebagai aset yang diamortisasi selama estimasimasa manfaat, yang tidak lebih dari empattahun atau tidak lebih dari tarif amortisasi 25%dan dihitung dengan menggunakan metodegaris lurus.

Software development costs recognised asassets are amortised over their estimateduseful lives, which does not exceed four yearsor does not exceed 25% amortisation rate andcalculated using the straight-line method.

Aset tak berwujud dihentikan pengakuannyasaat aset tersebut dilepas atau ketika tidak lagiterdapat manfaat masa depan yang diharapkandari penggunaan atau pelepasannya.

Intangible assets shall be derecognised ondisposal or when no future economic benefitsare expected from its use or disposal.

o. Aset lain-lain o. Other assets

Aset lain-lain antara lain terdiri dari persediaanmurabahah, uang muka, setoran jaminan, asetyang diambil alih dan lain-lain.

Other assets consist of murabahahinventories, advances, deposits, foreclosedasset and others.

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o. Aset lain-lain (lanjutan) o. Other assets (continued)

Persediaan murabahah adalah aset yangdiperoleh dengan tujuan untuk dijual kembalidengan menggunakan akad murabahah.Persediaan murabahah dinilai menurut nilaiyang terendah antara harga perolehan atau nilairealisasi bersih. Nilai realisasi bersih adalahestimasi harga penjualan dalam kegiatan usahabiasa, dikurangi beban penjualan. Estimasi nilairealisasi bersih dihitung berdasarkan buktipaling andal yang tersedia pada saat estimasidilakukan terhadap jumlah persediaan yangdapat direalisasi.

Murabahah inventories are assets acquired forthe purpose of resell using murabahahagreement. Murabahah inventories are valuedat the lower of cost or net realisable value. Netrealisable value is the estimated selling pricein the ordinary course of business less sellingexpenses. Estimation on net realisable valueare valued based on best evidence availableat the estimation date to the realisableinventories.

Bank mengakui kerugian penurunan nilai untukaset lain-lain apabila taksiran jumlah yang dapatdiperoleh kembali (recoverable amount) darisuatu aset lebih rendah dari nilai tercatatnya.Pada setiap tanggal laporan posisi keuangan,Bank melakukan penelaahan untukmenentukan apakah terdapat indikasipenurunan nilai. Pemulihan penurunan nilaidiakui sebagai keuntungan di laporan laba rugipada saat terjadinya.

The Bank recognises impairment of otherassets if the recoverable amount of the assetsis lower than the carrying value. At thestatements of financial position date, the Bankevaluates the recoverable amount of theassets to determine whether there is anindication of impairment. Reversal of therecoverable amount of assets is recognised asgain in the statement of profit or loss whenincurred.

p. Liabilitas segera p. Liabilities due immediately

Liabilitas segera merupakan kewajiban Bankkepada pihak lain yang sifatnya wajib segeradibayarkan sesuai perintah pemberi amanatperjanjian yang ditetapkan sebelumnya.Liabilitas segera dinyatakan sebesar nilaikewajiban Bank kepada pemberi amanat.

Liabilities due immediately represent theto other parties which should

be settled immediately based onpredetermined instructions by those having theauthority. Liabilities due immediately are statedat the amounts of Bank liabilities to the trustor.

q. Simpanan nasabah q. Deposits from customers

Simpanan nasabah adalah dana yangdipercayakan oleh masyarakat kepada Bankberdasarkan perjanjian penyimpanan dana.Termasuk di dalamnya adalah giro wadiah dantabungan wadiah.

Deposits from customers are the funds placedby customers to the Bank based on funddeposits agreements. Included in theseaccounts are wadiah demand deposits andwadiah saving deposits.

Simpanan nasabah diklasifikasikan sebagailiabilitas keuangan yang diukur dengan biayaperolehan diamortisasi. Biaya tambahan yangdapat diatribusikan secara langsung denganperolehan simpanan nasabah dan simpanandari bank lain dikurangkan dari jumlahsimpanan nasabah dan simpanan dari banklain. Lihat Catatan 2c untuk kebijakan akuntansiatas liabilitas keuangan yang diukur denganbiaya perolehan diamortisasi.

Deposits from customers are classified asfinancial liabilities measured at amortised cost.Incremental costs directly attributable to theacquistion of deposits from customers anddeposits from other banks are deducted fromthe amount of deposits from customers anddeposits from other banks. Refer to Note 2c forthe accounting policy of financial liabilitiesmeasured at amortised cost.

Giro wadiah merupakan giro wadiah yadhdhamanah yakni titipan dana pihak lain dimanapemilik dana mendapatkan bonus berdasarkankebijakan bank. Giro wadiah dicatat sebesarsaldo titipan pemegang giro wadiah.

Wadiah demand deposit is a yadh dhamanahdemand deposit in which the funds owner will

Wadiah deposits are stated at the amount ofwadiah demand deposit balance.


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q. Simpanan nasabah (lanjutan) q. Deposits from customers (continued)

Tabungan wadiah merupakan simpanan pihaklain yang bisa diambil kapan saja (on call) atauberdasarkan kesepakatan dimana tidak adaimbalan yang disyaratkan kecuali dalam bentukpemberian ( ) sukarela dari pihak bank.

Wadiah saving deposits represent third partyfunds which can be taken at any time (on call)or by an agreement which required no rewardexcept in the form of bonus ('Athaya) voluntaryon the part of banks.

r. Dana syirkah temporer r. Temporary syirkah funds

Dana syirkah temporer merupakan investasidengan akad mudharabah mutlaqah, yaitupemilik dana (shahibul maal) memberikankebebasan kepada pengelola dana(mudharib/Bank) dalam pengelolaaninvestasinya sesuai prinsip syariah dengankeuntungan dibagikan sesuai kesepakatan.Dana syirkah temporer terdiri dari tabunganmudharabah dan deposito mudharabah.

Temporary syirkah funds representinvestments from other parties conducted onthe basis mudharabah mutlaqah contract inwhich the owners of the funds (shahibul maal)grant freedom to the fund manager(mudharib/Bank) in the management of theirinvestments according to sharia principle withprofit distributed based on the contract.Temporary syirkah funds consist ofmudharabah saving accounts andmudharabah time deposits.

Tabungan mudharabah merupakan investasiyang bisa ditarik kapan saja (on call) atausesuai dengan persyaratan tertentu yangdisepakati. Tabungan mudharabah dinyatakansebesar saldo tabungan nasabah di Bank.

Mudharabah saving accounts representinvestment which could be withdrawn anytime(on call) or can be withdrawn based on certainagreed terms. Mudharabah saving depositsare stated based on the customedeposit balance.

Deposito mudharabah merupakan investasiyang hanya bisa ditarik pada waktu tertentusesuai dengan perjanjian antara pemegangdeposito mudharabah dengan Bank. Depositomudharabah dinyatakan sebesar nilai nominalsesuai dengan perjanjian antara pemegangdeposito dengan Bank.

Mudharabah time deposits representinvestment which can only be withdrawn at acertain time based on the agreement betweenthe customer and the Bank. Mudharabah timedeposits are stated at nominal amount asagreed between the deposit holder and theBank.

Dana syirkah temporer tidak dapat digolongkansebagai liabilitas. Hal ini karena Bank tidakberkewajiban untuk menjamin pengembalianjumlah dana awal dari pemilik dana bila Bankmerugi kecuali akibat kelalaian atauwanprestasi ketika mengalami kerugian. Di sisilain dana syirkah temporer tidak dapatdigolongkan sebagai ekuitas karenamempunyai waktu jatuh tempo dan pemilikdana tidak mempunyai hak kepemilikan yangsama dengan pemegang saham seperti hakvoting dan hak atas realisasi keuntungan yangberasal dari aset lancar dan aset non-investasi.

Temporary syirkah funds cannot be classifiedas liability. This was due to the Bank does nothave any liability to return the initial fund to theowners if the Bank experience a loss, except

negligence or default of loss is incurred. Onthe other hand, temporary syirkah fund cannotbe classified as equity, because of the maturityperiod and the depositors do not have the

voting rights and the rights of realised gainfrom current assets and other non-investmentaccounts.

Pemilik dana syirkah temporer mendapatkanimbalan bagi hasil sesuai dengan nisbah yangditetapkan.

The owner of temporary syirkah funds receivesa return from the profit sharing based on apredetermined ratio.

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s. Pendapatan pengelolaan dana oleh Banksebagai mudharib

s. Income from fund management by theBank as mudharib

Pendapatan pengelolaan dana oleh Banksebagai mudharib terdiri atas pendapatan darijual dan beli transaksi murabahah danpendapatan usaha utama lainnya.

Income from fund management by Bank asmudharib consist of income from sales andpurchases of murabahah transactions andincome from other main operating activities.

Bank menetapkan kebijakan tingkat risikoberdasarkan ketentuan internal. Bankmelakukan penghentian amortisasi pendapatanditangguhkan pada saat pembiayaandiklasifikasikan sebagai non-performing.Pendapatan Bank dari transaksi usaha yangdiklasifikasikan sebagai non-performing dicatatsebagai pendapatan yang akan diterima non-lancar pada laporan komitmen dan kontinjensi.

The Bank prescribes the risk rate policiesbased on the internal regulation. The Bankterminates the amortisation of deferred incomeat the time its financing is classified as non-

transactions, which are classified as non-performing, is recorded as revenue to bereceived in the statement of commitments andcontingencies.

Pengakuan pendapatan atas piutangmurabahah yang tidak memiliki risiko yangsignifikan terkait dengan kepemilikanpersediaan diakui pada laporan laba rugidengan menggunakan metode tingkat imbalhasil efektif.

The revenue recognition of murabahahreceivables, which do not have significant riskin relation with the ownership of inventory, arerecognised in the statements of profit or lossusing the effective rate of return method.

Tingkat imbal hasil efektif merupakan metodealokasi pengakuan pendapatan dan merupakantingkat imbal hasil yang secara tepatmendiskontokan estimasi penerimaan kas dimasa depan selama perkiraan umur daripiutang murabahah untuk memperoleh biayaperolehan diamortisasi dari piutang murabahah.Pada saat menghitung tingkat imbal hasilefektif, Bank mengestimasi arus kas di masadatang dengan mempertimbangkan seluruhpersyaratan kontraktual dalam piutangmurabahah tersebut, tetapi tidakmempertimbangkan kerugian piutang di masamendatang. Perhitungan ini mencakup seluruhkomisi, provisi dan bentuk lain yang diterimaoleh para pihak dalam akad yang merupakanbagian tidak terpisahkan dari tingkat imbal hasilefektif, biaya transaksi, dan seluruh premi ataudiskon lainnya.

Effective rate of return is an allocation methodof revenue recognition and the rate whichexactly discounts the estimated future cashreceipts through the expected life of themurabahah receivable to obtain the carryingamount of a murabahah receivable. Whencalculating the effective rate of return, theBank estimates cash flows in the future byconsidering all contractual terms of themurabahah receivable, but does not considerthe loss of receivables in the future. Thiscalculation includes all commissions, fees andother forms received by the parties in acontract which are an integral part of theeffective rate of return, transaction costs andall other premiums or discounts.

t. Hak pihak ketiga atas bagi hasil danasyirkah temporer

t. Third parties' share on returns of temporarysyirkah funds

Hak nasabah atas bagi hasil dana syirkahtemporer merupakan bagian bagi hasil miliknasabah yang didasarkan pada prinsipmudharabah atas hasil pengelolaan danamereka oleh Bank. Pendapatan yang dibagikanadalah yang telah diterima (cash basis).

management of their funds by the Bank undermudharabah principles. Income which will bedistributed is the cash received (cash basis).

Pembagian hasil usaha dilakukan berdasarkanprinsip bagi hasil usaha yaitu dari pendapatanBank yang diterima berupa laba kotor.

The distribution of revenue is based on profit


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t. Hak pihak ketiga atas bagi hasil danasyirkah temporer (lanjutan)

t. Third parties' share on returns of temporarysyirkah funds (continued)

Pendapatan marjin atas pembiayaan yangdiberikan dan atas aset produktif lainnya akandibagikan kepada nasabah penyimpan danadan Bank sesuai dengan proporsi dana yangdipakai dalam pembiayaan yang diberikan danaset produktif lainnya. Selanjutnya, pendapatanmarjin yang tersedia tersebut kemudiandibagihasilkan ke nasabah penabung dandeposan sebagai shahibul maal dan Banksebagai mudharib sesuai porsi nisbah bagi hasilyang telah disepakati bersama sebelumnya.Pendapatan marjin dari pembiayaan dan asetproduktif lainnya yang memakai dana Bank,seluruhnya menjadi milik Bank, termasukpendapatan dari investasi bank berbasisimbalan.

Margin income on financing facilities and otherearning assets are distributed to fund ownersand the Bank based on proportion of fund usedin the financing and other earning assets.Likewise, margin income are available thendistributed to fund owners as shahibul maaland the Bank as mudharib based on apredetermined ratio (nisbah). Margin incomefrom financing facilities and other earningassets using the Bank's funds, are entirelyshared for the Bank, including income from theBank's fee-based transactions.

u. Pendapatan dan beban operasional lainnya u. Other operating income and expenses

Beban operasional lainnya terutama bebanumum dan administrasi serta beban tenagakerja karyawan merupakan beban yang timbulsehubungan dengan aktivitas kantor danoperasional Bank, serta beban yang berupa gajikaryawan, bonus, lembur, tunjangan danpelatihan.

Other operating expenses mostly consist ofgeneral and administrative expenses andpersonnel expenses which represent expensesrelatedactivities, including personnel expenseincludes salaries for employees, bonuses,overtime, allowances and training.

Seluruh pendapatan dan beban yang terjadidibebankan pada laporan laba rugi pada saatterjadinya.

All of these income and expenses arerecorded in the statements of profit or losswhen incurred.

v. Liabilitas imbalan kerja karyawan v. Employee benefit liabilities

Imbalan pensiun Pension benefits

Bank harus menyediakan program pensiundengan imbalan minimal tertentu sesuai denganUU Ketenagakerjaan No. 13/2003. Karena UUKetenagakerjaan menentukan rumus tertentuuntuk menghitung jumlah minimal imbalanpensiun, pada dasarnya, program pensiunberdasarkan UU Ketenagakerjaan adalahprogram imbalan pasti.

The Bank is required to provide a minimumamount of pension benefits in accordance withLabor Law No. 13/2003. Since the Labor Lawsets the formula for determining the minimumamount of benefits, in substance, pensionplans under Labor Law represent definedbenefit plans.

Program pensiun imbalan pasti adalah programpensiun yang menetapkan jumlah imbalanpensiun yang akan diterima oleh karyawanpada saat pensiun, biasanya berdasarkanbeberapa faktor seperti usia, masa kerja ataukompensasi.

A defined benefit plan is a pension planprogram where the pension amount to bereceived by employees at the time ofretirement will depend on some factors such asage, years of service or compensation.

Liabilitas program imbalan pasti yang diakui dilaporan posisi keuangan dihitung sebesar nilaikini dari kewajiban imbalan pasti pada akhirperiode pelaporan, dikurangi dengan nilai wajaraset program. Kewajiban imbalan pasti dihitungsetiap tahun oleh aktuaris independen denganmetode projected-unit credit.

Defined benefit obligation recognised in thestatements of financial position in respect ofdefined benefit obligation at the end ofreporting period less the fair value of planasset. The defined benefit obligation iscalculated annually by an independent actuaryusing the projected-unit-credit method.

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v. Liabilitas imbalan kerja karyawan (lanjutan) v. Employee benefit liabilities (continued)

Imbalan pensiun (lanjutan) Pension benefit (continued)

Nilai kini liabilitas imbalan pasti ditentukandengan mendiskontokan arus kas keluar yangdiestimasi dengan menggunakan tingkat bungaobligasi pemerintah (dikarenakan saat ini tidakada pasar aktif untuk obligasi perusahaan yangberkualitas tinggi) yang didenominasikan dalammata uang dimana imbalan akan dibayarkandan memiliki waktu jatuh tempo mendekati jatuhwaktu kewajiban pensiun.

The present value of the defined benefitobligation is determined by discounting theestimated future cash outflows using interestrates of government bonds (consideringcurrently there is no deep market for high-quality corporate bonds) that are denominatedin the currency in which the benefits will bepaid, and that have terms to maturityapproximating to the terms of the relatedpension obligation.

Keuntungan dan kerugian aktuarial yang timbuldari penyesuaian dan perubahan dalamasumsi-asumsi aktuaria langsung diakuiseluruhnya melalui pendapatan komprehensiflainnya pada saat terjadinya.

Actuarial gains and losses arising fromexperience adjustments and changes inactuarial assumptions charged or credited toequity in other comprehensive income in theperiod in which they arise.

Biaya jasa lalu diakui segera dalam laporanlaba rugi.

Past-service costs are recognised immediatelyin the statements of profit or loss.

Pesangon pemutusan kontrak kerja Termination benefits

Pesangon pemutusan kontrak kerja terutangketika Bank memberhentikan hubungan kerjasebelum usia pensiun normal, atau ketikaseorang pekerja menerima penawaranmengundurkan diri secara sukarela dengankompensasi imbalan pesangon. Bank mengakuipesangon pemutusan kontrak kerja padatanggal yang lebih awal antara (i) ketika Banktidak dapat lagi menarik tawaran atas imbalantersebut dan (ii) ketika Bank mengakui biayauntuk restrukturisasi yang berada dalam ruanglingkup PSAK 57 dan melibatkan pembayaranpesangon. Dalam hal menyediakan pesangonsebagai penawaran untuk mengundurkan dirisecara sukarela, pesangon pemutusan kontrakkerja diukur berdasarkan jumlah karyawan yangdiharapkan menerima penawaran tersebut.Imbalan yang jatuh tempo lebih dari 12 bulansetelah periode pelaporan didiskontokanmenjadi nilai kininya.

Termination benefits are payable whenemployment is terminated by the Bank beforethe normal retirement date, or whenever anemployee accepts voluntary redundancy inexchange for these benefits. The Bankrecognises termination benefits at the earlier ofthe following dates: (i) when the Bank cannotlonger withdraw the offer of those benefits; and(ii) when the entity recognises costs for arestructuring which is within the scope of PSAK57 and involves the payment of terminationbenefits. In the case of an offer made toencourage voluntary redundancy, thetermination benefits are measured based onthe number of employees expected to acceptthe offer. Benefits falling due more than 12months after the reporting date are discountedto their present value.

w. Pajak penghasilan kini dan tangguhan w. Current and deferred income tax

Pajak penghasilan terdiri dari pajak kini danpajak tangguhan. Beban pajak penghasilandiakui dalam laporan laba rugi, kecuali jikapajak tersebut terkait dengan transaksi ataukejadian yang langsung diakui ke ekuitas.Dalam hal ini, pajak tersebut masing-masingdiakui dalam penghasilan komprehensif lainatau ekuitas.

Income tax expense comprises of current anddeferred tax. Tax is recognised in thestatements of profit or loss, except to theextent that it relates to items recogniseddirectly in equity. In this case, the tax is alsorecognised in other comprehensive income orequity respectively.


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w. Pajak penghasilan kini dan tangguhan(lanjutan)

w. Current and deferred income tax(continued)

Manajemen Bank mengevaluasi secaraperiodik implementasi terhadap peraturanperpajakan yang berlaku terutama yangmemerlukan interpretasi lebih lanjut mengenaipelaksanaannya termasuk juga evaluasiterhadap surat ketetapan pajak yang diterimadari kantor pajak. Lebih lanjut, manajemenmembentuk cadangan, jika dianggap perluberdasarkan jumlah yang diestimasikan akandibayarkan ke kantor pajak.

the implementation of prevailing taxregulations especially those which are subjectto further interpretation on its implementation,including evaluation on tax assessment lettersreceived from tax authorities. Furthermore,where appropriate management formsprovisions based on the amounts expected tobe paid to the tax authorities.

Bank menerapkan metode balance sheetliability untuk menentukan beban pajakpenghasilan. Menurut metode balance sheetliability, aset dan utang pajak tangguhan diakuiuntuk semua perbedaan temporer antara nilaiaset dan liabilitas yang tercatat di laporanposisi keuangan dengan dasar pengenaanpajak atas aset dan liabilitas tersebut padasetiap tanggal pelaporan. Metode ini jugamensyaratkan adanya pengakuan manfaatpajak di masa datang yang belum digunakanapabila besar kemungkinan bahwa manfaattersebut dapat direalisasikan di masa yangakan datang.

The balance sheet liability method is applied

Under the balance sheet liability method,deferred tax assets and liabilities arerecognised for all temporary differencesarising between the tax base of assets andliabilities and their carrying amount in thestatement of financial position at eachreporting date. This method also requires therecognition of future tax benefits, to the extentthat realisation of such benefits is probable.

Pajak tangguhan dihitung denganmenggunakan tarif pajak yang berlaku atausecara substansial diberlakukan pada periodedimana aset tersebut direalisasi atau liabilitastersebut diselesaikan. Perubahan nilai tercatataset dan liabilitas pajak tangguhan yangdisebabkan oleh perubahan tarif pajakdibebankan pada tahun berjalan, kecuali untuktransaksi-transaksi yang sebelumnya telahlangsung dibebankan atau dikreditkan keekuitas.

Deferred income tax is determined using taxrates pursuant to laws or regulations whichhave been enacted or substantially enactedby the reporting date and are expected toapply when the related deferred income taxasset is realised or the deferred income taxliability is settled. The changes to the carryingvalue of deferred tax assets and liabilities dueto the changes of tax rates are charged in thecurrent year, except for transactions whichpreviously have been directly charged orcredited to sharehol

Aset dan liabilitas pajak penghasilantangguhan dapat saling hapus apabila terdapathak yang berkekuatan hukum untuk melakukansaling hapus antara aset pajak kini denganliabilitas pajak kini sesuai dengan standarakuntansi keuangan yang berlaku.

Deferred income tax assets and liabilities areoffset when there is a legally enforceable rightto offset current tax assets against current taxliabilities in accordance with applicableaccounting standards.

x. Pembayaran berbasis saham x. Share-based payments

Bank mengoperasikan program imbalanberbasis saham, dimana Bank memberikanopsi instrumen ekuitas induk perusahaan Bankkepada karyawan sebagai imbalan atas jasamereka. Nilai wajar opsi yang diberikan diakuisebagai beban dan dengan peningkatan padaekuitas. Jumlah nilai yang harus dibebankanditentukan dengan mengacu kepada nilai wajaropsi yang diberikan:

The Bank operates equity settled, share-based compensation plans, under which theBank receives services from employees asconsideration for equity instruments options of

options is recognised as an expense with acorresponding increase in equity. The totalamount to be expensed is determined byreference to the fair value of the optionsgranted:

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x. Pembayaran berbasis saham (lanjutan) x. Share-based payments (continued)

termasuk kinerja pasar (misalnya, hargasaham entitas);

tidak termasuk dampak dari jasa dankondisi vesting yang tidak dipengaruhikinerja pasar (misalnya, profitabilitas, targetpertumbuhan penjualan dan tetap menjadikaryawan perusahaan selama periodewaktu tertentu); dantermasuk dampak dari kondisi non-vesting.

including any market performance

price);excluding the impact of any service andnon-market performance vestingconditions (for example, profitability, salegrowth targets and remaining anemployee of the entity over a specifiedtime period); andincluding the impact of any non-vestingconditions.

Syarat jasa dan syarat yang tidak dipengaruhikinerja pasar dimasukkan di dalam asumsimengenai jumlah opsi yang diharapkan akanvest. Jumlah beban diakui selama periodevesting, yaitu periode dimana seluruh kondisivesting tertentu telah terpenuhi.

Service conditions and non-marketperformance are included in assumptionsabout the number of options which areexpected to vest. The total expense isrecognised over the vesting period, which isthe period over all of the specified vestingconditions are to be satisfied.

Setiap akhir periode pelaporan, Bank merevisiestimasi jumlah opsi yang diharapkan akan vestberdasarkan syarat jasa. Selisih antara estimasirevisian dengan jumlah estimasi sebelumnya,jika ada, diakui dalam laporan laba rugi Bank,dengan penyesuaian pada sisi ekuitas.

At the end of each reporting period, the Bankrevises its estimates of the number of optionswhich are expected to vest based on the non-market vesting conditions. It recognises theimpact of the revision to original estimates, if

statements,with a corresponding adjustment to equity.

Ketika opsi dieksekusi, induk perusahaan Bankakan menerbitkan sejumlah saham baru ataumenerbitkan kembali saham treasurinya (jikaada). Nilai kas yang diterima dikurangi denganbiaya transaksi yang dapat diatribusikandikreditkan ke modal saham (nilai nominal) danagio saham induk perusahaan. Entitas induktidak meminta penggantian atas saham yangditerbitkan kepada karyawan Bank.

When the options are eparent entity will issues new shares orreissues its treasury shares (if any). Theproceeds received, net of any directlyattributable transaction costs, are credited to

value) and share premium. Parent entity doesnot require cash reimbursement over sharedissued to the employee.

y. Sumber dan penyaluran dana zakat dansumber dan penggunaan dana kebajikan

y. Sources and distribution of zakat fundsand sources and uses of qardhul hasanfunds

Sejak tanggal Bank beroperasi sebagai bankumum berdasarkan prinsip syariah, Bank belummenunjuk suatu lembaga untuk mengelolasumber dan penggunaan dana zakat dankebajikan.

Since the date of the Bank operates ascommercial bank under Sharia principal, theBank has not appointed an institution tomanage sources and uses of zakat andqardhul hasan funds

Sampai dengan 31 Desember 2017, Bank belummengelola penerimaan dana zakat, baik yangbersumber dari Bank maupun dari pihak luarBank.

As of 31 December 2017, Bank has notmanaged the receipt of zakat funds yet, bothfrom Bank and from external parties.

Denda/sanksi diberikan kepada nasabah yangmampu membayar, tetapi menunda-nundapembayaran dengan disengaja, sejumlah uangyang besarnya tidak ditentukan atas dasarkesepakatan dan tidak dibuat saat akadditandatangani. Dana yang berasal daridenda/sanksi diperuntukkan untuk danakebajikan.

Penalties/sanctions were charged to debtorswho are able to pay, but deliberately delaypayments, in the amount which are notagreed and not determined in the contract.The funds from penalties/sanctions will beused for qardhul hasan funds.


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z. Laba per saham z. Earnings per share

Laba bersih per saham dasar dihitung denganmembagi laba bersih dengan rata-ratatertimbang jumlah saham biasa yang beredarpada tahun yang bersangkutan.

Basic earnings per share are computed bydividing net profit with the weighted averagenumber of ordinary shares outstanding duringthe year.

Laba per saham dilusian dihitung denganmembagi jumlah rata-rata tertimbang sahambiasa yang beredar dengan dampak dari semuaefek berpotensi saham biasa yang dilutive yangdimiliki Bank.

Diluted earnings per share is calculated bydividing the weighted average number ofordinary shares outstanding plus the assumedconversion of all dilutive potential ordinaryshares owned by Bank.

aa. Pelaporan segmen aa. Segment reporting

Segmen operasi adalah suatu komponen dariBank:

i. yang terlibat dalam aktivitas bisnis yangmemperoleh pendapatan dan menimbulkanbeban (termasuk pendapatan dan bebanyang terkait dengan transaksi dengankomponen lain dari Bank yang sama);

ii. hasil operasinya dikaji ulang secara berkalaoleh pengambil keputusan operasionaluntuk pembuatan keputusan tentangsumber daya yang dialokasikan padasegmen tersebut dan menilai kinerjanya;dan

iii. tersedia informasi keuangan yang dapatdipisahkan.

An operating segment is a component of aBank:

i. that engages in business activities fromwhich it may earn revenues and incurexpenses (including revenues andexpenses relating to transactions withother components of the same Bank);

ii. whose operating results are reviewed

decision maker to make decisions aboutresources allocated to the segment andassess its performance; and

iii. for which discrete financial informationis available.

Segmen operasi Bank disajikan berdasarkanwilayah geografis yang terdiri dari wilayah Jawa,Sumatera, Bali dan Nusa Tenggara, Kalimantandan Sulawesi (Catatan 39).

The bank disclose the operating segmentbased on geographical area which consists ofJava, Sumatera, Bali and Nusa Tenggara,Borneo and Sulawesi (Note 39).

3. ESTIMASI DAN PERTIMBANGAN AKUNTANSIYANG PENTING

3. CRITICAL ACCOUNTING ESTIMATES ANDJUDGEMENTS

Beberapa estimasi dan asumsi dibuat dalam rangkapenyusunan laporan keuangan. Hal inimembutuhkan pertimbangan manajemen dalammenentukan metodologi yang tepat untuk penilaianaset dan liabilitas.

Certain estimations and assumptions are made inthe preparation of the financial statements. Theseoften require management judgement indetermining the appropriate methodology forvaluation of assets and liabilities.

Manajemen membuat estimasi dan asumsi yangberimplikasi pada pelaporan nilai aset dan liabilitasatas tahun keuangan satu tahun ke depan. Semuaestimasi dan asumsi yang diharuskan oleh PSAKadalah estimasi terbaik yang sesuai standar yangberlaku. Estimasi dan pertimbangan dievaluasisecara terus menerus dan berdasarkan pengalamanmasa lalu dan faktor-faktor lain termasuk harapanatas kejadian yang akan datang.

Management makes estimations and assumptionswhich affect the reported amounts of assets andliabilities within the next financial year. Allestimations and assumptions required in conformitywith SFAS are best estimates undertaken inaccordance with the applicable standard.Estimations and judgements are evaluated on acontinuous basis, and are based on pastexperience and other factors, includingexpectations with regard to future events.

Walaupun estimasi ini dibuat berdasarkanpengetahuan terbaik manajemen atas kejadian dantindakan saat ini, hasil yang timbul mungkin berbedadengan jumlah yang diestimasi semula.

Although these estimations are based on

and activities, actual results may differ from thoseestimates.

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3. ESTIMASI DAN PERTIMBANGAN AKUNTANSIYANG (lanjutan)

3. CRITICAL ACCOUNTING ESTIMATES ANDJUDGEMENTS (continued)

Sumber utama ketidakpastian estimasi: Key sources of estimation uncertainty:

a. Cadangan kerugian penurunan nilai asetkeuangan

a. Allowance for impairment losses of financialassets

Bank melakukan review atas aset keuanganpada setiap tanggal laporan untuk melakukanpenilaian atas cadangan kerugian penurunannilai yang telah dicatat. PertimbanganManajemen diperlukan dalam menentukanestimasi yang digunakan untuk menentukantingkat cadangan yang dibutuhkan.

The Bank reviews its financial assets atreporting date to evaluate the allowance for

is applied in the estimation when determiningthe level of allowance required.

Bank juga membentuk cadangan penurunannilai kolektif atas eksposur piutang murabahah,dimana evaluasi dilakukan berdasarkan datakerugian historis (lihat Catatan 2e).

The Bank also estimates the collectiveimpairment allowance for its murabahahreceivables portfolio, where evaluation isperformed based on historical data (refer toNote 2e).

Perhitungan cadangan penurunan nilai kolektifmeliputi kerugian kredit yang melekat dalamportofolio aset keuangan dengan karakteristikekonomi yang sama. Dalam menilai kebutuhanuntuk cadangan penurunan nilai kolektif,Manajemen mempertimbangkan faktor-faktorseperti antara lain kualitas kredit dan jenisproduk. Guna membuat estimasi cadanganyang diperlukan, Manajemen membuat asumsiuntuk menentukan kerugian yang melekat, danuntuk menentukan parameter input yangdiperlukan, berdasarkan pengalaman masa lalu.

Collectively assessed impairment allowancescover credit losses inherent in portfolios offinancial assets with similar economiccharacteristics. In assessing the need forcollective impairment allowances,management considers factors such as creditquality and type of product, among others. Inorder to estimate the required allowance,assumptions are made to define the wayinherent losses are modelled and to determinethe required input parameters, based onhistorical experience.

b. Liabilitas imbalan pasca kerja b. Post-employment benefit liabilities

Nilai kini liabilitas imbalan pasca kerja karyawantergantung pada beberapa faktor yangditentukan dengan dasar aktuarial berdasarkanbeberapa asumsi. Perubahan atas asumsi-asumsi ini akan mempengaruhi jumlah tercatatatas liabilitas imbalan pasca kerja.

The present value of the post-employmentbenefit liabilities depends on a number offactors which are determined on an actuarialbasis using a number of assumptions. Anychanges in these assumptions will impact thecarrying amount of post employment benefitliabilities.

Asumsi yang digunakan dalam menentukanbiaya/(pendapatan) untuk liabilitas imbalanpasca kerja karyawan antara lain tingkatdiskonto, tingkat kenaikan gaji di masa datang,usia pensiun normal, tingkat mortalita dan lain-lain. Bank menentukan tingkat diskonto yangtepat pada setiap akhir periode pelaporan. Inimerupakan tingkat suku bunga yang harusdigunakan untuk menentukan nilai kini atasarus kas keluar masa depan yang diestimasidan akan digunakan untuk membayar liabilitasimbalan pasca kerja. Dalam menentukantingkat diskonto yang tepat, Bankmempertimbangkan tingkat suku bunga obligasipemerintah yang mempunyai jangka waktuyang menyerupai jangka waktu liabilitasimbalan pasca kerja.

The assumptions used in determining the netcost/(income) for post-employment benefitliabilities includes the discount rate, salaryincrement rate, normal pension age, mortalityrate and others. The Bank determines theappropriate discount rate at the end of eachreporting period. This is the interest rate whichshould be used to determine the present valueof estimated future cash outflows expected tobe required to settle the post employmentbenefit liabilities. In determining theappropriate discount rate, the Bank considersthe interest rates of government bonds whichhave terms to maturity approximating theterms of the related post-employment benefitliabilities.

Tingkat kenaikan gaji per tahun didasarkanpada informasi historis atas tingkat kenaikangaji sebelumnya, tingkat inflasi dan masa kerja.

Annual salary increment rate determinedbased on historical information of previoussalary increment rate, inflation rate and lengthof service.


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3. ESTIMASI DAN PERTIMBANGAN AKUNTANSIYANG PENTING (lanjutan)

3. CRITICAL ACCOUNTING ESTIMATES ANDJUDGEMENTS (continued)

Sumber utama ketidakpastian estimasi: (lanjutan) Key sources of estimation uncertainty:(continued)

b. Liabilitas imbalan pasca kerja (lanjutan) b. Post-employment benefit liabilities (continued)

Asumsi tingkat mortalita telah didasarkan padatabel mortalita terbaru yang dihitung denganmenggunakan metode aktuaria yang diterimasecara umum.

Mortality rate assumption is based on thelatest mortality table which is calculated usingactuarial method which is generally accepted.

Perubahan pada asumsi-asumsi tersebut diatas pada tahun-tahun buku berikutnyamungkin dapat menyebabkan penyesuaianterhadap jumlah tercatat liabilitas imbalanpasca kerja dan beban imbalan pasca kerja.

Change on the assumptions above on thefollowing years may require adjustments tothe carrying amount of the post employmentbenefit liabilities and the post employmentbenefit expenses.

Liabilitas imbalan kerja ditentukan berdasarkanperhitungan dari aktuarial. Perhitungan aktuariamengunakan asumsi-asumsi seperti tingkatdiskonto, tingkat pengembalian investasi,tingkat kenaikan gaji, tingkat kematian, tingkatpengunduran diri, dan lain-lain (lihat Catatan36).

Employee benefits are determined based onactuarial valuation. The actuary valuationinvolves making assumptions about discountrate, expected rate of return on investments,future salary increases, mortality rate,resignation rate and others (refer to Note 36).

4. KAS 4. CASH

Kas yang dimiliki seluruhnya dalam mata uangRupiah. Pada tanggal 31 Desember 2017 dan 2016,Bank memiliki kas masing-masing sebesarRp 228.525 dan Rp 191.662.

Cash on hand were all denominated in Rupiah. Asat 31 December 2017 and 2016, the Bank hascash amounting to Rp 228,525 and Rp 191,662,respectively.

5. GIRO DAN PENEMPATAN PADA BANKINDONESIA

5. CURRENT ACCOUNT AND PLACEMENTS WITHBANK INDONESIA

a. Berdasarkan jenis a. By type

2017 2016

Rupiah RupiahSertifikat Bank Indonesia Bank Indonesia Sharia

Syariah (SBIS) 755,000 50,000 Certificate (SBIS)Giro pada Bank Indonesia 363,983 275,777 Current accounts with Bank IndonesiaFasilitas Simpanan Bank Indonesia Bank Indonesia Sharia Deposit

Syariah (FASBIS) 329,900 1,222,500 Facilities (FASBIS)

1,448,883 1,548,277Pendapatan yang akan

diterima dari penempatan Accrued income of placementspada Bank Indonesia 15,762 590 with Bank Indonesia

1,464,645 1,548,867

b. Berdasarkan jangka waktu b. By time period

Penempatan pada Bank Indonesia berdasarkanjangka waktu adalah sebagai berikut:

Placements with Bank Indonesia based onperiod are as follows:

2017 2016

Sampai dengan 1 bulan 329,900 1,222,500 Up to 1 month3 12 bulan 755,000 50,000 3 12 months

1,084,900 1,272,500

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5. GIRO DAN PENEMPATAN PADA BANKINDONESIA (lanjutan)

5. CURRENT ACCOUNTS AND PLACEMENTSWITH BANK INDONESIA (continued)

c. Informasi lainnya c. Other information

Rasio Giro Wajib Minimum (GWM) untukrekening Rupiah pada tanggal 31 Desember2017 dan 2016 adalah sebagai berikut:

The ratio of the Minimum Statutory ReserveRequirement (GWM) for its Rupiah as at 31December 2017 and 2016 are as follows:

31 Desember/December 2017 dan/and 2016

Rupiah 5.5% Rupiah

Sesuai dengan Peraturan Bank IndonesiaNo. 6/21/PBI/2004 tanggal 3 Agustus 2004

Valuta Asing Bagi Bank Umum yangMelaksanakan Kegiatan Usaha Berdasarkan

terakhir dengan Peraturan Bank IndonesiaNo. 15/16/PBI/2013 tanggal 24 Desember 2013,setiap Bank diwajibkan memelihara GWM dalamRupiah dan valuta asing yang besarnyaditetapkan masing-masing sebesar 5% dan 1%dari dana pihak ketiga dalam Rupiah dan valutaasing.

Based on Bank Indonesia RegulationNo.6/21/PBI/2004 dated 3 August 2004

Requirements in Rupiah and ForeignCurrencies of Commercial Banks under Sharia

dated 24 December 2013, each bank isrequired to maintain Minimum StatutoryReserve Requirements (GWM) in Rupiah andforeign currencies equivalent to 5% and 1% ofits third party funds denominated in Rupiah andforeign currencies, respectively.

Saldo giro pada Bank Indonesia disediakanuntuk memenuhi persyaratan GWM dari BankIndonesia.

The balance of current accounts with BankIndonesia is provided to meet GWMrequirement from Bank Indonesia.

Bank menempatkan dana pada Setifikat BankIndonesia Syariah (SBIS) dan Fasilitas BankIndonesia Syariah (FASBIS) dengan rata-ratatingkat imbalan dan bonus tahunan sebagaiberikut:

The Bank placed its fund in Bank IndonesiaSharia Certificate (SBIS) and Bank Indonesia

annual return and bonus rate are as follow:

2017 2016

SBIS 5.61% 6.37% SBISFASBIS 3.84% 4.52% FASBIS

6. GIRO PADA BANK LAIN 6. CURRENT ACCOUNTS WITH OTHER BANKS

Seluruh giro pada bank lain adalah dalam matauang Rupiah dan ditempatkan pada pihak ketigadan pihak berelasi, yang terdiri atas:

All current accounts with other banks were inRupiah and were placed at third parties and relatedparties, consist of:

2017 2016Pihak ketiga Third parties

PT Bank Central Asia Tbk 1,480 50 PT Bank Central Asia TbkPT Bank Mandiri (Persero) Tbk 250 325 PT Bank Mandiri (Persero) TbkPT Bank BNI Syariah 5 5 PT Bank BNI SyariahPT Bank Negara Indonesia PT Bank Negara Indonesia

(Persero) Tbk - 158 (Persero) Tbk

1,735 538Pihak berelasi Related parties

PT Bank Tabungan Pensiunan PT Bank Tabungan PensiunanNasional Tbk 36,708 33,952 Nasional Tbk

38,443 34,490

Pada tanggal 31 Desember 2017 dan 2016, seluruhgiro pada bank lain diklasifikasikan lancarberdasarkan kolektibilitas Bank Indonesia (BI). Tidakterdapat giro pada bank lain yang mengalamipenurunan nilai.

As at 31 December 2017 and 2016, all currentaccount with other bank were classified as currentbased on Bank Indonesia (BI) collectibility. Therewas no impaired current accounts with other banks.

Manajemen berpendapat bahwa tidak diperlukanadanya cadangan kerugian penurunan nilai.

Management believes that no allowance forimpairment losses is necessary.


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7. INVESTASI PADA SURAT BERHARGA 7. INVESTMENT IN MARKETABLE SECURITIES

Seluruh transaksi investasi pada surat berhargadilakukan dengan pihak ketiga dan dalam matauang Rupiah.

All investments in marketable securities were madewith third parties and in Rupiah.

Surat berharga yang tercatat pada posisi31 Desember 2017, yang seluruhnya dimiliki sampaijatuh tempo adalah sebagai berikut:

Marketable securities reported as at 31 December2017, which classified as held to maturity is asfollows:

Rupiah

Nilai pada saatjatuh tempo/

Value atmaturity date

Premium yang belumdiamortisasi/

Unamortised premiumNilai tercatat/

Carrying amount 3)

Surat Berharga Syariah Negara (SBSN) /Government Sharia Bonds PBS013 30,000 198 30,198

Surat Berharga Syariah Negara (SBSN) /Government Sharia Bonds PBS013 8,630 44 8,674

Jumlah/Total 38,630 242 38,872Pendapatan yang akan diterima / Accrued income

of Investment in marketable securities 292

39,164

Pada tanggal 31 Desember 2017 investasi padasurat berharga memiliki jatuh tempo lebih dari 12sampai 18 bulan (2016: nihil). Tingkat bagi hasil rata

rata per tahun adalah 5,79%.

As at 31 December 2017, the maturity date ofmarketable securities are more than 12 up to 18months (2016: nil). The average yield per annumare 5.79%.

Berdasarkan ketentuan Bank Indonesia yangberlaku, investasi pada surat berharga pada tanggal31 Desember 2017 digolongkan sebagai lancar dantidak mengalami penurunan nilai.

Based on the prevailing Bank Indonesia regulation,investment in marketable securities as at 31December 2017 was classified as current and therewas no impairment.

Manajemen berpendapat bahwa tidak diperlukanadanya cadangan penurunan nilai atas investasipada surat berharga.

Management believes that no allowance forimpairment losses is necessary on marketablesecurities.

8. EFEK-EFEK YANG DIBELI DENGAN JANJIDIJUAL KEMBALI (REVERSE REPO)

8. SECURITIES PURCHASED UNDER RESELLAGREEMENTS (REVERSE REPO)

Efek-efek yang dibeli dengan janji dijual kembali(reverse repo) adalah dalam mata uang Rupiah danditempatkan pada Bank Indonesia.

Securities purchased under resell agreements(reverse repo) were denominated in Rupiah andwere placed at Bank Indonesia.

a. Berdasarkan jenis a. By type

31 Desember/December 2017

Tanggaldimulai/

Starting date1)

Tanggal jatuhtempo/

Maturity date2)

Nilai pokok/Principalamount

Pendapatanyang akanditerima

reverse repo/Accrued

income ofreverse repo

Nilai tercatat/Carryingamount 3)

Hargapenjualankembali/Reselling

priceRupiah

Obligasi/Bonds SPNS020220186 Desember/

December 20173 Januari/

January 2018 234,418 776 235,194 235,254



January 2018 101,586 246 101,832 101,948



January 2018 50,764 78 50,842 50,945



January 2018 367,159 233 367,392 368,463



January 2018 229,474 145 229,619 230,289

Jumlah/Total 983,401 1,478 984,879 986,899

annual report2017

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8. EFEK-EFEK YANG DIBELI DENGAN JANJIDIJUAL KEMBALI (REVERSE REPO) (lanjutan)

8. SECURITIES PURCHASED UNDER RESELLAGREEMENTS (REVERSE REPO) (continued)

a. Berdasarkan jenis (lanjutan) a. By type (continued)

1) Tanggal dimulai merupakan tanggal yang sama dengan tanggalpembelian efek.

2) Tanggal jatuh tempo merupakan tanggal yang sama dengantanggal penjualan kembali efek.

3) Nilai tercatat merupakan harga pembelian efek ditambah denganpendapatan bunga yang sudah diakui.

1) Start date is the same as the securities purchase date.

2) Maturity date is the same as the securites resell date.

3) Carrying amount is securities purchase price added with interestincome recognised.

b. Berdasarkan periode jatuh tempo b. By maturity period

Efek-efek yang dibeli dengan janji dijual kembaliakan diselesaikan dalam waktu tidak lebih darisatu bulan setelah tanggal laporan posisikeuangan.

Securities purchased under resell agreementswill be settled no more than one month afterthe date of financial positions.

c. Tingkat imbal hasil rata-rata per tahun c. Average rate of return per annum

Tingkat imbal hasil rata-rata per tahun atasefek-efek yang dibeli dengan janji dijual kembali(reverse repo) untuk tahun 2017 adalah 5,03%.

The average rate of return per annum ofsecurities purchased under resell agreement(reverse repo) for the year 2017 is 5.03%.

d. Cadangan kerugian penurunan nilai d. Allowance for impairment losses

Berdasarkan ketentuan Bank Indonesia yangberlaku, efek-efek yang dibeli dengan janji dijualkembali (reverse repo) pada tanggal31 Desember 2017 digolongkan sebagai lancar.

Based on the prevailing Bank Indonesiaregulation, all securities purchased underresell agreements (reverse repo) as at31 December 2017 was classified as current.

Pada tanggal 31 Desember 2017 tidak terdapatefek-efek yang dibeli dengan janji dijual kembaliyang mengalami penurunan nilai.

As at 31 December 2017, there was noimpairment of securities purchased underresell agreements.

Manajemen berpendapat bahwa tidakdiperlukan adanya cadangan penurunan nilaipada efek-efek yang dibeli dengan janji dijualkembali.

Management believes that no allowance forimpairment losses is necessary on securitiespurchased under resell agreements.

9. PIUTANG MURABAHAH 9. MURABAHAH RECEIVABLES

Semua piutang murabahah yang diberikan olehBank adalah dalam mata uang Rupiah denganrincian sebagai berikut:

All murabahah receivables were denominated inRupiah, with details as follows:

2017 2016

Piutang murabahah 6,053,105 4,996,722 Murabahah receivablesPendapatan yang akan diterima dari Accrued income of murabahah

piutang murabahah 75,112 57,917 receivablesDikurangi: Cadangan kerugian Less : Allowance for

penurunan nilai (157,657) (113,856) impairment losses

5,970,560 4,940,783


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9. PIUTANG MURABAHAH (lanjutan) 9. MURABAHAH RECEIVABLES (continued)

a. Berdasarkan sektor ekonomi dankolektibilitas sesuai Peraturan BankIndonesia

a. By economic sector and Bank IndonesiaRegulation collectibility

31 Desember/December 2017Dalam

perhatiankhusus/ Kurang

Lancar/ Special lancar/ Diragukan/ Macet/ Jumlah/Current mention Substandard Doubtful Loss Total

Perdagangan,restoran dan Trading, restauranthotel 5,161,614 82,710 57,730 11,501 21,736 5,335,291 and hotel

Pertanian 308,334 2,225 1,440 291 511 312,801 AgriculturePerindustrian 160,658 2,658 2,198 421 788 166,723 ManufacturingSosial/masyarakat 214,484 4,039 2,620 477 931 222,551 Social/publicPengangkutan, Transportation,

pergudangan dan warehousing andtelekomunikasi 9,618 106 62 13 29 9,828 telecommunication

Jasa usaha 3,588 58 32 12 12 3,702 Business servicesPertambangan 2,164 18 17 7 3 2,209 Mining

5,860,460 91,814 64,099 12,722 24,010 6,053,105Pendapatan yang

akan diterima daripiutang Accrued income ofmurabahah 70,442 4,670 - - - 75,112 murabahah receivables

Dikurangi: Cadangankerugian penurunan Less: Allowance fornilai (17,598) (42,481) (60,878) (12,704) (23,996) (157,657) impairment losses

5,913,304 54,003 3,221 18 14 5,970,560

31 Desember/December 2016Dalam

perhatiankhusus/ Kurang

Lancar/ Special lancar/ Diragukan/ Macet/ Jumlah/Current mention Substandard Doubtful Loss Total

Perdagangan,restoran dan Trading, restauranthotel 4,283,954 66,570 35,238 25,489 6,767 4,418,018 and hotel

Pertanian 224,101 1,909 1,135 777 242 228,164 AgriculturePerindustrian 157,675 2,687 1,732 1,420 373 163,887 ManufacturingSosial/masyarakat 163,679 2,643 1,516 1,140 291 169,269 Social/publicPengangkutan, Transportation,

pergudangan dan warehousing andtelekomunikasi 11,129 182 75 63 11 11,460 telecommunication

Jasa usaha 3,897 61 87 39 3 4,087 Business servicesPertambangan 1,826 6 - 3 2 1,837 Mining

4,846,261 74,058 39,783 28,931 7,689 4,996,722Pendapatan yang

akan diterima daripiutang Accrued income ofmurabahah 52,985 4,932 - - - 57,917 murabahah receivables

Dikurangi: Cadangankerugian penurunan Less: Allowance fornilai (11,656) (35,965) (31,926) (26,623) (7,686) (113,856) impairment losses

4,887,590 43,025 7,857 2,308 3 4,940,783


2017 2016

3,087,730 2,819,600> 1 - 2 tahun 2,965,375 2,177,122 > 1 - 2 years

6,053,105 4,996,722Pendapatan yang akan diterima Accrued income of murabahah

dari piutang murabahah 75,112 57,917 receivablesDikurangi: Cadangan kerugian Less : Allowance for


5,970,560 4,940,783

annual report2017

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Halaman 8/33 Page


c. Berdasarkan sisa umur jatuh tempo c. By remaining period to maturity

2017 2016

94,774 80,514 month> 1 - 3 bulan 317,717 266,118 > 1 - 3 months> 3 - 12 bulan 4,164,706 3,498,493 > 3 - 12 months> 1 - 2 tahun 1,475,908 1,151,597 > 1 - 2 years

6,053,105 4,996,722Pendapatan yang akan diterima Accrued income of murabahah

dari piutang murabahah 75,112 57,917 receivablesDikurangi: Cadangan kerugian Less : Allowance for


5,970,560 4,940,783

d. Berdasarkan pihak berelasi dan pihakketiga

d. By related and third party

Sampai dengan 31 Desember 2017 dan 2016,seluruh piutang murabahah diberikan kepadapihak ketiga. Tidak ada piutang murabahahyang diberikan kepada pihak berelasi.

As at 31 December 2017 and 2016, allmurabahah receivables are given to the thirdparty. There is no murabahah receivablesgiven to related party.

e. Tingkat margin rata-rata per tahun e. Average margin rate per annum

31 Desember/December 2017 dan/and 2016

Tingkat margin rata-rata Average marginper tahun 30% rate per annum

f. Pembiayaan yang direstrukturisasi f. Restructured financing

Pada tanggal 31 Desember 2017, jumlahpembiayaan yang direstrukturisasi selama tahunberjalan berdasarkan kolektibilitas adalah (2016:nihil) :

As at 31 December 2017, total restructuredfinancing during the year based on collectibilityare as follows (2016: nil) :

2017

Lancar 5,200 CurrentDalam perhatian khusus 4,808 Special mentionKurang Lancar 738 SubstandardDiragukan 14 DoubtfulMacet 23 Loss

10,783

Cadangan kerugian penurunan nilai (116) Allowance for impairement losses

10,667

g. Informasi lainnya g. Other information

1) Perubahan cadangan kerugian piutangmurabahah adalah sebagai berikut:

1) The movements of allowance forimpairment losses on murabahahreceivables are as follows:

2017 2016

Saldo awal 113,856 61,999 Beginning balancePenyisihan selama tahun Allowance made during the

berjalan (Catatan 31) 215,749 118,559 year (Note 31)Penghapusbukuan selama

tahun berjalan (176,158) (70,831) Written off during the yearPenerimaan kembali

hapus buku 4,210 4,129 Recovery of write-offs

157,657 113,856


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g. Informasi lainnya (lanjutan) g. Other information (continued)

1) Perubahan cadangan kerugian piutangmurabahah adalah sebagai berikut:(lanjutan)

1) The movements of allowance forimpairment losses on murabahahreceivables are as follows: (continued)

Penilaian atas cadangan kerugianpenurunan nilai murabahah dilakukansecara kolektif. Piutang murabahah yangtelah dihapusbukukan oleh Bank dicatatsecara ekstra-komtabel di dalam rekeningadministratif.

Assessment on allowance for impairmentlosses on murabahah receivables aremade collectively. Murabahah receivableswhich were written off by the Bank arerecorded as extra-comptable in theadministrative account.

2) Jumlah minimum cadangan kerugianpenurunan nilai piutang yang wajibdibentuk pada tanggal 31 Desember 2017dan 2016 telah sesuai berdasarkan PSAK55, Instrumen Keuangan: Pengakuan danPengukuran.

Manajemen berpendapat bahwa cadangankerugian penurunan nilai piutang yangdibentuk telah memadai.

2) The minimum amount of allowance forimpairment losses on receivables whichshould be provided as at 31 December2017 and 2016 is in accordance withSFAS 55, Financial Instruments:Recognition and Measurement.

Management believes that the allowancefor impairment losses is adequate.

3) Rasio Non-Performing Financing (NPF)piutang murabahah pada tanggal 31Desember 2017 dan 2016 adalah sebagaiberikut:

3) The ratio of Non-Performing Financing(NPF) of murabahah receivables as at 31December 2017 and 2016 are as follows:

2017 2016

Persentase NPF - bruto 1.67% 1.53% NPF Percentage - grossPersentase NPF - neto 0.05% 0.20% NPF Percentage - net

4) Berdasarkan laporan Batas MaksimumPemberian Kredit Kdisampaikan kepada Otoritas JasaKeuangan (OJK), pada tanggal 31Desember 2017 dan 2016 tidak terdapatpelanggaran atau pun pelampauan BMPKkepada pihak ketiga dan pihak berelasisesuai dengan peraturan yang telahditetapkan Bank Indonesia.

4)report submitted to Financial ServiceAuthority as at 31 December 2017 and2016, there are no murabahah receivableswhich violated or exceeded the LegalLending Limit Regulation by BankIndonesia.

10. BIAYA DIBAYAR DI MUKA 10. PREPAYMENTS

2017 2016

Sewa gedung 50,980 59,170 Building rentalPemeliharaan dan perbaikan IT 17,240 9,348 IT maintenance and renewalLainnya 3,077 2,287 Others

71,297 70,805

annual report2017

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11. ASET TETAP 11. FIXED ASSETS

31 Desember/December 2017Saldo awal/Beginningbalance

Penambahan/Addition

Pengurangan/Deduction

Reklasifikasi/Reclassification

Jumlah/Total

Model revaluasi Revaluation modelkepemilikan langsung direct ownership

Tanah 9,467 - - - 9,467 Land

Model biaya Cost modelkepemilikan langsung direct ownership

Bangunan 9,235 294 - - 9,529 BuildingsKendaraan bermotor 84,116 31,607 (9,971) - 105,752 Motor vehiclesPerlengkapan kantor 132,716 20,565 (6,142) 23,548 170,687 Office equipmentLeasehold improvement 108,406 30,725 - (87) 139,044 Leasehold improvementAset dalam penyelesaian 6,024 17,437 - (23,461) - Construction in progress

349,964 100,628 (16,113) - 434,479

Model biaya Cost modelAkumulasi penyusutan Accumulated depreciation

kepemilikan langsung direct ownershipBangunan (2,637) (593) - - (3,230) BuildingsKendaraan bermotor (53,559) (20,354) 8,981 - (64,932) Motor vehiclesPerlengkapan kantor (59,746) (35,060) 4,396 (5) (90,415) Office equipmentLeasehold improvement (47,684) (37,959) - 5 (85,638) Leasehold improvement

(163,626) (93,966) 13,377 - (244,215)

Nilai buku bersih 186,338 190,264 Net book value


Penambahan/Addition



Jumlah/Total

Model revaluasi Revaluation modelkepemilikan langsung direct ownership

Tanah 3,987 5,480 - - 9,467 Land

Model biaya Cost modelkepemilikan langsung direct ownership

Bangunan 6,726 2,098 (145) 556 9,235 BuildingsKendaraan bermotor 79,443 5,797 (1,124) - 84,116 Motor vehiclesPerlengkapan kantor 93,244 33,060 (1,698) 8,110 132,716 Office equipmentLeasehold improvement 85,610 35,315 (11,963) (556) 108,406 Leasehold improvementAset dalam penyelesaian - 14,134 - (8,110) 6,024 Construction in progress

269,010 95,884 (14,930) - 349,964

Model biaya Cost modelAkumulasi penyusutan Accumulated depreciation

kepemilikan langsung direct ownership

Bangunan (2,256) (411) 48 (18) (2,637) BuildingsKendaraan bermotor (33,554) (21,031) 1,026 - (53,559) Motor vehiclesPerlengkapan kantor (32,000) (29,131) 1,385 - (59,746) Office equipmentLeasehold improvement (25,881) (33,784) 11,963 18 (47,684) Leasehold improvement

(93,691) (84,357) 14,422 - (163,626)


Rincian kerugian dan keuntungan penjualan asettetap adalah sebagai berikut:

Details of the loss and profit on disposal of fixedassets are as follows:

2017 2016

Hasil atas penjualan aset tetap 2,433 439 Proceeds from sale of fixed assetsNilai buku (2,737) (381) Book value

(Kerugian)/keuntungan penjualan (Loss)/gain on sale ofaset tetap (304) 58 fixed assets


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11. ASET TETAP (lanjutan) 11. FIXED ASSETS (lanjutan)

Aset dalam penyelesaian pada tanggal31 Desember 2016 sebesar Rp 6.024 merupakanperangkat keras terkait teknologi informasi yangmasih dalam proses pengiriman, User AcceptanceTesting, dan belum siap digunakan, denganpersentase penyelesaian 99%. Aset tersebut telahdiselesaikan pada tahun 2017.

Assets in progress as at 31 December 2016amounted Rp 6,024 are related to IT hardwarewhich still in delivery process, User AcceptanceTesting and not ready to be use, with 99%percentage of completion. Those assets werecompleted in 2017.

Pada tanggal 31 Desember 2017 dan 2016, asettetap, kecuali tanah, telah diasuransikan kepadaperusahaan asuransi pihak ketiga (PT AsuransiAdira Dinamika dan PT Tugu Pratama Indonesia)dengan nilai pertanggungan masing-masing sebesarRp 248.517 dan Rp 278.960. Bank berpendapatbahwa nilai pertanggungan asuransi cukup untukmenutup kemungkinan kerugian dari aset tetaptersebut.

As at 31 December 2017 and 2016, fixed assets,except for land, have been insured by the thirdparty insurance companies (PT Asuransi AdiraDinamika and PT Tugu Pratama Indonesia) withtotal coverage of Rp 248,517 and Rp 278,960,respectively. The Bank believes that the coverageis adequate to cover possible losses arising fromsuch risks.

Pada tanggal 31 Desember 2017 dan 2016, Bankmelakukan peninjauan kembali atas masa manfaat,metode penyusutan dan nilai residu aset tetap danmenyimpulkan bahwa tidak terdapat perubahan atasmetode dan asumsi tersebut.

As at 31 December 2017 and 2016 the Bankperform a review on useful life, depreciationmethod and residual value of financial assets andconclude that there were no change in thesemethod and assumptions.

Berdasarkan penelaahan manajemen, tidak terdapatindikasi penurunan nilai atas aset tetap tersebut diatas.

Based on management review, there is noindication of impairment in the value of fixedassets.

Pada tanggal 31 Desember 2017 dan 2016, tidakterdapat aset tetap yang digunakan sebagai jaminandan tidak terdapat pembatasan kepemilikan atassemua aset tetap.

As at 31 December 2017 and 2016, there are nofixed assets pledged as collateral and no limitationof ownership of the fixed assets.

Pada tanggal 31 Desember 2017, aset tetap yangsudah disusutkan penuh namun masih digunakanuntuk menunjang aktivitas operasi Bank adalahsebesar Rp 75.494 (2016: Rp 36.727).

As at 31 December 2017, fixed assets which havebeen fully depreciated but still used to supporttheRp 75,494 (2016: Rp 36,727).

Pada bulan Februari 2016, Bank merubah kebijakanakuntansi terkait pengukuran aset tetap dalamkelompok tanah dari metode pengukuran hargaperolehan (cost model) menjadi metode revaluasi(Catatan 2n).

In February 2016, the Bank changed its accountingpolicy related to asset measurement for land fromcost model to revaluation model (Note 2n).

Penilaian pada nilai wajar tanah yang dimiliki olehBank pada 31 Desember 2016 telah dilakukan olehKantor Jasa Penilai Publik (KJPP) Susan Widjojoand Partners, penilai independen yang telahterdaftar pada Otoritas Jasa Keuangan (OJK),berdasarkan laporannya tertanggal 14 April 2016.Penilaian, yang sesuai dengan Standar PenilaianIndonesia, ditentukan berdasarkan transaksi pasarterkini dan dilakukan dengan ketentuan-ketentuanyang lazim. Metode penilaian yang digunakanadalah Metode Pendekatan Data Pasar.

land as at 31 December 2016 was performed byKantor Jasa Penilai Publik (KJPP) Susan Widjojoand Partners, an independent valuers registered inFinancial Service Authority, based on its reportsdated 14 April 2016. The valuation, which conformsto Indonesia Valuation Standards, was determined

length terms. Appraisal method used is MarketData Approach Method.

Surplus revaluasi, yang merupakan selisih antaranilai pasar dengan nilai tercatat dari aset tetap tanahsebesar Rp 5.480 (sebelum pajak) atau Rp 5.239(setelah pajak), telah dikreditkan pada pendapatankomprehensif lainnya dan disajikan sebagai

The revaluation surplus which are the difference ofthe fair value and the carrying value of landamounting to Rp 5,480 (before tax) or Rp 5,239(after tax), was credited to other comprehensive

in equity.

annual report2017

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11. ASET TETAP (lanjutan) 11. FIXED ASSETS (lanjutan)

Bank telah mengajukan permohonan persetujuanrevaluasi aset tetap tanah ke kantor pajak di bulanApril 2016 dan telah melakukan pembayaran ataspajak final sebesar Rp 241 di bulan April 2016. Banktelah menerima persetujuan atas revaluasi asettetap tanah dari kantor pajak pada tanggal 9 Mei2016.

The bank has filed application of approval for assetrevaluation for land to the tax office in April 2016and has paid the final tax amounting to Rp 241 inApril 2016. The bank has obtained approval ofasset revaluation for land from the tax office on 9May 2016.

Jika tanah dicatat sebesar harga perolehan,jumlahnya pada 31 Desember 2016 adalahRp 3.987.

If land were stated on the historical cost, theamount as of 31 December 2016 would beRp 3,987.

Pada tanggal 31 Desember 2017, Bank memilikikomitmen barang modal terkait dengan pembelianperalatan kantor berupa alarm dan tablet senilaiRp 20.894 (tidak diaudit) (2016 : nihil).

As at 31 December 2017, the Bank has capitalexpenditures plan, in relation to purchase officeequipments in the form of alarms and tabletsamounting to Rp 20,894 (unaudited) (2016 : nil).

12. ASET TAK BERWUJUD 12. INTANGIBLE ASSETS


Penambahan/Addition



Jumlah/Total

Biaya perolehan CostPiranti lunak 47,007 261 - 16,633 63,901 SoftwarePengembangan piranti

lunak 8,123 13,585 - (16,633) 5,075 Software development

55,130 13,846 - - 68,976

Akumulasi amortisasi Accumulated amortisationPiranti lunak (18,714) (12,558) - - (31,272) Software

(18,714) (12,558) - - (31,272)



Penambahan/Addition



Jumlah/Total

Biaya perolehan CostPiranti lunak 24,924 - - 22,083 47,007 SoftwarePengembangan piranti

lunak 7,664 22,542 - (22,083) 8,123 Software development

32,588 22,542 - - 55,130

Akumulasi amortisasi Accumulated amortisationPiranti lunak (10,177) (8,537) - - (18,714) Software

(10,177) (8,537) - - (18,714)


Sisa periode amortisasi untuk piranti lunak padatanggal 31 Desember 2017 dan 2016 adalah <1 4tahun.

Remaining amortisation period of software as at31 December 2017 and 2016 are <1 - 4 years.

Manajemen berpendapat bahwa tidak terdapatindikasi adanya penurunan nilai aset tidak berwujud.

Pada tanggal 31 Desember 2017 dan 2016, tidakterdapat aset tak berwujud yang digunakan sebagaijaminan dan tidak terdapat pembatasan kepemilikanatas semua aset tak berwujud.

Management believes that there is no indication ofimpairment in the value of intangible assets.

As at 31 December 2017 and 2016, there are nointangible assets pledged as collateral and nolimitation of ownership of the intangible assets.


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13. ASET LAIN-LAIN - BERSIH 13. OTHER ASSETS NET

2017 2016

Pihak ketiga Third partiesPersediaan - bersih 22,019 206,844 Inventories - netUang muka 26,576 26,581 AdvancesSetoran jaminan 8,592 9,636 DepositsAgunan yang diambil alih 169 3,476 Foreclosed collateralAset imbalan kerja Net employee benefit

bersih (Catatan 36) - 26,430 assets (Note 36)Lain-lain 4,828 2,954 Others

62,184 275,921

Persediaan terdiri dari telepon genggam yang dibeliuntuk dijual kembali ke nasabah dalam bentukpembiayaan sebagai bagian program laku pandai.

Inventories consist of handphone purchased forresell to customers in the form of financing as partof branchless banking program.

Lain-lain terdiri dari berbagai macam tagihan daritransaksi kepada pihak ketiga dan lain-lain.

Others mainly consist of various receivables fromtransaction with third parties and others.

Berdasarkan penelaahan manajemen, Bank telahmembentuk penurunan nilai atas persediaan.Manajemen berpendapat bahwa jumlah penurunannilai telah memadai.

Based on management review, the Bank hasprovided impairement in the value of inventories.Management believes that the impairement amountis adequate.

14. LIABILITAS SEGERA 14. LIABILITIES DUE IMMEDIATELY

2017 2016

Titipan pencairan deposito 9,248 - Unsettled time deposits disbursalTitipan bagi hasil deposito 8,148 9,665 Unsettled profit sharing of time depositsKiriman uang 190 527 RemittancesKewajiban kepada pemasok - 67,878 Obligation to vendorLainnya 2,820 1,585 Others

20,406 79,655

Kewajiban kepada pemasok merupakanpembayaran atas pembelian telepon genggam yangbelum jatuh tempo untuk persediaan pembiayaansebagai bagian program laku pandai.

Obligation to vendor is payment for the purchaseof handphone which has not matured forfinancing's inventory as part of branchless bankingprogram.

Lainnya terdiri dari utang pembayaran iuran OtoritasJasa Keuangan, dan utang lainnya kepada pihakketiga.

Others mainly consist of payable of FinancialService Authority contribution payment, and otherpayables to third parties.

15. BAGI HASIL YANG BELUM DIBAGIKAN 15. UNDISTRIBUTED REVENUE SHARING

Akun ini merupakan bagi hasil yang belum dibagikanoleh Bank kepada shahibul maal atas bagiankeuntungan hasil usaha Bank yang telah disisihkandari pengelolaan dana mudharabah.

This account represents the undistributed share ofthe customer (shahibul maal) on the distribution ofincome generated by Bank from managingmudharabah funds.

Bagi hasil yang belum dibagikan Bank pada tanggal31 Desember 2017 adalah bagi hasil untuk depositomudharabah sebesar Rp 13.747 (2016: Rp 12.320).

Undistributed revenue sharing which has not beendistributed by the Bank as at 31 December 2017for mudharabah time deposits amounted toRp 13,747 (2016: Rp 12,320).

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16. SIMPANAN NASABAH 16. DEPOSITS FROM CUSTOMERS

2017 2016

Tabungan wadiah 1,202,662 979,450 Wadiah saving depositsGiro wadiah 95,169 13,400 Wadiah demand deposits

1,297,831 992,850

a. Giro wadiah a. Wadiah demand deposits

Giro wadiah merupakan giro wadiah yad-dhamanah yaitu titipan dana pihak lain yangdapat diberikan bonus berdasarkan kebijakanBank. Sampai dengan 31 Desember 2017,Bank membagikan bonus untuk produk girowadiah sebesar Rp 5.192 (2016: Rp 6.985)(Catatan 30).

Wadiah demand deposits represent wadiahyad-dhamanah in which depositors are entitledto receive bonuses in accordance with the

1 December 2017, Bankdistributed bonuses for wadiah demanddeposits amounted to Rp 5,192 (2016: Rp6,985) (Note 30).

Sampai dengan 31 Desember 2017 dan 2016tidak terdapat transaksi dengan pihak berelasiuntuk giro wadiah.

As at 31 December 2017 and 2016, there is norelated party transaction for wadiah demanddeposits.

b. Tabungan wadiah b. Wadiah saving deposits

Tabungan wadiah merupakan simpanan danadalam mata uang Rupiah yang dapat diberikanbonus berdasarkan kebijakan Bank. Sampaidengan 31 Desember 2017, Bank membagikanbonus untuk produk tabungan WoW iB wadiahsebesar Rp 420 (2016: nihil) (Catatan 30).

Wadiah saving deposits represent deposits inRupiah which can be distributed with bonus

1 December2017, Bank distributed bonuses for WoW iBwadiah saving deposits amounted to Rp 420(2016: nil) (Note 30).

Pada tanggal 31 Desember 2017 dan 2016tidak terdapat transaksi dengan pihak berelasiuntuk tabungan wadiah.

As at 31 December 2017 and 2016 there is norelated party transaction for wadiah savingdeposits.

Bonus rata-rata tabungan wadiah untuk tahunyang berakhir pada 31 Desember 2017 dan2016 adalah nihil, sedangkan bonus rata-ratauntuk giro wadiah adalah sebagai berikut:

The average bonus rate for wadiah savingdeposits for the year ended 31 December2017 and 2016 are nil, meanwhile the averagebonus rate for wadiah demand deposits are asfollows:

Bonus rata-rata (%)/Average bonus rate (%)2017 2016

Giro wadiah 6.31% 2.31% Wadiah demand deposits

17. PERPAJAKAN 17. TAXATION

a. Utang pajak a. Taxes payable

2017 2016

Pajak penghasilan badan Corporate income tax- Pasal 25 18,947 14,452 Article 25 -- Pasal 29 66,749 51,951 Article 29 -

85,696 66,403Pajak lainnya Other taxes

- Pasal 21 3,677 2,509 Article 21 -- Pasal 23 dan 4(2) 6,348 5,284 Article 23 and 4(2) -- Pajak pertambahan nilai 8 - Value added tax -

10,033 7,793

95,729 74,196


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17. PERPAJAKAN (lanjutan) 17. TAXATION (continued)

b. Beban pajak penghasilan b. Income tax expense

2017 2016

Pajak penghasilan badan Corporate income tax- Kini (264,471) (165,531) Current -- Tangguhan 25,955 22,283 Deferred -

(238,516) (143,248)

Rekonsiliasi atas beban pajak penghasilanBank dengan perkalian laba akuntansi Banksebelum beban pajak penghasilan dan tarifpajak yang berlaku adalah sebagai berikut:

tax expense with the calculation of theaccounting income before income tax expenseand the prevailing tax rate is as follows:

2017 2016

Laba sebelum pajak penghasilan 908,698 555,743 Income before taxPajak dihitung

dengan tarif pajak Tax calculated atyang berlaku 227,174 138,936 applicable rates

Pengaruh pajak atas Impact of tax on permanentperbedaan tetap 11,342 4,312 differences

Beban pajak penghasilan 238,516 143,248 Income tax expense

Rekonsiliasi antara laba sebelum pajakpenghasilan seperti yang tercantum dalamlaporan laba rugi dan penghasilan komprehensiflain dengan laba fiskal untuk tahun-tahun yangberakhir tanggal 31 Desember 2017 dan 2016adalah sebagai berikut:

The reconciliation between income beforeincome tax as stated in the statement of profitor loss and other comprehensive income withtaxable income for the years ended 31December 2017 and 2016 are as follows:

2017 2016

Laba sebelum pajak penghasilan 908,698 555,743 Income before tax

Perbedaan tetap Permanent differencesBeban yang tidak dapat dapat

dikurangkan 45,368 17,247 Non-deductible expense

Perbedaan temporer Temporary differencesLiabilitas imbalan kerja karyawan 16,977 (8,469) Employee benefits liabilitiesAkrual bonus dan tantiem 30,365 46,653 Accrued bonus and tantiemPenyusutan aset tetap 7,926 14,446 Depreciation of fixed assetsCadangan kerugian

penurunan nilai atas Allowance for impairmentpiutang murabahah 20,906 27,923 losses on murabahah receivables

Cadangan kerugianpenurunan nilai atas Allowance for impairmentpersediaan 4,000 - losses on inventory

Lainnya 23,644 8,580 Others

Penghasilan kena pajak 1,057,884 662,123 Taxable income

Beban pajak penghasilan kini 264,471 165,531 Current income tax expenceDikurangi: pajak dibayar dimuka (197,722) (113,580) Less: Prepaid tax

Utang pajak penghasilan 66,749 51,951 Income taxes payable

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17. PERPAJAKAN (lanjutan) 17. TAXATION (continued)

b. Beban pajak penghasilan (lanjutan) b. Income tax expense (continued)

Perhitungan pajak penghasilan untuk tahunyang berakhir pada tanggal 31 Desember 2017di atas adalah suatu perhitungan estimasi yangdibuat untuk tujuan penyusunan laporankeuangan ini dan dapat berubah pada saatBank menyampaikan Surat PemberitaanTahunan (SPT) pajak tahun 2017.

The calculations of income tax for the yearended 31 December 2017 above is apreliminary estimate made for financialstatement preparation purposes and aresubject to change at the time the Banksubmits its Annual Corporate Income TaxReturn (SPT) for the year 2017.

Perhitungan perpajakan untuk tahun yangberakhir pada tanggal 31 Desember 2016sudah sesuai dengan SPT Bank.

The calculation of income tax for the yearended 31 December 2016 conforms with the

c. Aset pajak tangguhan bersih c. Deferred tax assets net


1 Januari/January

Dikreditkanke laporanlaba /rugi/Credited toprofit/loss

Dibebankanke ekuitas/Charged to

equtiy

31Desember/December

Aset pajak tangguhan Deferred tax assetsAkrual bonus dan tantiem 20,787 7,591 - 28,378 Accrued bonus and tantiemLiabilitas imbalan kerja karyawan (3,696) 4,244 4,759 5,307 Employee benefit liabilitiesPenyusutan aset tetap 10,348 1,982 - 12,330 Depreciation of fixed assetsCadangan kerugian penurunan Allowance for impairment losses

nilai atas piutang murabahah 8,391 5,227 - 13,618 on murabahah receivablesCadangan kerugian penurunan Allowance for impairment

nilai atas persediaan - 1,000 - 1,000 losses on inventoryLainnya 2,145 5,911 - 8,056 Others

Aset pajak tangguhan bersih 37,975 25,955 4,759 68,689 Deferred tax assets net


1 Januari/January

Dikreditkan(dibebankan)

ke laporanlaba /rugi/Credited/

(charged) toprofit/loss

Dibebankanke ekuitas/Charged to

equtiy

31Desember/December

Aset pajak tangguhan Deferred tax assetsAkrual bonus dan tantiem 9,124 11,663 - 20,787 Accrued bonus and tantiemLiabilitas imbalan kerja karyawan - (2,117) (1,579) (3,696) Employee benefit liabilitiesPenyusutan aset tetap 6,737 3,611 - 10,348 Depreciation of fixed assetsCadangan kerugian penurunan Allowance for impairment losses

nilai atas piutang murabahah 1,410 6,981 - 8,391 on murabahah receivablesLainnya - 2,145 - 2,145 Others

Aset pajak tangguhan bersih 17,271 22,283 (1,579) 37,975 Deferred tax assets net

Aset pajak tangguhan pada tanggal 31Desember 2017 dan 2016 telahmemperhitungkan tarif pajak yang berlaku untuksetiap periode yang terkait.

Deferred tax assets as at 31 December 2017and 2016 have been calculated taking intoacount tax rates applicable for each respectiveperiod.

Manajemen berpendapat bahwa aset pajaktangguhan dapat terpulihkan seluruhnya dimasa pajak yang akan datang.

Management believes that deferred tax assetscan be recovered in future taxable years.


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18. LIABILITAS LAIN-LAIN 18. OTHER LIABILITIES

2017 2016

Asuransi 15,204 14,976 InsuranceUtang kepada pihak ketiga 6,534 12,656 Payable to third partiesTitipan lainnya 3,114 1,386 Other unsettledAngsuran piutang murabahah - 25,888 Murabahah receivables installmentLain-lain 3,632 1,925 Others

28,484 56,831

Lain-lain terdiri dari titipan kewajiban pembayarankepada karyawan.

Others mostly consist of payment obligation toemployee.

19. AKRUAL 19. ACCRUALS

2017 2016

Akrual biaya operasional 62,334 22,949 Accrued operational expensesAkrual jasa profesional 2,011 2,736 Accrued professional feesAkrual biaya promosi 375 1,418 Accrued promotion expenses

64,720 27,103

Akrual biaya operasional terdiri dari akrual biayasewa, pengelolaan kas, asuransi uang tunai danpendidikan dan pelatihan.

Akrual jasa profesional terdiri dari akrual biaya jasapenasehat hukum dan analis bisnis.

Akrual biaya promosi terdiri dari akrual biayapromosi atas produk-produk Bank.

Accured operating expenses consist of accruedrental expenses, cash management, cashinsurance and education and training.

Accured professional fees consist of accrued costof legal advisory services and business analyst.

Accrued promotion expenses consist of accrued ofpromotion cost for Bank

20. TABUNGAN MUDHARABAH 20. MUDHARABAH SAVINGS DEPOSITS

a. Berdasarkan jenis produk a. By product

2017 2016

Bukan Bank Non-BankTabungan Citra IB 26,616 20,072 Citra IB SavingsTabungan Taseto Premium IB 65,327 42,639 Taseto Premium IB SavingsTabungan Taseto Mapan IB 1,745 1,291 Taseto Mapan IB Savings

93,688 64,002

b. Berdasarkan pihak berelasi dan pihak ketiga b. By related and third party

2017 2016

Bukan Bank Non-BankPihak ketiga 92,925 63,641 Third partiesPihak berelasi 763 361 Related parties

93,688 64,002

Tabungan mudharabah merupakan simpanandana pihak lain yang mendapatkan imbalanbagi hasil dari pendapatan Bank ataspenggunaan dana tersebut dengan nisbah yangditetapkan dan disetujui sebelumnya.

Mudharabah savings deposits representdeposits from third parties who receive a sharein the revenue derived by the Bank from theuse of such funds based on a predeterminedand pre-agreed ratio.

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20. TABUNGAN MUDHARABAH (lanjutan) 20. MUDHARABAH SAVINGS DEPOSITS (continued)

b. Berdasarkan pihak berelasi dan pihak ketiga(lanjutan)

b. By related and third party (continued)

Nisbah dan tingkat bagi hasil rata-rata untuktabungan mudharabah untuk tahun-tahun yangberakhir pada 31 Desember 2017 dan 2016adalah sebagai berikut:

The average rate of ratio and profit sharing formudharabah savings deposits for the yearsended 31 December 2017 and 2016 are asfollow :

31 Desember/December 2017Tingkat

bagi hasil (%)/Nisbah (%)/ Profit sharing

Ratio (%) rate (%)

Tabungan mudharabah 1.67% 3,99% Mudharabah savings deposits



Ratio (%) rate (%)

Tabungan mudharabah 2.25% 3.83% Mudharabah savings deposits

Pada tanggal-tanggal 31 Desember 2017 dan 2016,tidak ada saldo tabungan mudharabah yang diblokiratau dijadikan jaminan pembiayaan.

As at 31 December 2017 and 2016, there are nomudharabah saving deposits which are blocked orpledged for financing.

21. DEPOSITO MUDHARABAH 21. MUDHARABAH TIME DEPOSITS

a. Berdasarkan pihak berelasi dan pihak ketiga a. By related and third party

2017 2016

Bukan Bank Non-BankPihak ketiga 5,147,649 4,324,203 Third partiesPihak berelasi 6,711 6,509 Related parties

5,154,360 4,330,712


2017 2016

Bukan Bank Non-Bank1 - < 3 bulan 2,689,401 2,145,432 1 - < 3 months3 - < 6 bulan 2,001,830 1,806,047 3 - < 6 months6 - < 9 bulan 251,992 273,162 6 - < 9 months9 - < 12 bulan 208,747 103,691 9 - < 12 months>12 bulan 2,390 2,380 >12 months

5,154,360 4,330,712

c. Berdasarkan sisa umur jatuh tempo c. By remaining period to maturity

2017 2016

Bukan Bank Non-BankSampai dengan 1 bulan 3,428,209 2,734,701 Up to 1 month>1 - 3 bulan 1,531,285 1,448,133 >1 - 3 months>3 - 6 bulan 73,920 82,518 >3 - 6 months>6 - 9 bulan 11,073 19,889 >6 - 9 months>9 - 12 bulan 109,053 43,901 >9 - 12 months>12 bulan 820 1,570 >12 months

5,154,360 4,330,712


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21. DEPOSITO MUDHARABAH (lanjutan) 21. MUDHARABAH TIME DEPOSITS (continued)

Pada tanggal-tanggal 31 Desember 2017 dan 2016,tidak ada saldo tabungan mudharabah yang diblokiratau dijadikan sebagai jaminan atas pembiayaan.

As at 31 December 2017 and 2016, there are nomudharabah savings deposits which are blockedor pledged for financing.

Deposito mudharabah merupakan investasi pihaklain yang mendapatkan imbalan bagi hasil daripendapatan Bank atas penggunaan dana tersebutdengan nisbah yang ditetapkan dan disetujuisebelumnya.

Mudharabah time deposits represent investmentfrom other parties who receive share in therevenue derived by the Bank from the use of suchfunds based on a predetermined and pre-agreedratio.

Nisbah dan tingkat bagi hasil rata-rata untukdeposito mudharabah untuk tahun-tahun yangberakhir pada tanggal 31 Desember 2017 dan 2016adalah sebagai berikut:

The average rate of ratio and profit sharing formudharabah time deposits for the years ended 31December 2017 and 2016, are as follows:



Ratio (%) rate (%)

1 bulan 13.44% 7.34% 1 month3 bulan 13.75% 7.37% 3 months6 bulan 13.77% 7.55% 6 months12 bulan 14.00% 7.56% 12 months



Ratio (%) rate (%)

1 bulan 14.71% 8.20% 1 month3 bulan 15.29% 8.22% 3 months6 bulan 15.58% 8.52% 6 months12 bulan 16.08% 8.92% 12 months

Pada tanggal-tanggal 31 Desember 2017 dan 2016,tidak ada saldo deposito mudharabah yang diblokiratau dijadikan jaminan pembiayaan.

As at 31 December 2017 and 2016, there are nomudharabah time deposits which are blocked orpledged for financing.

22. MODAL SAHAM 22. SHARE CAPITAL

Berdasarkan Rapat Umum Pemegang Saham Luar

pemegang saham menyetujui pemecahan nilainominal saham BTPN Syariah dari semula sebesarRp 1.000.000 (nilai penuh) per saham menjadisebesar Rp 100 (nilai penuh) per saham. Perubahanini menjadikan jumlah saham dasar dari semula1.500.000 menjadi 15.000.000.000 lembar saham.Saham ditempatkan dan disetor penuh berubah darisemula 693.333 menjadi 6.933.330.000 lembarsaham.

Based on a resolution of the Extaordinary General

November 2017, the shareholders approved thesplit of BTPN Syariah par value shares from Rp1,000,000 (full amount) per share to Rp 100 (fullamount) per share. This change resulting the

ed shares changed from1,500,000 to 15,000,000,000 shares. Issued andfully paid-up shares changes from 693,333 to6,933,990,000 shares.

Pemecahan nilai nominal saham Perusahaan telahdinyatakan dalam perubahan Anggaran Dasarterakhir Nomor. 57 tanggal 16 November 2017 dandilaporkan pemecahan nilai nominal sahamPerusahaan telah dilaporkan pada KementerianHukum dan Hak Asasi Manusia Republik Indonesiaberdasarkan Keputusan tanggal 16 November 2017No. AHU-0024076.AH.01.02.TAHUN 2017 danSurat Penerimaan Pemberitahuan PerubahanAnggaran Dasar No. AHU-AH.01.03-0191730.

ated in thelatest changes Article of Association No. 57 dated16 November 2017 and reported to the Ministry ofLaw and Human Rights of the Republic ofIndonesia through its letter No. AHU-0024076.AH.01.02.TAHUN 2017 dated 16November 2017 and Letter of Acceptance of theAmendment Article of Association through its letterNo AHU-AH.01.03-0191730.

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22. MODAL SAHAM (lanjutan) 22. SHARE CAPITAL (continued)

Susunan pemegang saham Bank pada tanggal31 Desember 2017 dan 2016 adalah sebagaiberikut:

31 December 2017 and 2016 are as follows:

31 Desember/December 2017Jumlah saham

ditempatkan dan Persentasedisetor penuh/ kepemilikan/ Jumlah modal/

Issued and fully Ownership Amount ofPemegang saham paid shares percentage capital Shareholders

PT Bank Tabungan Pensiunan PT Bank Tabungan PensiunanNasional (Persero) Tbk 4,853,330,000 70.00% 485,333 Nasional (Persero) Tbk

PT Triputra Persada Rahmat 2,080,000,000 30.00% 208,000 PT Triputra Persada Rahmat

6,933,330,000 100.00% 693,333

31 Desember/December 2016Jumlah saham

ditempatkan dan Persentasedisetor penuh/ kepemilikan/ Jumlah modal/

Issued and fully Ownership Amount ofPemegang saham paid shares percentage capital Shareholders

PT Bank Tabungan Pensiunan PT Bank Tabungan PensiunanNasional (Persero) Tbk 485,333 70.00% 485,333 Nasional (Persero) Tbk

PT Triputra Persada Rahmat 208,000 30.00% 208,000 PT Triputra Persada Rahmat

693,333 100.00% 693,333

23. CADANGAN WAJIB 23. LEGAL RESERVES

Cadangan wajib pada awalnya dibentuk dalamrangka memenuhi ketentuan pasal 61 ayat (1)Undang-undang No. 1/1995 mengenai PerseroanTerbatas (kemudian diganti dengan Undang-undangPerseroan Terbatas No. 40/2007), yangmengharuskan perusahaan Indonesia untukmembentuk cadangan wajib sebesar sekurang-kurangnya 20% dari jumlah modal yang ditempatkandan disetor penuh. Undang-undang tersebut tidakmengatur jangka waktu untuk pembentukancadangan tersebut.

The legal reserves are originally provided inaccordance with Indonesian Limited LiabilityCompany Law No. 1/1995 article 61 paragraph (1)(later superseeded by Limited Liability CompanyLaw No. 40/2007), which requires Indonesiancompanies to set up a legal reserve amounting toat least 20% of the issued and fully paid capital.This particular law does not regulate the period oftime in relation to the provision of such reserves.

Berdasarkan keputusan Rapat Umum PemegangSaham Tahunan tanggal 2 Mei 2016 yang tercantumdalam akta No. 01 tanggal 2 Mei 2016 dari NotarisAshoya Ratam, S.H., Mkn., para pemegang sahammenyetujui penggunaan laba bersih untuk tahunyang berakhir pada tanggal 31 Desember 2015disiskan sebagai cadangan wajib (Catatan 25).

Based on the result of the Annual General Meetingof Shareholders on 2 May 2016 as stated in thedeed No. 01 dated 2 May 2016 which wasnotarized by Ashoya Ratam, SH., Mkn., theshareholders approved the appropiation of netincome for the year ended 31 December 2015 aslegal reserves (Note 25).

Berdasarkan keputusan Rapat Umum PemegangSaham Tahunan tanggal 6 Maret 2017 yang beritaacaranya diaktakan dengan akta No. 02 tanggal 6Maret 2017 dari Notaris Ashoya Ratam, SH., Mkn.,para pemegang saham menyetujui penggunaanlaba bersih untuk tahun yang berakhir pada tanggal31 Desember 2016 disisihkan sebagian sebagaicadangan wajib (Catatan 25).

Based on the result of the Annual General Meetingof Shareholders on 6 March 2017 which wasnotarised by Ashoya Ratam, SH., Mkn., in notarialdeed No. 02 dated 6 March 2017, the shareholdersapproved the appropriation of net income for theyear ended 31 December 2016 as legal reserve(Note 25).


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24. CADANGAN PEMBAYARAN BERBASIS SAHAM 24. SHARE-BASED PAYMENTS RESERVE

Seperti dibahas pada kebijakan akuntansi Catatan2x, PT Bank Tabungan Pensiunan Nasional Tbk.(BTPN), sebagai induk perusahaan, memberikanhak opsi saham BTPN kepada karyawan tertentu diBank.

As discussed in the accounting policy Note 2x,PT Bank Tabungan Nasional Tbk. (BTPN), as

program for selected employees in Bank.

BTPN mempunyai dua program opsi saham, yaituprogram 2015 2020 dan program 2016 2021.Harga eksekusi opsi yang diberikan adalahRp 4.000 untuk program 2015 2020 dan Rp 2.617untuk program 2016 2021. Opsi dapat dieksekusipada periode-periode tertentu (exercise window)yang telah ditetapkan dalam pedoman program hakopsi saham BTPN, yaitu Mei 2017 Desember 2019untuk program 2015 2020 dan Mei 2018Desember 2020 untuk program 2016 2021.

BTPN has 2 stock option programs, which are 20152020 program and 2016 2021 program. The

exercise price of the granted options is Rp 4,000 for2015 2020 program and Rp 2,617 for 20162021 program. The options are exercisable on thespecified periods (exercise window) that has been

which are May 2017 December 2019 for 20152020 program and May 2018 December 2020 for2016 2021 program.

Beban kompensasi untuk semua programpemberian opsi saham untuk tahun-tahun yangberakhir pada tanggal 31 Desember 2017 dan 2016masing-masing sebesar Rp 6.026 dan Rp 6.772.Beban kompensasi ini diklasifikasikan sebagaibagian dari beban tenaga kerja yang diakui padalaporan laba rugi.

Compensation expenses for all stock optionprogram for the years ended 31 December 2017and 2016 are Rp 6,026 dan Rp 6,772, respectively.Compensation expense is classified as part ofpersonnel expense recognised in the statement ofprofit or loss.

Nilai wajar rata-rata tertimbang opsi program 2015 -2020 yang diberikan selama tahun berjalan yangditentukan dengan menggunakan Binomial ModelParameter adalah sebesar Rp 1.144,16;Rp 1.388,54; dan Rp 1.622,72 per opsi untukmasing-masing periode vesting (nilai penuh). Inputmodel yang signifikan adalah harga saham rata-ratatertimbang BTPN sebesar Rp 4.030 pada tanggalpemberian, harga eksekusi seperti ditunjukkan dibawah, volatilitas sebesar 29,37%, hasil dividen 0%,usia opsi yang diharapkan selama dua tahun dantingkat bunga bebas risiko tahunan sebesar 7,5%.

The weighted average fair value of options grantedduring the year for 2015 - 2020 programdetermined using the Binomial Model Parameterwas Rp 1,144.16; Rp 1,388.54; and Rp1,622.72(full amount) per option for each vesting period.

weighted average share price of Rp 4,030 on thegrant date, exercise price shown below, volatility of29.37%, dividend yield of 0%, an expected optionlife of two years, and an annual risk-free interestrate of 7.5%.

Volatilitas diukur dengan standar deviasi atas, imbalhasil saham yang terus dimajemukkan yangberdasarkan pada analisis statisik atas harga sahamharian selama dua tahun terakhir. Tingkat sukubunga bebas risiko tahunan sesuai denganpengembalian keuntungan atas obligasi pemerintahdengan jangka waktu 5 tahun sejak tanggalpemberian.

The volatility measured at the standard deviation ofcontinuously compounded share returns is basedon statistical analysis of daily share prices over thelast two years. The risk-free interest ratecorrespond to market yields on government bondsof 5 years from grant date.

Nilai wajar rata-rata tertimbang opsi program 2016-2021 yang diberikan selama tahun berjalan yangditentukan dengan menggunakan Binomial ModelParameter adalah sebesar Rp 546,50; Rp 709,55;dan Rp 839,99 per opsi untuk masing-masingperiode vesting (nilai penuh).

The weighted average fair value of options grantedduring the year for 2016-2021 program determinedusing the Binomial Model Parameter were Rp546.50; Rp 709.55; and Rp 839.99 (full amount)per option for each vesting period.

Input model yang signifikan adalah harga sahamrata-rata tertimbang BTPN sebesar Rp 2.480 padatanggal pemberian, harga eksekusi sepertiditunjukkan di bawah, volatilitas per masing - masingperiode vesting sebesar 28,92%, 29,60% dan29,10%, hasil dividen 0%, usia opsi yang diharapkanselama lima tahun dari tanggal pemberian, dantingkat bunga bebas risiko tahunan masing - masingperiode vesting sebesar 6,52%, 6,60% dan 6,71%.

weighted average share price of Rp 2,480 on thegrant date, exercise price shown below, volatility of28.92%, 29.60%, and 29.10% respectively for eachvesting period, dividend yield of 0%, expectedoption life of five years, and an annual risk-freeinterest rate of 6.52%, 6.60% and 6.71%respectively for each vesting period.

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24. CADANGAN PEMBAYARAN BERBASIS SAHAM(lanjutan)

24. SHARE-BASED PAYMENTS RESERVE(continued)

Volatilitas diukur dengan standar deviasi atas imbalhasil saham yang terus dimajemukkan berdasarkananalisis statistik atas harga saham harian sejak 15Mei 2014 sampai tanggal pemberian untuk periodevesting pertama, sejak tanggal 13 Mei 2013 sampaitanggal pemberian untuk periode vesting kedua dansejak 14 Mei 2012 sampai tanggal pemberian untukperiode vesting ketiga. Tingkat suku bunga bebasrisiko sesuai dengan pengembalian keuntungan atasobligasi pemerintah pada saat tanggal pemberiandengan jangka waktu 1 sampai dengan 5 tahun.

The volatility measured at the standard deviation ofcontinuously compounded share returns is basedon statistical analysis of daily share prices startingfrom 15 May 2014 until the grant date for firstvesting period, starting from 13 May 2013 until thegrant date for second vesting period and startingfrom 14 May 2012 until third vesting period. Therisk-free interest rate correspond to market yieldson government bonds from 1 to 5 years from grantdate.

Pergerakan jumlah opsi saham untuk porsi Bankadalah sebagai berikut: share options are as follows:

Hargaeksekusi

per lembardalam Rupiah(nilai penuh)/Exercise price

per share inRupiah (full

amount)

Opsi saham(dalam ribuan lembar saham)/

Options (in thousands of shares)

31 Desember/December

2017 2016

Pada awal tahun At beginning of the year- Program 2015 - 2020 4,000 18,100 16,600 2015 - 2020 program -- Program 2016 - 2021 2,617 3,780 - 2016 - 2021 program -

21,880 16,600

Diberikan Granted- Program 2015 - 2020 4,000 - 1,500 2015 - 2020 program -- Program 2016 - 2021 2,617 - 3,780 2016 - 2021 program -

- 5,280

Kadaluwarsa Forfeited- Program 2015 - 2020 4,000 (2,100) - 2015 - 2020 program -- Program 2016 - 2021 2,617 (290) - 2016 - 2021 program -

(2,390) -

Hargaeksekusi

per lembardalam Rupiah(nilai penuh)/Exercise price

per share inRupiah (full

amount)

Opsi saham(dalam ribuan lembar saham)/

Options (in thousands of shares)

31 Desember/December

2017 2016

Pengalihan internal Internal transfer- Program 2015 - 2020 4,000 (450) - 2015 - 2020 program -- Program 2016 - 2021 2,617 600 - 2016 - 2021 program -

150 -

Pada akhir periode At end of the period- Program 2015 - 2020 4,000 15,550 18,100 2015 - 2020 program -- Program 2016 - 2021 2,617 4,090 3,780 2016 - 2021 program -

19,640 21,880

Tidak ada opsi saham yang dieksekusi atas program2015 - 2020 dan program 2016- 2021 selama tahun-tahun yang berakhir pada tanggal 31 Desember2017 dan 2016.

There is no stock option executed of 2015 - 2020program and 2016 - 2021 program during the yearsended 31 December 2017 and 2016.


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24. CADANGAN PEMBAYARAN BERBASIS SAHAM(lanjutan)

24. SHARE-BASED PAYMENTS RESERVE(continued)

Opsi saham atas program 2015 - 2020 dan program2016 - 2021 yang masih ada pada akhir periodeberjalan memiliki tanggal kadaluwarsa dan hargaeksekusi berikut ini:

Share options of 2015 - 2020 program and 2016 -2021 program outstanding at the end of the periodhave the following expiry dates and exerciseprices:

Tanggalpemberian/Grant date

Tanggalkadaluwarsa/Expiry date

Harga eksekusi perlembar (angka

penuh)/Exercise price per

share(full amount)

Opsi saham/Shares options(dalam ribuan lembar saham/in thousands of shares)



Program 2015 20202015 2016 Januari/January 2020 4,000 15,550 18,100

Program 2016 20212016 2017 Januari/January 2021 2,617 4,090 3,780

25. PENGGUNAAN LABA BERSIH 25. APPROPRIATION OF NET INCOME

Berdasarkan keputusan Rapat Umum PemegangSaham Tahunan, para pemegang saham menyetujuipenggunaan laba bersih untuk tahun yang berakhirpada tanggal pada tanggal-tanggal 31 Desember2017 dan 2016 sebagai berikut:

(1) Bank tidak akan membagikan dividen kepadapara pemegang saham dan;

(2) pembentukan tambahan cadangan wajib untuktahun yang berakhir 31 Desember 2016 dan2015 masing-masing sebesar Rp 5.000 dan Rp7.794 (Catatan 23);

(3) sisa saldo laba bersih yang diperoleh Banksetelah dikurangi pembentukan tambahancadangan wajib selama tahun buku yangberakhir pada tanggal 31 Desember 2016 dan2015 dinyatakan sebagai saldo laba yang belumditentukan penggunaannya.

Based on the result of the Annual General Meetingof Shareholders, the shareholders approved theappropriation of net income for the years endedDecember 2017 and 2016 as follows:

(1) the Bank shall not distribute any dividend to theshareholders and;

(2) additional appropriation for legal reserve for theyears ended 31 December 2016 and 2015amounted Rp 5,000 and Rp 7,794, respectively(Note 23);

(3) the remaining balance of net income acquiredby the Bank, after additional appropriation forlegal reserve, in book years ended on31 December 2016 and 2015 shall be declaredas unappropriated retained earnings.

26. PENDAPATAN USAHA UTAMA LAINNYA 26. OTHER MAIN OPERATING INCOME

2017 2016

Pendapatan imbalan dari Income from securitiesefek-efek yang dibeli purchased under reselldengan janji dijual kembali 34,030 - agreements

Pendapatan bonus Bonus income frompenempatan pada FASBIS 20,143 32,860 placements in FASBIS

Pendapatan imbalan dari Income from placementspenempatan pada SBIS 17,409 3,527 in SBIS

Pendapatan bagi hasil Profit sharing income frompenempatan pada SIMA 282 115 placements in SIMA

Pendapatan investasi Income from investmentspada Surat Berharga 150 - in Marketable Securities

Pendapatan bagi hasil Profit sharing income frompenempatan pada bank lain - 12,424 placements with other bank

72,014 48,926

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27. HAK PIHAK KETIGA ATAS BAGI HASIL DANASYIRKAH TEMPORER

27.TEMPORARY SYIRKAH FUNDS

2017 2016

Deposito mudharabah 342,821 288,713 Mudharabah time depositsTabungan mudharabah 2,761 1,597 Mudharabah savings depositsSertifikat Investasi Certificate of Interbank

Mudharabah Antarbank (SIMA) 18 - Mudharabah Investment (SIMA)

345,600 290,310

28. PENDAPATAN OPERASIONAL LAINNYA 28. OTHER OPERATING INCOME

2017 2016

Penerimaan kembali piutang yang Recovery fromtelah dihapusbukukan 2,746 3,472 written-off receivables

Jasa administrasi layanan bank 509 203 Bank service administration feesLain-lain 3,791 1,220 Others

7,046 4,895

Lain-lain terdiri dari penerimaan kembali kerugianoperasional.

Others consist of operational loss recovery.

29. BEBAN TENAGA KERJA 29. PERSONNEL EXPENSES

2017 2016

Gaji dan upah 402,636 374,237 Salaries and wagesTunjangan karyawan 391,031 357,237 Employee allowancesPendidikan dan pelatihan 39,872 39,584 Education and training

833,539 771,058

30. BEBAN UMUM DAN ADMINISTRASI 30. GENERAL AND ADMINISTRATIVE EXPENSES

2017 2016

Perlengkapan kantor dan jasa Office equipment anddari pihak ketiga 192,474 170,531 third party services

Sewa 107,777 94,489 RentPenyusutan dan amortisasi 106,524 92,894 Depreciation and amortisationAsuransi 54,389 43,639 InsuranceJasa profesional 29,471 16,197 Professional feesPemeliharaan dan perbaikan 21,268 19,525 Service and maintenancePromosi 6,102 6,548 PromotionBonus simpanan Wadiah deposit

wadiah (Catatan 16) 5,612 6,985 bonus (Note 16)Lain-lain 4,829 2,022 Others

528,446 452,830

Lain-lain terdiri dari biaya pekerjaan dan pelayanankantor dan beban operasional lainnya.

Others consists of office services and workingexpense,and other operational expenses.

31. PEMBENTUKAN CADANGAN KERUGIANPENURUNAN NILAI ASET PRODUKTIF DANNON-PRODUKTIF

31. PROVISION FOR ALLOWANCE OFIMPAIRMENT LOSSES ON EARNING AND NON-EARNING ASSETS

2017 2016

Piutang murabahah (Catatan 9) 215,749 118,559 Murabahah receivables (Note 9)Persediaan murabahah (Catatan 13) 18,800 - Murabahah inventories (Note 13)Agunan yang dambil alih 634 - Foreclosed assets

235,183 118,559


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32. BEBAN OPERASIONAL LAINNYA 32. OTHER OPERATING EXPENSES

2017 2016

Operasional Mobile Marketing Sharia (MMS) Operational of Mobile Marketing Shariadan cabang 29,608 23,427 (MMS) and branch

Keanggotaan OJK 4,256 2,994 OJK MembershipRekruitmen 2,894 3,320 RecruitmentKerugian terkait risiko operasional 3,537 2,790 Loss of operational riskBeban retribusi 1,372 1,293 Retribution expenseBeban pengembangan komunitas 3,137 7,508 Community development expensesLain-lain 16,466 2,459 Others

61,270 43,791

Lain-lain terdiri dari biaya koordinasi dan sosialisasi,biaya dana duka, biaya jamuan dan biayaoperasional lainnya.

Others consist of coordination and socializationexpenses, condolence expenses, entertainmentexpenses and other operating expenses.

33. PENDAPATAN/(BEBAN) NON-OPERASIONALBERSIH

33. NON-OPERATING INCOME/(EXPENSE) - NET

2017 2016

Pendapatan non-operasional 4,840 2,456 Non-operating incomeBeban non-operasional (4,403) (1,542) Non-operating expenses

437 914

Pendapatan non-operasional sebagian besar terdiridari keuntungan penjualan aset tetap danpendapatan non-operasional lainnya.

Non-operating income mostly consists of gain onsale of fixed assets and other non-operatingincome.

Beban non-operasional terdiri dari kerugianpenjualan aset tetap, sumbangan, iurankeanggotaan, dan lain-lain.

Non-operating expenses consists of loss on sale offixed assets, contribution, membership fees, andothers.

34. INFORMASI MENGENAI KOMITMEN DANKONTINJENSI

34. COMMITMENTS AND CONTINGENCIESINFORMATION

a. Bank memiliki tagihan kontinjensi berupapendapatan dari pembiayaan/pinjaman yangdiberikan dalam kategori non-performingsebesar Rp 14.798 pada tanggal 31 Desember2017 (2016: Rp 11.933).

a. The Bank has contingencies receivable in theform of income from non-performing financing/loan amounting to Rp 14,798 as at 31December 2017 (2016: Rp 11,933).

b. Pada tanggal 31 Desember 2017, Bank memilikikomitmen sewa gedung kantor sebesar Rp89.332 yang akan berakhir pada 14 Juni 2026(2016: Rp 8.377).

b. As at 31 December 2017, Bank has officebuilding rental commitments amounted toRp 89,332 that will expired on 14 June 2026(2016: Rp 8,377).

35. LABA BERSIH PER SAHAM 35. EARNINGS PER SHARE

2017 2016

Laba bersih tahunberjalan 670,182 412,495 Net profit for the year

Jumlah rata-rata Weighted average number oftertimbang saham biasa 6,933,330,000 6,933,330,000 shares

Laba bersih per saham dasar/ Basic/diluted earningsdilusian (nilai penuh) 97 59 per share (full amount)

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35. LABA BERSIH PER SAHAM (lanjutan) 35. EARNINGS PER SHARE (continued)

Jumlah rata-rata tertimbang atas saham yangberedar dan laba per saham (dasar dan dilusian)tahun lalu telah disajikan kembali untukmencerminkan dampak atas pemecahan nilainominal saham (Catatan 1 dan 22).

shares outstanding and earnings per shares (basicand diluted) have been restated to reflect theimpact of the change in par value per share (Note1 and 22)

Laba per saham dasar Basic earnings per share

Laba per saham dasar dihitung dengan membagilaba bersih dengan jumlah rata-rata tertimbangsaham biasa yang beredar pada tahun yangbersangkutan.

Basic earnings per share is calculated by dividingthe net profit by the weighted average number ofshares outstanding during the year.

Laba per saham dilusian Diluted earnings per share

Dalam perhitungan laba bersih per saham dilusianjumlah rata-rata tertimbang jumlah yang beredardisesuaikan dengan asumsi bahwa semua efekberpotensi saham yang sifatnya dilutif dikonversi.

Diluted earnings per share is calculated byadjusting the weighted average number of sharesoutstanding to assume conversion of all dilutivepotential shares.

Pada tanggal 31 Desember 2017 dan 2016, tidakada efek yang berpotensi saham yang dapatmenimbulkan pengaruh dilusi pada laba bersih persaham Bank.

As at 31 December 2017 and 2016, there were nodilutive potential ordinary shares that would giverise to a dilution of earning per share of te Bank.

36. LIABILITAS IMBALAN KERJA KARYAWAN 36. EMPLOYEE BENEFIT LIABILITIES

2017 2016

Imbalan kerja jangka pendek Short-term employee benefitsBonus, tantiem, dan insentif Accrued bonus, tantiem

yang masih harus dibayar 113,515 83,150 and incentivesImbalan pasca kerja 7,372 - Post employment benefit

120,887 83,150

Imbalan kerja jangka panjang Long-term employee benefitsImbalan kerja jangka panjang

lainnya 12,024 9,812 Other long term employee benefit

Liabilitas yang diakui pada Liability recognised inlaporan keuangan 132,911 92,962 statement of financial position

Program pensiun imbalan pasti Defined benefit pension plan

Bank menerapkan kebijakan imbalan pasca-kerjasebagai berikut:

Bank implemented a policy on post-employmentbenefit as follows:

Bank menerapkan kebijakan program imbalanpasca-kerja sesuai dengan Undang-Undang TenagaKerja (UUTK) No. 13 Tahun 2003 dan PerjanjianKerja Bersama yang berlaku di Bank. Dasarperhitungan imbalan UUTK No. 13 ini menggunakangaji pokok terkini.

Program tersebut memberikan imbalan pensiunyang akan dibayarkan kepada karyawan yangberhak pada saat karyawan pensiun atau pada saatkaryawan tersebut berhenti sesuai denganperaturan UU Ketenagakerjaan. Pendanaanprogram paska kerja ini ditanggung sepenuhnyaoleh Bank dengan membayar iuran yang setidaknyamemenuhi jumlah minimum seperti yang diharuskanoleh peraturan perundang-undangan yang berlaku.Pengelolaan dana program pensiun imbalan pastidilakukan oleh PT Asuransi Allianz Life Indonesia.Pada tanggal 31 Desember 2017 dan 2016, jumlahkaryawan yang memiliki hak atas imbalan ini adalahsebanyak 5.703 dan 6.050 karyawan (tidak diaudit).

The Bank implemented a policy on post-employment benefit based on Labor Law (UUTK)No. 13 Year 2003 and Collective Labor Agreementapplied in Bank. The calculation basis of this UUTKNo. 13 benefit is the current basic salary.

The program calls for benefits to be paid to eligibleemployees at retirement or when the employeesresign according to the Labor Law regulation. Post-employement benefit plan is fully funded by TheBank, by paying sufficient contributions to meet theminimum requirements set forth in applicable laws.

managed by PT Asuransi Allianz Life Indonesia. Asat 31 December 2017 and 2016, the total numberof employees eligible for this benefit are 5,703 and6,050 employees (unaudited), respectively.


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36. LIABILITAS IMBALAN KERJA KARYAWAN(lanjutan)

36. EMPLOYEE BENEFIT LIABILITIES (continued)

Program pensiun imbalan pasti (lanjutan) Defined benefit pension plan (continued)

Selain imbalan yang disebutkan diatas, Bank jugamemberikan imbalan kerja jangka panjang lainnyaberupa imbalan cuti panjang.

Beside the benefit mentions above, the bank alsoprovides other long-term employee benefits in formof long leave benefit.

Penilaian aktuarial per 31 Desember 2017 dan 2016dilakukan oleh konsultan aktuaria terdaftar, PT BiroPusat Aktuaria, aktuaris independen, dengan

Projected Unit Creditsebagaimana yang tercantum dalam laporan padatanggal 19 Januari 2018 dan 27 Januari 2017.

The actuarial valuation as at 31 December 2017and 2016 was performed by registered actuarialconsulting firm, PT Biro Pusat Aktuaria,

19January 2018 and 27 January 2017.

Perhitungan aktuaris tersebut menggunakan metodeProjected Unit Credit dengan asumsi-asumsi

sebagai berikut: follows:

2017 2016

Tingkat diskonto per tahun 6.30% 8.07% Annual discount rateTingkat kenaikan

gaji per tahun 10% 10 % Annual salary increase rateTabel mortalita TMI (Tabel Mortalita TMI (Tabel Mortalita Mortality table

Indonesia) III 2011/ Indonesia) III 2011/TMI (Indonesia Mortality TMI (Indonesia Mortality

Table) III 2011 Table) III 2011Usia pensiun 55 tahun/years 55 tahun/years Retirement age

Imbalan pasca kerja Post employment benefit

Mutasi kewajiban imbalan pasti selama tahunberjalan adalah sebagai berikut:

The movement in the defined benefit obligationover the year is as follows:

2017 2016

Saldo awal tahun 122,058 95,400 Balance at beginning of yearBiaya jasa kini 37,428 28,339 Current service costBeban bunga 9,850 8,109 Interest expenseImbalan yang dibayar (6,795) (2,529) Benefit paidPengukuran kembali : Remeasurement :- Penyesuaian asumsi keuangan 26,641 (6,520) Changes in financial assumption -- Penyesuaian pengalaman (11,015) (741) Experience adjustment -

Saldo akhir tahun 178,167 122,058 Balance at end of year

Beban imbalan pasca-kerja yang dibebankan padalaporan laba rugi adalah sebagai berikut:

Post-employment benefit expenses recognised inthe statement of profit or loss are as follows:

2017 2016

Biaya jasa kini 37,428 28,339 Current service costBunga bersih (2,133) (766) Net interest

35,295 27,573

Rekonsiliasi perubahan selama tahun berjalan atasperubahan liabilitas bersih yang diakui di laporanposisi keuangan adalah sebagai berikut:

The reconciliation of the movement during the yearof the net liability recognised in the statements offinancial position are as follows:

2017 2016

Saldo awal tahun (26,430) (9,017) Balance at beginning of yearBeban tahun berjalan 35,295 27,573 Current year expenseJumlah yang diakui pada Total amount recognised in other

penghasilan komprehensif lain 19,037 (6,318) comprehensive incomeKontribusi pemberi kerja (20,530) (38,668)

Saldo akhir tahun 7,372 (26,430) Balance at end of year

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Imbalan pasca kerja (lanjutan) Post employment benefit (continued)

Estimasi liabilitas/(aset) atas imbalan pasca-kerja: Estimated post-employment benefit liabilities/(asset):

2017 2016

Nilai kini liabilitas Present value of definedimbalan imbalan pasti 178,167 122,058 benefit obligation

Nilai wajar aset program (170,795) (148,488) Fair value of plan assets

7,372 (26,430)

Pergerakan nilai wajar aset program selama tahunberjalan adalah sebagai berikut:

The movement in the fair value of plan assetsduring the year is as follows:

2017 2016

Saldo awal 148,488 104,417 Beginning balanceHasil yang diharapkan dari Expected return on

aset program 11,983 8,875 plan assetsKontribusi pemberi kerja 20,530 38,668Imbalan yang dibayar (6,795) (2,529) Benefits paidKerugian aktuaria (3,411) (943) Actuarial losses


Seluruh aset program pensiun ditempatkan padaProgram Dana Pensiun Lembaga Keuangan Allianzdengan deposito berjangka sebagai aset yangmendasari. Nilai wajar atas deposito berjangkatersebut adalah Rp 170.795 pada tanggal31 Desember 2017 (2016: Rp 148.488).

All of the pension plan assets are placed onProgram Dana Pensiun Lembaga KeuanganAllianz with time deposits as an underlying assets.The fair value of time deposit is Rp 170,795 as at31 December 2017 (2016: Rp 148,488).

Bank terekspos dengan risiko volatilitas aset melaluiprogram imbalan pasti. Liabilitas program dihitungmenggunakan tingkat diskonto yang merujukkepada tingkat imbal hasil obligasi pemerintah, jikaimbal hasil aset program lebih rendah, maka akanmenghasilkan defisit program.

The Bank is exposed to asset volatility risksthrough its defined benefit pension plans. The planliabilities are calculated using a discount rate setwith reference to government bond yields, if planassets underperform this yield, this will create adeficit.

Manajemen berkeyakinan bahwa estimasiliabilitas/(aset) atas imbalan pasca-kerja per 31Desember 2017 dan 2016 telah memenuhipersyaratan minimum UU Ketenagakerjaan No. 13tahun 2003.

Management believes that the estimated post-employment benefit liabilities/(assets) as at 31December 2017 and 2016 have fulfilled theminimum requirements of Labor Law No. 13 year2003.

Analisis jatuh tempo yang diharapkan dari imbalanpensiun tidak didiskontokan adalah sebagai berikut:

Expected maturity analysis of undiscountedpension benefits are as follows:

2017 2016

< 1 tahun 4,905 2,529 < 1 year1 2 tahun 2,854 - 1 2 years> 2 5 tahun 35,653 32,762 > 2 5 years> 5 tahun 10,149,590 10,630,626 > 5 years


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Imbalan pasca kerja (lanjutan) Post employment benefit (continued)

Sensitivitas dari kewajiban imbalan pasti terhadapperubahan asumsi aktuaria utama adalah sebagaiberikut:

The sensitivity of the defined benefit obligation tochanges in the principal actuarial assumptions areas follow:

31 Desember/December 2017Dampak program pensiun imbalan pasti/Impact on defined benefit pension plan

Perubahan asumsi/Change in assumption

Nilai kini kewajibanimbalan kerja/

Present value of benefitobligation

Biaya jasa kini/Current service cost

Tingkat diskontoKenaikan/Increase 1%

Penurunan/Decrease 1%(157,466)203,426

(32,870)43,033 Discount rate

Tingkat kenaikan gajiKenaikan/Increase 1%

Penurunan/Decrease 1%203,108 42,960

Salary increase rate(157,239) (32,820)

Analisa sensitivitas didasarkan pada perubahan atassatu asumsi aktuaria dimana asumsi lainnyadianggap konstan. Dalam prakteknya, hal ini jarangterjadi dan perubahan beberapa asumsi mungkinsaling berkorelasi. Dalam perhitungan sensitivitaskewajiban imbalan pasti atas asumsi aktuaria utama,metode yang sama (perhitungan nilai kini kewajibanimbalan pasti dengan menggunakan metodeprojected unit credit di akhir periode) telahditerapkan seperti dalam penghitungan kewajibanpensiun yang diakui dalam laporan posisi keuangan.

The sensitivity analysis are based on a change inan assumption while holding all other assumptionsconstant. In practice, this is unlikely to occur, andchanges in some of the assumptions may becorrelated. When calculating the sensitivity of thedefined benefit obligation to principal actuarialassumptions, the same method (present value ofthe defined benefit obligation calculated with theprojected unit credit method at the end of thereporting period) has been applied as whencalculating the pension liability recognised withinthe statement of financial position.

Imbalan jangka panjang lainnya Other long term employee benefits

Mutasi kewajiban imbalan kerja jangka panjanglainnya selama tahun berjalan adalah sebagaiberikut:

The movement in other long term employee benefitobligation over the year are as follows:

2017 2016

Saldo awal tahun 9,812 7,186 Balance at beginning of yearBiaya jasa kini 2,754 2,511 Current service costBeban bunga 792 611 Interest expenseImbalan yang dibayar (828) (259) Benefit paidPengukuran kembali: Remeasurement:- Penyesuaian asumsi keuangan 792 (201) Changes in financial assumption -- Penyesuaian pengalaman (1,298) (36) Experience adjustment -


Beban imbalan kerja jangka panjang lainnya yangdibebankan pada laporan laba rugi adalah sebagaiberikut:

Other long term employee benefits expensesrecognised in the statement of profit or loss are asfollows:

2017 2016

Biaya jasa kini 2,754 2,511 Service costBeban bunga 792 611 Interest expensePengukuran kembali imbalan Remeasurement of other long-term

kerja jangka panjang (506) (237) employee benefit

3,040 2,885

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Imbalan jangka panjang lainnya (lanjutan) Other long term employee benefits (continued)

Rekonsiliasi perubahan selama tahun berjalan atasperubahan liabilitas bersih yang diakui di laporanposisi keuangan adalah sebagai berikut:

The reconciliation of the movement during the yearof the net liability recognised in the statements offinancial position are as follows:

2017 2016

Saldo awal tahun 9,812 7,186 Balance at beginning of yearBeban tahun berjalan 3,040 2,885 Current year expenseImbalan yang dibayar (828) (259) Benefit paid


Analisis jatuh tempo yang diharapkan dari imbalanjangka panjang lainnya tidak didiskontokan adalahsebagai berikut:

Expected maturity analysis of undiscounted otherlong term employee benefits are as follows:

2017 2016

< 1 tahun 2,593 258 < 1 year1 2 tahun 2,740 1,281 1 2 years> 2 5 tahun 8,677 13,853 > 2 5 years> 5 tahun 235,420 249,979 > 5 years

Sensitivitas dari kewajiban imbalan jangka panjanglainnya terhadap perubahan asumsi aktuaria utamaadalah sebagai berikut:

The sensitivity of the other long term employeebenefit obligation to changes in the principalactuarial assumptions are as follows:

31 Desember/December 2017Dampak program imbalan jangka panjang lainnya/Impact on other long term employee benefits plan

Perubahan asumsi/Change in assumption

Nilai kini kewajibanimbalan kerja/

Present value of benefitobligation

Biaya jasa kini/Current service cost

Tingkat diskontoKenaikan/Increase 1%

Penurunan/Decrease 1%(11,408)12,727

(2,607)2,920 Discount rate

Tingkat kenaikan gajiKenaikan/Increase 1%

Penurunan/Decrease 1%12,696 2,913

Salary increase rate(11,422) (2,611)

37. TRANSAKSI DENGAN PIHAK BERELASI 37. RELATED PARTY TRANSACTIONS

Dalam kegiatan usahanya, Bank mengadakantransaksi dengan pihak-pihak berelasi, terutamameliputi transaksi-transaksi keuangan.

In the normal course of business, the Bankengages in transactions with related parties,primarily consisting of financial transactions.

Dibawah ini adalah ikhtisar pihak-pihak berelasiyang bertransaksi dengan Bank, termasuk sifathubungan dan sifat transaksinya:

The following is a summary of related parties whohave transactions with the Bank, and includes thenature of the relationship and transaction:

Transaksi antara Bank dengan personil manajemenkunci meliputi, penempatan dana oleh personilmanajemen kunci pada Bank berupa rekeningtabungan, giro dan/atau deposito berjangka;pembayaran kompensasi dan remunerasi berupagaji pokok, honorarium, bonus, tantiem dantunjangan lainnya; serta imbalan pasca kerja.

Transactions between Bank and key managementpersonnel include placement from keymanagement personnel to the Bank in form ofsaving account, current account and/or timedeposit; payment of compensation andremuneration in form of basic salary, honorarium,bonus, tantiem and other allowances; and alsopost-employment benefit.


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37. TRANSAKSI DENGAN PIHAK BERELASI(lanjutan)

37. RELATED PARTY TRANSACTIONS (continued)

a. Jenis hubungan dan unsur transaksiberelasi

a. Type of relationships and related partiestransactions

Pihak berelasi/Related parties

Jenis hubungan/Nature of relationships

Unsur transaksi pihak berelasi/Related parties transactions

PT Bank Tabungan PensiunanNasional Tbk.

Induk perusahaan/Parent company

Giro pada bank lain / Current accounts withother banks.

Direktur, Komisaris dan PejabatEksekutif sesuai peraturan BankIndonesia/Directors, Commissionersand Executive employees accordingto Bank Indonesia regulation

Personil manajemen kunci/Key management personnel

Tabungan mudharabah, depositomudharabah, gaji pokok, honorarium,bonus, tantiem, tunjangan lainnya danimbalan pasca kerja / Mudharabahsaving deposits, mudharabah timedeposits, basic salary, honorarium,bonus, tantiem, other allowances andpost-employment benefit.

Personil manajemen kunci adalah orang-orang yangmempunyai kewenangan dan tanggung jawab untukmerencanakan, memimpin dan mengendalikanaktivitas Bank, secara langsung atau tidak langsung,termasuk Direktur dan Komisaris dan pejabateksekutif dari Bank sesuai dengan peraturan BankIndonesia.

Key management personnel are those people whohave the authority and responsibility to plan, leadand control activities of the Bank, directly orindirectly. Key management personnel are theDirectors and Commissioners and executiveemployees of the Bank according to BankIndonesia regulation.

b. Transaksi dengan pihak berelasi

Saldo dan rincian transaksi dengan pihakberelasi adalah sebagai berikut:

b. Related party transactions

The outstanding balances and detailtransactions with related parties are as follows:

2017 2016

Aset AssetsGiro pada bank lain Current accounts with other banks

(Catatan 6) (Note 6)PT Bank Tabungan Pensiunan PT Bank Tabungan Pensiunan

Nasional Tbk 36,708 33,952 Nasional Tbk

Persentase terhadap Percentage ofjumlah aset 0.40% 0.46% total assets

Dana syirkah temporer Temporary syirkah fundsTabungan mudharabah Mudharabah saving deposits

(Catatan 20) (Note 20)Personil manajemen kunci 763 361 Key management personnel

Deposito mudharabah Mudharabah time deposits(Catatan 21) (Note 21)Personil manajemen kunci 6,711 6,509 Key management personnel

Jumlah dana syirkah Total temporary syirkahtemporer dari funds frompihak-pihak berelasi 7,474 6,870 related parties

Persentase terhadap Percentage ofjumlah dana syirkah total temporarytemporer 0.14% 0.16% syirkah funds

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b. Transaksi dengan pihak berelasi (lanjutan) c. Related party transactions (continued)

2017 2016

Hak pihak ketiga atas bagi hasildana syirkah temporer temporary syirkah funds

Tabungan 12 18 Saving accountsDeposito berjangka 528 386 Time depositsJumlah 540 404 Total

Persentase terhadap jumlah Percentage tohak pihak ketiga atas bagi thirdhasil dana syirkah temporarytemporer 0.16% 0.14% syirkah funds

Kompensasi yang dibayar atau terutang padamanajemen kunci atas jasa kepegawaianadalah sebagai berikut:

The compensation paid or payable to keymanagement for employee services is shownbelow:

31 Desember/December 2017Personil

manajemenDewan Dewan kunci lainnya/Direksi/ Komisaris/ Other keyBoard of Board of managementDirectors Commissioners personnel

%*) Rp %*) Rp %*) Rp

Gaji dan imbalankaryawan jangka Salaries and other short-termpendek lainnya 4.74% 39,492 0.74% 6,196 3.88% 32,303 employee benefits

Kewajiban imbalan Net post-employmentpascakerja bersih - - - - 0.10% 825 benefits liabilities

Imbalan jangkapanjang lainnya - - - - 0.04% 302 Other long term-benefits

Jumlah 4.74% 39,492 0.74% 6,196 4.02% 33,430 Total

*) % terhadap beban tenaga kerja *) % to total personnel expenses

31 Desember/December 2016Personil

manajemenDewan Dewan kunci lainnya/Direksi/ Komisaris/ Other keyBoard of Board of managementDirectors Commissioners personnel

%*) Rp %*) Rp %*) Rp

Gaji dan imbalankaryawan jangka Salaries and other short-termpendek lainnya 3.96% 30,547 0.97% 7,511 5.52% 42,536 employee benefits

Aset imbalan Net post-employmentpascakerja bersih - - - - (0.67%) (5,192) benefits asset

Imbalan jangkapanjang lainnya - - - - 0.05% 388 Other long term-benefits

Jumlah 3.96% 30,547 0.97% 7,511 4.90% 37,732 Total

*) % terhadap beban tenaga kerja *) % to total personnel expenses


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c. Pembayaran berbasis saham c. Share-based payments

Pembayaran berbasis saham yang diberikankepada personil manajemen kunci adalahsebagai berikut:

Share-based payment given to the keymanagement personnel are as follows:

31 Desember/December 2017 dan/and 2016Program 2015-2020 Program 2016-2021

Hargaeksekusi

Opsi/Option

exercise price

Opsi (dalamribuan lembar

saham)/Options (in

thousands ofshares)

Hargaeksekusi

Opsi/Option

exercise price

Opsi (dalamribuan lembar

saham)/Options (in

thousands ofshares)

Dewan Direksi 4,000 9,400 - - Board of DirectorsManajemen kunci lainnya 4,000 9,760 2,617 3,780 Other key management

19,160 3,780

38. ANALISIS JATUH TEMPO 38. MATURITY ANALYSIS

Jatuh tempo aset dan liabilitas pada tanggal31 Desember 2017 dan 2016 berdasarkan waktuyang tersisa sampai dengan tanggal jatuh tempoadalah sebagai berikut:

The maturity of assets and liabilities as at31 December 2017 and 2016 based on theremaining period to maturity are as follows:

31 Desember/December 2017Lebih dari Lebih dari

1 bulan 3 bulansampai sampaidengan dengan Lebih

Sampai 3 bulan/ 1 tahun/ daridengan More than More than 1 tahun/1 bulan/ 1 month 3 months More Sesuai

Up to up to up to than permintaan/ Jumlah/1 month 3 months 1 year 1 year On demand Total

Aset AssetsKas - - - - 228,525 228,525 Cash

Current accountsGiro dan penempatan pada and placements

Bank Indonesia 350,746 25,942 723,974 - 363,983 1,464,645 with Bank IndonesiaCurrent accounts with

Giro pada bank lain - - - - 38,443 38,443 other banksInvestment in marketable

Investasi pada surat berharga - - - 39,164 - 39,164 securitiesEfek-efek yang dibeli dengan Securities purchase under

janji dijual kembali resell agreements(reverse repo) 984,879 - - - - 984,879 (reverse repo)

Piutang murabahah-bersih 44,087 296,913 4,143,398 1,486,162 - 5,970,560 Murabahah receivables - netPinjaman qardh - - 23 145 - 168 Funds of qardhBiaya dibayar dimuka - - - - 71,297 71,297 PrepaymentsAset tetap - bersih - - - - 190,264 190,264 Fixed assets - netAset tak berwujud - bersih - - - - 37,704 37,704 Intangible assets-netAset pajak tangguhan - - - - 68,689 68,689 Deferred tax assetsAset lain-lain - bersih - - - - 62,184 62,184 Other assets - net

Jumlah aset 1,379,712 322,855 4,867,395 1,525,471 1,061,089 9,156,522 Total assets

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38. ANALISIS JATUH TEMPO (lanjutan) 38. MATURITY ANALYSIS (continued)

31 Desember/ December 2017 (lanjutan/continued)Lebih dari Lebih dari




Liabilitas LiabilitiesLiabilitas segera 15,414 4,662 - - 330 20,406 Liabilities due immediatelyBagi hasil yang Undistributed revenue

belum dibagikan 9,069 4,223 454 1 - 13,747 sharingSimpanan nasabah - - - - 1,297,831 1,297,831 Deposits from customersUtang pajak 28,980 - 66,749 - - 95,729 Taxes payableLiabilitas lain- lain 6,534 - - - 21,950 28,484 Other liabilitiesAkrual - - - - 64,720 64,720 AccrualsLiabilitas imbalan

kerja karyawan - - 62,366 - 70,545 132,911 Employee benefit liabilities

Jumlah Liabilitas 59,997 8,885 129,569 1 1,455,376 1,653,828 Total Liabilities

Dana syirkah temporer Temporary syirkah fundsTabungan mudharabah - - - - 93,688 93,688 Mudharabah saving depositsDeposito mudharabah 3,428,209 1,531,285 194,046 820 - 5,154,360 Mudharabah time deposits

Jumlah dana Total temporarysyirkah temporer 3,428,209 1,531,285 194,046 820 93,688 5,248,048 syirkah funds

Perbedaan jatuh tempo (2,108,494) (1,217,315) 4,543,780 1,524,650 (487,975) 2,254,646 Maturity gap

31 Desember/ December 2016Lebih dari Lebih dari




Aset AssetsKas - - - - 191,662 191,662 Cash

Current accountsGiro dan penempatan pada and placements

Bank Indonesia 1,222,500 - 50,590 - 275,777 1,548,867 with Bank IndonesiaCurrent accounts with

Giro pada bank lain - - - - 34,490 34,490 other banksPiutang murabahah-bersih 86,282 249,309 3,454,177 1,145,310 5,705 4,940,783 Murabahah receivables - netPinjaman qardh - 3 21 66 - 90 Funds of qardhBiaya dibayar dimuka - - - - 70,805 70,805 PrepaymentsAset tetap - bersih - - - - 186,338 186,338 Fixed assets - netAset tak berwujud - bersih - - - - 36,416 36,416 Intangible assets-netAset pajak tangguhan - - - - 37,975 37,975 Deferred tax assetsAset lain-lain - bersih - - - - 275,921 275,921 Other assets - net

Jumlah aset 1,308,782 249,312 3,504,788 1,145,376 1,115,089 7,323,347 Total assets

Liabilitas LiabilitiesLiabilitas segera 55,349 22,471 - - 1,835 79,655 Liabilities due immediatelyBagi hasil yang Undistributed revenue

belum dibagikan 12,320 - - - - 12,320 sharingSimpanan nasabah - - - - 992,850 992,850 Deposits from customersUtang pajak 22,245 - 51,951 - - 74,196 Taxes payableLiabilitas lain- lain 10,777 - 25,888 - 20,166 56,831 Other liabilitiesAkrual - - - - 27,103 27,103 AccrualsLiabilitas imbalan

kerja karyawan - - 62,298 - 30,664 92,962 Employee benefit liabilities

Jumlah liabilitas 100,691 22,471 140,137 - 1,072,618 1,335,917 Total liabilities

Dana syirkah temporer Temporary syirkah fundsTabungan mudharabah - - - - 64,002 64,002 Mudharabah saving depositsDeposito mudharabah 2,734,701 1,448,133 146,308 1,570 - 4,330,712 Mudharabah time deposits

Jumlah dana Total temporarysyirkah temporer 2,734,701 1,448,133 146,308 1,570 64,002 4,394,714 syirkah funds

Perbedaan jatuh tempo (1,526,610) (1,221,292) 3,218,343 1,143,806 (21,531) 1,592,716 Maturity gap


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39. SEGMEN OPERASI 39. OPERATING SEGMENT

Pembuat keputusan operasional adalah DewanDireksi. Direksi melakukan penelaahan terhadaplaporan internal Bank untuk menilai kinerja danmengalokasikan sumber daya dimana denganlaporan internal tersebut manajemen menentukanoperasi segmen. Bank mengoperasikan danmengelola bisnis dalam satu segmen, yaitupemberian pembiayaan dengan akad murabahahuntuk masyarakat prasejahtera produktif. Informasisegmen Bank berdasarkan wilayah geografis adalahsebagai berikut:

The chief operating decision-maker is the Board of

reporting in order to assess performance andallocate resources, where using related report, the

operates their business in one segment, financingusing murabahah contract for productiveprosperousinformation based on geographical area are asfollows:


Jawa/JavaBali & NusaTenggara Sumatera

Kalimantan/Borneo &Sulawesi

Jumlah/Total

Pendapatan RevenuePendapatan marjin dan usaha Margin and other main operating

utama lainnya 2,110,660 97,824 581,738 115,031 2,905,253 incomePendapatan operasional

lainnya 6,019 108 843 76 7,046 Other operating income

Jumlah pendapatan segmen 2,116,679 97,932 582,581 115,107 2,912,299 Total segment income

Beban ExpensesBagi hasil (308,123) (4,506) (29,809) (3,162) (345,600) Profit sharingBeban tenaga kerja (704,128) (15,064) (91,004) (23,343) (833,539) Personnel expensesBeban umum, administrasi General, administrative and other

dan operasional lainnya (497,670) (13,301) (61,044) (17,701) (589,716) operating expensesCadangan kerugian

penurunan nilai (144,727) (10,198) (48,009) (32,249) (235,183) Allowance for impairment lossess

Jumlah beban segmen (1,654,648) (43,069) (229,866) (76,455) (2,004,038) Total segment expenses

Pendapatan/(beban)non-operasional 533 (86) (9) (1) 437 Non-operating income/(expenses)

Laba segmen sebelumpajak penghasilan 462,564 54,777 352,706 38,651 908,698 Segment income before income tax

Beban pajak penghasilan (238,516) - - - (238,516) Income tax expense

Laba bersih 224,048 54,777 352,706 38,651 670,182 Net Income

Aset AssetsPembiayaan yang

diberikan - bersih 4,221,948 191,976 1,258,242 223,450 5,895,616 Financing - netPendapatan marjin yang

masih akan diterima 53,079 2,482 16,256 3,295 75,112 Accrued margin incomeAktiva produktif lainnya 2,691,932 4,290 35,350 6,552 2,738,124 Other productive assetsPendapatan bunga yang

masih akan diterima 17,532 - - - 17,532 Accrued interest income

Jumlah aset yangdialokasikan 6,984,491 198,748 1,309,848 233,297 8,726,384 Total allocated asset

Aset tidak dialokasikan 430,138 Unallocated assets

Jumlah aset 9,156,522 Total assets

Liabilitas dan Ekuitas Liabilities and EquitySimpanan nasabah dan Deposits from customer and

dana syirkah temporer 5,565,747 144,604 711,481 124,047 6,545,879 temporary syirkah fundBagi hasil yang belum

dibagikan 12,175 241 1,192 139 13,747 Undistributed revenue sharingLiabilitas lain-lain 340,017 260 1,400 573 342,250 Other liabilities

Jumlah liabilitas yangdialokasikan 5,917,939 145,105 714,073 124,759 6,901,876 Total allocated liabilities

Liabilitas yang tidakdialokasikan 2,254,646 Unallocated liabilities

Jumlah liabilitas dan Ekuitas 9,156,522 Total liabilities and Equity

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39. SEGMEN OPERASI (lanjutan) 39. OPERATING SEGMENT (continued)




Jumlah/Total

Pendapatan RevenuePendapatan marjin dan usaha Margin and other main operating

utama lainnya 1,671,747 77,189 394,904 82,642 2,226,482 incomePendapatan operasional

lainnya 3,577 106 1,191 21 4,895 Other operating income

Jumlah pendapatan segmen 1,675,324 77,295 396,095 82,663 2,231,377 Total segment income

Beban ExpensesBagi hasil (261,809) (5,173) (21,801) (1,527) (290,310) Profit sharingBeban tenaga kerja (654,570) (14,968) (80,802) (20,718) (771,058) Personnel expensesBeban umum, administrasi General, administrative and

dan operasional lainnya (417,015) (12,564) (51,548) (15,494) (496,621) other operating expensesCadangan kerugian

penurunan nilai (72,748) (10,924) (24,834) (10,053) (118,559) Allowance for impairment lossess

Jumlah beban segmen (1,406,142) (43,629) (178,985) (47,792) (1,676,548) Total segment expenses

Pendapatan/(beban)non-operasional 967 20 (73) - 914 Non-operating income/(expenses)

Laba segmen sebelum pajakpenghasilan 270,149 33,686 217,037 34,871 555,743 Segment income before income tax

Beban pajak penghasilan (143,248) - - - (143,248) Income tax expense

Laba bersih 126,901 33,686 217,037 34,871 412,495 Net Income

Aset AssetsPembiayaan yang

diberikan - bersih 3,556,184 182,848 932,350 211,574 4,882,956 Financing - netPendapatan marjin yang

masih akan diterima 41,052 2,348 11,542 2,975 57,917 Accrued margin incomeAktiva produktif lainnya 1,731,756 5,144 30,694 6,835 1,774,429 Other productive assetsPendapatan bunga yang

masih akan diterima 590 - - - 590 Accrued interest income

Jumlah aset yangdialokasikan 5,329,582 190,340 974,586 221,384 6,715,892 Total allocated asset

Aset tidak dialokasikan 607,455 Unallocated assets

Jumlah aset 7,323,347 Total assets

Liabilitas dan Ekuitas Liabilities and EquitySimpanan nasabah dan Deposits from customer and

dana syirkah temporer 4,720,668 85,658 513,687 67,551 5,387,564 temporary syirkah fundBagi hasil yang belum

dibagikan 11,138 176 931 75 12,320 Undistributed revenue sharingLiabilitas lain-lain 319,878 998 7,885 1,986 330,747 Other liabilities

Jumlah liabilitas yangdialokasikan 5,051,684 86,832 522,503 69,612 5,730,631 Total allocated liabilities

Liabilitas yang tidakdialokasikan 1,592,716 Unallocated liabilities

Jumlah liabilitas dan Ekuitas 7,323,347 Total liabilities and Equity

40. MANAJEMEN RISIKO 40. RISK MANAGEMENT

Kerangka manajemen risiko Risk management framework

Sistem pengelolaan manajemen risiko perbankansyariah memiliki keunikan tersendiri jikadibandingkan dengan perbankan konvensional.Namun demikian, secara umum masih memilikibanyak kesamaan sebagai lembaga/instansi yangbergerak di bidang keuangan.

Risk management system of sharia banking isunique compared to conventional banking.However, generally they have many similarities asinstitutions/agencies engaged in the financialsector.

Pengembangan manajemen risiko di Bankberpedoman pada Peraturan Otoritas JasaKeuangan No. 65/POJK.03/2016 tentang PenerapanManajemen Risiko bagi Bank Umum Syariah danUnit Usaha Syariah.

Risk management development in the Bank isbased on regulation from Financial ServiceAuthority No. 65/POJK.03/2016 regarding theImplementation of Risk Management for ShariaBanks and Sharia Unit Business.


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40. MANAJEMEN RISIKO (lanjutan) 40. RISK MANAGEMENT (continued)

Kerangka manajemen risiko (lanjutan) Risk management framework (continued)

Penerapan manajemen risiko mencakup:Pengawasan aktif Dewan Komisaris, Direksidan Dewan Pengawas Syariah

Kecukupan kebijakan, prosedur dan penetapanlimit risikoKecukupan proses identifikasi, pengukuran,pemantauan dan pengendalian risiko sertamanajemen risiko sistem informasiPengendalian internal yang menyeluruh

Implementation of risk management includes:Active supervision from Board ofCommissioner, Board of Director and Board ofSharia SupervisioryAdequacy of policy, procedure and riskappettite statementAdequate process of risk identification,measurement, monitoring and control, andinformation system risk managementThorough internal control

Organisasi manajemen risiko Bank melibatkanpengawasan dari Dewan Komisaris dan Direksi.Bank telah membentuk Komite Pemantauan Risikosebagai pengawas tertinggi di tingkat komisaris. Ditingkat direksi telah dibentuk Komite ManajemenRisiko yang merupakan bagian yang sangat pentingdalam pengendalian risiko, yang memantau seluruhrisiko yang terdapat pada kegiatan operasionalBank.

The involvesthe oversight from the Board of Commissioners andDirectors. The Bank has established RiskMonitoring Committee as the highest risk authorityin the commissioner level. At the director level, aRisk Management Committee has beenestablished which constitutes a crucial element inrisk control, to monitor all of the risks in the Bankoperating activities.

Komite Audit memiliki tanggung jawab untukmemantau dan mengevaluasi rencana audit danpelaksanaannya, serta memastikan pelaksanaanrencana tindak lanjut dari hasil audit. Dalammenjalankan fungsinya, Komite Audit dibantu olehSatuan Kerja Internal Audit.

Audit Committee is responsible for monitoring andevaluating the audit plan and its implementation,also ensuring the execution of auditrecommendation. Audit Committee is assisted incarrying out their function by Internal AuditDivision.

Risiko yang dianggap signifikan oleh Bankdiantaranya adalah risiko kredit, risiko likuiditas,risiko pasar, dan risiko operasional.

Bank considers credit risk, liquidity risk, marketrisk, and operational risk as significant.

Risiko kredit Credit risk

Risiko kredit adalah risiko akibat kegagalan nasabahatau pihak lain dalam memenuhi kewajiban kepadaBank sesuai dengan perjanjian yang disepakati.Risiko kredit terutama berasal daripembiayaan/piutang syariah.

Credit riskfailure to fulfill their obligations according to thecontracts with the Bank. Credit risk arises mainlyfrom sharia financing/receivable.

Tujuan pengelolaan risiko kredit Bank selain untukmemenuhi persyaratan-persyaratan yang telahditetapkan oleh peraturan Bank Indonesia/OtoritasJasa Keuangan, juga untuk mengelola risiko kredititu sendiri sehingga diharapkan kemungkinankerugian dari tidak dibayarnya pembiayaan yangdiberikan dan kontrak keuangan lainnya seminimalmungkin, baik pada tingkat individual maupunportofolio pembiayaan secara keseluruhan.

The objectives of managinbesides meeting the requirements set by BankIndonesia/Financial Service Authority regulation,also to manage credit risk itself so the possibility oflosses from default financing facilities and otherfinancial contracts is maintained at the minimumlevel, both in an individual and overall financingportfolio level.

Pengelolaan pembiayaan Bank diarahkan untukmelakukan ekspansi pembiayaan dan mengelolakualitas setiap pembiayaan sejak saat diberikansampai dengan dilunasi untuk mencegahpembiayaan tersebut menjadi Non-PerformingFinancing ( NPF ). Pengelolaan pembiayaan yangefektif dapat meminimalkan kerugian danmengoptimalkan penggunaan modal yangdialokasikan untuk risiko kredit.

management for its financing is aimed forthe expansion of financing and managing thequality of its financing service since granted untilfully paid to prevent it from becoming Non-

financingmanagement can minimise losses and optimise theuse of capital allocated for credit risk.

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Risiko kredit (lanjutan) Credit risk (continued)

Bank telah menyusun kebijakan dan prosedurpembiayaan tertulis. Kebijakan dan prosedurtersebut memberikan pedoman secara lengkap danterperinci atas kegiatan manajemen pembiayaandari saat pengajuan pembiayaan, proses analisis,persetujuan, pemantauan, pendokumentasian,pengendalian dan penyelamatan/restrukturisasi.Dalam rangka mendukung proses pemberianpembiayaan yang lebih hati-hati, BTPN Syariahmelakukan penelaahan dan penyempurnaankebijakan pembiayaan secara periodik sesuaidengan perkembangan bisnis terkini.

The Bank has written financing policies andprocedures. These policies and proceduresprovide comprehensive and detail guidanceregarding financing management activities fromfinancing application, analysis process, approval,monitoring, documentation, control andrecovery/restructuring process. In order to supportprudent financing process, BTPN Syariahconducts review and improvement on financingpolicies periodically in accordance with currentbusiness development.

Bank menggunakan model incurred loss untukpengakuan kerugian penurunan nilai aset keuanganuntuk tujuan akuntansi. Dengan demikian, kerugianhanya diakui jika terdapat bukti obyektif atasperistiwa kerugian spesifik.

The Bank uses an incurred loss model for therecognition of impairment losses on financialassets for accounting purposes. This mean lossescan only be recognised when there is objectiveevidence of a spesific loss event.

Pertimbangan utama dalam melakukan evaluasipenurunan nilai pembiayaan yang diberikan,mencakup adanya pembayaran pokok atau marginatas pembiayaan yang jatuh tempo lebih dari 90 hariatau terdapat kesulitan maupun pelanggaran daripersyaratan yang terdapat dalam kontrak awal.Bank melakukan evaluasi penurunan nilai secarakolektif.

The main considerations in evaluating financingimpairment include whether any principal or marginpayment made for financing that already overdueby more than 90 days, or whether are any knowndifficulties or non-compliance from original term ofthe contract. The Bank evaluates impairmentsusing collective assessment.

Penyisihan kerugian penurunan nilai dievaluasisetiap tanggal pelaporan

Allowance for impairment losses was evaluated ateach reporting date.

(i) Pengelolaan risiko kredit (i) Credit risk management

Melakukan kaji ulang atas kebijakanpembiayaan secara periodik terutama jikaterdapat perubahan kondisi perekonomian,perubahan peraturan dan/atau pendekatanbisnis.

Review of the financing policies periodically,especially if there are change in marketconditions, regulations and/or businessapproaches.

Batas pemberian pembiayaan/piutang syariahditetapkan dan ditelaah mengikuti perubahanpada kondisi pasar dan ekonomi. Telaahanpembiayaan/piutang syariah secara periodikdan penilaian atas kemungkinan wanprestasijuga dilakukan. Proses persetujuanpembiayaan dilakukan melalui komitepersetujuan pembiayaan.

Lending limits for sharia financing/receivableare set and reviewed following charges inmarket and economic conditions. Periodicreview on sharia financing/receivable andassessments of probability of default are alsoconducted. Financing approval process isdone through financing approval committee.

Bank juga dengan ketat memantauperkembangan portofolio pembiayaansehingga memungkinkan Bank untukmelakukan tindakan pencegahan secara tepatwaktu apabila terjadi penurunan kualitaspembiayaan salah satunya dengan melakukandeteksi dini permasalahan dan pemantauanyang disiplin.

The Bank also closely monitors thedevelopment of its financing portfolios toenable the Bank initiate a timely preventiveaction when there is a deterioration infinancing quality by conducting early warningdetection and disciplined monitoring.

Bank terus melanjutkan untuk mengelola danmengawasi secara aktif kualitas portofoliopembiayaan dengan cara meningkatkankebijakan manajemen risiko kredit secaraefektif, penyempurnaan prosedur danpengembangan sistem.

Bank continued to actively manage andmonitor the financing portfolio quality byimproving credit risk management policieseffectively, improving procedures andsystems development.


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(i) Pengelolaan risiko kredit (lanjutan) (i) Credit risk management (continued)

Sistem Informasi Manajemen telah tersediadan mencakup tingkat yang cukup rinci untukmendeteksi setiap perkembangan yang kurangbaik sedini mungkin sehingga memungkinkandilakukannya tindakan secara tepat waktu ataspenurunan kualitas pembiayaan atau untukmeminimalisasi kerugian kredit.

Management Information System (MIS) isavailable and cover sufficient level of detail todetect any adverse development at an earlystage, allowing for timely measures to betaken to counteract any possible deteriorationin financing credit quality or to minimise creditlosses.

(ii) Cadangan kerugian penurunan nilai (ii) Allowance for impairment losses

Penurunan nilai adalah kondisi dimanaterdapat bukti objektif terjadinya peristiwa yangmerugikan sebagai akibat dari satu atau lebihperistiwa yang terjadi setelah pengakuan awalpembiayaan yang diberikan tersebut dimanaperistiwa yang merugikan tersebut berdampakpada estimasi arus kas masa datang atas asetkeuangan atau kelompok aset keuangan yangdapat diestimasi secara andal.

Impairment is a condition where there isobjective evidence of adverse events as aresult of one or more events occurring afterthe initial recognition of financing where theseadverse events impact on the estimatedfuture cash flows of financial assets or groupsfinancial assets that can be reliably estimated.

Cadangan kerugian penurunan nilai dihitungmenggunakan metode kolektif berdasarkanPSAK 55, Instrumen Keuangan: Pengakuandan Pengukuran.

Allowance for impairment losses is calculatedusing collective assessment method inaccordance with SFAS 55, FinancialInstruments: Recognition and Measurement.

Cadangan kerugian penurunan nilai yangdiakui pada pelaporan keuangan hanyalahkerugian yang telah terjadi pada tanggallaporan keuangan atas posisi keuanganberdasarkan bukti objektif.

Allowance for impairment losses recognisedfor financial reporting purposes are only forlosses which have been incurred at the dateof financial statement based on objectiveevidence.

(iii) Eksposur maksimum risiko kredit disajikansetelah cadangan kerugian penurunan nilaitanpa memperhitungkan agunan danpendukung lainnya.

(iii) Maximum exposure to credit risk arepresented net after allowance for impairmentlosses without considering collateral held orother enhancements.

Eksposur risiko kredit terhadap aset keuanganpada laporan posisi keuangan pada tanggal 31Desember 2017 dan 2016 adalah sebagaiberikut:

Credit risk exposures on financial asset in thestatements of financial position assets as at31 December 2017 and 2016 are as follows:

Eksposur maksimum/Maximum exposure

2017 2016Current accounts with

Giro pada bank lain 38,438 34,485 other banksPiutang murabahah - bersih 5,970,560 4,940,783 Murabahah receivables - netPinjaman qardh 168 90 Funds of qardh

6,009,166 4,975,358

Eksposur maksimum risiko kredit atas asetkeuangan tidak memperhitungkan Giro padabank syariah.

Credit risk exposures on financial asset didnot consider current account with other shariabank.

Pada tanggal 31 Desember 2017 dan 2016,tidak ada fasilitas piutang murabahah kepadanasabah yang belum ditarik committed.Sebagai akibatnya, tidak terdapat risiko kreditterhadap rekening administratif.

As at 31 December 2017 and 2016, there areno unused murabahah receivables facilitiesgranted committed. As such, there are nocredit risk exposures related to off-balancesheet items.

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(iii) Eksposur maksimum risiko kredit disajikansetelah cadangan kerugian penurunan nilaitanpa memperhitungkan agunan danpendukung lainnya. (lanjutan)

(iii) Maximum exposure to credit risk arepresented net after allowance for impairmentlosses without considering collateral held orother enhancements. (continued)

Risiko konsentrasi kredit Concentration of credit risk

Bank mengelola dan mengendalikankonsentrasi risiko kredit dimanapun risikotersebut teridentifikasi secara khusus,terhadap debitur individu dan kelompok, danindustri serta sektor geografis yang disajikansetelah cadangan kerugian penurunan nilai.

The Bank manages and controlsconcentrations of credit risk wherever theyare identified in particular, to individual andgroup of debtors, and industries andgeographical sectors which are presented netafter allowance for impairment losses.

Bank menentukan tingkat risiko kredit yangdimiliki dengan menetapkan batas jumlahrisiko yang bisa diterima yang terkait dengansatu debitur atau beberapa kelompok debitur.

The Bank determines the levels of credit riskby placing limits on the amount of riskaccepted in relation to one debtor or moredebtor.

Konsentrasi risiko aset keuangan denganeksposur risiko kredit

Concentration of risks of financial assets withcredit risk exposure

a) Sektor geografis a) Geographical sectors




Jumlah/Total

Current accounts withGiro pada bank lain 38,438 - - - 38,438 other banks

Piutang murabahah dan Murabahah receivablesdan pinjaman qardh - and funds of qardh -bersih - pihak ketiga 4,275,027 194,458 1,274,498 226,745 5,970,728 net - third parties

4,313,465 194,458 1,274,498 226,745 6,009,166




Jumlah/Total

Current accounts withGiro pada bank lain 34,485 - - - 34,485 other banks

Piutang murabahah dan Murabahah receivablesdan pinjaman qardh - and funds of qardh -bersih - pihak ketiga 3,597,236 185,196 943,892 214,549 4,940,873 net - third parties

3,631,721 185,196 943,892 214,549 4,975,358

b) Sektor industri b) Industry sectors

Tabel berikut ini menggambarkan rincianeksposur pembiayaan Bank pada nilaitercatat, yang dikategorikan berdasarkansektor industri.

The following table breaks down the

amounts, as categorised by the industrysectors.


Pemerintah/Government

Lembagakeuangan/Financialinstitution

Perdagangan/Trading

Jasa/BusinessServices

Perindustrian/Manufacturing

Lain-lain/Others

Jumlah/Total

Current accounts withGiro pada bank lain - 38,438 - - - - 38,438 other banksPiutang murabahah dan Murabahah receivable

pinjaman qardh - and funds of qardh -bersih - pihak ketiga - - 5,259,562 222,680 163,831 324,655 5,970,728 net - third parties

- 38,438 5,259,562 222,680 163,831 324,655 6,009,166


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Konsentrasi risiko aset keuangan denganeksposur risiko kredit (lanjutan)

Concentration of risks of financial assets withcredit risk exposure (continued)

b) Sektor industri (lanjutan) b) Industry sectors (continued)


Pemerintah/Government

Lembagakeuangan/Financialinstitution

Perdagangan/Trading

Jasa/BusinessServices

Perindustrian/Manufacturing

Lain-lain/Others

Jumlah/Total

Current accounts withGiro pada bank lain - 34,485 - - - - 34,485 other banksPiutang murabahah dan Murabahah receivable

pinjaman qardh - and funds of qardh -bersih - pihak ketiga - - 4,368,091 171,005 160,994 240,783 4,940,873 net - third parties

- 34,485 4,368,091 171,005 160,994 240,783 4,975,358

Pembiayaan/piutang syariah pada sektor-

pembiayaan untuk sektor pertanian.

Sharia financing/receivables in sector

financing/receivables for agriculture.

c) Kualitas pembiayaan dari aset keuangan c) Financing quality of financial assets

Pada tanggal 31 Desember 2017 dan2016 kualitas kredit atas aset keuanganterbagi atas:

As at 31 December 2017 and 2016,credit quality of financial assets aredivided as follows:

31 Desember/December 2017Belum Telah

jatuh tempo jatuh tempoatau tidak tetapi tidak

mengalami mengalamipenurunan penurunan

nilai/ nilai/ MengalamiNeither Past due penurunan

past due nor but not nilai/ Jumlah/impaired impaired Impaired Total

Current accounts withGiro pada bank lain 38,438 - - 38,438 other banksPiutang murabahah Murabahah receivable

dan pinjaman qardh - and funds of qardhbersih - pihak ketiga 5,913,472 54,003 3,253 5,970,728 net - third parties

Jumlah 5,951,910 54,003 3,253 6,009,166 Total

31 Desember/December 2016Belum Telah

jatuh tempo jatuh tempoatau tidak tetapi tidak

mengalami mengalamipenurunan penurunan

nilai/ nilai/ MengalamiNeither Past due penurunan

past due nor but not nilai/ Jumlah/impaired impaired Impaired Total

Current accounts withGiro pada bank lain 34,485 - - 34,485 other banksPiutang murabahah Murabahah receivable

dan pinjaman qardh - and funds of qardhbersih - pihak ketiga 4,887,680 43,025 10,168 4,940,873 net - third parties

Jumlah 4,922,165 43,025 10,168 4,975,358 Total

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c) Kualitas pembiayaan dari aset keuangan(lanjutan)

c) Financing quality of financial assets(continued)

Pada tanggal 31 Desember 2017 dan2016, rincian kualitas pembiayaan yangbelum jatuh tempo dan tidak mengalamipenurunan nilai berdasarkan ratinginternal adalah sebagai berikut:

The credit quality of financing which are31

December 2017 and 2016 can beassessed by reference to the internalrating system are as follows:


Lancar/Current

Pernahmengalami

keterlambatanpembayaran/

Has an overdueexperience

Jumlah/Total

Piutang murabahah danPinjaman qardh bersih

Murabahah receivable andfunds of qardh - net

- Modal kerja 5,821,231 39,227 5,860,458 Working capital -- Investasi 2 - 2 Investment -- Konsumsi 168 - 168 Consumer -

5,821,401 39,227 5,860,628

Pendapatan marjin/bunga yangmasih akan diterima 69,970 472 70,442 Accrued interest margin/income

Cadangan kerugian penurunan nilai (17,463 ) (135 ) (17,598 ) Allowance for impairment losses

5,873,908 39,564 5,913,472


Lancar/Current

Pernahmengalami

keterlambatanpembayaran/

Has an overdueexperience

Jumlah/Total

Piutang murabahah danPinjaman qardh - bersih

Murabahah receivable andfunds of qardh - net

- Modal kerja 4,795,799 50,444 4,846,243 Working capital -- Investasi 18 - 18 Investment -- Konsumsi 90 - 90 Consumer -

4,795,907 50,444 4,846,351

Pendapatan marjin/bunga yangmasih akan diterima 52,405 580 52,985 Accrued interest margin/income

Cadangan kerugian penurunan nilai (11,535 ) (121 ) (11,656 ) Allowance for impairment losses

4,836,777 50,903 4,887,680


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c) Kualitas pembiayaan dari aset keuangan(lanjutan)

c) Financing quality of financial assets(continued)

Penjelasan pembagian kualitas

adalah:

Details for financing quality which are

follow:

- Lancar - CurrentPembiayaan dalam kategori ini memilikikemampuan yang sangat kuat untukmembayar kembali marjin dan pokokpiutang murabahah kepada Bank.

This category considered as very strongrepayment capacity of murabahahreceivables principal and margin back tothe Bank.

- Pernah mengalami keterlambatanpembayaran

- Has an overdue experience

Pembiayaan dalam kategori inidianggap memiliki kapasitas memadaiuntuk membayar marjin dan pokokpiutangnya. Namun terdapatpertimbangan terkait dengankemampuan nasabah dalam melakukanpembayaran pada saat jatuh tempo.

This category of financing is consideredto have adequate capacity to paymargin and principal of the receivables.However, there is a concern over the

due.

Analisa umur pembiayaan yang diberikan

31 Desember 2017 dan 2016 adalahsebagai berikut:

An aging analysis of financing which areas at 31

December 2017 and 2016 are as follows:

2017 2016

1 30 hari 36,690 36,129 1 30 days31 60 hari 29,578 21,025 31 60 days61 90 hari 25,546 16,904 61 90 days

91,814 74,058Pendapatan bunga/marjin

yang masih harusditerima 4,670 4,932 Accrued interest margin income

Cadangan kerugian Allowance for impairmentpenurunan nilai (42,481) (35,965) losses

54,003 43,025

Risiko pasar Market risk

Risiko pasar adalah potensi timbulnya kerugiandalam nilai buku atau fluktuasi arus kas di masamendatang yang diakibatkan oleh perubahan sukubunga pasar atau nilai tukar.

Market risk is the potential loss in book value orfuture cash flows fluctuation due to the changes inmarket interest rates or exchange rates.

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Risiko pasar (lanjutan) Market risk (continued)

Bank tidak memiliki aset maupun liabilitas keuangandalam mata uang asing, maupun dalam posisidiperdagangkan.

The Bank does not have any assets or liabilitieswhich denominated in foreign currencies, or heldfor trading.

Dilihat dari aktivitas Bank saat ini, adapun faktorrisiko pasar yang dapat mempengaruhi nilai laporanposisi keuangan dan rekening administratif Bankadalah perubahan tingkat suku bunga pasar padaportofolio buku Bank.

which may affect the value of statement of financialposition and administrative accounts of the Bank isthe changes of market interest rate in Bank isportfolio.

Dalam melaksanakan proses manajemen risikopasar, Bank melakukan identifikasi, pengukuran,pemantauan dan pengendalian terhadap faktor-faktor risiko pasar. Kebijakan yang dijalankan Bankdalam pengendalian terhadap risiko suku bungapasar:

In carrying out the market risk managementprocess, the Bank identifies, measures, monitorsand controls the market risk factors. Policiesadopted by the Bank in managing its marketinterest rate risk including:

a) Melakukan pemantauan risiko suku bungapasar.

b) Melakukan simulasi perhitungan net marginincome terhadap semua kemungkinanperubahan tingkat suku bunga pasar.

c) Melakukan pemantauan terhadap RepricingGap Profile Asset & Liability secara keseluruhandalam mengantisipasi pergerakan tren sukubunga pasar yang dapat menyebabkankerugian.

a) Monitoring of market interest rate risk.

b) Perform simulation net margin incomecalculation toward all possible market interestrate changes.

c) Monitoring on overall Assets & LiabilityRepricing Gap Profile in order to anticipateadverse movement of market interest rate.

d) Melakukan pemantauan risiko suku bungapasar.

d) Monitoring on market interest rate risk.

Risiko likuiditas Liquidity risk

Risiko likuiditas adalah risiko akibatketidakmampuan Bank untuk memenuhi kewajibanyang jatuh tempo dari sumber pendanaan arus kasdan/atau aset likuid berkualitas tinggi yang dapatdiagunkan, tanpa mengganggu aktivitas dan kondisikeuangan Bank. Hal ini disebabkan adanyamismatch jangka waktu antara sumber dana danpenyaluran dana Bank.

Liquidity risk is the risk due to inability of Bank tomeet maturing obligations from cash flow fundingsources and/or high quality liquid assets which canbe pledged, without disturbing the activities andfinancial condition of the Bank. This is due to amismatch between the period of funding anddisbursement of Bank funds.

Dalam melaksanakan proses manajemen risikolikuiditas, Bank melakukan identifikasi, pengukuran,pemantauan, dan pengendalian terhadap faktor-faktor risiko likuiditas, antara lain ketersediaan asetlikuid, rasio likuiditas, proyeksi arus kas, dan profilmaturitas. Pengukuran atas risiko likuiditasdilakukan baik untuk kondisi normal maupun stress.

In carrying out the liquidity risk managementprocess, the Bank identifies, measures, monitors,and controls the liquidity risk factors, among othersthe availability of liquid assets, liquidity ratio, cashflow projections and maturity profile. Liquidity riskmeasurement is performed for both normal andstress condition.

Bank mengungkapkan aset dan liabilitasberdasarkan umur jatuh tempo. Pengungkapantersebut telah diterapkan di Catatan 38.

Bank has disclosed assets and liabilities based onits maturity. These have been provided in Note 38.


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Risiko likuiditas (lanjutan) Liquidity risk (continued)

Kebijakan yang dijalankan Bank dalammengendalikan risiko likuiditas adalah:

Policies adopted by the Bank in managing itsliquidity risk include:

- Menetapkan kebijakan pengendalian risikolikuiditas yang telah disesuaikan dengan misi,strategi bisnis, kecukupan permodalan, sumberdaya manusia dan risk appetite Bank.

- Menetapkan kebijakan dan prosedur penetapanlimit risiko likuiditas secara tertulis, lengkap,memadai, dan cukup mudah ditelusuri.

- Establish liquidity risk control policy which inline withcapital adequacy, human resources and riskappetite.

- Establish liquidity risk limit policies andprocedures which are written, complete,adequate and easy to follow.

- Membentuk satuan kerja pengendali risikolikuiditas dan melaksanakan pengendalianrisiko likuiditas secara konsisten danindependen.

- Forming a liquidity risk control work unit andperforming consistent and independentliquidity risk control.

- Melaksanakan fungsi ALCO (Asset & LiabilityCommittee) untuk mengatur tingkat bagi hasildalam usaha meningkatkan/menurunkansumber dana tertentu.

- Implementing the ALCO (Asset & LiabilityCommittee) function to manage profit sharingin an effort to increase/decrease certainsources of funds.

- Mengelola portofolio pendanaan untukmenghindari risiko konsentrasi danketergantungan pada sumber pendanaantertentu. Hal ini dimonitor secara bulanan olehALCO dan Risk Management Committee(RMC).

- Menerapkan kerangka pengukuran RisikoLikuiditas mengacu pada Basel III yakni RasioLCR (Liquidity Coverage Ratio) dan NSFR (NetStable Funding Ratio).

- Managing its funding portfolio to avoidconcentration risk and dependence on singlesource of funding. This matter is monthlymonitored by ALCO and Risk ManagementCommittee (RMC).

- Implementing Liquidity Measurement referringBasel III, consist of LCR (Liquidity CoverageRatio) and NSFR (Net Stable Funding Ratio).

- Menetapkan prosedur dan tim kontijensipendanaan likuiditas, sebagai bagian daripengendalian risiko likuiditas, khususnya padasaat kondisi krisis.

- Establish procedures and team for fundingliquidity contingency, as part of the liquidity riskcontrol, especially in crisis condition.

Risiko operasional Operational risk

Risiko operasional adalah risiko terjadinya kerugianyang disebabkan oleh ketidakcukupan dan/atautidak berfungsinya proses internal, kesalahanmanusia, kegagalan sistem atau adanya kejadian-kejadian eksternal.

Operational risk is defined as the risk of lossresulting from inadequate or failure internalprocesses, people and systems failure or fromexternal events.

Kerangka kerja pengelolaan risiko operasional Operational risk management framework

1. Kerangka kerja pengelolaan risiko operasionalBank dilakukan dengan pembagianakuntabilitas dan peran yang jelas. Direksiseperti halnya Dewan Komisaris bertanggung-jawab untuk mengawasi efektivitas darikerangka kerja pengelolaan risiko operasionalsecara menyeluruh maupun padapelaksanaannya.

1. The Bank operational risk managementframework is executed with clearaccountabilities of all parties involved. TheBoard of Directors and the Board ofCommissioners are responsible to oversee theeffectiveness of overall operational riskmanagement framework as well as itsexecution.

Pada tingkatan operasional dibentuk sistempengendalian secara berlapis, dimana Sistem

Risk Taking Unitpengelolaan risiko operasional sehari-hari. Padalapis pengendalian berikutnya, Operational RiskManagement -sama denganDivisi Compliance berperan dalam pendefinisian,penyempurnaan dan pemeliharaan kerangka kerjarisiko operasional, memastikan kecukupanmitigasi risiko, kebijakan dan prosedur, sertaberperan sebagai koordinator/fasilitator atasaktivitas pengelolaan risiko operasional.

Layered of defenses was formed at theoperational levels, where System of Internal

-to-day enforcement ofoperational risk management practices. Whilein the next layer, Operational RiskManCompliance Division act in defining, refiningand maintaining the operational riskframework, ensuring the adequacy of riskmitigation, policies and procedures, and act asthe coordinator/facilitator of the overalloperational risk management activities.

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Kerangka kerja pengelolaan risiko operasional(lanjutan)

Operational risk management framework(continued)

Berikutnya, Internal Audit secara independenberperan memastikan bahwa risiko yang tersisa(residual risks) masih berada dalam batasan yangdapat diterima (risk appetite).

Then, Internal Audit independently assuresthat all residual risks are within the agreed riskappetite.

Penyelarasan kerja antara pihak-pihak yangterkait praktik pengendalian internal Bankdilakukan secara berkelanjutan melalui forum-forum periodik dan fasilitasi rutin.

Continuous alignment between all partiesrelated to internal control practices in the Bankconducted through regular forums andfacilitations.

2. Pelaksanaan kerangka kerja pengelolaan risikooperasional di Bank dilakukan dalam tahapanproses yang terpadu dan terdiri dari prosesidentifikasi, pengukuran, pemantauan sertapengendalian/mitigasi risiko.

2. Practices of ORM Framework in Bank areconducted through an integrated processconsists of risk identification, measurement,monitoring and controlling/mitigating.

Dalam proses ini secara bertahap dilakukantinjauan risiko secara menyeluruh atas produk,sistem, layanan maupun aktivitas/proses Bankyang baru maupun perubahannya,pengembangan sistem registrasi risiko,pendefinisian mitigasi/mekanisme kontrol, sertasecara menerus melakukan pengukuran ataspemaparan risiko dan tingkat kedisiplinan UnitKerja dalam menerapkan mekanisme kontrol.

In this process, the Bank

system, services and activities/processes,development of risk registration, definition ofmitigations/control mechanisms as well ascontinuous measurement over residual risk

in deploying control mechanisms.

3. Otomasi dari proses pengelolaan risikooperasional sehari-hari dilakukan melalui ORMS(Operational Risk Management System) yangmerupakan aplikasi online real-time internaluntuk memudahkan pencatatan, analisis, danpelaporan dari data risiko operasional, dengankemampuan melakukan identifikasi risiko,penilaian/pengukuran, pemantauan, danpengendalian/mitigasi yang dilaksanakansecara terintegrasi, sehingga dapatmeningkatkan efektivitas dari pengelolaan risikooperasional.

3. Automation of day-to-day ORM processes areperformed by the ORMS (Operational RiskManagement System), an internally designedonline-real time application which isimplemented to facilitate recording, analysisand reporting of operational risk data byenabling risk identification,assessment/measurement, monitoring andcontrolling/mitigating to be conducted in anintegrated manner, thereby enhance theeffectiveness of operational risk management.

4. Perhitungan beban modal untuk risikooperasional dilakukan Bank denganmenggunakan Pendekatan Indikator Dasarsesuai dengan jadwal Regulator (BankIndonesia/Otoritas Jasa Keuangan). Sementarapersiapan untuk langkah selanjutnya yaituInternal Capital Adequacy Assessment Process

standar maupun Advance MeasurementApproach terus dilakukan dan disesuaikandengan jadwal regulator.

4. Bank has performed the capital chargescalculation for operational risk by using BasicIndicator Approach as per rIndonesia/Financial Services Authority)timeline. Whilst, preparation for the next stage,which is Internal Capital AdequacyAssestandardised approach and AdvanceMeasurement Approach are continuouslyexercised and will concur to regulatortimetable.

5. Bank telah menyusun pedoman bagiPengelolaan Kelangsungan Usaha yangkomprehensif dengan tujuan untukmengantisipasi risiko operasional yang mungkinterjadi dari situasi ekstrim/kritikal karenabencana alam seperti banjir, gempa bumi, danjuga faktor lainnya seperti kebakaran, gangguansistem utama, gangguan pasokan listrik, hinggasituasi bisnis yang kurang menguntungkan,sehingga kelangsungan layanan kepadanasabah dapat terjamin.

5. Bank has composed a comprehensive

guidelines to anticipate operational risks thatmight arise from critical situations, such asnatural disasters e.g. flood, earthquake, andother factors e.g. fire, major system disruption,power failure, as well as non-conducivebusiness environment to ensure continuousservices to customer.


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Kerangka kerja pengelolaan risiko operasional(lanjutan)

Operational risk management framework(continued)

6. Beberapa inisiatif pokok telah dilaksanakanguna terus menyempurnakan praktekpengelolaan risiko operasional, yaitu :- Menyempurnakan kemampuan sistem

Operational Risk Management System(ORMS), yaitu sistem yang digunakansebagai pusat database dan informasi terkaitpengelolaan risiko operasional, dandiantaranya digunakan untuk pencatatankejadian risiko, kerugian dan recoverykerugian risiko operasional.

- Perluasan proses identifikasi risiko melaluiregistrasi risiko dengan basis produk,kejadian berisiko dan aset informasi.

- Melakukan implementasi fungsi dan peranQuality Assurance di setiap direktorat sebagaipeningkatan pengelolaan risiko operasional dilini pertama pada kerangka kerjapengendalian internal bank.

6. Some major initiatives have been conducted tocontinuously improve ORM practices such as:

- Revamping the Operational RiskManagement System (ORMS) capabilities, asystem used as a database and informationcenter relating to operational riskmanagement, which are used to record riskevent, loss and recovery of operational riskloss.

- Extension of risk identification processthrough risk register based on product, riskevents and information asset.

- Implementing the role and function of QualityAssurance in each directorate as part ofoperational risk management in the first line

- Perluasan proses penilaian risiko melaluikajian risiko operasional secara berkelanjutanterhadap inisiatif yang disampaikan oleh Unit-unit Bisnis.

- Membentuk tim penanganan bencana padastruktur organisasi, di level kantor pusatsampai dengan wilayah, termasuk kantorcabang dan kantor fungsional bank, sebagaiupaya mitigasi risiko operasional yangdisebabkan oleh faktor eksternal maupunsituasi ekstrim/kritikal.

- Peningkatan kesadaran budaya risiko (riskawareness) melalui pelatihan dan mediasosialisasi lainnya (diantaranya broadcastemail, poster dan buletin).

- Extension of risk assessment processthrough continuous operational riskassessment into intiatives which wereconveyed by Business Units.

- Establishing incident / disaster handling teamin organisational structure, at Head office toregional offices, including branch office andfunctional office, as mitigation of operationalrisk due to external factors as well asextreme/critical situation.

- Increasing cultural risk awareness throughtraining and other media socialisation(including broadcast email, posters andnewsletters).

Risiko non-keuangan lainnya Other non-financial risk

Bank juga memonitor risiko non-keuangan sebagaiberikut:(i) risiko hukum untuk mengurangi kemungkinan

kerugian dari tuntutan hukum atau kelemahanaspek yuridis, contohnya yang disebabkan olehlemahnya perikatan, ketiadaan peraturanperundang-undangan yang menyebabkan suatutransaksi yang telah dilakukan tidak sesuaidengan ketentuan yang ada, dan proses litigasi;

(ii) risiko reputasi untuk mengurangi kemungkinankerugian dari publikasi negatif yang terkaitdengan kegiatan usaha Bank atau persepsinegatif terhadap Bank;

(iii) risiko strategis untuk mengurangi kemungkinankerugian akibat ketidaktepatan dalampengambilan dan/atau pelaksanaan suatukeputusan stratejik yang gagal mengantisipasiperubahan lingkungan bisnis; dan

The Bank also monitors non-financial risk asfollows:(i) legal risks to minimise possible losses from

lawsuits and/or weaknesses in juridical matters,for example caused by the weak legalarrangements, an absence and/or change ofregulations, which causes a transaction tobecome illegal and litigation process;

(ii) reputation risks to minimise possible lossesfrom negative publicity relating to the businessactivities of the Bank or negative perceptionabout the Bank;

(iii) strategic risks to minimise possible lossesarising from wrong decision and/or carrying outa strategic decision which fails to anticipatechanges in the business environment; and

(iv) risiko kepatuhan untuk mengurangikemungkinan kerugian karena tidak mematuhiatau tidak melaksanakan peraturan perundang-undangan dan ketentuan lain yang berlaku,termasuk prinsip syariah bagi Bank.

(iv) compliance risks to minimise possible loss fromnon-compliance or failure to implementprevailing laws and regulations, includingsharia principles for the Bank.

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Risiko non-keuangan lainnya (lanjutan) Other non-financial risk (continued)

Upaya-upaya yang dilakukan untuk mengelolarisiko-risiko hukum, risiko reputasi, risiko strategis,dan risiko kepatuhan seperti tersebut di atasdiantaranya adalah:

Initiatives taken to manage legal risks, reputationrisks, strategic risks and compliance risks asdescribed above, include the following:

- Risiko hukum dikelola dengan cara:(i) Tersedianya unit kerja khusus bidang

hukum;(ii) Tersedianya kebijakan pengendalian risiko

hukum terutama yang berpengaruhkepada aktivitas fungsional. Kebijakandievaluasi minimal satu tahun sekali;

(iii) Mengidentifikasi dan mengendalikan risikohukum yang melekat pada produk danaktivitas baru sebelum diperkenalkankepada nasabah;

(iv) Mengidentifikasi risiko hukum yangterdapat pada setiap aktivitas fungsional;

(v) Pengukuran risiko hukum secarakuantitatif.

- Legal risks are managed by:(i) Availability of a legal division;

(ii) Availability of legal risk control policiesparticularly risks affecting functionalactivities. Those policies are evaluatedannually;

(iii) Identifying and control legal risks thatwere inherent to products and newactivities before launching;

(iv) Identifying legal risks affecting allfunctional activities;

(v) Measuring legal risks quantitatively.

- Risiko reputasi dikelola dengan cara:(i) Tersedianya satuan kerja yang memiliki

kewenangan dan tanggung jawab untukmemberikan informasi yang komprehensifkepada nasabah dan pemangkukepentingan;

(ii) Menetapkan kebijakan komunikasi dalamrangka menghadapi publikasi negatif ataupencegahannya. Kebijakan dievaluasiminimal satu tahun sekali;

(iii) Mengidentifikasi risiko reputasi yangterdapat pada setiap aktivitas fungsional;

(iv) Mengukur risiko reputasi secara kuantitatif.

- Reputation risks are managed by:(i) Availability of a unit which authorised and

responsible to provide comprehensiveinformation to customers andstakeholders;

(ii) Establishing communication policies toanticipate any negative publication or itsprevention. The policies are reviewedonce a year;

(iii) Identifying reputation risks in all functionalactivities;

(iv) Measuring legal risks quantitatively.

- Risiko stratejik dikelola dengan cara:(i) Menyusun rencana korporasi dan rencana

kerja 3 (tiga) tahun sesuai dengan misidan strategi Bank yang disetujui olehKomisaris serta Direksi denganmemperhitungkan dampak terhadappermodalan, dan dilakukan review minimalsemesteran;

(ii) Membangun Sistem Informasi Manajemendengan pengukuran kinerja yang tepat danmelakukan pemantauan berkala atas keyinitiatives yang dilaksanakan oleh unit-unitBank untuk mencapai target rencana kerjasesuai dengan tenggat waktunya; dan

(iii) Menetapkan kebijakan yang mengaturperumusan dan pemantauan pelaksanaanstrategi termasuk rencana korporasi danrencana bisnis.

- Strategic risks are managed by:(i) Setting up 3 (three) years period

corporate and business plan in

and strategies which have been approvedby Board of Commissioners and Directorsby considering the impact to capital, andreviewed semi-annually at minimum;

(ii) Setting up a Management InformationSystem with an accurate performancemeasurement that periodically monitors

achieve business plan goal within theprescribed time; and

(iii) Establishing guidance to set up andmonitor the implementation of strategiesincluding corporate and business plan.


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Risiko non-keuangan lainnya (lanjutan) Other non-financial risk (continued)

- Risiko kepatuhan dikelola dengan cara:(i) Tersedianya unit kerja kepatuhan

independen dalam struktur organisasiyang melakukan pengawasan aktif kepadaunit-unit kerja secara periodik;

(ii) Menetapkan prosedur pengendalian risikokepatuhan, kebijakan pengaturantanggung jawab, dan review kepatuhansecara berkala;

- Compliance risks are managed by:(i) Availability of an independent compliance

division which performs active monitoringto other divisions periodically;

(ii) Establishing procedure of compliance riskcontrol, policies of responsibilty, andcompliance review periodically;

(iii) Menetapkan prosedur identifikasi danpengukuran untuk risiko kepatuhan padaseluruh aktivitas fungsional;

(iv) Memiliki sistem laporan risiko kepatuhansecara periodik minimal setiap bulan;

(v) Melakukan pemisahan fungsi yang jelasantara satuan kerja operasional, satuankerja pengendalian risiko dan satuan kerjapemantau risiko dalam struktur organisasi.

(iii) Establishing procedures to identify andassess compliance risks in all functionalactivities;

(iv) Establishing risk compliance reportsystem periodically at the minimum oncea month;

(v) Setting up a clear segregation of dutiesbetween operational, risk control and riskmonitoring unit in the organisationstructure.

Berpedoman pada SEOJK no 13/SEOJK.03/2015dan New Basel II Capital Accord yang memasukkanrisiko operasional dalam perhitungan regulatorycapital, Bank telah menerapkan prinsip-prinsipmanajemen risiko operasional, termasukperhitungan beban modal risiko operasional.

Following Financial Service Authority RegulationSEOJK no 13/SEOJK.03/2015 and the New BaselII Capital Accord, which adds operational risk in thecalculation of regulatory capital, the Bank hasapplied the principles of operational riskmanagement, including operational risk capitalcharge.

Proses pengelolaan risiko operasional BTPNSyariah dilakukan oleh setiap unit kerja Bank (riskowner), sehingga unit-unit kerja di kantor pusat dankantor-kantor cabang, dengan difasilitasi oleh unitmanajemen risiko, bertanggung jawab dalam prosesidentifikasi, penilaian, pengukuran, pemantauanserta pengendalian risiko operasional menjadi lebihakurat dan cepat.

Operational risk management process of BTPNSyariah was performed by each unit of the Bank(risk owner), so the units in head office andbranches, facilitated by risk management unit, areresponsible to identify, measure, monitoring, andcontrolling operational risk, to become faster andmore accurate.

Untuk mengantisipasi terhadap kejadian-kejadianyang dapat mengganggu operasional Bank, sebagaiakibat faktor internal seperti gangguan pada sistemteknologi informasi dan faktor eksternal sepertibencana alam, kerusuhan, dan kebakaran, BTPNSyariah mengembangkan Business ContinuityManagement dan Disaster Recovery Plan.

To anticipate events which can disrupt theoperations of the Bank, as a result of internalfactors such as disturbances in informationtechnology systems and external factors such asnatural disasters, riots, and fires, BTPN Syariahhas developed the Business ContinuityManagement and Disaster Recovery Plan.

41. MANAJEMEN MODAL 41. CAPITAL MANAGEMENT

Tujuan manajemen permodalan Bank adalah untukmempertahankan posisi modal yang kuat untukmendukung pertumbuhan bisnis danmempertahankan investor, deposan, pelanggan dankepercayaan pasar. Dalam pengelolaanpermodalan, Bank mempertimbangkan faktor-faktorseperti: pengembalian modal yang optimal padapemegang saham, menjaga keseimbangan antarakeuntungan yang lebih tinggi dengan gearing ratioserta keamanan yang diberikan oleh posisi modalyang sehat.

The Bank capital management objective is tomaintain a strong capital position to supportbusiness growth and to sustain investor, depositor,customer and market confidence. In managing itscapital, the Bank considers factors such as:providing optimal capital rate of return toshareholders and maintain a balance between highreturn with gearing ratio and safety provided by asound capital position.

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41. MANAJEMEN MODAL (lanjutan) 41. CAPITAL MANAGEMENT (continued)

Rasio Kewajiban Penyediaan Modal Minimum(KPMM) Bank dikaitkan dengan profil risiko Bankdan dihitung berdasarkan Peraturan Otoritas JasaKeuangan No. 21/POJK.03/2014 tanggal 19November 2014. Bank juga telah memasukkanRisiko Operasional dalam menghitung KPMMberdasarkan Peraturan Otoritas Jasa KeuanganNo.21/POJK.03/2014 tanggal 19 November 2014dan Surat Edaran Otoritas Jasa KeuanganNo.13/SEOJK.03/2015 tanggal 27 April 2015. RasioKPMM tersebut adalah sebagai berikut:

The Minimum Required Capital Adequacy Ratio(CAR) of the Bankprofile and calculated based on Financial ServiceAuthority Regulation No.21/POJK.03/2014 dated19 November 2014. The Bank has also includedOperational Risk in calculating CAR based onFinancial Service Authority RegulationNo.21/POJK.03/2014 dated 19 November 2014and Financial Service Authority Circular Letter No.13/SEOJK.03/2015 dated 27 April 2015. Such CARis as follows:

2017 2016

Modal inti Core capitalModal disetor 693,333 693,333 Paid-in capitalAgio saham 226,667 226,667 Additional paid-in capitalCadangan wajib 20,000 15,000 Legal reservesLaba bersih tahun berjalan 670,182 412,495 Net income in the current yearLaba tahun lalu setelah

diperhitungkan pajak 634,584 227,089 Prior income after tax(Kerugian)/keuntungan pendapatan Other comprehensive income/

komprehensif lainnya (17,294) 1,743 (loss)Cadangan kerugian penurunan Allowance for impairment losses

nilai aset non-produktif (169) (3,476) for non-productive assetOpsi saham 8,806 5,793 Stock option

Asset revaluation surplusSaldo surplus revaluasi aset tetap 5,239 5,239 balanceAset pajak tangguhan (68,689) (37,975) Deferred tax assetHak milik intelektual lainnya (37,704) (36,416) Other intellectual property rights

Jumlah modal inti 2,134,955 1,509,492 Total core capital

Modal pelengkap (maksimum Supplementary capital (maximum at100% dari modal inti) 100% from core capital)Cadangan umum General reserve on allowance

kerugian penurunan for impairment losses ofnilai (maksimum1,25% earning assetsdari ATMR) 17,598 11,656 (maximum at 1.25% of ATMR)

Jumlah modal pelengkap 17,598 11,656 Total supplementary capital

Jumlah modal 2,152,553 1,521,148 Total capital

Aset Tertimbang Menurut Risk Weighted AssetsRisiko (ATMR) (RWA)Risiko Kredit dan Credit Risk andRisiko Operasional 7,445,398 6,390,259 Operational Risk

Rasio KPMM Bank 28.91% 23.80% Total supplementary capital

Rasio KPMM yang diwajibkan 9% - 10% 9% - 10% Minimum CAR

42. JAMINAN PEMERINTAH TERHADAP LIABILITASPEMBAYARAN BANK UMUM

42. GOVERNMENT GUARANTEE ON OBLIGATIONSOF COMMERCIAL BANKS

Berdasarkan Undang-undang No. 24 tanggal 22September 2004 yang berlaku efektif sejak tanggal22 September 2005, sebagaimana diubah denganPeraturan Pemerintah Pengganti Undang-undangRepublik Indonesia No. 7 Tahun 2009 tanggal 13Januari 2009 tentang Penetapan PeraturanPemerintah Pengganti Undang-Undang No. 3 Tahun2008, Lembaga Penjamin Simpanan (LPS) dibentukuntuk menjamin liabilitas tertentu bank-bank umumberdasarkan program penjaminan yang berlaku,yang besaran nilai jaminannya dapat berubah jikamemenuhi kriteria tertentu yang berlaku.

Based on Law No. 24 dated 22 September 2004,effective on 22 September 2005, which wasamended by the Government Regulation asSubstitution of Law No. 7 Year 2009 dated 13January 2009 regarding The Determination ofGovernment Regulation as Substitution of Law No.3 Year 2008,was formed to guarantee certain liabilities ofcommercial banks under the applicable guaranteeprogram, which the amount of guarantee can beamended if the situation complies with the validparticular criteria.


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42. JAMINAN PEMERINTAH TERHADAP LIABILITASPEMBAYARAN BANK UMUM (lanjutan)

42. GOVERNMENT GUARANTEE ON OBLIGATIONSOF COMMERCIAL BANKS (continued)

Berdasarkan Peraturan Pemerintah RepublikIndonesia No. 39 tahun 2005 tanggal 12 Oktober2005 tentang Penjaminan Simpanan Nasabah Bankberdasarkan Prinsip Syariah yang menyatakanbahwa sejak tanggal 12 Oktober 2005 LembagaPenjamin Simpanan menjamin nasabah bankberdasarkan prinsip syariah sesuai denganketentuan dalam Undang-Undang No. 24 tahun2004 tentang Lembaga Penjamin Simpanan (LPS).

Based on Government Regulation No. 39 year2005 dated 12 October 2005 regarding DepositGuarantee Customer based on Sharia Principleswhich states that since 12 Octobe

customers based on sharia principles inaccordance with the provisions of Law No. 24 year2004 regarding .

Berdasarkan Peraturan Pemerintah RepublikIndonesia No. 66 tahun 2008 tanggal 13 Oktober2008 mengenai Besarnya Nilai Simpanan yangDijamin Lembaga Penjaminan Simpanan (LPS),maka pada tanggal 31 Desember 2017 dan 2016,jumlah simpanan yang dijamin LPS adalahsimpanan sampai dengan Rp 2.000 untuk pernasabah per bank. Berdasarkan Siaran Pers nomorPress-36/SEKL/2017, simpanan nasabah dijaminhanya jika suku bunganya sama dengan ataudibawah 5,75% untuk simpanan dalam Rupiah padatanggal 31 Desember 2017 (2016: 6,25%).

As at 31 December 2017 and 2016, based onGovernment Regulation No. 66 year 2008 dated 13October 2008 regarding The Amount of DepositGuaranteed by Indonesia Deposit InsuranceAgency ( LPS ), the amount of deposits covered byLPS is customer deposits up to Rp 2,000 perdepositor per bank. Based on Press ConferenceNo.Press 36/SKEL/2017, customer deposits areonly covered if the rate of interest is equal to orbelow 5.75% for deposits denominated in Rupiahas at 31 December 2017 (2016: 6.25%).

Pada tanggal 31 Desember 2017 dan 2016, Bankadalah peserta dari program penjaminan tersebut.

As at 31 December 2017 and 2016, the Bank isparticipant of the guarantee program.

Beban premi penjaminan permerintah yang dibayaruntuk tahun yang berakhir pada tanggal31 Desember 2017 sebesar Rp 11.675 (2016:Rp 8.959).

The Government guarantee premiums paid for theyear ended as at 31 December 2017 amounted Rp11,675 (2016: Rp 8,959, respectively).

43. OPINI DEWAN PENGAWAS SYARIAH 43. OPINION OF THE SHARIA SUPERVISORYBOARD

Berdasarkan surat No. S.001/DPS/1/2018 tanggal17 Januari 2018, No. S.004/DPS/I/2017 tanggal 18Januari 2017, masing-masing untuk tahun yangberakhir pada tanggal 31 Desember 2017 dan 2016,Dewan Pengawas Syariah ( DPS ) BTPN Syariahmenyatakan bahwa secara umum aspek syariahdalam operasional PT Bank Tabungan PensiunanNasional Syariah sudah sesuai dengan prinsip dannilai-nilai syariah.

Based on Letter No. S.001/DPS/1/2018 dated 17January 2018, No. S.004/DPS/I/2017 dated 18January 2017, for the years ended 31 December2017 and 2016 respectively, the ShariaSupervisory Board ( DPS ) of BTPN Syariah statedthat in general the sharia aspects in the operationof PT Bank Tabungan Pensiunan Nasional Syariahhave complied with sharia principles and values.

44. STANDAR AKUNTANSI BARU 44. NEW PROSPECTIVE ACCOUNTINGSTANDARDS

Standar baru, amandemen dan interpretasi yangtelah diterbitkan, namun belum berlaku efektif untuktahun buku yang dimulai pada 1 Januari 2017adalah sebagai berikut:

New standards, amendments and interpretationsissued but not yet effective for the financial yearbeginning 1 January 2017 are as follows:

--

-

--

-- Penyesuaian

--

- Amendment to SFAS 16 (Revised 2015)

-- Amendment to

-- Annual Improvement on SFAS 15

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44. STANDAR AKUNTANSI BARU (lanjutan) 44. NEW PROSPECTIVE ACCOUNTINGSTANDARDS (continued)

- Penyesuaian Tahunan atas PSAK 67

-

-Asosiasi dan Ventura Bersama tentangKepentingan Jangka Panjang pada EntitasA

--

-

-

- Transactions and

-Associates and Joint Ventures: Long-term

--

-

, Amandemen PSAK 2Amandemen PSAK 16 (Revisi

Penyesuaian Tahunan atas PSAK 15

berlaku efektif pada 1 Januari 2018. ISAK 33

berlaku efektif pada 1 Januari 2019.

t toAmendment to SFAS 53

Annual improvement on

effective on 1 January 2018.Currency Transactions and Advance

Asosiasi dan Ventura Bersama tentang KepentinganJangka Panjang pada Entitas Asosiasi dan Ventura

,berlaku

efektif pada 1 Januari 2020. Penerapan dini atasstandar-standar tersebut diperkenankan.

Associates and Joint Ventures: Long-term

A

and SFAS 73 are effective on 1 January2020. Early adoption of the above standards ispermitted.

Pada saat penerbitan laporan keuangan, Bankmasih mempelajari dampak yang mungkin timbuldari penerapan standar baru dan amendementersebut serta pengaruhnya pada laporan keuanganBank.

As at the authorisation date of these financialstatements, the Bank is still evaluating thepotential impact of the implementation of thesenew and amendment accounting standards to itsfinancial statements.

45. REKLASIFIKASI 45. RECLASSIFICATION

Akun-akun tertentu dalam laporan keuangan untuktahun yang berakhir pada tanggal 31 Desember2016 telah direklasifikasi agar sesuai denganpenyajian laporan keuangan untuk tahun yangberakhir pada tanggal 31 Desember 2016.Reklasifikasi tersebut dalam rangka penerapanperaturan Bapepam-LK No.VIII.G.7 tanggal 25 Juni2012 tentang Pedoman Penyajian danPengungkapan Laporan Keuangan Emiten danPerusahaan Publik.

Certain accounts in the financial statements for theyear ended 31 December 2016 have beenreclassified to conform the presentation of financialstatements for the year ended 31 December 2016.Reclassified to comply with Bapepam-LKregulation No.VIII.G.7 dated 25 June 2012regarding Guidelines for Financial StatementsPresentation and Disclosure for Issuers or PublicCompanies.

Rincian reklasifikasi akun-akun tersebut adalahsebagai berikut:

The details of the accounts reclassification are asfollows:

31 Desember/December 2016Sebelum

reklasifikasi/Before

reclassificationReklasifikasi/

Reclassification

Sesudahreklasifikasi/

Afterreclassification

Liabilitas LiabilitiesLiabilitas lain-lain 83,934 (27,103) 56,831 Other liabilitiesAkrual - 27,103 27,103 Accruals


289


Consolidated Financial Statement of the Parent Company

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290

// consolidated financial statement of the parent company

254,496


291

annual report2017

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293

116,

806

1,

429,

385

724,

449

20

0,10

9

4,20

9

23,3

61

13,6

01,9

81

(262

,404

)

15

,837

,896

47

4,53

2

16,3

12,4

28

-

-

-

-

-

-

1,22

0,88

6

-

1,

220,

886

201,

054

1,

421,

940

-

-

-

-

9,77

8

-

-

-

9,77

8

-

9,

778

-

-

-

-

-

-

(23,

776)

-

(2

3,77

6)

(5,7

10)

(29,

486)

-

-

-

-

(1

,112

)

-

5,94

3

-

4,

831

1,42

8

6,

259

-

-

-

-

8,

666

-

1,

203,

053

-

1,21

1,71

9

19

6,77

2

1,40

8,49

1

-

-

-

-

-

3,50

0

(3

,500

)

-

-

-

-

-

-

-

-

-

-

(5

74,5

09)

-

(574

,509

)

-

(5

74,5

09)

-

-

-

54

,387

-

-

-

-

54,3

87

-

54,3

87

116,

806

1,

429,

385

724,

449

25

4,49

6

12,8

75

26,8

61

14,2

27,0

25

(262

,404

)

16

,529

,493

67

1,30

4

17,2

00,7

97

116,

806

1,

429,

385

-

147,

157

1,

469

23

,361

11

,857

,890

-

13

,576

,068

34

7,79

1

13,9

23,8

59

-

-

-

-

-

-

1,75

2,09

7

-

1,

752,

097

123,

749

1,

875,

846

-

-

-

-

2,28

9

-

-

-

2,28

9

-

2,

289

-

-

-

-

-

-

(10,

675)

-

(1

0,67

5)

1,89

5

(8

,780

)

-

-

74

7,38

8

-

-

-

-

-

74

7,38

8

1,64

4

74

9,03

2

-

-

(22,

939)

-

45

1

-

2,

669

-

(19,

819)

(5

47)

(2

0,36

6)

-

-

72

4,44

9

-

2,74

0

-

1,74

4,09

1

-

2,

471,

280

126,

741

2,

598,

021

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(262

,404

)

(2

62,4

04)

-

(262

,404

)

-

-

-

52,9

52

-

-

-

-

52

,952

-

52

,952

116,

806

1,

429,

385

724,

449

20

0,10

9

4,20

9

23,3

61

13,6

01,9

81

(262

,404

)

15

,837

,896

47

4,53

2

16,3

12,4

28

annual report2017

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295

criteria page

I. general

1. Annual Report is written in good and correct Bahasa Indonesia and it is also advised to write the English version.

√

2. Annual Report is printed in good quality using readable font type and size.

√

3. Annual Report presents a clear company identity.

Company Name and the Year of Annual Report are presented in; 1. Front Cover Page;2. Side;3. Back Cover Page; and4. Every page.

√

4. Annual Report is presented in the company website.

Including the most recent annual report and at least for the past 4 years. √

II. summary of important financial data

1. Information of the Company financial position presented in comparison format of last 3 (three) years of book years or since the commencement of the company operation in the case where the the company business operation is running in less than 3 years.

The information shall contain amongst others:1. Business revenue/cost;2. Profit (loss):

a. Distributed to the owner of parent entity; and b. Distributed to the non-controlling shareholders;

3. Total profit (loss) and other comprehensive income;a. Distributed to the owner of parent entity; and b. Distributed to the non-controlling shareholders;

4. Profit (loss) per share.Note: For companies which do not have any subsidiary entity, the company shall provide the total profit (loss) and other comprehensive income.

18

2. Information of the Company financial position presented in comparison of last 3 (three) years of book years or since the commencement of the company operation in the case where the the company business operation is running in less than 3 years.

The information shall contain amongst others:1. Investment value in the associated entity;2. Assets value;3. Liabilities value; and 4. Equity value.

18-19

3. Financial Ratio presented comparison of the last 3 (three) years of book years or since the commencement of the company operation in the case where the the company business operation has been running in less than 3 years.

The information contains 5 (five) ratios that are generally known and relevant to the company industry.

18-19

4. Information of share prices in the form table and charts*.

1. Information in table format shall contain:a. Number of outstanding shares;b. Market capitalization;c. Highest, lowest and closing price of the shares;d. Trading volume.

2. Information in chart format shall contain at least the shares closing price and shares trading volume.

For every quarter during the last 2 (two) financial years.

N/A

5. Information on bonds, Islamic bonds or outstanding convertible bonds during the last 2 (two) book years*.

The information contains:1. Number of bonds, Islamic bonds or outstanding convertible bonds;2. Interest rate/yield;3. Maturity date; and4. Rating of Bonds/Islamic Bonds.

18-19

financial services authority (OJK) reference

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296

// financial services authority (OJK) reference

criteria page

III. board of commissioners and board of directors report

1. Board of Commissioners Report The report shall contain the following:1. Performance appraisal of the Board of Directors in managing the Company and the basis of

the appraisal;2. The Board of Directors’ view regarding business prospects of the Company and the

underlying consideration;3. Performance appraisal of the Board of Directors’ Committee;4. Changes of the Board of Commissioners Composition (if any)

and the reasons for such changes.

25-26

2. The Board of Directors Report The report shall contain the following:1. Analysis to the company performance, including amongst others the strategic policy,

comparison between actual achievement and budget, and the obsctacles;2. Business prospect analysis;3. Implementation of good corporate governance;4. Performance appraisal of the Board of Directors’ Committee (if any); and 5. Changes of the Board of Directors Composition (if any) and the reasons for such changes.

28, 30

3. Signatures of Board of Commissioners and Board of Directors

Containing the following: 1. The signatures are presented in a separate page;2. Statement that Board of Commissioners and Board of Directors are fully responsible for the

accuracy of the content of the annual report;3. Signed by all members of Board of Commissioners and Board of Directors specifying the

names and position;4. Written explanation in a separate letter from the respective member(s) Board of

Commissioners and Board of Directors who happen to not sign the annual report, or written explanation in a separate letter from other member in the case where written explanation from the respective member is not available.

197

N/A

IV. company profile

1. Name and complete address of the company

The information contains amongst others: name and address, zip code, phone number, fax number, email and website.

59, Back Cover

2. Brief History of the Company Including amongst others: date/year of establishment, name and changes of the name (if any).Note: Should the company never make any changes on the name, it shall be disclosed.

37, 59

3. Business Overview Overview about:1. Business activities of the company according to the latest Articles of Association;2. Business activities executed; and3. Products and services offered.

5177-83

77-79, 191

4. Organization Structure In the form of chart, containing the names and positions in the structure at least up to one layer below the Board of Directors.

38,39

5. Vision, Mission and Culture of the Company

Including: 1. Company Vision;2. Company Mission;3. Statement that the vision and mission are duly approved by the Board of Directors/

Commissioners; and 4. Statement regarding the corporate culture in the Company.

37

6. Identity and Profile of the members of Board of Commissioners

The information contains amongst others:1. Name;2. Position (including positions in the other company or institution);3. Age;4. Domicile; 5. Education (Subject and Educational Institution)6. Work Experience (Position, Institution, Term of Office);7. History of appointment as the Board of Commissioners in the Company.

41-44


297

criteria page

7. Identity and Profile of the members of the Board of Commissioners

The information contains amongst others:1. Name;2. Position (including positions in the other company or institution);3. Age;4. Domicile; 5. Education (Subject and Educational Institution)6. Work Experience (Position, Institution, Term of Office);7. History of appointment as the Board of Directors in the Company.

41-44

8. Number of employees (in 2 years comparison) and description of competency development (such as employee training and education aspects)

The information contains amongst others:1. Number of employees in each level of the organization;2. Number of employees by education;3. Number of employees by employment status;4. Description and data on employee competency development that had been conducted which

reflected equal opportunities for each level in the organization; and 5. The expenses occured for employee competency development.

86-87

N/A

9. Shareholders Composition Containing amongst others: 1. The details of the names of shareholders that represent the biggest 20 Shareholders and

percentage of ownership;2. The details of the shareholers and percentage of ownership: a. Name of shareholders with 5% ownership or more; b. Name of Commissioner(s) or Director(s) who owns the shares; and c. Group of public shareholders each with share ownership less than 5%.

56, 58

56, 58, 72N/AN/A

10. List of subsidiary entity or association entity

The information contains amongst others:1. Name of subsidiary entity and/or association entity;2. Percentage of shares ownership;3. Description of business activities of subsidiary entity and/or association entity;4. Description of operational status of subsidiary entity and/or association entity

(operational or not yet operational).

N/A

11. Corporation Group Structure The Chart of Corporation Group Structure describing the subsidiary entity, association entity and SPV

58, 65

12. Share chronological records* Including amongst others:1. Share chronological records*2. Type of corporate action that caused the changes in the number of shares;3. Changes in the number of shares from the beginning of the record until the end of the

financial year; and4. Name of stock exchange where the shares are listed.

N/A

13. Other securities chronological records:

Including amongst others:1. Other securities chronological records2. Type of corporate action that caused the changes in the number of other securities;3. Changes in the number of other securities from the beginning of the record until the end of

the financial year; 4. Name of stock exchange where the other securities are listed; and 5. Securities rating.

N/A

14. Name and address of capital market support institutions or professionals*

The information contains amongst others:1. Name and address of BAE/institutions that administer the company shares;2. Name and address of Public Accounting Firm; and3. Name and address of securities rating compay

N/A

15. Awards granted during the last financial year and/or valid certification during the last financial year both in national and international context

The information contains amongst others:1. Name of the award and/or certification;2. The year the Award/Certification is granted;3. The agency granting the award and/or certification;4. The period of validity (for certification)

22, 23

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16. Name and address of subsidiary entity and/or branch office or representative office (if any)

Containing information amongst others:1. Name and address of subsidiary entity; and 2. Name and address of branch office or representative officeNote: Should the company have no subsidiary entity/branch/representative office, it shall be disclosed.

N/A192, 196

17. Information on the company website Containing at least:1. Information of shareholders up to the last individual shareholders;2. Corporate Group Structure (if any);3. Financial Performance Anaylisis;4. Annual Financial Statements (for the last 5 years); and5. Board of Commissioners and Board of Directors Profile

√

V. management discussion and analysis on company performance

1. Operational Review per business segment

Containing information about:1. Description of each business segment;2. Performance per business segment, such as:

a. Production;b. Increase/decrease of production capacity;c. Business Revenue/Income; andd. Profitability

77-7977-97

2. Company Financial Performance Description

Financial performance analysis including comparison between the current year financial performance and the year before and reason for increase/decrease (in the form of naration and table), about amongst others:1. Liquid asset, non-liquid asset, and total asset;2. Short-term liabilities, long-term liabilities, and total liabilities;3. Equity;4. Sales/Business Revenue, expenses and profit (loss), other comprehensive income and total

profit (loss) and other comprehensive income; and 5. Cash Flow

69-72

3. Discussion and analysis regarding company’s ability to repay the debt and the company’s receivables collectibility, by presenting ratios that are relevant to the company industry

Description about:1. Company’s ability to repay the debt, both short term and long term; and2. Receivables collectibility level.

71

4. Discussion about capital structure and management policy on capital structure

Description about: 1. The details of capital structure consisting of interest-based debt and equity; and 2. Management policy on capital structure and the basis of the policy

72-73

5. Discussion about material commitment for capital goods investment for the last financial year

Description about:1. Objectives of the commitment;2. Funding sources to fulfill the commitment;3. Denominator Currency; 4. Steps to protect the company from the respective foreign exchange position.Note: Should the company have no commitment on capital goods investment on the current year, it shall be disclosed.

N/A


299

criteria page

6. Discussion about capital goods investment being realized in the last financial year

Description about:1. The types of capital goods investment;2. The objectives of of capital goods investment;3. The value of capital goods investment paid during the last financial year.Note: should there be no realization of capital goods investment, it shall be disclosed.

N/A

7. Information about comparison between target in the beginning of the financial year and realization, and the target of projection for the next one year on revenue, profit, and others that are deemed important for the company

The information contains amongst others:1. Comparison between target in the beginning of the financial year and its realization; and 2. The target of projection for the next one year

N/A73-74

8. Material information and fact that occur after the date of accountant report

Description about material activities after the date of accountant report including the impact to performance and future business risk.Note: should there be no material activities after the date of accountant report, it shall be disclosed.

72-73

9. Description about the company business prospect

Description about the company prospect within the context of general industry and economy supported by quantitative data from reliable sources.

73-74

10. Description about marketing aspect Description about marketing aspect of the company products and/or services, amongst others marketing strategy and market share.

77-83

11. Description about about dividend policy and number of cash dividend per share and number of dividend per year that are announced and paid during the last 2 (two) financial years

Containing description about:1. The year of dividend distribution;2. Total dividend distributed;3. Number of cash dividend per share; and4. The date of accouncement and payment of cash dividend in each year.Note: should there be no dividend distribution, the reason shall be disclosed.

112

12. Employee Stock Option Program/Management Stock Option Program (ESOP/MSOP)

Containing description about:1. Number of ESOP and MSOP and the realization;2. Time frame;3. Eligibility for employees and/or management;4. Price.Note: Should there be no such a program, it shall be disclosed.

N/A

13. Utilization of funds generated from initial public offerings (in the case where the Company is still obliged to submit the report of fund utilization)*

Containing the information about: 1. Total funds generated;2. Plan for funds utilization;3. Details of funds utilization;4. Balance of the funds; and5. Date of GMS approval for the changes of funds utilization (if any).

N/A

14. Information on material transaction containing conflict of interest and/or transaction with affiliated parties*

Containing description about:1. Name of transacting parties and the nature of affiliation;2. Description about the properness of the transaction;3. Reason for transaction;4. Realization of transaction during the last financial year;5. Company policy about transaction mechanism; and6. Fulfillment of related regulations.Note: Should there be no such transaction, it should be disclosed

N/A

15. Description about the changes in laws and regulations that significantly impact the company

The description includes amongst others about the changes in laws and regulations and the impacts the company.Note: Should there be no changes in laws and regulatons that significantly impact to the company, it shall be disclosed.

72-73

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16. Description about the changes in accounting policy being implemented in the company in the last financial year

The description includes amongst others: changes in accounting policy, reasons and impacts to the financial statement. Note: Should there be no changes in accounting policy, it shall be disclosed.

72-73

17. Information on business continuity Disclosure of information regarding:1. Matters that has the potential to significantly impact business continuity during the last

financial year;2. Management of the matters in point (1); and3. Assumption in managing the matters.Note: Should there be no matters that has the potential to significantly impact business continuity during the last financial year, it shall be disclosed about the assumption that convince the management that there would be no matters that has the potential to significantly impact business continuity during the last financial year.

72-73

VI. good corporate governance

1. Description about the Board of Commissioners

The description contains amongst others:1. Duties and responsibilities of the Board of Commissioners;2. Training program to improve the competency of the Board of Commissioners or orientation

program for the new Commissioner;3. Disclosure of the Board of Commissioners Charter.

124-131

2. Information about Independent Commissioners

Including amongst others:1. Criteria for Independent Commissioners ; and 2. Statement on independency of each Independent Commissioner

127-128

3. Description of the Board of Directors The description contains amongst others:1. The scope of duties and responsibilities of each member of the Board of Directors;2. Training program to improve the competency of the Board of Directors or orientation program

for the new Director;3. Disclosure of the Board of Directors Charter.

135-140

4. Assessment to the Board of Commissioners and the Board of Director

Including amongst others:1. Performance Appraisal Procedures for Board of Commissioners and the Board of Director;2. Performance Appraisal Criteria for Board of Commissioners and the Board of Director;3. The party responsible to conduct the performance appraisal.

124-142

125-140

5. Description about the remuneration policy for the Board of Commissioners and the Board of Director

Including amongst others:1. Disclosure of the procedures to determine the remuneration for the Board of Commissioners;2. Disclosure of the procedures to determine the remuneration for the Board of Directors;3. Remuneration structure which contains the types and number of short term incentives,

post-service, and/or other long-term incentives for each member of for the Board of Commissioners;

4. Remuneration structure which contains the types and number of short term incentives, post-service, and/or other long-term incentives for each member of for the Board of Directors; and

5. Disclosure of indicators to determine the remuneration of the Board of Directors.

144-145

6. Frequency of attendance in the meetings of Board of Commissioners, meetings of Board of Directors and joint meetings of Board of the Board of Commissioners and Board of Directors

The information contains amongst others:1. Meeting Date;2. Meeting Participants; and 3. Meeting Agenda For each meeting of Board of Commissioners, Board of Directors and joint meetings.

124,142

7. Information on main shareholders and controlling shareholders, both direct and indirect, up to the individual shareholder.

Presented in the form of scheme or diagram, except for State-owned Companies that is fully owned by the government.

57-65


301

criteria page

8. Disclosure of affiliation relationship between the members of Board of Directors, Board of Commissioners and Main Shareholders and/or Controlling Shareholders.

Including amongst others:1. Affiliation relationship between the members of Board of Directors and the other members of

the Board of Directors;2. Affiliation relationship between the members of Board of Directors and the member of Board

of Commissioners;3. Affiliation relationship between the members of Board of Directors and Main Shareholders

and/or Controlling;4. Affiliation relationship between the members of Board of Commissioners and the member of

Board of Commissioners;5. Affiliation relationship between the members of Board of Commissioners and Main

Shareholders and/or ControllingNote: should there be no such affiliation relationship, it shall be disclosed.

143

9. Audit Committee Including amongst others:1. Name and position of the members of Audit Committee;2. Education and work experience qualification of the members of Audit Committee;3. Independency of the members of Audit Committee;4. Description of Duties and Responsibilities; 5. Brief Report of implementation of Audit Committee activities;6. Frequency of meetings and frequency of attendance of the members of Audit Committee

163-165

10. Nomination Committee/Function and/or Remuneration

Including amongst others:1. Name, position and brief profile of the members of Nomination Committee/Function and/or

Remuneration;2. Independency of Nomination Committee/Function and/or Remuneration;3. Description of Duties and Responsibilities;4. Description of the implementation of activities of Nomination Committee/Function and/or

Remuneration;5. Frequency of meetings and frequency of attendance of Nomination Committee/Function and/

or Remuneration;6. Statement of the Charter of Nomination Committee/Function and/or Remuneration;7. Policy of the Board of Directors succession planning

165-166

11. The other Board of Commissioners Committee in the Company, Risk Monitoring Committee, and Integrated Governance Committee

Including amongst others:1. Name, position and brief profile of the members of the other committees;2. Independency of the other committees;3. Description of Duties and Responsibilities;4. Description of the implementation of activities of the other committees;5. Frequency of meetings and frequency of attendance of the other committees.

167-177

12. Description of duties and responsibilities of Corporate Secretary

Including amongst others:1. Name, domicile and profile of Corporate Secretary;2. Description of Duties and Responsibilities of Corporate Secretary;3. Training program to develop the competency of Corporate Secretary.

110

186-187

13. Information of last year General Meetings of Shareholders (GMS)

Presented in a table format:1. Decision of last year GMS;2. Realization of last year GMS in the current year; and3. Reasons for GMS resolutions that are not yet realized.

110-123

14. Description about Internal Audit Unit Including amongst others:1. Name of Internal Audit Head;2. Number of Internal Auditor in the Internal Audit Unit;3. Certification as professional Internal Auditor;4. Position of Internal Audit Unit in the organization structure of the company;5. Report of the implementation of internal audit activities;6. The party responsible to appoint and terminate Internal Audit Head.

155-158

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15. Public Accountant The information contains amongst others:1. Name and year the public accountant doing the annual financial statement audit for the last 5

years;2. Name and year of Public Accounting Firm doing the annual financial statement audit for the

last 5 years;3. The magnitude of each type of services performed by the public accountant for the last

financial year;4. Other services performed by the accountant beside annual financial statement auditing

services for the last financial year.Note: Should there be no such other services, it shall be disclosed.

145

16. Description of the company risk management

Including amongst others:1. Description of risk management system implemented in the company;2. Description of evaluation of the effectiveness of risk management system;3. Description of risks involved in the company business;4. Efforts to manage the risks.

92-97

17. Description of internal control system

Including amongst others:1. Description of internal control system, including amongst others financial and operational

control;2. Description of the conformity between internal control system and the generally accepted

framework (COSO-); and 3. Description of evaluation of the effectiveness of internal control system.

145-146

18. Description of matters related to environment

Including amongst others:1. Company policy;2. Activities of the environment program related to the company operational activities, such

as the use of environment-friendly and recyclable materials and energy, company waste processing system, environment consideration in approving credit for customers, etc.

3. Certification in environment.

178-179

19. Description of matters related employment and health and work safety

Including amongst others:1. Company policy; and2. Activities performedRelated to employment practices, health and work safety, such as gender and employment opportunity equality, work safety and infrastructure, employee level, work accident level, etc.

109-110

20. Description of development of society and community

Including amongst others:1. Company policy; 2. Activities performed; and3. Expenses disbursedFor development of society and community, such as the use of local manpower, empowerment of the community around the company, improvement of social infrastructure, other donations form, etc.

101-103

21. Description of responsibility to customers

Including amongst others:1. Company policy; and2. Activities performedFor product responsibility, such as customer health and safety, product information, infrastructure, number and handling of customers complaints, etc.

150-152

22. Important case by which the company, subsidiary entity, and members of the Board of Commissioners and the members of the Board of Directors in-office during the period of the annual report are being involved

Including amongst others:1. Subject of case/law suit;2. Status of the case/law suit;3. Impact to the company; and4. Administrative sanction being applied to the company, members of the Board of

Commissioners and members of the Board of Directors by respective authorities (capital market, banking and others) in the last financial year (unless there are statement that no administrative sanction is being applied)

Note: Should there be no case involve, it shall be disclosed.

185


303

criteria page

23. Access to company data and information

Description on the availability of access to company data and information for public, for example through (in Bahasa Indonesia and in English) press, bulletin, meeting with analysts, etc.

59

24. Discussion on Code of Conduct Containing description of: 1. Content of Code of Conduct;2. Disclosure that Code of Conduct applies for all levels of the organization;3. Dissemination of Code of Conduct;4. Types of sanction for each violation of Code of Conduct; 5. Number of violation of Code of Conduct and the sanctions applied during the last

financial year.Note: Should there be no violation of Code of Conduct, during the last financial year, it shall be disclosed.

147-148

25. Disclosure of whistle blowing system Containing description of the mechanism of:1. Reporting violation;2. Protection for3. Handling complaints;4. The party responsible to handle complaints;5. Number of complaints registered and processed during the last financial year and

the follow up actions.Note: Should there be no complaints registered in the last financial year, it shall be disclosed.

146-147

26. Policy regarding the diversity in the composition of Board of Commissioners and Board of Directors

Description on company policy regarding the diversity in the composition of Board of Commissioners and Board of Directors in terms of education, work experience, age and gender.Note: should there be no such policy in place, the reason and consideration shall be disclosed

110, 125-126, 135-138

VII. financial information

1. Statement of Board of Directors and/or Board of Commissioners regarding the responsibility for the Financial Statements”

Conformity with the regulations regarding Responsibility for Financial Statements 199

2. Opinion of independent auditor on financial statements

200-201

3. Description of independent auditor giving opinion

The description contains: 1. Name and signature;2. Date of audit report; and3. License number of Public Accounting Firm and License number of Public Accountant.

200-201

4. Complete Financial Statements Containing complete elements of Financial Statements:1. Balance Sheet;2. Statement of Profit & Loss and other Comprehensive Income;3. Statement of changes in equity;4. Cash Flow Statement;5. Notes on Financial Statements;6. Comparative information from the previous period;7. Financial position report in the beginning of the previous period when the entity applied

restrospective accounting policy or restate the items in the financial statements, or when the entity reclassify the items in the financial statements (if relevant).

202-289

5. Comparison of Profitability Comparison of Performance (profit/loss) in the current year and the previous year. 205-206

6. Cash Flow Statement Fulfill the following conditions:1. Classification into three category of activities: operations, investment and funding;2. The use of direct method to report cash flow from the operational activities;3. Separation of incoming cash and outgoing cash during the financial year in the operation,

investment and funding activities; and 4. Disclosure of non-cash transaction must be stated in the notes of financial statements.

208-209

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7. Summary of accounting policy Including at least:1. Statement of compliance to SAK;2. Basis of measurement and preparation of financial statements;3. Income tax;4. Performance incentives; and5. Financial Instruments.

217-238

8. Disclosure of transaction with related parties

Matters to disclose:1. The name of related parties and the nature of relationship with the related parties;2. The value of transaction and its percentage of the total revenue and expenses; and3. The remaining balance and its percentage of the total assets and liabilities.

267-270

9. Disclosure of taxation matters Matters to disclose:1. Fiscal reconciliation and calculation of tax expense;2. Explanation of the relationship between (income) tax expense and accounting profit;3. Statement that taxable income from the reconciliation is the basis in completing Annual SPT

PPh Badan;4. The details of deferred tax assets and liabilities stated in the balance sheet for each period

and the amount of deferred income tax expense stated in the income statement should such amount is not reflected in the amount of deferred tax assets and liabilities stated in the balance sheet;

5. Disclosure whether there is tax disputes or not.

236, 252-253

10. Disclosure of matters related to fixed assets

Matters to disclose:1. Method of depreciation applied;2. Description of selected accounting policy between revaluation method and cost method;3. Method and significant assumption in estimating fair value of fixed assets (For revaluation

method) or disclosure of fair value of fixed asset (for cost method); and 4. Reconciliation of gross value and accumulated depreciation of fixed asset in the beginning

and ending of the period by showing: addition, deduction and reclassification.

202, 228-230

11. Disclosure of matters related to operational segment*

Matters to disclose:1. General information including the factors used to identify reported segment;2. Information on profit/loss, assets and liabilities of the reported segment;3. Reconciliation of the total revenue of the segment, profit loss of the reported segment,

segment assets, segment liabilities, and material elements of the other segments to the related amount in the entity; and

4. Disclosure at the entity level, including information about the products and/or services, geographical region and main customers.

N/A

12. Disclosure of matters related to Financial Instruments

Matters to disclose:1. The details of Financial Instruments based on classification;2. Fair value and its hierarchy for each classification of financial instruments;3. Risk management policy;4. Explanation of risk related to financial instrument: market risk, credit risk and liquidity risk;

and 5. Quantitative risk analysis related to financial instruments.

219-223

13. Publishing the Financial Statement Matters to disclose:1. The date that the financial statements are authorized to publish;2. Responsible party to authorize financial statements.

199


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