BBRI_AnnualReport14.pdf - Innovations in Extending Services...

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Unformatted text preview: Innovations in Extending Services Continuous Built Upon Integrity and Cutting Edge Technology Annual Report 2014 Innovations in Extending Services Continuous Built Upon Integrity and Cutting Edge Technology Demonstrates a strong commitment to support the development of micro, small, and medium enterprises as well as other segments throughout the country. BRI has consistently invested in network expansion and human resources development to enhance services quality and human resources competence. Aiming to become a Bank with the best and sustainable performance through productive and efficient network and human resources to support the customers’ business growth across the archipelago. BRI once again became one of the banks with the best performance in Indonesia. Total assets grew to Rp801.9 trillion while total loans rose to Rp510.7 trillion with stable loan quality. Third Party Funds also rose to Rp622.3 trillion, resulted in Loan to Deposit Ratio (LDR) of 82.06%. The development and implementation of cutting-edge technologies played an important role in improving operational efficiency, thus it contributed to net income of Rp24.3 trillion, representing 13.58% year on year growth. Bank BRI recorded as one of the SOEs with the largest dividend contribution to the state. Going forward, BRI is determined to continue to spur its operational performance and human resources competencies in order to provide the best service to all customers, support the development of economic potential across the nation, and achieve sustainable quality growth. Enhancing Network Quality through Measured Investments In addition to 594 operational units, comprising branch offices, sub-branch offices, Cash Offices, BRI Units, and Teras BRI as well as 47,973 e-channel networks, BRI continues to develop the latest banking information technology applications. To enhance communications quality, BRI has initiated the communication satellite project, BRIsat, which will be managed by the Bank in the future. Today, BRI has strengthened its position as the bank with the largest network that consisted of 10,396 outlets, 20,792 ATMs, and 131,204 EDCs spreadout across the country – all are integrated in real-time online. The network has enabled BRI to significantly increase the volume of e-banking transactions with efficiency in order to accommodate the growing volume of customers’ banking transactions regardless of their locations, as reflected from efficiency level ratio in the past three years and fee-based income increase from e-banking activities. *) Bank only Optimizing Human Resource Potential through Competency Building and Sound Integrity Various training programs that cover introduction, application, and development courses were aim to enhance the employees’ technical and managerial competencies, including strengthening employees’ integrity. In 2014, more than 132 training curriculums were developed and implemented, covering 468,062 participants. Total budget spending amounted to Rp664.6 billion, up by 22.02% from 2013. In line with its business expansion plan, BRI consistently carries out substantial HR competency building through intensive and focused training programs. Indicated by increasing employees’ productivity ratio Consistently Exercising Sound Management in Accordance with Good Corporate Governance Principles to Maintain Customers’ Trust BRI successfully improved total assets by growing its business whilst maintaining loan quality, as reflected by the sound level of NPL. On funding, BRI’s ability to nurture customers’ trust is illustrated by 23.45% deposits growth, above industry’s growth. BRI consistently applies the basic principles of GCG across all phases of the company management, through aspects of TARIF – Transparency, Accountability, Responsibility, Independency, and Fairness. Consistently Delivers Exceptional Performance Despite Rigorous Competition and Challenging Economic Conditions The endeavours that BRI has taken to increase competitiveness through network quality improvement and HR capacity building have resulted in an improved operational efficiency and productivity, which further reinforced the foundation to achieve distinguished performance. BRI is determined to strengthen its operational quality in order to deliver the best and sustanaible performance. Table of Contents 6 16 18 23 HIGHLIGHTS Financial Highlights Event Highlights 2014 Awards and Certifications 30 MANAGEMENT REPORTs 32 Foreword from the President Commissioner 36 Board of Commissioners 2014 Supervisory Duty Report 44 Board of Commissioners 46 Message from the President Director 58 Board of Directors 60 Statement from Members of the Board of Commissioners 94 96 110 118 124 126 OPERATIONAL REVIEW Human Resources Marketing Aspects Information Systems and Technology Operations Centres Fixed Asset Management and Procurement of Goods and Services 130 Risk Management 61 Statement from Members of the Board of Directors 62 64 66 68 70 72 74 76 78 80 81 COMPANY PROFILE Company Name, Address, and Information BRI at a Glance BRI’s Milestone Vision, Missions and Corporate Values Banking Products and Services Network Coverage Outlets Organizational Structure Subsidiaries and Associated Entities Capital Market Supporting Institutions 222 MANAGEMENT DISCUSSION AND ANALYSIS 224 General Overview 224 Development of Macro Economic Conditions and Banking Industry 228 Market Share 230 Prospects and Strategy 232 Business Review 234 Micro Business and Programs 246 Retail and Medium Business 256 State-Owned Enterprises (SOEs) and Corporate Business 262 International Business 268 Treasury Business and Capital Market Supporting Services 82 84 85 86 87 88 92 12 INFORMATION FOR INVESTORS Stock Highlights Bond Summary Share Listing Chronology Management Stock Option Plan Composition of Shareholders 276 Financial Review 284 Financial Position 284 Assets Composition 288 Liabilities 290 Equity 290 Capital 293 Cash Flows 294 Financial Ratio 297 Capital Expenditure 298 Other Financial Information 304 Other Material Information 312 Subsidiary 312 PT Bank BRISyariah 314 PT Bank Rakyat Indonesia Agroniaga Tbk 316 BRI Remittance Co.Ltd Dividend and Dividend Policy ANNUAL REPORT 2014 Pt Bank Rakyat Indonesia (persero) Tbk. Table of Contents 318 CORPORATE GOVERNANCE REPORT 320 The Objectives of Corporate Governance 321 322 323 327 330 333 334 337 352 Implementation GCG Implementation Reference 500 502 506 508 CORPORATE SOCIAL RESPONSIBILITY Principles and Commitment Responsibility Towards Environment Responsibility Towards Employees, Health and Safety at Work 510 Responsibility Towards the Community 518 Responsibility Towards the Customers Commitment of GCG Best Practices GCG Road Map Implementation GCG Implementation Assessment of GCG Implementation Plan of GCG Implementation GCG Awards Corporate Governance Policies and Guidelines Corporate Governance Structures and Mechanisms 353 General Meeting of Shareholders 361 Board of Commissioners 379 Board of Directors 398 Board of Commissioners and Board of Directors’ Relationship 404 Board of Commissioners’ Committees 404 Audit Committee 409 Nomination and Remuneration Committee (NRC) 415 Risk Management Supervisory Committee (RMSC) 422 Board of Directors’ Committees 422 Risk Management Committee (RMC) 425 Credit Policy Committee (CPC) 426 Credit Committee 430 Assets and Liabilities Committee (ALCO) 432 Human Resource Policy Committee 433 Information System and Technology Steering Committee (ITSC) 435 Project Management Office (PMO) Steering Committee 437 Job Position Evaluation Committee 438 Corporate Governance Implementation in BRI’s 522 524 528 534 535 535 536 537 539 541 543 544 548 554 CORPORATE INFORMATION Profiles of the Board of Commissioners Profiles of the Board of Directors Profiles of Committees under the Board of Commissioners Profiles of Nomination and Remuneration Committee Members Profiles of Risk Management Supervisory Committee Members Profiles of Corporate Secretary and Head of Internal Audit Senior Executives Office Address Operating Units Contact Address Press Release Correspondency with OJK and IDX OJK References Subsidiary 438 PT Bank BRISyariah 443 PT Bank BRI Agroniaga Tbk 446 Board of Commissioners’ Secretary 447 Corporate Secretary 455 456 461 462 464 476 480 492 Information Access and Corporate Data Compliance Functions Risk Management Internal Control System Internal Audit Code of Conduct Corporate Culture Other Material Information 573 2014 CONSOLIDATED FINANCIAL STATEMENTS 577 Independent Auditor Report 579 Consolidated Financial Position Report 583 Consolidated Comprehensive Profit Loss Report 586 Consolidated Equity Changes Report 588 Consolidated Cash Flows Report 590 Notes on Consolidated Financial Statements Pt Bank Rakyat Indonesia (persero) Tbk. ANNUAL REPORT 2014 13 Financial Highlights Year Financial Highlights (Rp billion) 2010 2011 2012 2013 2014 Total Assets 404,286 469,899 551,337 626,183 801,955 Total Earning Assets 379,696 432,647 499,042 568,546 728,094 Loans - Gross 252,489 294,515 362,007 448,345 510,697 13,626 8,996 4,316 4,511 4,304 134 165 197 223 252 Total Liabilities 367,612 420,079 486,455 546,856 704,218 Third Party Funds 333,652 384,264 450,166 504,281 622,322 77,364 76,779 79,723 79,337 90,052 - Savings 125,990 154,133 184,717 212,997 236,395 - Time Deposits Balance Sheets Government Recap Bonds Equity in Shares - Net - Demand Deposits 130,298 153,353 185,726 211,948 295,875 Other Interest Bearing Liabilities 17,297 19,361 15,784 14,873 49,177 Capital/Equity 36,673 49,820 64,882 79,327 97,737 - Wih Government Bonds Interest 44,615 48,164 49,610 59,461 75,122 - Without Government Bonds Interest 43,109 47,053 49,235 59,298 74,876 - With Government Bonds Interest 32,889 34,427 36,484 44,106 51,442 - Without Government Bonds Interest 31,382 33,316 36,109 43,943 51,197 5,545 5,776 8,390 8,348 9,299 (16,114) (17,086) (19,491) (22,381) (26,660) (7,917) (5,533) (2,700) (3,946) (5,719) 14,908 18,756 23,860 27,910 30,859 Net Income for the year Income attributable to equity holders of parent entity Income attributable to non-controlling interests 11,472 15,088 18,687 21,354 24,254 11,472 15,083 18,681 21,344 24,242 Nihil 5 6 10 12 Comprehensive profit and loss Comprehensive income attributable to equity holders of parent entity Comprehensive Income attributable to noncontrolling interests Earnings per share (Rp) 11,559 15,296 18,661 19,917 24,760 11,559 15,288 18,652 19,913 24,745 Profit/Loss Interest Income Net Interest Income: Other Operating Income Other Operating Expenses Provision for Impairment Losses on Financial Assets Income Before Tax Nihil 8 9 3 15 478.36 628.91 757.26 865.22 982.67 Financial Ratio* Capital 13.91% 14.99% 16.80% 16.97% 18.14% Earning Assets Earning Assets and Non Performing Assets to Total Earning assets and non performing assets Non performing earning assets 2.19% 1.79% 1.19% 1.06% 1.09% 2.24% 1.85% 1.46% 1.28% 1.26% Allowance for possible losses to earning assets 4.58% 4.51% 3.43% 2.90% 2.40% NPL Gross 2.78% 2.30% 1.78% 1.55% 1.69% Capital Adequacy Rate Profitability ROA 4.64% 4.93% 5.15% 5.03% 4.74% ROE 43.83% 42.49% 38.66% 34.11% 31.22% NIM 10.77% 9.58% 8.42% 8.55% 8.51% Operating Expenses to Operating Income 70.86% 66.69% 59.93% 60.58% 65.37% *) Bank only 14 ANNUAL REPORT 2014 Pt Bank Rakyat Indonesia (persero) Tbk. Financial Highlights Financial Highlights (Rp billion) Year 2010 2011 2012 2013 2014 75.17% 76.20% 79.85% 88.54% 81.68% - Related Parties Nil Nil Nil Nil Nil - Unrelated parties Nil Nil Nil Nil Nil - Related Parties Nil Nil Nil Nil Nil - Unrelated parties Nil Nil Nil Nil Nil 8.05% 9.33% 10.64% 8.02% 8.07% Liquidity LDR Compliance Violation of Legal Lending Limit Excess of Legal Lending Limit Statutory Reserves Net Open Postion 4.45% 5.49% 3.00% 3.15% 3.86% The financial figures above represent BRI’s consolidated financial statements with the following subsidiaries for years 2011, 2012, 2013 and 2014: PT BRISyariah, PT Bank Agroniaga Tbk, BRIngin Remittance Co. Ltd; and only PT BRISyariah for year 2010. The financial ratio uses Bank data only. *)Starting in 2004, the Bank took into account the market risk, and operational risk has been taken into account, starting in 2010. *) Bank only Pt Bank Rakyat Indonesia (persero) Tbk. ANNUAL REPORT 2014 15 Event Highlights 2014 24 February Launching of Financial Literacy Car (SIMOLEK) “In collaboration with OJK, BRI operates 20 units of SIMOLEK to support OJK’s efforts to raise financial literacy of the public” March BRI signed MOU with Board Members of Nahdlatul Ulama (PBNU) 19 “BRI is ready to serve 80 million of NU followers” 20 March BRI E-Hospital Cooperation with Fatmawati Hospital “BRI implemented E-Hospital program to serve the hospital and its customers” March Quarter I 2014 BRI Analyst Meeting and Press Conference 23 “Publication of BRI financial performance for the Q1 2014” 24 March E-Filling Program Cooperation between BRI and DG Tax “BRI collaborated with the Directorate General of Tax on tax reporting of 113 thousand BRI employees using e-filling system” March BRI signed MOU with the Ministry of Public Housing 25 “BRI and the Ministry of Public Housing cooperated in disbursing Funds Assistance for Housing (Bantuan Stimulan Perumahan Swadaya/BSPS)” 16 ANNUAL REPORT 2014 Pt Bank Rakyat Indonesia (persero) Tbk. Event Highlights 2014 26 March Annual General Meeting of Shareholders (AGMS) of BRI 2014 April BRI Satellite (BRISAT) Procurement Contract Signing 28 “Contract signing between PT Bank Rakyat Indonesia (Persero) Tbk Space Systems/Loral, Llc and Arianespace regarding the BRI Satellite Program” 7 June Teras BRI Nusantara Participated in Jakarta Great Sale Festival “Teras BRI Nusantara brought its best customers to Jakarta’s shopping centers. As many as 68 MSME customers participated in the Jakarta Great Sale Festival” June BRI Launched E-Ticketing in Collaboration with BNI and Mandiri 16 “BRI synergized with Bank Mandiri, BNI, and PT KAI Commuter Jabodetabek (KCJ) and launched the prepaid card payment system.” 17 June Inauguration of BRI Lampung Regional Office “BRI inaugurated its 19th regional office, BRI Lampung Regional Office” July BRI Issued Electronic Member Card (Kartu Tanda Anggota/KTA) for Indonesian National Police (POLRI) 1 “BRI innovated and developed KTA POLRI with multiple functions as ATM and electronic money (BRIZZI)” Pt Bank Rakyat Indonesia (persero) Tbk. ANNUAL REPORT 2014 17 Event Highlights 2014 10 July Extraordinary General Meeting of Shareholders (EGMS) BRI 2014 “Agenda: Changes of the Bank’s management composition” July BRI Peduli Program, Breakfasting with Orphaned Children 17 “BRI Peduli program organized a breakfasting event with the President and 3,500 orphaned children” 21 July BRI Peduli Distributed Basic Food “BRI distributed basic food in 15 poor areas in Jakarta” July BRI Homecoming Program 24 “BRI provides 125 free buses for the homecoming of 6,000 customers under the “Ngebuzz Bareng BRI” program” 14 August BRI Participate in the Non-Cash National Movement “BRI supports Non-Cash National Movement (GNTT) and signs memorandum of understanding concerning integration of Electronic Data Capture (EDC) with Bank BNI and Mandiri” August Indonesia Banking Expo (IBEX) 14 “BRI presents Hybrid Lounge and BRI Satellite in IBEX 2014” 10 November Keel Laying of Floating Teras BRI “BRI commenced the construction of Floating TerasBRI and will be the first bank in Indonesia to provide services on a vessel” 18 ANNUAL REPORT 2014 Pt Bank Rakyat Indonesia (persero) Tbk. Event Highlights 2014 31 August Independence Day Run “BRI supports the largest running competition event in Indonesia, Independence Day Run in celebration of the 69th Indonesian independence” September BRI Participates in the National Customer Day 4 “BRI celebrates the National Customer Day with events at various Branch Offices” 10 September Launch of BRI Micro Insurance – Accident, Health, and Life “BRI launched Micro Insurance – Accident, Health, and Life in cooperation with PT Bringin Jiwa Sejahtera, Asuransi Bringin Sejahtera Artamakmur, and PT AJ Jiwasraya” October Quarter III 2014 BRI Analyst Meeting and Press Conference 22 “Publication of BRI financial performance for Q3 2014” 27 October Inauguration of BRI’s Regional Office Building Jakarta 3 “Inauguration of BRI’s Regional Office Building of Jakarta 3 in Bumi Serpong Damai” October BRI Supports Indocomtech Exhibition 2014 29 “BRI participated in this largest gadget and IT exhibition, Indocomtech, themed Digital Lifestyle” 12 December Launching of BRIlink “BRI launched BRILink, an agent banking system support the Financial Inclusion program” Pt Bank Rakyat Indonesia (persero) Tbk. ANNUAL REPORT 2014 19 Awards and Certifications External parties recognized the outstanding performance of BRI in 2014. BRI received over 30 international and national awards, covering: International Awards • Category: - The Most Valuable Banking Brand 2014 - The Most Valuable Banking Brand 2011 • Organizer: Brand Finance PLC The 153rd Most • Date: Valuable Banking 10 February 2014 Brand in 2014 “The World’s Largest Public Companies” • Category: - Asia’s Best Companies 2014 - Asia’s Best Companies 2013 - Asia’s Best Companies 2010 • Organizer: Finance Asia • Date: 5 June 2014 • 4th Best Investor Relations • 5th Best Managed Company • 6th Best Corporate Governance AsiaMoney Best Banks The Bankers Awards 2014 • Category: - Bank Of The Year Indonesia 2014 - Bank Of The Year Indonesia 2011 • Organizer: The Banker • Date: 21 October 2014 20 ANNUAL REPORT 2014 Pt Bank Rakyat Indonesia (persero) Tbk. • Category: - The World’s Largest Public Companies 2014 - The World’s Largest Public Companies 2012 • Organizer: Forbes Magazine • Date: 19 August 2014 • Category: - Best Domestic Bank in Indonesia 2014 - Best Domestic Bank in Indonesia 2008 • Organizer: AsiaMoney • Date: 26 September 2014 Awards and Certifications National Awards Overall Winner Annual Report Award 2013 • Category: Financial SOE - Listed • Organizer: KNKG,IDX,BI,OJK, DG Tax, BUMN,IAI • Date: 16 October 2014 Best Listed Finance Company and Insurance Sector 2014 • Event: MNC Business Award 2014 • Organizer: MNC Business • Date: 9 June 2014 Corporate Governance Conference and Award • Category: Best Financial Sector • Organizer: IICD ( Indonesia Institute Corporate Directorship ) • Date: 30 October 2014 Top Performing Listed Company 2014 • Event: Investor Award 2014 • Category: Market Capitalization over Rp10 Trillion • Organizer: Investor Magazine • Date: 8 May 2014 Pt Bank Rakyat Indonesia (persero) Tbk. ANNUAL REPORT 2014 21 Awards and Certifications Awards Category: -- 1st Winner - Children’s Savings Account : BRI JUNIO -- 2nd Winner- Deposits Account -- 2nd Winner- Savings Account : BritAma -- 3rd Winner- Mobile Banking : BRI Mobile -- 3rd Winner- Call BRI - Call Center -- 3rd Winner- Internet Banking BRI • Organizer: Marketing Magazine • Date: 6 February 2014 TOP Brand Award in Recognition of Outstanding Achievement in Building the Top Brand Bank Loyalty Award 2014 • Category: Credit Card, Conventional Banking • Organizer: Infobank and Mark Plus Insight Indonesian • Date: 26 February 2014 • Category: Saving Account, Conventional Banking (Asset > 100 T) • Organizer: Infobank and Mark Plus Insight Indonesian • Date: 26 February 2014 • Event: Most Admired Companies • Organizer: Warta Ekonomi • Date: 29 April 2014 Indonesia Most Admired Companies 2014 22 ANNUAL REPORT 2014 Pt Bank Rakyat Indonesia (persero) Tbk. MURI • Category: River Clean-Up Community Service with the Most Participants • Organizer: Indonesian World-Records Museum (MURI) • Date: 25 May 2014 Awards and Certifications Investor Best Bank 2014 • Event: Service Quality Award • Organizer: SQ • Date: 5 June 2014 • Event: Investor Best Bank • Category: Commercial Bank above Rp100 Trillion • Organizer: Investor Magazine • Date: 10 June 2014 “Priority Banking” 201...
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  • Summer '18
  • Management, Bank Rakyat Indonesia, pt bank rakyat, PT Bank Rakyat Indonesia

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