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Page 1
2023
Sustainability
Report


Pt Bank BTPN Tbk
Menara BTPN - CBD Mega Kuningan
Jl. Dr. Ide Anak Agung Gde Agung Kav 5.5 - 5.6
Jakarta 12950




This report is printed on recycled paper and is FSC certified
Page 2
                              2023
PROMOTING A GREENER ECONOMY   Sustainbility
                              Report
Page 3
 2023
 Sustainability
 Report




          PROMOTING
      A GREENER ECONOMY




www.btpn.com
Page 4

          
Page 5

          
Page 6

          
Page 7
PROMOTING A
GREENER ECONOMY


 As a financial institution, PT BANK BTPN Tbk
 (Bank BTPN) is committed to promoting a greener
 economy and therefore supports projects and
 initiatives that foster sustainable development
 and yield positive environmental impacts.

 Bank BTPN encourages investment and
 increases its portfolio in environmentally
 friendly sectors, supports the development of
 green technologies, finances renewable energy
 projects, and provides incentives through
 Sustainability-linked Loan products to customers
 committed to environmentally friendly practices.

 Through these efforts, Bank BTPN not only plays
 a crucial role in supporting the development of a
 greener economy, but also helps mitigate against
 negative environmental impacts, in order to
 create a more sustainable future for generations
 to come.




                                                Sustainability Report 2023 PT Bank BTPN Tbk   1
Page 8
      TABLE of contents

         1      Theme Explanation                                 14    Awards


         6      Vision, Mission and Core Values                   18    Key Highlights from the Year


         8      Sustainability Highlights




       24         Message from The Board of Commissioners
                  and Directors
                    26   Message from the President                    30   Message from the President Director
                         Commissioner




       34         Bank Btpn and Sustainability Commitment

                    37   Bank BTPN’s Sustainability Strategy           40   Relationship with Stakeholder
                    38   Sustainability Governance                     42   Bank BTPN’s Strategy and Contributions
                    40   Role of the Governance Body in                     to the SDGs
                         Sustainability Reporting




       46         About Bank BTPN

                    48   Company Profile                               49   Company Scale

                    49   Company Rating                                50   Milestones of Bank BTPN

                    49   Membership of Associations




        54        Green Economy Innovation


                    57   Sustainability Commitment of Bank BTPN        62   Process of Monitoring the Implementation
                                                                            of Environmental and Social Compliance
                    58   Implications of Climate Change
                                                                       62   Performance of Bank BTPN
                    59   Bank BTPN’s Sustainability Policy
                                                                       65   Percentage of Green and Social Business
                    61   Environmental and Social Risk                      in the Portfolio
                         Assessment Procedures




2   Sustainability Report 2023 PT Bank BTPN Tbk
Page 9
      65   Sustainable Financing Portfolio          68   The Bank’s Approach to Challenges
                                                         Related to Sustainable Finance
      66   Business Portfolio by Sector and Size
                                                    68   Supply Chain
      67   Internal Audit of Environmental and
           Social Policy Implementation and Risk    69   Tax
           Assessment Procedures
                                                    69   Approach to Tax
      67   Economic Value Generated and
                                                    69   Tax Risk Management and Governance
           Distributed
                                                    69   Stakeholders and Tax Compliance




70   Products and Services Excellence in Supporting
     Sustainability

      72   Bank BTPN’s Products                     76   Customer Privacy Protection
      74   Flagship Products                        78   Product Information and Marketing
      74   Access Development                       78   Customer Satisfaction Survey
      74   Quality Products and Services
      75   Improving Service Quality




80   Strengthening the Culture of Empowerment and
     Expanding the Impact

      82   Four Pillars of Daya Program
      83   Impact Assessment of the Daya Programs
      83   SROI Daya Program
      84   Daya.id – A Leading Digital Platform
      88   Community Empowerment Program
      89   Daya for Sinaya Prioritas Customers
      89   Sahabat Daya
      92   Social Responsibility Activities




                                                         Sustainability Report 2023 PT Bank BTPN Tbk   3
Page 10
       94         Increasing Capacity for Sustainability

                    96   Human Resources Policy of Bank BTPN        105   Retirement Program
                    96   #MoreThanAJourney                          105   Collective Labor Agreement
                    96   Digital Technology Adoption for Employee   105   Child Labor and Forced Labor
                         Management                                 106 Training and Development
                    97   Bank BTPN’s Personnel                      106   Training Strategies and Programs
                    98   Inclusive Workplace                        106   Average Employee Training Hours
                    98   Employee Diversity                         108 Improving Employee Competence in
                   100 Proportion of Senior Management from               Sustainable Finance
                         Local Communities                          108   Performance Review
                   100 Decent and Safe Working Environment          108   Human Rights Training for Security
                   100 Employee Recruitment                               Officers
                   102 Employee Turnover                            108 Work-Life Balance
                   103 Employee Rights Aspects
                   103 Remuneration and Benefits
                   104 Parental Leave




      112 Prioritizing
          Commitments
                       Environmental and Climate


                   114 Climate Strategy                             118   Financed Emissions
                   115 Climate Target                               118 Water
                   115 Green Building                               118 Waste
                   115 Digital Services                             119   Dolfin Project Initiative (Digital Workspace
                                                                          Flexi Office in New Normal)
                   116 Environmental Education
                   116 Energy Usage
                   117 Emissions




4   Sustainability Report 2023 PT Bank BTPN Tbk
Page 11
120 Innovation in Sustainable Governance
      122 Governance Structure                    131 Whistleblowing System
      123 General Meeting of Shareholders (GMS)   133 Communication of Critical Concerns
      123 Board of Commissioners                  133 Enhancement of the Board of
                                                        Commissioners and Directors’ Capacity
      124 Board of Directors
      126 Nomination and Selection of Board of    136 Evaluation of the Board of
                                                        Commissioners and Directors
            Commissioners and Directors
                                                  136   Remuneration of Board of
      126   Policies and Procedures
                                                        Commissioners and Directors
      127 Nomination Process for Candidates of
                                                  136   Remuneration Policy
            Board of Directors
      127 Conflict of Interest                    136   Process to Determine Remuneration
      128 Policy Commitments                      136   Annual Total Compensation Ratio
      128 Commitment for Responsible Business     137 Risk Management
            Conduct
                                                  137   Cyber Risk Management
      129 Processes to Remediate Negative
            Impacts                               137   Climate Risk Management

      129 Internal Control System                 138 Anti-Money Laundering and Terrorism
                                                        Financing Policy
      130 Prevention and Eradication of Fraud
                                                  139 Compliance with Laws and Regulations




140 About the Report
      142 Reporting Standards                     143 List of Material Topics
      142 Assurance                               144 Non Material Topics
      142 Determination of Material Topics and    145 Materiality Level
            Boundary




      146 Statement on GRI Standards in           165 Se Ojk 16/2021 Index
            Accordance Check
                                                  167 Sasb – Financial Sector Index
      147 Independent Assurance Statements
                                                  168 Tcfd Index
      149 Sdgs Links in Gri Standards
                                                  169 Feedback Sheet
      159 Gri Standard Index
      164 Gri Standard - Financial Sector (FS)
            Index




                                                        Sustainability Report 2023 PT Bank BTPN Tbk   5
Page 12
      VisiON, MiSsiON & CORE VALUES



      Vision                              [GRI 2-22] [OJK C.1]



      To become the first choice bank in Indonesia,
      giving significant change to the lives of millions
      of people, mainly with the support of digital
      technology.



      Mission                                      [GRI 2-22] [OJK C.1]




            To offer complete financial                                   To provide a valuable opportunity
            solutions and services to various                             for the professional growth of the
            segments of retail, micro, SME                                Bank BTPN employees.
            and corporate business in
            Indonesia, and for the Indonesian
            Nation and Country as a whole.




            To create significant and                                     To use technological innovation
            sustainable values for                                        as the main differentiator while
            stakeholders, including for                                   providing the best quality and
            Indonesian society.                                           experience in its class to the
                                                                          Bank BTPN clients and partners.




6   Sustainability Report 2023 PT Bank BTPN Tbk
Page 13
Core Values                                             [GRI 2-22] [OJK C.1]



The 5 (five) values Bank BTPN has adopted as
guidelines for conducting business activities
are as follows:
       Integrity                    Customer                                   Proactive &
                                    First                                      Innovative

As a professional, always     Always look at it from              Step up and innovate
act with sincerity and with   the customers’ point of             relentlessly.
a high ethical standard.      view to provide additional
                              value.



       Synergy                      Speed
                                    and Quality
Collaborate as one team.      Differentiate ourselves
                              through the speed and
                              quality of our decision
                              making and service
                              delivery.




                                                            Sustainability Report 2023 PT Bank BTPN Tbk   7
Page 14
      SUSTAINABILITY HIGHLIGHTS
      Economy [OJK B.1]

                 Net Operating Income*                                Net Profit* (in Trillion Rupiah)                          Assets* (in Trillion Rupiah)
              (in Trillion Rupiah) [OJK B.1.b]                                [OJK B.1.c]

                                                                                     3.63                                                  209.17
                                                                                                                                  201.45
                              4.66
                                         4.01                                                                                                       191.92
                                                                                              3.10
                   3.46                                                     2.68




                   2023      2022       2021                               2023     2022     2021                                  2023     2022     2021



                 Customers* (in Million)                               Branch Network (Branches)                                   Access (Provinces)
                                                                                              419
                                                                                                                                                      33
                                         11.7                                                                                       32       32
                    9.5
                              8.8                                                    278
                                                                            266




                   2023      2022       2021                               2023     2022     2021                                  2023     2022     2021




      Economic Performance Related to Sustainability


              Nominal Portfolio of KKUB**                                     Funding*** (%)                                        Financing**** (%)
                  (in Million Rupiah)
                                                                                            0.20
               13,774,741
                                                                                                                                                      10
                                                                          0.11
                          12,968,409                                                                                                         9.6
                                     12,029,029                                                                                     9.5
                                                                                   0.06




                  2023      2022       2021                               2023     2022     2021                                   2023     2022     2021




      Types of Sustainable Finance Products


            2023                                                                    2022                                        2021
            2 Funding Products (ESG Mutual fund, ESG                                2 Funding Products                          2 Funding Products
              Deposit)                                                              2 Green Financing Products                  2 Green Financing Products
            3 Green Financing Products (Sustainability-linked                       1 Msme Financing Product                    1 Msme Financing Product
              Loan, Green Loan, Social Loan)
            1 MSME Financing Product



      Notes:
      *     Consolidated financial data of Bank BTPN, which includes two other subsidiaries, PT Bank BTPN Syariah Tbk (with 70% shareholding) and PT Bank Syariah
            Ventura (with 69.3% indirect ownership through PT Bank BTPN Syariah).
      **    KKUB: Kategori Kegiatan Usaha Berkelanjutan/ Sustainable Business Activities Category.
      ***   Percentage of total funding for sustainable business activities with total bank wide funding.
      **** Percentage of total financing for sustainable business activities with total bank wide financing portfolio.




8   Sustainability Report 2023 PT Bank BTPN Tbk
Page 15
   Economic Performance Overview (in Billion Rupiah)


                             Description                                  2023              2022             2021


    Financing [OJK B.1.a]                                                   145,173             134,596         125,155

    Sustainable Financing

    a. Micro                                                                      115              136              108

    b. Small and Medium Enterprises                                            5,977              5,905           5,727

    c. Green Financing [OJK B.1.d]                                             7,682              6,927           6,194

    Total Number of Local Suppliers [OJK B.1.e]                                   273              316              287




   Sustainable Business Activities Category (KKUB)




                                 Rp560 billion                           Rp4,801 billion
                                   Green Building                         Sustainable Natural
                                                                         Resources and Land
                                                                                         Use



                                                     Rp396 billion
                                                     Energy Efficiency
            Rp122 billion
    Sustainable Transportation




                                    Rp6.091 billion
                                                MSMEs




   Rp660 billion
Eco-efficient Products


                                             Rp1,141
                                                billion
                                        Renewable Energy


                                                                                 Sustainability Report 2023 PT Bank BTPN Tbk   9
Page 16
       Social [OJK B.3]
       Employees

                Number of Employees                      Percentage of Female Employees (%)                      Employee Recruitment
                    (Employees)                                                                                      (Employees)
                                                                   44
                  6,636   6,972   7,129                                    43      42                                      948

                                                                                                                                  776
                                                                                                                   609




                  2023    2022    2021                            2023    2022    2021                            2023    2022   2021




                                           Turnover Rate (%)                      Employee Engagement Survey Score

                                                                                           4.11
                                                 14%                                              4.06   3.97
                                          12%
                                                         11%




                                          2023   2022    2021                              2023   2022   2021




       Training and Familiarization

               Average Training Hours                          Number of Participants in                        Number of Sustainability
                  (Hours/Employee)                          Anti-Fraud Trainings (Employees)                      Trainings (Activities)
                   49                                                                                               6
                                                                  6,359   6,495

                           39
                                   32                                                                                        2




                                                                                  N/A                                             N/A
                  2023    2022    2021                            2023    2022    2021                            2023    2022   2021




       Corporate Social Responsibility (CSR) Activities


                                        Description                                       2023                  2022               2021

        Financial Literacy Participants (Participants)                                     2,705,138              558,185                  13,632


        Daya.id Website Visitors (Visitors)                                                2,306,562             1,684,575          2,124,165




10   Sustainability Report 2023 PT Bank BTPN Tbk
Page 17
Allocation of Corporate Social Responsibility (CSR) Funds

                                                          2023                                  2022

    Regions             CSR Activities                           Beneficiaries                         Beneficiaries
                                                 Cost                                  Cost
                                                                  (Number of                            (Number of
                                               (Rupiah)                              (Rupiah)
                                                                 Participants)                         Participants)


 Sumatera         • Financial Literacy
                    Program

                  • Capacity to Grow for
                                              205,335,673                 2,461      145,736,222                1,848
                    Business Program

                  • Retirement Preparation
                    Program

 Jawa             • Financial Literacy

                  • Capacity to Grow for
                    Business Program

                  • Retirement Preparation
                    Program                   512,723,527                 6,002      337,804,815                4,692

                  • Sustainable Living
                    Program

                  • Education Facility
                    Development

 Kalimantan       Retirement Preparation       63,830,438                  576       67,035,166                  614
                  Program

 Sulawesi         Retirement Preparation       76,210,715                  609       74,294,384                  676
                  Program

 Bali – Nusa      Retirement Preparation       63,789,039                  528       42,127,926                  517
 Tenggara         Program

 Maluku - Papua   Retirement Preparation        8,832,600                  140       11,132,423                  151
                  Program

 National         • Competence               335,464,511                   164    1,117,978,746                3,142
                    Development Program

                  • Financial Literacy       591,723,391             2.702.002      254,467,675              558,185
                    Program

                  • Capacity to Grow for     307,627,656                 7,700       94,650,576                  997
                    Business Program

                  • Sustainable Living       180,420,125                47,104       35,857,791               13,903
                    Program

                  • Daya Program for         102,705,201                 2,944      178,426,470                3,856
                    Corporate Customers

                  • Daya Program for           36,201,750                  521      110,412,053                  583
                    Sinaya Priority
                    Customers

                  • Daya.id                  357,625,347             2,306,562      956,980,058            1,605,540

                  • Sahabat Daya               36,599,657                   415       41,729,073                  307

                  • Education Facility                    -            105,496                  -             88,323
                    Development

                   Total                     2,879,196,013           5,183,224     3,468,633,378           2,283,334




                                                                          Sustainability Report 2023 PT Bank BTPN Tbk   11
Page 18
       Environment [OJK B.2]


                    Energy Usage (GJ)                                 Energy Intensity (GJ/Person)                       Emissions (Scope 1 & 2)
                                                                                                                               (Ton CO2eq)
                     [OJK B.2.a]


                                        108,768.90                                           15.26                                                 20,136.97
                                                                                 14.86
                          103,623.52                                                                                               19,248.79

                                                                      10.27                                          18,944.79
            68,144.81




              2023             2022       2021                        2023        2022        2021                     2023          2022              2021




            Emissions Intensity                      Emissions Reduction                       Paper Usage                    Reduction in Paper Usage
           (Ton CO2eq/Employee)                          (Ton CO2eq)                         (Reams of Paper)                     (Reams of Paper)

                                                            [OJK B.2.b]                                                                  [OJK B.2.c]
             2.85
                                                                                                                                           6,161
                                 2.82                                  2,923                                57,009
                        2.76                                                             49,204   50,848

                                                                                                                                                    3,889

                                                                888                                                              1,644
                                                      304




             2023       2022     2021                2023      2022       2021            2023    2022      2021                 2023      2022     2021




       Other Environmental Programs



                                 Planting 625 mangrove                                                               The conversion of
                                 trees (employee                                                                     one operational
                                 contribution to Sahabat                                                             vehicle for the
                                 Daya program).                                                                      commissioners.




       Governance

                                         Description                                                 2023               2022                       2021

        Number of Whistleblowing Cases Received (Cases)                                                        42                   32                          34

        Percentage of Cases Resolved (%)                                                                    98%                  96.9%                    94.1%

        Number of Anti-Fraud Training Participants (Employees)                                              6,359                6,495                        6,821

        ASEAN Corporate Governance Scorecard                                                    99.19 Points     99.20 Points     97.92 Points
                                                                                            (Predicate “Very (Predicate “Very (Predicate “Very
                                                                                             Good” or Level Good” or Level 4 Good” or Level 4
                                                                                                4 (90-99.99))     (90-99.99))   (90,00-99.99))




12   Sustainability Report 2023 PT Bank BTPN Tbk
Page 19
Sustainability Report 2023 PT Bank BTPN Tbk   13
Page 20
       AWARDS




14   Laporan Keberlanjutan
     Sustainability Report 2023 PTPT
                             2023  Bank
                                     Bank
                                        BTPN
                                          BTPN
                                             Tbk
Page 21
17 February 2023                                                  23 February 2023
Award Name:                                                       Award Name:
4th Anniversary Indonesia’s Popular Digital Products Awards       Triple A Country Awards 2022
2023                                                              Award Category:
Award Category:                                                   Sustainable Finance 2022:
KBMI 3                                                            1. “Best Green Loan”
Mobile Banking                                                    2. “Best Local Currency Green Loan”
Awarding Institution:                                             Awarding Institution:
The Iconomics                                                     The Asset
Additional Information:                                           Additional Information:
This award was presented to institutions that have                The “Best Green Loan” award was presented for a green
innovated in the digital realm in Indonesia, enabling them        financing program (totaling $750 million) provided by Bank
to face the opportunities, challenges, and competition from       BTPN to PT Perusahaan Listrik Negara (PLN) in December
the wave of technological disruption. Jenius from Bank            2022. Another award was the “Best Local Currency Green
BTPN received an award in the in the KBMI 3 category.             Loan” award for providing a green financing facility of
                                                                  Rp1.06 trillion to PT Kepland Investama since October
                                                                  2021.




24 February 2023                                                  17 March 2023
Award Name:                                                       Award Name:
Indonesia Public Relations Award (IPRA) 2023: Winning             PR INDONESIA AWARDS (PRIA) 2023
Economic Growth through Consistent Collaboration                  Award Category:
Award Category:                                                   Category: Most Popular in Print and Online Media 2022
Category: Conventional Bank                                       Subcategory: National and Multinational Publicly Listed
Best Public Relations in Company Management on                    Private Companies
Expanding Mass Market Product and Services                        Awarding Institution:
Awarding Institution:                                             PR INDONESIA
WartaEkonomi.co.id                                                Award Type:
Award Type:                                                       Award
Award                                                             Additional Information:
Additional Information:                                           This award was presented to companies that have
This award was presented to the company’s public relations        effectively garnered the most positive exposure in both
team for their significant role in innovating to enhance the      print and online media.
company’s quality and performance amidst intensifying
industry competition and improving economic conditions in
Indonesia.                                                       12 April 2023
                                                                 Award Name:
                                                                 12th Infobank Digital Brand Awards 2023
05 April 2023                                                    Award Category:
                                                                 1. The Best Bank with Digital Service (KBMI 3) - Jenius
Award Name:                                                      2. The 3rd Best Deposito Bank Umum Konvensional - BTPN
Top 100 Most Outstanding Women 2023                                  Deposito Berjangka
Award Category:                                                  3. The 3rd Best Kartu Debit Bank Umum Konvensional -
Hanna Tantani, Top 100 Most Outstanding Women                        Kartu Debit BTPN (Jenius)
Awarding Institution:                                            Awarding Institution:
Infobank                                                         Infobank
Additional Information:                                          Award Type:
This award was presented as a form of appreciation and           Award and Certificate
recognition to the best female leaders for their contributions   Additional Information:
through their experience and achievements towards the            This award was presented to institutions that have effectively
development of the institutions/corporations under their         enhanced the company’s brand and product through digital
guidance.                                                        channels during the previous year (2022-2023) and are
                                                                 recognized as being one of the best banks based on public
                                                                 assessment and social media feedback regarding the digital
                                                                 banking products and services they offer.


                                                                                   Sustainability
                                                                                     Laporan Keberlanjutan    PT Bank
                                                                                                  Report 20232023 PT Bank
                                                                                                                      BTPNBTPN
                                                                                                                           Tbk    15
Page 22
       08 MAY 2023                                                    20 JUNE 2023
       Award Name:                                                    Award Name:
       PPKM Award 2023                                                20th Infobank-MRI Banking Service Excellence 2023
       Award Category:                                                Award Category:
       Certificate of Appreciation for COVID-19 Handling              1. Jenius - The Pioneer of
       Category: Domestic Private Sector                                  Digital Banking in
       Awarding Institution:                                              Indonesia (Special Rank)
       Ministry of Health of the Republic of Indonesia                2. The 2nd Best In Service
       Award Type:                                                        Excellence
       Award                                                          3. The 1st Best Bank With
       Additional Information:                                            Digital - Jenius (Btpn)
       This award was presented to Bank BTPN for its                  4. The 1st Best Call Center
       contribution to the handling of COVID-19 in Indonesia.         5. The 1st Best Email
       Bank BTPN is among the 153 recipients of the award in          6. The 2nd Best Mobile Banking
       the domestic private sector category.                          7. The 2nd Best Chatbot
                                                                      8. The 2nd Best Live Chat
                                                                      Awarding Institution:
                                                                      Infobank
                                                                      Award Type:
                                                                      Award
                                                                      Additional Information:
                                                                      This award is a form of appreciation to the bank for its
       27 JUNE 2023                                                   excellent service and customer experience in 2022, as
                                                                      determined by a study conducted by Infobank Research
       Award Name:
                                                                      Bureau (BiRI) in collaboration with Marketing Research
       Best Companies to Work for in Asia 2023
                                                                      Indonesia (MRI). Jenius from Bank BTPN received a total of
       Award Category:
                                                                      eight awards simultaneously.
       Best Companies to Work for in Asia 2023 (Indonesia Region)
       Awarding Institution:
       HR Asia
       Award Type:                                                    27 JULY 2023
       Award & Certificate                                            Award Name:
       Additional Information:                                        Indonesia Most Powerful Women Awards 2023
       This award is presented to companies in Asia that have         Award Category:
       demonstrated the best performance in the field of human        1. Indonesia Most Powerful Women 2023 in Maximizing
       resources.                                                        Digital Technology Utilization to Support National
                                                                         Economic Resilience (Hanna Tantani)
                                                                      2. Conventional Bank
                                                                      Awarding Institution:
       27 JULY 2023                                                   HerStory
                                                                      Additional Information:
       Award Name:                                                    This award was presented to Hanna Tantani as a form of
       Indonesia Digital Customer Engagement Champion 2023            appreciation of her outstanding leadership as a female
       Award Category:                                                innovator, adept at consistently driving development within
       Category: BANK FINANCIAL SERVICES                              her company across all industry sectors.
       Predicate: VERY GOOD
       Awarding Institution:
       SWA & Business Digest Magazine
       Award Type:
       Certificate
       Additional Information:
       This award is a form of appreciation for companies that have
       been successful in managing digital engagement through
       strategies, innovation, and the implementation of excellent
       programs or performance to support sustainable company
       growth.




16   Sustainability Report 2023 PT Bank BTPN Tbk
Page 23
25 AUGUST 2023                                                     04 DECEMBER 2023
Award Name:                                                        Award Name:
28th Infobank Award 2023                                           Infobank Top 100 CEO & The Next 200 Leaders 2023
Award Category:                                                    Award Category:
“DIAMOND TROPHY” EXCELLENT FINANCIAL                               Top 100 CEO 2023
PERFORMANCE BANK IN 20 CONSECUTIVE YEARS (2003-                    Awarding Institution:
2023) & EXCELLENT FINANCIAL PERFORMANCE BANK IN                    Infobank
2022                                                               Additional Information:
Awarding Institution:                                              This award is a form of appreciation for the company
Infobank                                                           leaders in the banking, life insurance, general insurance,
Award Type:                                                        financing companies (multifinance), State-Owned
Trophy, Award                                                      Enterprises (BUMN), and financial sector supporters who
Additional Information:                                            are deemed to have delivered outstanding results for the
This award is a form of appreciation for 62 banks in Indonesia     companies they lead. The award was presented to the
considered to have achieved the “Very Good” performance            President Director of Bank BTPN, Henoch Munandar.
rating in the “Rating 106 Banks Version Infobank 2023”. Bank
BTPN received the Diamond Trophy award for the bank’s
excellent financial performance in 2022 and for 20 consecutive
years (2003-2022).




06 NOVEMBER 2023                                                   04 DECEMBER 2023
Award Name:                                                        Award Name:
Asia Sustainability Reporting Rating (ASRRAT) 2023                 Indonesian Sustainable Development Goals Award 2023
Award Category:
                                                                   Award Category:
Platinum Rank                                                      Platinum Award
Awarding Institution:
                                                                   Awarding Institution:
National Center for Corporate Reporting (NCCR)
                                                                   Corporate Forum for CSR Development
Award Type:
Trophy                                                             Award Type:
Additional Information:                                            Award
This award is a form of an appreciation for the company’s          Additional Information:
contribution towards achieving the sustainable development         This award is dedicated to companies in Indonesia deemed
goals through the application of environmental, social,            successful in implementing programs that significantly
and governance principles in its business operations. The          support the 17 Sustainable Development Goals (SDGs).
                                                                   Bank BTPN received the Platinum award.
assessment is based on the level of alignment with and the
quality of sustainability reporting against the Global Reporting
Initiative (GRI) standards. This year marks the third year that
Bank BTPN has received a Platinum rating consecutively in its
four years of participation in this event.




14 NOVEMBER 2023                                                   29 DECEMBER 2023
Award Name:                                                        Award Name:
Top 20 Financial Institution Awards 2023                           Detikcom Awards 2023
Award Category:                                                    Award Category:
Predicate “Excellent” in the category of Banks with assets of      Digital Bank with the Most Innovative Features
Rp100 trillion to <Rp500 trillion
                                                                   Awarding Institution:
Best CFO Category Bank for Hanna Tantani
                                                                   Detik.com
Awarding Institution:
The Finance                                                        Additional Information:
Award Type:                                                        This award is a form of appreciation for the various
Certificate                                                        revolutionary innovations created by Jenius from
Additional Information:                                            Bank BTPN as a life finance solution for digital-savvy
This award is a form of appreciation for banks, life and general   customers. Jenius from Bank BTPN has been awarded as
insurance companies, as well as multifinance companies that        the Digital Bank with the Most Innovative Features.
have successfully maintained stable and positive growth in
their performance over three financial periods.



                                                                                   Sustainability Report 2023 PT Bank BTPN Tbk   17
Page 24
       Key Highlights from
       the Year




         25 JANUARY 2023
         Bank BTPN held a media
         gathering event to express
         appreciation to the media for their
         longstanding collaboration with
         the bank. During the event, the
                                                5 FEBRUARY 2023
         President Director of Bank BTPN,      Jenius from Bank BTPN collaborated with Pocari Sweat as the primary sponsor
         Henoch Munandar, presented            for the POCARI SWEAT Run Indonesia 2023 press conference. Ridwan Kamil,
         the latest information about the      the Governor of West Java, was present as a speaker at this press conference.
         profile and commitment of Bank        The POCARI SWEAT Run Indonesia 2023 was conducted in a hybrid format,
         BTPN, emphasizing its dedication      with the main flag-off taking place at Satay Building, Bandung on July 30,
         to     consistently    supporting     2023. Jenius collaborated with Pocari Sweat to invite running communities to
         customers and contributing to         join the fun run activity #laribarengjenius in 34 cities, including Jakarta, Bogor,
         the achievement of the SDGs           Bekasi, Bandung, Surabaya, Bali, Magelang, Malang, Yogyakarta, Makassar,
         through the bank’s business units,    Balikpapan, Pekanbaru, Semarang, and several other cities. From these
         programs, and products.               cities, Jenius Co.Create conducted co-creation activities and community
                                               gatherings with runners in 15 cities, attended by over 600 participants.




                                                        13 APRIL 2023
                                                        Bank BTPN held its Annual General Meeting of Shareholders
                                                        (AGM) during which decisions were made regarding changes to the
                                                        composition of the Board of Directors and Board of Commissioners,
                                                        as well as the allocation of the net profit for the 2022 fiscal year for
                                                        the first dividend payment since 2017.

                                                        Bank BTPN appointed Atsushi Hino as Director, replacing
                                                        Kan Funakoshi. Additionally, BTPN also made changes to the
                                                        composition of the new Board of Commissioners, appointing Onny
                                                        Widjanarko following the resignation of Irwan Mahjudin from his
                                                        position as the Company’s Independent Commissioner, and his
                                                        appointment will be effective after obtaining OJK approval until the
                                                        AGM in 2025.




18   Sustainability Report 2023 PT Bank BTPN Tbk
Page 25
14 APRIL 2023
Jenius by Bank BTPN held a
virtual press conference on Jenius
Study: Digital Savvy Society,            4      MAY 2023

Behavior Ahead of Eid al-Fitr 2023.
                                         Bank BTPN, together with four other creditors—PT Bank DBS Indonesia, PT
Through a survey conducted
                                         Bank Mayapada Internasional Tbk, PT Bank Mizuho Indonesia, and Bank of
in March-April 2023, Jenius
                                         China (Hong Kong) Ltd Jakarta branch—have agreed to provide a syndicated
observed the behavior of digital-
                                         loan facility of Rp1.111 trillion to PT Seino Indomobil Logistics (PT SIL) for capital
savvy individuals who maintained
                                         expenditure financing. The disbursement of this syndicated loan is expected
positive financial habits from
                                         to fuel the ongoing growth of Bank BTPN. The ceremonial marking of this
the pandemic period during the
                                         collaboration was attended by the President Director of Indomobil Group, Jusak
Ramadan and Eid al-Fitr moments
                                         Kertowidjojo, and the Head of Wholesale Banking of Bank BTPN, Moses Ronald
in 2023.
                                         Supardi, on Friday, May 5, 2023, in Jakarta.




22 JUNE 2023                                                  22 JUNE 2023
BANK BTPN convened an Extraordinary General                   Bank BTPN and the International Finance Corporation
Meeting of Shareholders (EGMS) to decide on                   (IFC) have entered into a partnership for a social and
changes to the composition of the Board of Directors.         green bond agreement to strengthen climate action
During this meeting, Keishi Kobata was appointed              and promote inclusive development in Indonesia.
as Director, replacing Hiromichi Kubo.                        As part of this collaboration, IFC will invest up to
                                                              US$500 million in Bank BTPN through the issuance of
                                                              social and green bonds. This bond issuance marks a
                                                              significant milestone for Bank BTPN and underscores
                                                              its commitment to empowering the Micro, Small,
                                                              and Medium-Sized Enterprises (MSMEs) sector in
                                                              Indonesia, with a particular focus on businesses led by
                                                              women and initiatives for climate change adaptation.




                                                                                Sustainability Report 2023 PT Bank BTPN Tbk       19
Page 26
          21 AUGUST 2023                                               22 AUGUST 2023
          Bank BTPN has transformed its Human Capital                  Jenius, a product of Bank BTPN, held a press briefing
          Management (HCM) process by partnering with                  to celebrate its seventh anniversary. At seven years
          Darwinbox, a globally recognized human resource              old, Jenius remains committed to innovation through
          technology provider. Through this platform, Bank BTPN        co-creation and collaboration with the digital-savvy
          seeks to drive innovation in the digital transformation      community. As part of the seventh anniversary
          of all integrated HR processes, spanning from new            celebration, Jenius conducted a survey “Jenius Study:
          employee integration, performance management                 Digital Savvy Financial Habits 2023” and introduced
          processes, to a continuous learning approach and a           the “7 Days 7 Nights #becomemorejenius” program,
          survey system designed to gauge employee feedback.           featuring a range of special offers for Jenius’ users to
          This includes all aspects, from talent acquisition, talent   enjoy.
          management, to employee development.




          04 SEPTEMBER 2023                                            12 SEPTEMBER 2023
          On National Customer Day, the Board of Directors and         Bank BTPN has entered into a collaboration with Great
          management of Bank BTPN personally engaged in                Eastern General Insurance Indonesia (GEGI) in the area
          serving customers, explaining products, empowering           of bancassurance distribution. The collaboration was
          customers, and facilitating credit agreements at             marked by the signing of a cooperation agreement,
          various Bank BTPN branches in Indonesia. They also           attended by Jeffrey Tjoeng, Head of Business Banking
                                                                       at Bank BPTN, and Linggawati Tok, the Marketing
          distributed roses and chocolates to customers and
                                                                       Director representing GEGI. Through this collaboration,
          visited several Bank BTPN customers. Bank BTPN
                                                                       Bank BTPN is actively contributing to the government’s
          held a range of activities for customers from different      efforts to achieve sustainable development goals
          business units, including Sinaya, Micro Business,            by fostering the growth of small and medium-sized
          Small and Medium Enterprises, Jenius, and retirement.        enterprises in Indonesia. The synergy between Bank
          These activities included providing health services for      BTPN and GEGI encompasses six products: industrial
          customers, Retirement Week, offering attractive deals        all-risk insurance, earthquake insurance, marine cargo
          from Jenius, and the Daya program. The event was             insurance, motor vehicle insurance, contractor all-
          also attended by officials from partners, PT TASPEN          risk insurance, and contractor’s plants and machinery
          (Persero) and PT ASABRI (Persero).                           insurance. These products are tailored to meet the
                                                                       protection needs of Bank BTPN customers for their
                                                                       businesses and assets.




20   Sustainability Report 2023 PT Bank BTPN Tbk
Page 27
 24 SEPTEMBER 2023
 Jenius, a product of Bank BTPN,
 provided support for the Garmin
 Run Asia Series 2023 event at
 Uptown Park - Summarecon Mall
 Serpong, Tangerang. The running
 event, themed “From Zero to Hero,”
 was attended by 5,000 participants
 of various ages who took part in the    06 OCTOBER 2023
 5K, 10K, and 21K races as well as
 the Kids Dash. Jenius showcased         Jenius, a product of Bank BTPN, is once again launching the 7 Days 7
 the #laribarengjenius program           Nights #jadilebihjenius program by introducing the Jenius Online Travel
 at the event, featuring a fun run,      Fair for the first time, scheduled from October 11th to 17th, 2023.
 workshops, and a talk show on           During this event, discounts of up to Rp7 million were made available
 preparing for running competitions.     for use on Traveloka for customers to purchase transportation tickets,
 Additionally, Jenius offered special    accommodations, and vacation activities. The Jenius Online Travel Fair
 deals exclusively for Jenius users.     introduces a novel concept that has not been seen before. Jenius users
                                         can engage in a voucher competition for the chance to secure an up to
                                         Rp7 million discount by first purchasing a voucher for Rp7,007 on Loket.
                                         com using Jenius Visa Credit and Debit Cards.




12 OCTOBER 2023                                                 02 NOVEMBER 2023
Bank BTPN held the 2023 Sustainability Seminar                 Bank BTPN announced a partnership with PT
“Addressing Climate Change through Decarbonization             Manulife Asset Management Indonesia (“MAMI”),
Initiatives across Wider Business Sectors” with the theme      the largest investment manager in Indonesia.
“Beyond Energy Transition: Seizing Opportunities in The        Through this collaboration, Bank BTPN will
Pathway to Net Zero Economy”. The seminar, attended            enhance its business by offering seven Manulife
by at least 200 invited guests from 60 companies, took
                                                               mutual funds to provide investment solutions for
place at The Westin Hotel Jakarta on October 12, 2023.
                                                               its customers. The products include one money
This event aimed to share knowledge with corporate
customers about decarbonization efforts that can be            market mutual fund in rupiah denomination;
undertaken by various business sectors. In addition to         two fixed income mutual funds in rupiah
customers, the event was attended by 18 journalists            denomination; one fixed income mutual fund in
from various media outlets. The seminar featured three         US dollar denomination; two equity mutual funds
keynote speakers: Abdul Malik Sadat Idris, Head of             in rupiah denomination; and one offshore equity
Region I, National Development Planning Agency; Lufaldy        mutual fund in US dollar denomination with a
Ernanda, Director of Derivative Financial Supervision and      portfolio consisting of globally scaled Asian
Carbon Exchange at the Financial Services Authority            company stocks.
(OJK); and Ignatius Denny Wicaksono, Head of Business
Development 2 Division at the Indonesia Stock Exchange.




                                                                          Sustainability Report 2023 PT Bank BTPN Tbk   21
Page 28
         22 NOVEMBER 2023                                                            23 NOVEMBER 2023
         Bank BTPN held the Economic Outlook 2024 event along with                   Jenius from Bank BTPN held a press
         the launch of its latest product innovation, ESG Deposit, at the            conference introducing the expansion
         Grand Ballroom of Hotel Indonesia Kempinski, Jakarta. In this               of Yay Points redemption options
         year’s Economic Outlook event, Bank BTPN adopted the main                   on the Jenius Visa Credit Card,
         theme “Navigating through 2024: Strategies for Resilience and               now including a travel category for
         Growth,” reflecting the bank’s strategic vision to walk alongside           exchanging points for KrisFlyer Miles
         its customers through the challenges of the coming years with               and Traveloka Points. This represents
         resilience and facilitating sustainable economic growth. The                a significant development following the
         seminar featured three keynote speakers: Rabin Indrajad Hattari,            earlier introduction of a new scheme in
         Secretary of the Ministry of State-Owned Enterprises, Febrio                May 2023 which allowed Yay Points to
         Kacaribu, Head of the Fiscal Policy Agency (BKF) of the Ministry            be exchanged for e-Wallet balances,
         of Finance of the Republic of Indonesia, Chatib Basri, Co-Founder           specifically GoPay and OVO.
         of the Creco Research Institute, Yustinus Prastowo as the Special
         Staff of the Minister of Finance for Strategic Communication, and
         Muhammad Qodari as a Political Observer and Executive Director
         of Indo Barometer.




         30 NOVEMBER 01 DECEMBER 2023
                                                                    Bank BTPN held its Year-end Media Gathering 2023
                                                                    themed “Back to the Roots: Getting to Know Bank
                                                                    BTPN Again” at the De Driekleur Building in Bandung.
                                                                    This event was also organized to express the bank’s
                                                                    gratitude and appreciation to the media for their support
                                                                    and collaboration. The President Director of Bank BTPN
                                                                    Henoch Munandar, the Compliance Director of Bank
                                                                    BTPN Dini Herdini, the Head of Wholesale, Commercial,
                                                                    and Transaction Banking of Bank BTPN Nathan
                                                                    Christianto, the Digital Banking Business Stream Head
                                                                    of Bank BTPN Anita Ekasari, and the Communications
                                                                    and Daya Head of Bank BTPN Andrie Darusman, were
                                                                    present at the event. The series of activities commenced
                                                                    with a sharing session featuring Bank BTPN speakers in
                                                                    front of 22 journalists from 11 national media and 11
                                                                    local media in Bandung.




22   Sustainability Report 2023 PT Bank BTPN Tbk
Page 29
07 DECEMBER 2023
                      Bank BTPN held an Extraordinary General Meeting of
                      Shareholders (EGMS) on December 7, 2023. During the
                      EGMS, the shareholders officially approved: (1) the plan
                      to withdraw the Company’s shares resulting from the
                      buyback (“Treasury Stock”); and (2) the plan for a Capital
                      Increase with Preemptive Rights (“PMHMETD”) or Rights
                      Issue, in accordance with the Company’s Articles of
                      Association and the applicable regulations.




12-13 DECEMBER 2023
                      Bank BTPN held its annual event, “Daya Fest
                      2023,” on December 12-13, 2023. Under the theme
                      “Empowerment for a More Meaningful Sustainable Life,”
                      the series of events at Daya Fest 2023 showcased Bank
                      BTPN’s commitments to implementing sustainable
                      development, emphasizing the crucial involvement of
                      external stakeholders engaging with the bank, and the
                      provision of educational initiatives aimed at enhancing
                      public awareness of sustainability topics.




                                          Sustainability Report 2023 PT Bank BTPN Tbk   23
Page 30
            MESSAGE FROM
            THE BOARD OF
            COMMISSIONERS
            AND DIRECTORS
            Bank BTPN is committed to achieving
            greater sustainability and generating
            positive impacts for both society
            and the environment through careful
            implementation of sustainability
            policies and strategies during
            operational activities.




24   Sustainability Report 2023 PT Bank BTPN Tbk
Page 31
Message from
        fromThe
             TheBoard
                  Boardofof
Commissioners and
Commissioners  andDirectors
                   Directors




                               Sustainability Report 2023 PT Bank BTPN Tbk   25
Page 32
                                                   Bank BTPN
                                                   continues to
                                                   adapt, learn, and
                                                   grow in line with
                                                   the dynamics of
                                                   environmental
                                                   changes and global
                                                   sustainability
                                                   demands.



                                                    Chow Ying Hoong
                                                    President Commisioner




26   Sustainability Report 2023 PT Bank BTPN Tbk
Page 33
                              Message from The Board of
                              Commissioners and Directors




MESSAGE FROM THE
PRESIDENT COMMISSIONER
[GRI 2-22] [OJK A1]




Dear Respected Stakeholders,                                Bank BTPN is committed to continuously developing its
                                                            capacity to ensure the achievement of its sustainability
Climate change has emerged as a critical global issue       goals. One of the regular steps taken involves the
due to its widespread impact on various economic            enhancement of management, employee, customers,
sectors, including banking. As an integral part of the      and partners competencies through diverse training
global community, Bank BTPN is actively committed           and development programs. In particular, Bank BTPN
to preserving the planet through the incorporation of       aims to support the capacity development of senior
more sustainability initiatives within its operations.      management in sustainable finance.
Bank BTPN is confident that, with the support of
all stakeholders, it can positively contribute to the       Bank BTPN acknowledges that the skills and
environment and generate sustainable social impact.         knowledge acquired by the management, employees,
                                                            partners, and stakeholders in general play a pivotal role
Bank BTPN seeks to actively address climate change          in strengthening sustainability practices throughout
issues through the implementation of our Sustainable        the organization.
Finance Action Plan (Rencana Aksi Keuangan
Berkelanjutan/RAKB) which continues to serve as the         Additionally, Bank BTPN consistently monitors the
guideline for our direction and strategy in upholding       development of sustainability-related regulations and
our sustainability principles. Bank BTPN’s RAKB is          ensures strict compliance with these regulations. Bank
designed to integrate responsible financial practices in    BTPN strives to always comprehend and implement
our operations and endorses initiatives that minimize       the latest standards related to sustainable banking
environmental impact. The development of Bank               practices. This not only enhances our compliance with
BTPN’s RAKB plays a crucial role in providing clear         legal requirements but also ensures that our practices
guidance on the formulation of policies and financial       align with global standards that promote global
products that bolster sustainable economic growth.          sustainability goals. In this case, the directors of Bank
                                                            BTPN are responsible for executing the Environmental,
Furthermore, Bank BTPN is committed to supporting           Social, and Governance (ESG) strategy. This approach
the achievement of the SDGs through a range of              aims not only to enhance Bank BTPN’s compliance
ongoing initiatives. Bank BTPN believes that the            with legal aspects but also to ensure that the bank’s
active involvement of the banking sector towards            activities are performed in accordance with global
achieving the SDGs is a very essential factor for           standards that promote sustainability goals.
building an inclusive economy, strengthening
environmental resilience, and creating a sustainable
society. As part of our commitment to sustainability,
Bank BTPN publishes an annual Sustainability Report
to strengthen our transparency and accountability
regarding our endeavours towards achieving our
sustainability goals.




                                                                          Sustainability Report 2023 PT Bank BTPN Tbk   27
Page 34
       This commitment aligns with Bank BTPN’s role as part         Therefore, the Board of Commissioners would like
       of Sumitomo Mitsui Bank Corporation (SMBC Group),            to express sincere appreciation for the dedication
       an international bank that has signed on to various          and outstanding professionalism demonstrated by
       sustainability initiatives, such as the Equator Principles   the Board of Directors and management during this
       (EP) and Principles for Responsible Banking (PRB).           reporting period. The hard work, innovation, and
       These two initiatives further encourage Bank BTPN            perseverance of the Board of Directors have laid a
       to implement better risk management by integrating           solid foundation for the sustainability of Bank BTPN,
       ESG aspects into the decision-making process and             not only as a business entity but also as a positive
       financing.                                                   agent of change in achieving sustainable finance.

       Various initiatives undertaken by Bank BTPN also aim         The Board of Commissioners would also like to express
       to support SMBC Group’s agenda in achieving its Net          our utmost gratitude to all employees enthusiastically
       Zero Emissions (NZE) 2030 targets for operational            contributing to implementing sustainable practices
       activites, as well as the 2050 targets for the loans         in all operational aspects of the bank. Additionally,
       and investment portfolio. Therefore, SMBC Group will         the Board of Commissioners would like to extend
       also continue to increase the level of financing in the      our gratitude to the external stakeholders for their
       environmental sector, such as in the renewable energy        valuable support. Our strong collaboration with
       sector. This initiative has also been adopted by Bank        partners, regulators, customers, and the community
       BTPN. In addition, Bank BTPN also strives to increase        has significantly bolstered our endeavours to promote
       its portfolio in the Sustainable Business Activities         sustainable finance. This support is a crucial pillar in
       Category (KKUB) as outlined by the Financial Services        Bank BTPN’s journey towards a more sustainable and
       Authority (Otoritas Jasa Keuangan/OJK).                      inclusive future.

       2023 was a year of recovery from the pandemic’s              Through collaboration and shared commitment,
       impact. Despite the lack of significant improvement          we can address the challenges of climate change
       in the global economy, the Board of Directors of             and engage in responsible financial management.
       Bank BTPN has made concerted efforts to enhance              Let’s welcome the year 2024 with a spirit of greater
       its performance during these challenging times.              sustainability and greater commitment to preserving
                                                                    the earth together.




                                                     Jakarta, February 28, 2024




                                                        Chow Ying Hoong
                                                      President Commissioner




28   Sustainability Report 2023 PT Bank BTPN Tbk
Page 35
Message from The Board of
Commissioners and Directors




                              Sustainability Report 2023 PT Bank BTPN Tbk   29
Page 36
                                                   The sustainability
                                                   initiatives pursued
                                                   by Bank BTPN
                                                   are aim to at
                                                   supporting the
                                                   achievement of
                                                   the Sustainable
                                                   Development Goals
                                                   (SDGs), while
                                                   also increasing
                                                   our active role in
                                                   climate change
                                                   management.




                                                   Henoch Munandar
                                                   President Director




30   Sustainability Report 2023 PT Bank BTPN Tbk
Page 37
                                    Message from The Board of
                                    Commissioners and Directors




MESSAGE FROM THE
PRESIDENT DIRECTOR
[GRI 2-22] [OJK A1]




Dear Respected Stakeholders,                                              •    Developing the BTPN Tower as a green building
                                                                               that has achieved the Greenship certificate from
2023 was the year when the world began to recover                              Green Building Council Indonesia with a Gold
from the pandemic. According to the IMF’s World                                rating.
Economic Outlook, the global economy was still in the                     •    Adopting the use of renewable energy in the
process of recovering from the pandemic during 2023.1                          company’s operations, such as installing solar
In response to this challenge, Bank BTPN has taken the                         panels at one of Bank BTPN’s branch offices
responsibility of supporting economic recovery while                           and providing low-emission operational vehicles
continuing to prioritize sustainable financial initiatives.                    (electric cars) for senior management.
The year 2023 has been successful, due to the support                     •    Implementing the Project Dolfin (Digital Workspace
of all stakeholders. Therefore, Bank BTPN express                              Flexi Office in New Normal)2 initiative that allows
gratitude for the support of all stakeholders.                                 employees to work remotely.            Through this
                                                                               initiative, employees do not have to go to the office
                                                                               every day, thereby reducing fuel consumption for
POLICY TO RESPOND THE CHALLENGES                                               commuting and minimizing electricity usage in the
[OJK D.1.a]                                                                    office. In addition, Project Dolfin also encourages
Bank BTPN acknowledges that preserving the earth is                            BTPN employees to have a more balanced life.
a shared responsibility in building a better future and                   •    Implementing portfolio financed emissions control
ensuring a healthy planet for the next generation. As                          with the target of getting to Net Zero in portfolio
a tangible demonstration of this commitment, Bank                              financed emissions by 2050.
BTPN actively participates in sustainability initiatives,
recognizing that sustainability is not merely a demand,                   The dedication of Bank BTPN to climate management is
but a profound commitment to making positive                              demonstrated by the presence of a special committee
contributions to the environment and society.                             tasked with strategic planning and sustainability
                                                                          implementation within Bank BTPN, namely the
Bank BTPN’s sustainability initiative is ingrained in                     Sustainability Committee, chaired by the Director of
the company’s values and permeates its corporate                          Compliance and Legal.
culture, strategic planning, products and services, and
day-to-day operations. Bank BTPN’s commitment to                          Bank BTPN in 2023 will also continue to strengthen
sustainability is fortified through the implementation                    its commitment to the implementation of sustainability
of the RAKB. By integrating this commitment into the                      practices by issuing a Sustainability Policy. This
RAKB, Bank BTPN not only affirms its resolve to make                      Sustainability Policy is a basic guideline for all
a positive impact on sustainability, but also establishes                 employees involved in the provisions that must be met
a robust framework to ensure that this commitment                         by Bank BTPN in carrying out responsible banking
continues to steer every decision and action of the                       business activities and prioritizing sustainability
company.                                                                  aspects. To ensure that sustainability policies are
                                                                          always in accordance and relevant to applicable
Bank BTPN demonstrates its commitment to                                  policies and regulations, Bank BTPN conducts a review
environmental sustainability through the integration                      and evaluation of the Sustainability Policy every year.
of ESG risks into the bank’s financing or operational
processes, manifested in the form of:                                     In addition, in 2023, Bank BTPN will also launch
•    Offering a suite of sustainable finance products                     a sustainability page on Bank BTPN’s official
     and services, including green financing and ESG                      website, namely https://www.btpn.com to support
     Deposit.                                                             and strengthen information transparency related to
•    Adopting digital technologies to reduce paper                        sustainability policies and performance.
     usage and hence carbon footprint.



1
  International Monetary Fund. World Economic Outlook. Navigating Global Divergences. Oktober 2023. https://www.imf.org/en/
Publications/WEO/Issues/2023/10/10/world-economic-outlook-october-2023 [Accessed: 4 Jan 2023]
2
  Remote dan Balance Life

                                                                                           Sustainability Report 2023 PT Bank BTPN Tbk   31
Page 38
       Bank BTPN also pays attention to the social aspects of      In the social aspect, Bank BTPN enhanced the
       sustainability implementation by developing a business      capabilities of MSME entrepreneurs. Empowering
       model centered on the motto “Do good do well.” Bank         MSMEs is a key factor in enhancing societal welfare
       BTPN not only acts as a provider of financial services,     and fostering economic growth in Indonesia, as
       but also as a partner in enhancing the community’s          these enterprises significantly contribute to GDP,
       capacity to build more meaningful lives. This aligns        employment, and equitable development. Bank BTPN
       with Bank BTPN’s vision to become the preferred bank        has provided training to 7,700 MSME entrepreneurs and
       in Indonesia that can significantly change millions of      has also offered various information and empowerment
       people’s lives, with the support of digital technology.     resources online through the daya.id website.

       Through Daya Program, Bank BTPN empowers                    In addition to MSME participants, Bank BTPN also
       customers and the community through its four                empowered the community by enhancing financial
       pillars: competence development, financial literacy,        skills through seminars, infographics, and posters on
       capacity to grow for business, and sustainable living.      Bank BTPN’s digital channels. This Financial Literacy
       Empowerment fosters an environment in which                 Program has now reached 2,705,138 people.
       individuals can actively participate in making decisions
       concerning finance, education, health, and various          An equally crucial endeavor is to increase the capacity
       other facets of life. Through offering appropriate access   of employees who spearhead Bank BTPN’s business
       and support, we aim to cultivate a more self-reliant,       performance. During 2023, Bank BTPN conducted
       empowered, and well-managed community. Bank                 753 training programs attended by 6,544 employees
       BTPN is committed to making a positive contribution to      with a total training hours of 322,849 hours, so that the
       community empowerment and view this as an integral          average training hours for each employee is 49 hours
       part of our sustainability mission.                         per year. Bank BTPN also conducts empowerment
                                                                   activities for employees entering retirement, in the
       All of Bank BTPN’s sustainability programs are              form of financial training, psychological and moral
       grounded in the triple bottom line philosophy (People,      encouragement, so that retirement can be enjoyed
       Planet, Profit), while also supporting the achievement      vigorously and productively. This near-retirement
       of the SDGs and contributing to climate change              training was attended by 70 participants.
       management.
                                                                   In 2023, Bank BTPN successfully achieved awards
                                                                   from various parties, including: Best Bank 2023
       SUSTAINABLE FINANCE IMPLEMENTATION                          from Infobank Magazine, Most Outstanding Sharia
       [OJK D.1.b]                                                 Banking in Microfinance from CNBC Indonesia, The
       The year 2023 has been a period of great pride for          Best Performance & The Most Efficient Sharia Bank
       Bank BTPN in achieving sustainability performance.          from Bisnis Indonesia Financial Award. In the realm of
       The positive results serve as tangible proof of our         sustainability, Bank BTPN also received the Platinum
       commitment to integrating sustainable practices into        Award from the Indonesian Sustainable Development
       all aspects of our operations and decision-making. Our      Goals Award 2023 and once again secured the
       launched initiatives have led to significant progress in    Platinum Rank at the Asia Sustainability Reporting
       creating a positive impact on the environment, society,     Rating (ASRRAT) 2023 event. These achievements
       and our business.                                           are evidence of the Bank BTPN’s continued efforts to
                                                                   maintain excellent performance and deliver high-quality
       in the economic sector, Bank BTPn recorded a con-           services to its customers.
       solidated net profit of Rp 2.68 trillion on 2023.
       Additionally, Bank BTPn’s net interest income incre
       ased by 3.1% to Rp12.04 trillion, while operational in      TARGET ACHIEVEMENT STRATEGY
       come increased by 3.1% to Rp14.12 trillion.                 [OJK E.5] [OJK D.1.c]
                                                                   Implementing sustainable finance is a challenging
       To support sustainability efforts, Bank BTPN increased      journey that also promises opportunities. The finance
       its green financing portfolio, which grew by 10.9%          sector is encountering similar challenges as it strives
       compared to the previous year, with a total value of        to embed sustainable finance practices, including the
       Rp7.68 trillion. In addition, Bank BTPN issued an ESG       need for culture change, a deep understanding of risk,
       Deposit and an ESG Mutual Fund to offer investors           and the integration of sustainability into investment
       the opportunity to make investments that not only           decisions.
       yield personal income but also deliver social and
       environmental benefits.                                     In conducting business, Bank BTPN is aware of the
                                                                   financial risks related to climate change and impacts
                                                                   to nature such as biodiversity loss, deforestation risk,
                                                                   marine environmental risk, flood and water scarcity.
                                                                   In addition, Bank BTPN also acknowledges social




32   Sustainability Report 2023 PT Bank BTPN Tbk
Page 39
                               Message from The Board of
                               Commissioners and Directors




risks that may arise from business activities, such as            The bank also sees an opportunity in operational
risks related to human rights, including labor and local          efficiency initiatives, which aim to make an impact
community rights.                                                 by reducing workplace energy consumption and
                                                                  and greenhouse gas emissions. In 2023, Bank BTPN
As a result, Bank BTPN regularly provides socialization           started to adopt renewable energy in the company’s
and training sessions to encourage organizational                 operations, for example by installing solar panels that
culture transformation, helping employees across                  can convert sunlight into electrical energy in the office
different levels to embrace and contribute to                     building of Bank BTPN Gunung Sahari Branch, Jakarta.
sustainability and social responsibility. Additionally,           In addition, Bank BTPN has also started converting
the bank focuses on building the knowledge and skills             fuel-based vehicles used for Commissioners to lower-
of Board of Directors and management in sustainable               emission electric vehicles.
finance topics.
                                                                  As employee awareness continues to grow, Bank
Understanding sustainability risks is also a challenge, as        BTPN introduce working location flexibility through
banks must be able to identify, measure, and manage               Project Dolfin and integrate digital technology into
risks related to sustainability aspects. Understanding            its operations, this will effectively reduce the bank’s
this, Bank BTPN conducted an analysis of social,                  carbon footprint.
environmental, and corporate governance impacts. In
addition, Bank BTPN uses sustainability performance               The year 2023 has been a successful one, marked
metrics and indicators, and involves interested parties           by various outstanding achievements. On behalf of
in the evaluation process.                                        the management, Bank BTPN would like to express
                                                                  our gratitude to all levels of management and
Another challenge lies in integrating sustainability into         employees of Bank BTPN for their dedication and
investment decisions, which requires an understanding             extraordinary contributions to various sustainable
on how social and environmental factors can impact                finance achievements in 2023. The successful
long-term financial performance. In addressing this               implementation of sustainability initiatives and the
challenge, Bank BTPN assesses how social and                      positive achievements recorded in this report are
environmental factors may influence long-term financial           inseparable from the joint efforts, commitment, and
performance. This includes a detailed analysis of                 integrity of each individual involved. Additionally,
potential effects on the bank’s reputation, operational           we would like to extend our heartfelt gratitude to all
risks, and various business growth opportunities.                 stakeholders of Bank BTPN for their invaluable support
                                                                  and cooperation, which have been instrumental in our
In addition to these challenges, the bank has benefitted          success and sustainable growth.
from opportunities through the adoption of sustainable
finance. This includes gaining access to sustainable              Together, let us give 2024 the positive momentum
financing, as financial markets are progressively                 to continue supporting sustainable finance and
favoring investments that promote sustainable                     preserve the earth together. Through commitment and
business. Bank BTPN creates innovative products                   collaboration, we can create a financial environment
and services that promote sustainability. Bank BTPN’s             that supports sustainable growth, thereby benefiting
involvement in sustainable finance has bolstered its              both society and the environment.
reputation, making it more attractive to investors.




                                                  Jakarta, February 28, 2024




                                                      Henoch Munandar
                                                       President Director




                                                                                Sustainability Report 2023 PT Bank BTPN Tbk   33
Page 40
              BANK BTPN &
              SUSTAINABILITY
              COMMITMENT
              Bank BTPN demonstrates its
              commitment to sustainability through
              the implementation of sustainable
              policies and strategies in its
              operational and business activities,
              to create a positive impact for society
              and the environment.




34   Sustainability Report 2023 PT Bank BTPN Tbk
Page 41
Bank Btpn & Sustainability
Commitment




                             Sustainability Report 2023 PT Bank BTPN Tbk   35
Page 42
       Bank BTPN considers sustainability to be an endeavor                     As part of the SMBC Group, Bank BTPN is strengthening
       to manage social and environmental aspects in a                          its sustainability commitment to support the SMBC
       manner that creates a more meaningful life for present                   Group's target to achieve Net Zero Emission (NZE)
       and future generations. Consequently, Bank BTPN is                       by 2030 for the Bank's operational activities; and by
       aware of the significance of developing sustainable                      2050 for the NZE target for the Loan and Investment
       business practices as a strategic measure, not only                      Portfolio. This commitment is part of how SMBC
       to attain short-term financial success, but also to                      Group contributes to a more sustainable future, by
       foster a lasting positive impact on society and the                      taking specific actions to address climate change and
       environment.                                                             advance a better society, including adopting long-
                                                                                term goals to achieve net zero emissions within the
                                                                                spirit of the Paris Agreement.




            Roadmap
            addressing                                               Scope 1 & 2
            climate change                         Scope 3           Net zero GHG         Zero balance for loans     Net zero GHG emissions
                                                   Disclose mid-to   emissions            extended to coal-fired     [Loan & investment
                                                   long-term goals   [Own operation]      power plant                portfolio]




                                               2023                   2030              2040                        2050




       In line with the SMBC Group, Bank BTPN believe that robust integration of sustainability principles is essential to
       achieving sustainable business growth.
                                                                                                           Investment and Optimization of
                                                                                                           Assets
           Cost Reduction and Efficiency
                                                                                                           Investment can pay-off better with oversight
           Creating a sustainable business can deliver                                                     of long-term environmental issues and
           cost savings and efficiencies e.g. lower energy                                                 capital allocation with a better understanding
           consumption, reduced water intake                                                               of climate risks




           Enhanced Credibility                                                                            Top-Line Growth
           A sustainable business helps achieve stronger                                                   Achieve better access to resources through
           stakeholder involvement, better access and                                                      stronger relations with stakeholder and
           retention of staff                                                                              regulators




           Create New Competitive and                                                                      Risk Mitigation and Regulatory
           Profitable Business Models                                                                      Interventions
           There is extensive evidence on the link between                                                 Environmental and social risks are better
           sustainable business models and improved                                                        managed when a company is prepared and
           commercial returns                                                                              has strategic freedom via de-risking from
                                                                                                           regulatory changes (e.g. carbon taxes)




       Bank BTPN realizes this commitment by continuously                      The Sustainability Policy governs environmental and
       strengthening the integration of sustainability principles              social aspects of Bank BTPN’s operational and business
       in all aspects of its business and operational activities.              activities in accordance with the direction of regulators,
       Having established the Sustainability Committee in                      SMBC Group, and international standards. This policy
       2022, Bank BTPN also went on to issue a Sustainability                  also helps to increase awareness among employees
       Policy is a guideline for all employees involved in                     and foster a culture that supports sustainability at
       supporting Bank BTPN in its responsible banking                         Bank BTPN. To ensure that sustainability policies
       business activities and other sustainability related                    are in accordance and relevant to applicable policies
       priorities.                                                             and regulations, Bank BTPN conducts a review and
                                                                               evaluation of the Sustainability Policy annually.




36   Sustainability Report 2023 PT Bank BTPN Tbk
Page 43
                                           Bank Btpn & Sustainability
                                           Commitment




This year, Bank BTPN also launched a sustainability page on Bank BTPN’s official website (www.btpn.com) to
support and strengthen information transparency related to sustainability policies and performance.


Bank BTPN’s Sustainability Strategy [GRI 2-22] [OJK A1]
To fulfill its sustainability commitments, Bank BTPN has formulated the following sustainability strategy:




    Development                        Employee                          Implementation of Sustainable
    of Sustainable                     Capacity Building                 Finance Principles Within the
    Finance Product                                                      Organization and Governance
    Innovations



1. Development of Sustainable Finance Product                      3. Implementation       of   Sustainable     Finance
   Innovations                                                        Principles Within the Organization and
   As a financial services provider, Bank BTPN                        Governance
   continues to strengthen its commitment to                          Bank BTPN is committed to integrating
   supporting sustainable finance in Indonesia by                     sustainability principles into its business and
   actively promoting an economic system oriented                     operations by prioritizing practices that value
   towards sustainable economic, social, and                          the environment and society. The bank actively
   environmental principles. To this end, Bank BTPN                   promotes a sustainability culture by focusing
   continues to develop sustainable finance product                   on energy conservation, greenhouse gas (GHG)
   innovations guided by its Sustainability Policy and                emissions reductions, and other initiatives aimed
   RAKB. For further information on Bank BTPN’s                       at achieving net-zero emission (NZE) for Scope
   Sustainability Policy and RAKB, please refer to                    1 and 2 emissions by 2030. Furthermore, Bank
   www.btpn.com.                                                      BTPN aims to attain net-zero GHG emissions
                                                                      for scope 3 (financed emission) by 2050. Having
2. Employee Capacity Building                                         these targets underscores the bank’s commitment
   Bank BTPN upholds sustainability principles in                     to mitigating climate change. For more information
   its management of human resources to generate                      on how we are working to achieve these targets,
   lasting value for the organization, its employees                  please refer to the “Prioritizing Environmental
   and the broader community. Human resource                          and Climate Commitments” section on page 114
   management is conducted through an approach                        and the “Innovation in Sustainable Governance”
   that encompasses well-being, diversity and                         section on page 122.
   inclusion, as well as fair and transparent treatment.
   Bank BTPN endeavors to cultivate a conducive
   work environment that empowers employees
   to make a more positive impact on society
   (#MoreThanAJourney). For further information                           Bank BTPN’s Net
   on Bank BTPN’s human resources management,
                                                                          Zero Emissions
   please refer to the “Increasing Capacity for
   Sustainability” section on page 96.
                                                                          (NZE) targets
                                                                          Bank BTPN has targeted NZE of
                                                                          operations by 2030 and NZE of
                                                                          loan and investment portfolios by
                                                                          2050.




                                                                                Sustainability Report 2023 PT Bank BTPN Tbk   37
Page 44
       Sustainability Governance
       Bank BTPN took concrete steps to demonstrate its            The Board of Commissioners and the Board of
       commitment to sustainability and climate change             Directors have appointed a dedicated officer, the
       mitigation by establishing the Sustainability Committee     Director of Compliance and Legal, to be responsible
       in 2022. This committee is authorized to determine          for the sustainability function within the company.
       the direction of climate risk management policies and       Oversight day-to-day operations is delegated to the
       identify new business opportunities. The Sustainability     Communications and Daya Head, who also coordinates
       Committee consists of the Board of Directors and the        the respective heads of the Lines of Business (LOB) and
       heads of each relevant business unit. The committee         relevant support functions. Additionally, Bank BTPN has
       is responsible for formulating sustainability strategies,   Daya & Sustainability Development Unit to coordinate
       policies, and targets, as well as overseeing the            the integration of sustainability practices across
       implementation of climate and sustainability issues with    relevant directorates. [GRI 2-13] [OJK E.1] [TCFD G2]
       the following duties and responsibilities:
       1. Formulating strategies, policies, and targets related    To ensure compliance with the bank’s sustainability
           to sustainable finance at Bank BTPN.                    policies, Bank BTPN utilizes the Three Lines of Defense
       2. Monitoring,        evaluating,       and      making     mechanism. The audit team conducts social and
           recommendations regarding the implementation of         environmental audits of operations on an annual basis,
           sustainable finance in accordance with regulatory       additionally, for Bank BTPN’s business activities, if such
           and SMBC directions.                                    business activities already have and apply governance
                                                                   on social and environmental aspects, this will be
       The company’s environmental, social, and governance         included in the related audit.
       (ESG) policies and business strategies are deliberated
       upon during the General Meeting of Shareholders             In addition, Bank BTPN integrates sustainability
       (GMS), convened at least once a year. The formulation       principles into the monitoring and performance
       and execution of these policies takes into account input    evaluation mechanisms of the Compliance and Legal
       from both internal and external stakeholders through        Directorates, as well as the relevant business units or
       diverse channels provided by Bank BTPN, including           Lines of Business (LoBs), ensuring that the achievement
       corporate emails, letters, reports and other means. The     of sustainability targets is duly considered.
       feedback gathered from these interactions is used to
       help guide and improve the company’s sustainability         The performance assessment and evaluation
       performance. [GRI 2-12]                                     mechanism (Key Performance Indicator/ KPI) also
                                                                   extends to Daya & Sustainability Development Unit
       The Board of Commissioners regularly receives               and the business directorates, ensuring that the
       sustainability update reports, including on climate-        achievement of sustainability targets is duly considered.
       related issues annually, while the Board of Directors
       receives these update reports twice a year. The Board
       of Commissioners and the Board of Directors utilize this
       information to review and assess policies, strategies,
       budgets and climate-related risk management.
       [TCFD G1]




38   Sustainability Report 2023 PT Bank BTPN Tbk
Page 45
                          Bank BTPN & Sustainability
                          Commitment




Sustainability Policy of
Bank BTPN

     n 2023, Bank BTPN introduced a Sustainability Policy to
     provide a foundational framework for employees in the bank.
     This Sustainability Policy is a basic guideline for all Bank BTPN
employees and outlines the provisions of Bank BTPN in conducting
responsible banking practices and other sustainability priorities.

The aim of this Policy is to establish governance of environmental
and social aspects in Bank BTPN operational and business
activities in accordance with regulatory directives, SMBC Group,
and international standards. Additionally, it is utilized to enhance
the awareness and skills of all officials and employees in fostering a
sustainability culture at Bank BTPN.

To ensure that the sustainability policy aligns and remains relevant
to applicable policies and regulations, Bank BTPN conducts an
annual review and evaluation of the Sustainability Policy, regularly.




                                                       Sustainability Report 2023 PT Bank BTPN Tbk   39
Page 46
       Role of the Governance Body in
       Sustainability Reporting [GRI 2-14]
       The assessment and preparation of the Sustainability Report takes into account input from internal and external
       stakeholders and adheres to applicable national and international standards. The Sustainability Report is reviewed
       by all relevant directorates and approved by the Board of Directors and Commissioners.

       In the preparation process, all disclosures submitted have received confirmation and approval from the relevant
       Directorate. Material topics around sustainability performance are determined based on surveys with stakeholders.
       The Communications & Daya Division is on duty.



       RELATIONSHIP WITH STAKEHOLDER
       [GRI 2-29] [OJK E.4]

                                                                                                                   Governance
                                                                               Engagement Methods
          Stakeholders    Establishment Basis             Topic                                                    Management
                                                                                  and Frequency
                                                                                                                    Function

        Shareholders and • Dependency           • Organizational          • Providing information on          • Corporate Secretary
        Investors        • Influence              Governance                Bank BTPN’s achievements          • Investor Relation
                         • Responsibility       • Economic Performance      through the General Meeting
                                                  Achievement               of Shareholders, quarterly
                                                • Sustainable Finance       reports, and the issuance of
                                                                            annual reports
                                                                          • Direct communication and
                                                                            analysis to ensure the delivery
                                                                            of material information
                                                                          • Meetings as needed, at least
                                                                            once a year

        Customer         • Dependency           • Customer Protection     • Provision of products and         • Line of Business
                         • Responsibility       • Sustainable               services in accordance with       • Compliance
                         • Influence              Relationships             applicable regulations            • Corporate
                         • Geographic           • Sustainable Business    • Timely, adequate, clear,            Communication
                           Proximity            • Net Zero Emission         and accurate provision of         • Daya & Sustainability
                                                                            information on products and
                                                                            services
                                                                          • Development of high-quality
                                                                            services to ensure customer
                                                                            satisfaction
                                                                          • Implementation of Daya
                                                                            Program
                                                                          • Advertising and promotional
                                                                            media as needed
                                                                          • Implementation of sustainable
                                                                            finance seminars for customers
                                                                          • Meetings are convened
                                                                            whenever a customer visit
                                                                            occurs, or at least once a year

        Employees        • Dependency           • Industrial relations   • Objective, transparent, fair, and • Human Resources
                         • Responsibility       • Protection and working   equal management of Bank
                         • Influence              conditions               BTPN’s personnel
                         • Attention            • Competence  building   • Establishing a conducive
                         • Geographic           • Career development and   work environment for optimal
                           Proximity              self-actualization       productivity
                                                • Sustainable finance    • Career development through
                                                • Sustainability           talent management system and
                                                                           assessment center
                                                                         • Implementation of education
                                                                           and sustainability seminars for
                                                                           employees
                                                                         • Meetings for internal activities




40   Sustainability Report 2023 PT Bank BTPN Tbk
Page 47
                                             Bank Btpn & Sustainability
                                             Commitment




                                                                                                                  Governance
                                                                               Engagement Methods
 Stakeholders    Establishment Basis               Topic                                                          Management
                                                                                  and Frequency
                                                                                                                   Function

Community        • Dependency            • Education and Culture          • Intensification of involvement in • Human Resources
and Non-         • Responsibility        • Technology and Access            community activities covering     • Daya & Sustainability
Governmental     • Influence               to Infrastructure                education, empowerment,
Organizations    • Geographic            • Welfare and Income               culture, religion, humanity and
(NGOs)             Proximity             • Sustainable Finance              the environment
                                         • Sustainability                 • Implementation of Daya
                                         • Environment                      Program
                                                                          • Conducting sustainable finance
                                                                            seminars
                                                                          • Meetings as needed, at least
                                                                            once a year

Business         • Dependency            • Sustainable                    • Clear terms of partnership      • Procurement
Partners/        • Conflicting Opinion     Relationships                  • Transparent performance         • Daya & Sustainability
Suppliers        • Influence             • Economy                          assessment
                                         • Equity                         • Regular assessments
                                         • Sustainable Finance            • Meetings as needed
                                         • Sustainability                 • Implementation of
                                         • Human rights                     sustainability and human rights
                                                                            seminars for Partners and
                                                                            Suppliers
                                                                          • Meetings as needed, at least
                                                                            once a year

Government and   • Dependency            • Compliance with Laws           • Refinement of the latest Good    • Compliance
Regulators       • Responsibility          and Regulations                  Corporate Governance (GCG)       • Corporate Secretary
                 • Conflicting Opinion   • Commitment to Banking            Manual                           • Risk Management
                 • Influence               Regulations                    • Implementation of GCG
                 • Geographic            • Clear, Accurate,                 principles in all work units
                   Proximity               Comprehensive and              • Periodic meetings to improve
                                           Timely Communication             Bank BTPN
                                           and Reporting                  • Implementation of seminars
                                         • Sustainable Finance              and Forum Group Discussion
                                                                            (FGD) related to sustainable
                                                                            financial policies
                                                                          • Meetings as needed, at least
                                                                            once a year

Community        • Dependency            • Business Development           • Direct visits                • Line of Business
Leader/Local     • Conflicting Opinion   • Regional Growth                • Official meetings and        • Customer Service
Official         • Influence                                                consultations                • Corporate
                 • Geographic                                             • Development Planning Meeting   Communication
                   Proximity                                                (Musrenbang)
                                                                          • Periodic meetings as needed
                                                                          • Execution of Daya program




                                                                                       Sustainability Report 2023 PT Bank BTPN Tbk      41
Page 48
       Bank BTPN’s Strategy and Contributions
       to the Sustainable Development Goals (SDGs)
       [GRI 2-22] [OJK A1]

       Through its various initiatives and programs, Bank BTPN strives to foster positive and sustainable change in
       Indonesia.



              Bank BTPN’s commitment is underscored by its achievement of the
                  Platinum award at the 2023 Indonesia SDGs Award (ISDA).
          This accolade serves as a testament to the bank’s unwavering commitment
            and dedication to realizing SDG 8: Decent Work and Economic Growth.



            NO POVERTY



                          •   Supporting economic growth through financing products for retail, micro, SMEs, and
                              corporate businesses in Indonesia.
                          •   Providing employment for 6,636 employees.
                          •   Through the Daya program, providing financial literacy training for the community and
                              training for the development of SMEs.
                          •   Implementing economic recovery and customer loan restructuring programs during the
                              COVID-19 pandemic.
                          •   Expanding customer business market access online through daya.id and offline through
                              customer product bazaars at Bank BTPN offices.
                          •   Developing ESG Mutual Fund for environmental, social, and governance purposes,
                              expected to have an impact on improving the general welfare of society and reducing
                              poverty.




            ZERO HUNGER



                          •   Provision of financing for sustainable food & agriculture activities.




            Good Health and Well-being



                          •   Through daya.id, providing online training and information on health and business
                              development for the community.
                          •   Providing elderly-friendly branch facilities.
                          •   Providing health facilities for employees and customers during the COVID-19 pandemic.
                          •   Ensuring the implementation of health protocols in all activities and operation of Bank
                              BTPN.
                          •   Facilitating employee sports activities through BTPN Club.




42   Sustainability Report 2023 PT Bank BTPN Tbk
Page 49
                                  Bank Btpn & Sustainability
                                  Commitment




quality education


          •   Through the daya.id program, providing various training and capacity building for the
              wider community.
          •   Collaborating with Djarum Foundation to help the younger generation through the
              development of education facilities.
          •   Providing growth opportunities for employees through various training programs.




gender equality


          •   Becoming Co-founder/promoter in the Indonesia Business Coalition for Women
              Empowerment (IBCWE).
          •   Through diversity and inclusion programs, practicing equality in career development and
              employee remuneration.
          •   Providing a safe working environment for women.
          •   Providing nursing rooms for women in the workplace.
          •   Assessing the bank’s performance using the Gender Equality Assessment Result and
              Strategy (GEARS) tool.



clean water and sanitation



          •   Providing financing for the development of clean water pipeline networks in DKI Jakarta
              of Rp 8.87 trillion.




AFFORDABLE AND CLEAN ENERGY



          •   Providing financing facilities to corporations in the renewable energy sector and electricity
              providers.




Decent Work and Economic Growth



          •   Providing financing for the MSME segment.
          •   Through daya.id, conducting entrepreneurship training to support the growth of MSMEs.
          •   Providing suitable and comfortable working spaces for employees.
          •   Implementing flexible work arrangements for employees during the COVID-19 pandemic.




                                                                     Sustainability Report 2023 PT Bank BTPN Tbk   43
Page 50
            INDUSTRY, INNOVATION AND INFRASTRUCTURE



                          •   Developing technological innovations in banking services.
                          •   Collaborating with the Djarum Foundation in developing educational facilities.




            reduced inequalities


                          •   Providing financing for the retail, micro, and SME segments.
                          •   Through the Daya.id program, providing financial literacy for the community.




            sustainable cities and communities



                          •   Providing financing for the green property sector.
                          •   Reducing energy, water, and other resource consumption at Bank BTPN’s head office.
                              Bank BTPN’s head office building (Menara BTPN) is a green building that has achieved
                              a Greenship certificate from the Green Building Council Indonesia with a rating of Gold
                              rating.
                          •   Preserving culture through the management of the Dago branch office, which has received
                              an award from UNESCO.




            responsible consumption and production

                          •   Through its digital banking app (Jenius), Bank BTPN helps to reduce paper consumption
                              by customers and mitigate GHG emissions by reducing their need to travel to bank
                              locations.
                          •   The bank has discontinued the provision of bottled drinking water at its headquarters.
                          •   The bank has replaced the production of annual calendars with e-calendars.
                          •   Providing green financing for waste management infrastructures and projects which the
                              objective is to promote recycling and reusing of materials.




            CLIMATE ACTION



                          •   Providing green finance products for infrastructure essential to achieving net zero
                              emissions, including renewable energy power generators, and battery and storage
                              facilities for renewable energy.
                          •   Reducing energy consumption and GHG emissions across Bank BTPN offices.
                          •   Supporting the Net Zero Emission (NZE) Transition Plan initiated by SMBC Group.




44   Sustainability Report 2023 PT Bank BTPN Tbk
Page 51
                                                      Bank Btpn & Sustainability
                                                      Commitment




       life on land



                         •   Implementing and enforcing environmental and social risk assessment procedures in all
                             parts of Bank BTPN’s business that include no deforestation rules in the Sustainability
                             Policy.




       PEACE, JUSTICE AND STRONG INSTITUTIONS



                         •   Establishing an institution that upholds transparency and integrity, as well as providing a  
                             whistleblowing channel.
                         •   Supporting employee participation in labor unions and collective labor agreements.




       partnership for the goals



                         •   Partnering with expert partners to jointly enhance the community’s capacity in
                             entrepreneurship and health, such as the various professional partners on the daya.id
                             website.
                         •   Engaging as a member in various associations to help advance economic growth for
                             Indonesia – for example, PERBANAS.




*   In the reporting period, Bank BTPN was still looking for the opportunities to contribute to SDGs No. 14 in supporting the preservation efforts
    and responsible utilization of Marine and Ocean Resources.




                                                                                               Sustainability Report 2023 PT Bank BTPN Tbk           45
Page 52
             about
             Bank Btpn
             Bank BTPN is committed not only
             to successful financial business, but
             also to empowering the community to
             achieve a better quality of life.




46   Sustainability Report 2023 PT Bank BTPN Tbk
Page 53
About Bank BTPN




                  Sustainability Report 2023 PT Bank BTPN Tbk   47
Page 54
       company profile


       Company Name [GRI 2-1]                               Date of Establishment
       PT Bank BTPN Tbk                                     February 16, 1958

                                                            Ownership [GRI 2-1] [OJK C.3.c]
       Line of Business [GRI 2-6]                           • Sumitomo Mitsui Banking Corporation (89,98%)
       Banking Services                                     • Public <5% (7,72%)
                                                            • PT Bank Central Asia Tbk (1,02%)*
       Business Permit [GRI 2-6] [OJK C.4]                  • PT Bank Negara Indonesia (Persero) Tbk (0,15%)**
       •   Commercial Bank business permit                  • Treasury Shares (1,13%)
                                                               * Shares resulting from a Merger
       •   Foreign Exchange Bank business permit               ** Comply with Government Regulation No. 29 of 1999
                                                                  concerning the Purchase of Shares of Commercial Banks


       Products [GRI 2-6] [OJK C.4]
                                                            Operations Areas and Service Network
       •   Funding
                                                            [GRI 2-1] [GRI 2-6] [OJK C.3.d]
       •   Financing
                                                            In all regions of Indonesia
                                                            Bank BTPN serves individual, corporate, MSME and
       Legal Basis of Establishment                         other customers.
       [GRI 2-1]
       •   Notarial Deed No. 21 dated October 6, 1959 of    Business Entity [GRI 2-2]
           Notary Noezar S.H
                                                            The business entities included in this report are Bank
       •   Notarial Deed No. 203 dated May 31, 1960 of      BTPN, without subsidiary entities, unless specifically
           Notary Noezar S.H                                stated in the section.
       •   Notarial Deed No. 53 dated November 7, 1960 of
           Notary Noezar S.H
       •   State Gazette No. 13, Supplement No. 5, dated
           February 14, 1961
       •   Notarial Deed No. 31 dated February 16, 1985
           of Notary Komar Andasasmita, S.H, as amended
           by Notarial Deed no. 12 dated July 13, 1985 of
           Notary Dedeh Ramdah Sukarna, S.H.




           Head Office Address [GRI 2-1] [OJK C.2]          Phone      :(62 21) 300 26 200
           Menara BTPN,                                     Fax        :(62 21) 300 26 309
           CBD Mega Kuningan Jl. Dr. Ide Anak Agung
                                                            Linked in : PT Bank BTPN Tbk
           Gde Agung, Kav 5.5-5.6
           Jakarta Selatan 12950, Indonesia                 Email      : info@btpn.com
                                                            website    : www.btpn.com




48   Sustainability Report 2023 PT Bank BTPN Tbk
Page 55
                                                        About Bank Btpn




company rating

AAA (Idn), Stable Outlook                    F1+ (idn) (Short Term) - PT                       idAAA (Triple A, Stable
(Long Term) - PT Fitch                       Fitch Ratings Indonesia                           Outlook) - PT Pemeringkat
Ratings Indonesia                                                                              Efek Indonesia (PEFINDO)




Membership of ASSOCIATIONS [GRI 2-28] [OJK C.5]
                   Organization Name                                        Membership Status                     Organization
                                                                                                                     Scale

Indonesian Issuer Association (AEI)                            Member                                           National

Indonesia Sustainable Finance Initiative (IKBI)                Member                                           National

Indonesian Philanthropy Association                            Member                                           National

Communication Forum of Compliance Directors (FKDKP)            Member of Regulation & Policy Board              National

National Private Bank Association (Perbanas)                   Member                                           National

Indonesian Association of International Bank (PERBINA)         Member                                           National

Indonesian Payment System (ASPI)                               Member                                           National

Indonesian Corporate Secretary Association (ICSA)              Director of Compliance and Corporate             National
                                                               Secretary, as a member

Indonesia Business Coalition for Women Empowerment             Founder/promotor                                 National
(IBCWE)




Company Scale [GRI 2-6] [OJK C.3]
                         Indicators                                       2023                   2022                 2021

Number of Employees                                                              6,636                  6,972                 7,129
Total Operating Income - Net (Rp million) [OJK B.1.b]                       2,580,781              2,710,216               2,306,104
Authorized capital (Rp million)                                              300,000                 300,000                300,000
Issued capital (Rp million)                                                  162,982                 162,982                162,982
Total capitalization (Rp million) [OJK C.3.a]
· Third Party Funds                                                        96,055,759            102,818,019           98,406,669
· Loans Received                                                           34,283,897             47,925,106           37,615,236
· Equity                                                                   33,730,820             32,229,878           30,206,074
· Total Assets                                                            181,241,336            189,241,556          174,601,315
Number of offices/networks                                                266 offices             278 offices         419 offices
                                                                            214 ATM                 212 ATM     215 ATM and TCR
Total funding products [OJK B.1.a]                                                 13                     11                     12
Total financing products [OJK B.1.a]                                               17                     17                     18
Number of services [OJK B.1.a]                                                     26                     29                     33




                                                                                         Sustainability Report 2023 PT Bank BTPN Tbk   49
Page 56
       MILESTONES OF BANK BTPN

                                                                                              • BTPN finished the trial program for
                                                                                                the new mobile banking service,
                                                  • Bank BTPN launched BTPN Mitra               BTPN Wow! This program was
                                                    Usaha Rakyat to serve micro                 launched in 2015.
                                                    entrepreneurs.
                                                                                              • Bank BTPN launched Daya,
                                                  • Bank BTPN opened 539 branch                 a continuous mass market
                                                    offices and recorded credit                 empowerment program as an
       • In 1958, Bank was established              improvement of Rp2.3 trillion.              integral part on BTPN business
         in Bandung under the name                                                              activity.
                                                  • Bank BTPN issued its first long-term
         Bank Pegawai Pensiunan Militer
                                                    obligation in Indonesian Rupiah,          • Bank BTPN launched the Sinaya
         (Bapemil).
                                                    rated as A+ (National Scale Rating)         funding program.
       • In 1960, it obtained a license as a        by Fitch Ratings.
                                                                                              • Bank BTPN initiated a trial of
         commercial bank.
                                                  • Bank BTPN earned a long-term loan           the Sharia Community Banking
       • In 1986, Bapemil changed its name          facility in Indonesian Rupiah from          business under the subsidiary of
         into PT Bank Tabungan Pensiunan            International Finance Corporation           BTPN Bank (BTPN Syariah Bank -
         Nasional (BTPN)                            (IFC), a subsidiary of World Bank.          Tunas Usaha Rakyat).




           1958-1986                                        2009                                       2011




                2019                                                                                    2018



        • PT Bank BTPN Tbk (Bank BTPN) officially commenced operations                     • BTPN successfully executed a strategic
          as a new bank following the merger of PT Tabungan Pensiunan                        corporate action by conducting an initial
          Nasional Tbk (BTPN) and PT Bank Sumitomo Mitsui Indonesia                          public offering for its subsidiary, BTPN
          (SMBCI). Bank BTPN has transformed into a universal bank,                          Syariah.
          expanding its range of services to cater to a broader customer
                                                                                           • BTPN completed the merger process
          base.
                                                                                             with PT Bank Sumitomo Mitsui
        • Sumitomo Mitsui Banking Corporation (SMBC) divested 4.91%                          Indonesia (SMBCI). The merger resulted
          of its ownership, equivalent to 400 million shares of Bank BTPN,                   in the formation of PT Bank BTPN Tbk.
          at a price of Rp3,600 per share. This divestment reflects SMBC’s
          commitment as the controlling shareholder of Bank BTPN to meet
          its obligation to divest a portion of its shares, ensuring that the
          amount of publicly traded shares or shares held by non-controlling
          shareholders reaches 7.5%. Following the merger of BTPN
          and SMBCI, SMBC’s ownership as the controlling shareholder
          increased to 97.34% due to the implementation of the cash offer
          and the conversion of shares resulting from the merger.

        • Bank BTPN announced the issuance of bonds through the Fourth
          Tranche of Sustainable Public Offering (PUB) valued at Rp1 trillion.
          The funds raised from this bond issuance will be utilized to support
          credit expansion across various segments, including micro, small
          and medium enterprises (MSMEs), retail, and corporations.




50   Sustainability Report 2023 PT Bank BTPN Tbk
Page 57
                                                    About Bank Btpn




                                          • BTPN acquired PT Bank Sahabat             • SMBC, the second-largest bank in
                                            Purba Danarta (Bank Sahabat),               Japan by market value with assets
                                            subsequently transformed it into a          worth US$1,3 trillion, continued
                                            Shariah Bank. Later that year, BTPN         to increase its ownership stake
                                            decided to spin-off its Shariah unit        in BTPN, reaching 40.0% and
                                            in 2014.                                    becoming the controlling bank.

                                          • Sumitomo Mitsui Banking                   • BTPN became more established as
                                            Corporation (SMBC) from Japan               it now had access to the regional
• BPTN finished the trial program
                                            owned 24.39% of BTPN’s shares               and international financial markets,
  for a new mobile banking service,
                                            by the end of 2013 through the              if needed.
  BTPN Wow!3 This program was
                                            purchase of shares owned by
  launched in 2015.
                                            TPG Nusantara S.à r.l. and other
                                            shareholders.




             2012                                 2013                                        2014




             2017                                 2016                                        2015



• Bank implemented the “Gemilang”         • BTPN obtained its permit from             • BTPN officially launched BTPN
  transformation program,                   Bank Indonesia in December 2015,            Wow!3, a banking service for the
  encompassing changes to the               allowing it to operate as a Foreign         mass market. This innovative
  bank’s organizational structure,          Exchange Bank. This authorization           service utilized mobile phones
  technology, human resources, and          enables Bank BTPN to conduct                and was supported by agent
  risk management.                          transactions in foreign currencies,         services, extending the bank’s
                                            including fulfilling cash needs,            reach to provide banking services to
                                            offering loans, and raising funds.          previously undeserved communities.

                                          • Bank BTPN launched its second
                                            mobile phone platform, Jenius.
                                            This innovative mobile phone
                                            service utilizes smartphones to link
                                            customers’ accounts with the bank,
                                            enabling them to perform various
                                            banking transactions. Jenius is
                                            tailored for urban communities with
                                            a good grasp of technology and
                                            higher incomes.




3
    BTPN Wow! was discontinued in 2022.




                                                                                  Sustainability Report 2023 PT Bank BTPN Tbk   51
Page 58
       • Jenius launched a new innovative feature called                 • Bank BTPN granted a green loan facility totaling Rp1.06
         Moneytory, designed to assist tech-savvy customers                trillion to PT Kepland Investama, marking one of the
         in simplifying their cash flow management. This feature           pioneering instances of such a financial offering in the
         automatically records their expenses and income through           Indonesian market.
         the Jenius application.
                                                                         • Bank BTPN held “Daya Fest 2021,” a festival aimed at
       • SMBC Group donated Rp13.17 billion to UNICEF                      empowering MSME players, customers, and the general
         Indonesia to aid in mitigating the impact of the COVID-19         public through a series of inspirational and informative
         pandemic.                                                         activities.

       • SMBC Group donated Rp1.3 billion to the Indonesian              • Jenius launched the “Jenius Aman” program as a means
         General Practitioners Association (PDUI) to support efforts       of promoting financial literacy and providing continuous
         in addressing the transmission and impact of COVID-19 in          education on digital security.
         Indonesia.
                                                                         • SMBC donated a total of 100 oxygen concentrator
       • Jenius launched Jenius for Business, a starter kit for            units to the Indonesian community in need through a
         digital-savvy customers aiming to initiate and grow their         collaborative effort involving the Ministry of Health and the
         business.                                                         Indonesian Medical Association (IDI). The IDI facilitated
                                                                           the distribution of these units to 35 cities and regencies
                                                                           across 19 provinces in Indonesia.

                                                                         • Bank BTPN and SMBC jointly supplied 45 oxygen
                                                                           concentrator units, distributed to Bank BTPN branches for
                                                                           the benefit of employees and their families in need.




                2020                                                              2021




                2023                                                              2022

       • Bank BTPN and the International Finance Corporation             • Bank BTPN partnered with Microsoft Indonesia in the
         (IFC)  entered into a partnership in a sustainable and social     Code; without Barriers (CWB) program, marking the first
         bond agreement to strengthen climate action and promote           partnership of its kind in the Indonesian banking industry.
         inclusive development in Indonesia. As part of the                The CWB program aims to help close the gender gap in
         partnership, the IFC committed to invest US$500 million.          the region’s fast-growing cloud, artificial intelligence, and
         This bond issuance marks a significant milestone for              digital technology sectors.
         Bank BTPN, underscoring its commitment to empowering
                                                                         • An Extraordinary General Meeting of Shareholders
         micro, small, and medium-sized enterprises (MSMEs) in
                                                                           appointed Henoch Munandar as the CEO of Bank BTPN.
         Indonesia, with a particular focus on businesses led by
         women and climate change adaptation efforts.                    • Bank BTPN launched the Jenius Credit Card, offering
                                                                           various conveniences and a strong digital presence.
       • Bank BTPN transformed its Human Capital Management
         (HCM) process by partnering with Darwinbox, a renowned          • As of the end of 2022, Bank BTPN, in collaboration with
         global Human Resources (HR) technology provider.                  SMBC, disbursed a green loan of US$93.75 million to PT
         This strategic collaboration underscores Bank BTPN’s              Perusahaan Listrik Negara as part of a syndicated loan
         commitment to realizing the bank’s mission through a              facility totaling US$750 million.
         genuinely human-centered approach.
                                                                         • In September 2022, Bank BTPN established the
       • Bank BTPN partnered with Great Eastern General                    Sustainability Committee as a tangible demonstration of
         Insurance Indonesia (GEGI) to distribute bancassurance            its commitment to implementing sustainable finance.
         products. This collaboration aligns with the government’s
         sustainable development goals, particularly in supporting
         the expansion of small and medium-sized enterprises in
         Indonesia.

       • Bank BTPN held its annual event, “Daya Fest 2023,”
         following a hiatus due to the pandemic.




52   Sustainability Report 2023 PT Bank BTPN Tbk
Page 59
About Bank BTPN




                  Sustainability
                        Sustainability  2023 PT
                                 ReportReport   Bank
                                              2023 PTBTPN
                                                      Bank Tbk
                                                           BTPN   53
Page 60
           GREEN
           ECONOMY
           INNOVATION
         Bank BTPN is committed to promoting
         a green and sustainable economy
         by endorsing projects and initiatives
         that yield a positive impact on the
         environment and society, while also
         promoting sustainable development.




54   Sustainability Report 2023 PT Bank BTPN Tbk
Page 61
Green Economy
Innovation




                Sustainability Report 2023 PT Bank BTPN Tbk   55
Page 62
     Bank BTPN is committed to supporting national            Bank BTPN fulfills this commitment by offering green
     economic growth while mitigating climate impact          financing facilities for activities or projects aimed at
     through the incorporation of green economy principles    reducing greenhouse gas emissions and promoting
     into the company’s business model framework. With        sustainable economic initiatives. Several projects
     this emphasis, Bank BTPN strives to ensure that          supported by Bank BTPN, in collaboration with its
     its endeavors not only benefit the country’s overall     parent company SMBC Group, have emerged as
     economy, but also foster a positive impact through       significant milestones and benchmarks for sustainable
     sustainability initiatives, climate change management,   development in Indonesia.
     and environmental preservation.




          2020                                                   2021
          Bank BTPN as the Lead Arranger for the                 • Bank BTPN serves as the security
          refinancing of the first 75MW Wind Power                 agent in the development program of
          Plant development in Indonesia, situated                 the Cirata Floating Solar Power Plant in
          in Sidrap, South Sulawesi, with a total                  West Java, marking the first large-scale
          loan of US$114.7 million.                                solar power plant project in Indonesia.
                                                                 • Bank BTPN serves as the sole lender of
                                                                   a Green Loan totaling Rp1.06 trillion to
                                                                   PT Kepland Investama for refinancing
                                                                   green building which was certified by the
                                                                   Building Construction Authority (BCA)
                                                                   Green Mark with a Platinum award.


          2022
          • Bank BTPN serves as the Mandated Lead
            Arranger for a syndicated Sustainability-
            Linked Loan of Rp 4.15 trillion and
            Rp2.74 trillion to PT Semen Indonesia &
            PT Solusi Bangun Indonesia.                           2023
          • Bank BTPN serves as the Green Loan                    • Bank BTPN serves as the Mandated
            Coordinator for the US$750 million                      Lead Arranger & Bookrunner (MLAB)
            Green Loan Syndicated Financing to PT                   for the financing of the clean water
            Perusahaan Listrik Negara.                              pipeline construction in DKI Jakarta
                                                                    by PT Air Bersih Jakarta (ABJ) totaling
                                                                    Rp8.87 trillion.
                                                                  • Bank BTPN as the Mandated Lead
                                                                    Arranger for a syndicated Sustainability-
                                                                    linked Loan of USD 700 million to PT
                                                                    Sarana Multi Infrastruktur.




56
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Through this credit financing, Bank BTPN in 2023,        1. Portfolio
again won an award from The Asset Triple A 2023,            Offering inclusive financial products and services
for several categories including "Best Issuer for           to promote sustainable development and address
Sustainable Finance (Adviser award)" and "Best              climate change. During the reporting period,
Sustainability Bond" for cooperation with IFC worth         Bank BTPN commenced assessing the financial
US$ 500 million, and together with SMBC's parent            implications of climate change on the company’s
company, Bank BTPN also won the "Indonesia Best             operations.
Green Loan, Utility" award related to green syndicated
financing for PT Perusahaan Listrik Negara (PLN).        2. Business Processes
                                                            Delivering financial services that incorporate
Previously, in 2022 Bank BTPN also received similar         ESG risks into products, services and business
awards from The Asset Triple A for "Best Green Loan"        decision-making, while also conducting more
category related to the financing of PT Perusahaan          sustainable banking operations.
Listrik Negara (PLN) and "Best Local Currency
Green Loan" related to the financing of PT Kepland       3. Learning and Growth
Investama.                                                  Developing the bank’s internal capacity and
                                                            capabilities and fostering partnerships, in order
In the future, Bank BTPN is prepared to expand its          to implement and enhance sustainable finance
financing activities to encompass sectors and projects      according to stakeholder needs and business
that promote energy efficiency, reduce pollution, and       development objectives.
support low-emission transportation.
                                                         Bank BTPN's compliance with OJK Regulation No.
                                                         51/2017 on the implementation of sustainable finance
Sustainability Commitment of Bank                        for financial institutions is demonstrated through the
BTPN                                                     bank’s Sustainability Policy, including:
[OJK A.1][FS1]                                           1. Providing the necessary funding sources to
Bank BTPN’s commitment to sustainable finance is             achieve progress on the UN SDGs and adequate
demonstrated through the integration of sustainability       funding related to climate change mitigation and
principles into the RAKB. Through the implementation         adaptation.
of sustainable finance, Bank BTPN is determined          2. Enhancing the resilience and competitiveness
to not only be a successful financial institution but        of Bank BTPN through effective management
also a partner in building a sustainable and inclusive       of social and environmental risks by developing
economy for all stakeholder communities. The RAKB            financial products and services that are aligned to
is prepared by the Board of Directors, approved by
                                                             international standards and frameworks, thereby
the Board of Commissioners, and is mandatory for
                                                             making a positive contribution to the stability of
implementation at all levels of Bank BTPN.
                                                             the financial system.
The RAKB is designed to support the achievement          3. Reducing social disparities, mitigating and
of Bank BTPN's performance aligned with the SDGs.            preventing environmental damage, preserving
Bank BTPN’s targets outlined in the RAKB include:            biodiversity, and promoting the efficient use of
                                                             energy and natural resources.



                                                                                                                   57
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     Bank BTPN ensures compliance by periodically formulating a RAKB as mandated in the company’s sustainability
     policy. In 2023, Bank BTPN formulated the RAKB for the second period, namely RAKB 2024-2028. In this latest
     RAKB, Bank BTPN is reinforcing sustainability initiatives in the financial, social, and corporate governance sectors.

     In 2023, the RAKB included product development and various internal initiatives, as follows: [OJK F.1]


                        Main Group                                                 RAKB Program

      Improvement of Sustainable Financial Portfolio   Sustainable Financial Products:
                                                       1. Expansion of Sustainable Financing Portfolio for corporate segments.
                                                       2. Introduction of ESG Deposits for corporate segments.
                                                       3. Introduction of ESG Mutual Funds.

                                                       Sustainable Financial Services:
                                                       1. Pre-Retirement Program for Active and Independent Living.
                                                       2. Empowerment Program on Sustainable Finance Topics.
                                                       3. Thematic Environmental Campaign and Financial Management Skills.
      Internal Capacity Development                    Internal capacity enhancement program related to sustainability.
      Organizational Adjustment, Risk Management,      Organizational development, policies, processes, and ESG integration.
      and Governance, and/or Standard Operating
      Procedures




     For realizing the vision and mission of Bank BTPN              Implications of Climate Change
     to improve the quality of life of the community, Bank          [GRI 201-2]
     BTPN provides the Daya program. This program                   The impact of climate change is increasingly spreading
     offers training for competence development, financial          and affecting a wide range of industrial sectors
     literacy, capacity to grow for business, and sustainable       throughout the world, including the banking sector.
     living. for customers and the general public. For further      Therefore, responding to climate change is one of the
     information, please refer to “Strengthening the Culture        global challenges that must be immediately addressed.
     of Empowerment and Expanding the Impact” section               Since the adoption of the Paris Agreement, global
     on page 80.                                                    efforts to combat climate change have accelerated,
                                                                    including in Indonesia, whose government has
     Bank BTPN’s commitment to advancing sustainability             announced its commitment to achieving net zero
     initiatives is shown by the appointment of a dedicated         emission by 2060.
     official, namely the Communications and Daya
     Head, who is under the supervision of the Director             The banking sector plays a crucial role in addressing
     of Compliance and Legal, to ensure monitoring                  climate change through various mechanisms. These
     and coordination between business lines and other              include but are not limited to financing sustainable
     departments in implementing RAKB runs well.                    projects, offering financing products that promote
     Meanwhile, the implementation of sustainability                green initiatives, and climate risk management.
     strategies in each business line and its supporting            Bank BTPN has played an active role at integrating
     functions is carried out by the Daya & Sustainability          climate-related risks into the bank’s planning and risk
     Development Unit under the Communications and                  management and financing green portfolios, including:
     Daya Head. [OJK E.1]
                                                                    1. Green transportation;
                                                                    2. Projects utilizing renewable energy sources;
                                                                    3. Eco-efficient projects;
                                                                    4. Green buildings;
                                                                    5. Management of natural resources and sustainable
                                                                       land use; and
                                                                    6. Financing other green business activities.




58
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                                                                       development for thermal coal mining.
Bank BTPN has established a resilient strategy                   (iii) Companies whose primary business is thermal
against climate-related risks in accordance with                       coal mining or coal infrastructure without
its Sustainability Policy for more selective credit                    outstanding exposure to the SMBC Group.
provision. Bank BTPN also supports its customers in           h. Coal-fired Power Plants ((CFPP)), including:
addressing climate risks by offering green financing             (i) Captive (CFPP) for self-consumption.
for sustainable sectors.                                         (ii) New construction or expansion of (CFPP).
                                                                 (iii) Companies whose primary business is
Bank BTPN’s Sustainability Policy                                      coal-fired power plants without outstanding
[FS1]                                                                  exposure and loans to the SMBC Group.
Bank BTPN is committed to providing responsible               i. Specifically regarding the framework of cooperation
financing by proactively assessing prospective                   in the use of funds from third parties (e.g., IFC),
customers and establishing policies related to credit            Banks may follow the exclusion list imposed by
provision.                                                       the third parties.


Various aspects of these policies are also integral to           In providing credit facilities to the corporate
the process of identifying climate-related risks. This           segment, Bank BTPN also enforces the following
commitment is further emphasized in Bank BTPN’s                  requirements for debtors:
Sustainability Policy document, wherein the company              a. Debtors     must     possess      documentation
declares that it will not finance the following activities:         demonstrating compliance with regulations
[TCFD R1]                                                           and environmental laws in Indonesia, including
a. Trade in weapons, pornography, or other activities               valid business permits and Environmental
    contrary to social norms.                                       Impact Assessment (AMDAL) documents for
b. Businesses, companies, or projects that are                      businesses directly affecting the environment.
    expected to significantly harm the environment               b. Debtors must have capacity, commitment, and
    and/or employ labor that are not legally permitted.             good track record on environmental and social
c. Large-scale        development      or    construction           aspects.
    projects that have a significant impact on the               c. Debtors whose main business are in sensitive
    habitat of endangered species, without an                       sectors with substantial potential to impact
    appropriate environmental impact assessment or                  the environment (such as the oil and gas
    environmental management plan.                                  industry, mining, energy, and electricity
d. Large-scale development or construction projects                 sectors) are required to have mitigation plans
    that are located or may have significant negative               or decarbonization action plans (aimed at
    impacts on the sites that are subject to Ramsar                 reducing greenhouse gas emissions) in their
    Wetlands, UNESCO World Heritage Sites, and                      business activities to align with the goals of the
    IUCN (International Union for Conservation of                   Paris Agreement.
    Nature) Category I-IV Protected Areas.                       d. Debtors must comply with labor standards
e. Projects that are proven violating rights of local               equivalent to the ILO Fundamental Conventions
    communities or those which operate in locations                 or at least have complied with relevant labor
    of social conflict. For large-scale projects, such as           regulations in Indonesia.
    hydroelectric power plants and oil and gas mining            e. Debtors must commit to uphold human rights
    are required to have a permit equivalent to FPIC                in accordance with the UN Guiding Principles
    (Free, Prior, and Informed Consent).                            on Business and Human Rights or at least
f. Businesses engaged in deforestation and potential                have complied with relevant human rights
    involvement in illegal logging or human rights                  regulations in Indonesia, ensuring that debtors
    violations.                                                     are not engaged in, causing, or contributing to
g. Coal mining industry:                                            human rights and labor rights violations.
    (i) Engaging in mountain top removal (MTR) or
         infrastructure development for coal mining              Bank BTPN’s Sustainability Policy also governs
         using MTR.                                              sector-specific financing, currently encompassing
    (ii) Thermal coal mining and infrastructure                  financing for the palm oil and forestry industries.
                                                                 For debtors in these sectors, Bank BTPN sets



                                                                                                                         59
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        specific requirements to ensure that the financing
        complies with national and international legal             In order to contribute the mitigation and adaptation
        and standard parameters related to social and              actions related to environmental issues and climate
        environmental issues.                                      change, Bank BTPN has developed the following
                                                                   sustainable finance products, including Green Loan,
     a. Palm Oil                                                   Social Loan, Sustainability-Linked Loans, ESG Mutual
        i. Credit provision to the palm oil industry is            Fund and ESG Deposit.
            permitted only for plantations that have been
            or are expected to be certified to RSPO                The implementation of policies, risk management
            (Roundtable on Sustainable Palm Oil).                  and opportunities related to environmental and social
        ii. For the palm oil industries (including suppliers       issues also relies on the comprehension of stakeholders
            and buyers) that do not yet have RSPO                  related to Bank BTPN’s business operations. For this
            certification, but other similar certifications that   reason, Bank BTPN conducts communication and
            apply in Indonesia, such as but not limited to         education for stakeholders on these issues through a
            ISPO (Indonesian Sustainable Palm Oil), the            range of programs and initiatives, as well as utilizing
            Bank will ensure that the industries meet the          internal and external communication channels owned
            sustainable governance principles according            by Bank BTPN, including activities carried out by the
            to the main criteria set by the RSPO. This             Daya Program through its four program pillars.
            does not apply to the provision of working
            capital facilities, where ISPO certification is        The implementation of policies, risk management
            still permitted without measuring the RSPO             and opportunities related to climate, environment
            criteria.                                              and social issues also depends on the understanding
     b. Forestry                                                   of customers and partners. For this reason, Bank
        i. Support to forest management businesses is              BTPN communicates and educates its customers on
            only permitted for businesses that have been,          sustainability issues [FS5]. One of the interactions with
            or are expected to be, certified by Forest             customers was the holding of a Sustainability Seminar
            Stewardship Council (FSC) or Program for the           on 12 October 2023 on the topic of “Addressing
            Endorsement of Forest Certification (PEFC).            Climate Change through Decarbonization Initiatives
        ii. For plantations of 10,000 hectares or more,            across Wider Business Sectors” with the title “Beyond
            the Bank will confirm that the customers have          Energy Transition: Seizing Opportunities in the Pathway
            a public announcement of compliance with               to Net Zero Economy”. The seminar was attended by
            No Deforestation, No Peat, No Exploitation             at least 200 invited guests from 60 companies.
            (NDPE) Commitment. If there is no NDPE
            public announcement, the Bank will confirm             Bank BTPN also held an Economic Outlook 2024 with
            the customers’ compliance with NDPE                    the headline “Navigating through 2024: Strategies
            by conducting an interview and review                  for Resilience and Growth” at the Grand Ballroom of
            the customers’ plans for the NDPE public               Hotel Indonesia Kempinski, Jakarta on November 22,
            announcement.                                          2023. At this event, Bank BTPN also launched the
                                                                   latest product innovation, ESG Deposit.
     The above policies are set by the Board of Directors
     to be implemented by each relevant work unit,                 In addition, Bank BTPN also organized three webinars
     including the Credit Committee, Credit Admin, Risk            on the topic of sustainable business and human
     Management, and other work units.                             rights for its partners with the aim of increasing
                                                                   their understanding and supporting Bank BTPN in
     In the reporting year, Bank BTPN screened all                 sustainable governance. This activity was attended by
     (100%) assets in the financing process to ensure that         332 participants from 190 companies.
     prospective debtors have fulfilled all environmental
     and social provisions. Bank BTPN prioritizes                  In the reporting year, Bank BTPN interacted with
     financing related to climate change management,               450 debtors/companies or 13.6% of its portfolio on
     environmentally friendly business, and social                 environmental and social issues. [FS10]
     financing. [FS11]




60
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Environmental and Social Risk                                financing, as well as ensuring compliance with
Assessment Procedures                                        credit-related regulations and laws. Additionally,
[OJK E.3][FS2] [FN-CB-410a.2] [TCFD R2]                      the Board of Directors is responsible for regularly
Bank BTPN conducts an assessment process to                  reporting to the Board of Commissioners on
manage environmental and social risks. The following         the progress of the Sustainability Policy’s
steps outline the procedures for decision-making and         implementation.
risk management, integral components of Bank BTPN’s     4.   The Credit Committee conducts an assessment
overall risk management framework. [TCFD R3]                 to verify that the prospective debtor is not part
1. Bank BTPN reviews ownership of debtor’s                   of a prohibited target market, meets the ESG
    business licensing documents in accordance with          criteria set (stated above), and has met the Risk
    the regulations of the Minister of Environment           Acceptance Criteria.
    and Forestry of the Republic of Indonesia No. 05    5.   Bank BTPN evaluates the provided collateral,
    of 2012 and its amendments (if any) regarding            considering its condition upon receipt and during
    Environmental Impact Assessment (AMDAL).                 subsequent re-evaluations. Bank BTPN ensures
    This includes the requirement to adhere to an            that the environmental risk associated with the
    Environmental Management Plan (RKL) and an               collateral does not pose a hindrance or burden to
    Environmental Monitoring Plan (RPL) as stipulated        the bank, meaning that the value of the collateral
    in the relevant AMDAL Document. [TCFD R1]                does not become negative upon its sale.
2. The Board of Commissioners plays a role in           6.   Bank BTPN conducts periodic visits to debtors
    supervising the risk management activities of            for supervision and guidance. The results of
    the Board of Directors, including approving the          these visits are reported in call reports. Topics
    Sustainability Policy. This policy incorporates          discussed include the overall condition of the
    provisions related to green and social financing.        debtor’s business, including compliance with
    The Board of Commissioners also has the                  environmental aspects of regulations. These
    authority to request explanations or hold the            interactions are carried out by departments in
    Board of Directors accountable in case of any            each business line.
    deviations from the Sustainability Policy.          7.   Bank BTPN monitors debtors’ compliance with
3. The Board of Directors is tasked with developing          environmental regulations, as stipulated in the
    and executing the Sustainability Policy, which           Corporate Banking SOP and its addendum. This
    encompasses provisions for green and social              is part of Bank BTPN’s efforts to contribute to
                                                             climate change mitigation and adaptation efforts.
                                                        8.   Environmental and social risk aspects are one of




                                                                                                                   61
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        the assessment points in the initial credit proposal    In order to ensure compliance with the implementation
        and are periodically monitored through annual           of these provisions and requirements, Bank BTPN
        credit monitoring. Issues/cases identified during       conducts evaluations of the financing provided on a
        the assessment are taken into account in the credit     regular basis, at least once a year.
        approval process.
                                                                As part of SMBC Group, Bank BTPN strengthens its
     Bank BTPN also takes into account relevant                 sustainability commitment to support SMBC Group’s
     climate change regulations, such as Presidential           target to achieve Net Zero Emission (NZE) by 2030 for
     Regulation 59/2017 and POJK 51/2017 related to             the Bank’s operational activities; and 2050 for the NZE
     the implementation of the UN SDGs and sustainable          target for the Loan and Investment Portfolio.
     finance, as well as the obligation of the Ministry
     of Environment and Forestry (KLHK) to conduct              As part of its commitment to sustainability, Bank BTPN
     environmental impact assessments of debtors’               has adopted the Equator Principles as a guideline
     business. [TCFD R1]                                        for making credit decisions. The Equator Principles
                                                                serves as a risk management framework for financial
     In the corporate segment, Bank BTPN takes into             institutions, enabling them to assess, manage, and
     account the findings of Environment and Social (E&S)       forecast environmental and social risks associate
     Screening and Review in making financing decisions.        with financing debtors. Bank BTPN implements the
     Bank BTPN may propose E&S-related covenants to             principles through the following approaches:
     be included in the loan agreement for the relevant         1. Bank BTPN has developed and implemented
     project. [TCFD R3]                                             procedures to access and categorize the social
                                                                    and environmental risks of the business sector,
                                                                    supported by consultations with SMBC, which
     Process of Monitoring the                                      provides insights into these aspects in applied risk
     Implementation of Environmental                                management.
     and Social Compliance [FS3]                                2. Bank BTPN incorporates clauses in loan
     Bank BTPN ensures the health of its credit portfolio by        agreements to monitor corporate debtors’
     conducting thorough credit monitoring. This monitoring         compliance with environmental regulations.
     is tailored to deliver a thorough understanding of the         This enables Relationship Managers, acting as
     dynamics of the credit authorization process, the              representatives of the bank, to conduct on-site
     journey of the credit, and the development of the              inspections during periodic visits. These clauses
     debtor’s business from the time the credit is granted          are established in accordance with internal
     until it is settled. Furthermore, credit monitoring also       provisions concerning social and environmental
     aims to ensure that debtors adhere to environmental            risks, as well as the Equator Principles.
     and social regulations. The activities conducted           3. Bank BTPN strengthens collaboration with other
     include:                                                       Equator Principles signatory institutions, including
     1. Monitoring the execution of credit approval.                through financing initiatives.
     2. Monitoring the development of the debtor’s              4. Bank BTPN retains the right to review credit
         business.                                                  extensions in the event of discrepancies with the
     3. Monitoring debtor compliance with environmental,            credit agreement.
         social and governance regulations and other
         regulations.
                                                                Performance of Bank BTPN
     Bank BTPN is committed to providing responsible            Bank BTPN has recorded positive achievements in
     financing by proactively assessing prospective             accordance with the ongoing economic growth in
     customers and establishing policies related to credit      Indonesia in the reporting year, as depicted in the
     provision.                                                 following table:




62
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         Comparison of Production Targets and Performance, Portfolio, Financing Targets, or
                         Investment, Income, and Profit and Loss [OJK F.2]

                                    Description                                                   2023                     2022                     2021

 SUMMARY OF BALANCE SHEET (in Million Rupiah)
 Total Assets                                                                                  201,448,392              209,169,704             191,917,794
 Productive Assets                                                                             197,325,929              204,169,669             187,244,094
 Credit/Bank Financing                                                                         156,561,297              146,123,516             135,598,774
 Third-Party Fund                                                                              108,198,576              114,866,548             109,380,130
 Loans Received                                                                                 34,283,897                48,025,106              37,615,236
 Securities Issued                                                                                   200,569                   200,134                 996,089
 Total Liability                                                                               160,165,288              169,756,680             155,838,867
 Total Equity                                                                                   41,283,104                39,413,024              36,078,927
 SUMMARY OF PROFIT AND LOSS (in Million Rupiah)
 Net Interest Income                                                                            12,044,063                11,678,315              11,143,040
 Other Operating Income                                                                           2,073,443                 2,012,615               1,959,784
 Operating Expenses                                                                             (7,606,552)               (7,193,087)             (6,982,870)
 Allowance for Impairment Losses                                                                (3,049,919)               (1,840,167)             (2,111,776)
 Net Operating Income                                                                             3,461,035                 4,657,676               4,008,178
 Net Profit for the Current Year                                                                  2,682,484                 3,629,564               3,104,215
 Total Comprehensive Income                                                                       2,700,832                 3,474,962               3,182,819
 Bank Operating Income                                                                          14,117,506                13,690,930              13,102,824
 Net Income of the Bank                                                                           2,682,484                 3,629,564               3,104,215
 PERFORMANCE RATIO
 Minimum Capital Sufficiency Ratio                                                                   29.90%                    27.29%                  26.17%
 Non-performing earning assets and non-earning assets to                                               0.68%                     0.68%                   0.78%
 total earning assets and non earning assets
 Non-performing earning assets to total productive assets                                              0.68%                     0.68%                   1.26%
 Allowance for impairment of financial assets to total                                                 2.46%                     1.85%                   2.18%
 productive assets
 NPL gross                                                                                             1.36%                     1.43%                   1.68%
 NPL net                                                                                               0.40%                     0.44%                   0.37%
 Return on Assets (ROA)                                                                                1.73%                     2.36%                   2.23%
 Return on Equity (ROE)                                                                                6.54%                     9.15%                   8.57%
 Net Interest Margin (NIM)                                                                             6.45%                     6.32%                   6.56%
 Rasio Efisiensi (BOPO)                                                                              83.72%                    75.05%                  76.01%
 Loan to Deposit Ratio (LDR)                                                                       142.68%                   126.66%                 123.10%
 LIQUIDITY COVERAGE RATIO (LCR) VALUE
 a. LCR (individual)                                                                               177.57%                   220.55%                 172.10%
 b. LCR (consolidated)                                                                             199.68%                   229.30%                 187.26%
Notes:
- The data included in the table above is the consolidated financial data of Bank BTPN, which includes two other subsidiaries, PT Bank BTPN Syariah Tbk (with 70%
  shareholding) and PT Bank Syariah Ventura (with 69.3% indirect ownership through PT Bank BTPN Syariah).




                                                                                                                                                                    63
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                           Comparison of Economic and Financial Performance Related to Sustainability

                     Description                                            2023                                    2022                               2021

      ECONOMIC PERFORMANCE RELATED TO SUSTAINABILITY (OJK B.1)
      Types of products that meet the                          2 funding products (esg                     2 funding products,                2 funding products,
      criteria for sustainable business                      mutual fund, esg deposit)                        2 green financing                  2 green financing
      activities                                               3 sustainability financing                   products, 1 MSME                    product, 1 MSME
                                                               products (sustainability-                     financing product                  financing product
                                                                 linked loan, green loan,
                                                                              social loan)
                                                             1 msme financing product
      Nominal products and/or                                                        13,774,741                        12,968,409                         12,029,029
      services that meet the criteria for
      sustainable business activities (in
      Million Rupiah)
      Percentage of total portfolio of sustainable business activities to total portfolio (%)
      a. Funding                                                                            0.11%                            0.06%*                            0.20%*
      b. Financing                                                                            9.5%                              9.6%                               10%
      INCLUSIVE FINANCIAL PERFORMANCE
      Development of digital access through Jenius **
      Developed features                                                                            4
      Number of Jenius Customers                                                       4,497,649
      Total transaction                                                            113,812,489

     Note:
     1) * Funds came from the Filantropi Mutual Fund & BTPN Wow!
     2) ** In the reporting year, BTPN Wow! was replaced by the digital-based Jenius product, allowing banking activities to be expanded to all regions and community
         segments. Therefore, the data for the years 2021 and 2022 are not included in this report, considering that during those years, BTPN Wow! was still in use.
     3) With digitalization and internet technology advancement, marginalized and remote communities now have access to the required banking services. Nevertheless,
         Bank BTPN cannot distinguish between people based on their situations and locations, as these factors have become irrelevant with digitalization enabling outreach
         to people anywhere and anytime. [FS13] (Note: The GRI Financial Services Sector was published in 2008 when digital banking was non-existent. Hence, the
         disclosure requirements did not encompass provisions for unlimited digital banking).




      Comparison of Production Target and Performance, Portfolio, Financing Target, or Investment, Income and
                                                 Profit and Loss

                             Comparison of Financing                          Comparison of Operating                         Comparison of Profit/Loss
                              Target and Realization                            Income Target and                              Target and Realization
           Year                 (in Million Rupiah)                            Realization (in Million                           (in Million Rupiah)
                                                                                      Rupiah)
                                Target               Realization                 Target                 Realization               Target               Realization

           2023           160,131,042              156,561,297               14,231,912                 14,117,506              2,825,729                2,682,484
           2022           145,598,552              146,123,516               13,669,569                 13,690,930              3,237,726                3,629,564
           2021           138,257,407              135,598,774               12,673,670                 13,102,824              2,439,234                3,104,215
     Notes:
     - The data included in the table above is the consolidated financial data of Bank BTPN, which includes two other subsidiaries, PT Bank BTPN Syariah Tbk (with 70%
       shareholding) and PT Bank Syariah Ventura (with 69.3% indirect ownership through PT Bank BTPN Syariah).




64
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    Comparison of Portfolio Targets and Performance, Financing Targets, or Investments in Financial
                Instruments or Projects that Align with Sustainable Finance [OJK F.3]
               Comparison of Green and Social Portfolio Targets and Realization (in Million Rupiah)

                 Year                                  Target                              Realization

                 2023                                14,997,830                             13,774,741
                 2022                                14,947,214                             12,968,409
                 2021                                9,987,164                              12,029,029



Percentage of Business in the Green and Social Portfolio
[FS10] [OJK F.26]
In an effort to promote sustainable financing, Bank BTPN offers financing for a range of environment related
initiatives.

In the reporting year, Bank BTPN disbursed financing of Rp 7,68 trillion to 14 green activities. This sum accounts for
7.32% of Bank BTPN’s total Corporate Banking credit portfolio of Rp105 trillion. The financing is facilitated through
Bank BTPN’s sustainable finance products, including Green Loan, Social Loan, Sustainability-Linked Loans.

In addition, Bank BTPN offers financial assistance to Micro, Small, and Medium Enterprises (MSMEs), which
significantly influence the nation’s overall economy. This financing not only boosts local economic development
but also generates new employment opportunities and promotes financial inclusion. The social sector credits,
totaling Rp6.1 trillion, make up 4% of Bank BTPN’s total financing.


                    Sustainable Financing Portfolio (In Miliion Rupiah) [OJK F.3][FS7][FS8]

                                                       Proportion of Sustainable
            Description                     2023          Financing to Total              2022             2021
                                                           Bank Financing

Funding                                      109,791                               -         62,582         195,625
Financing                                 13,774,741                               -     12,968,409      12,968,409
Renewable energy                           1,141,797                           0.8%       1,984,475       1,828,909
Energy Efficiency                            396,952                           0.3%         518,552         582,239
Management of natural biological           4,801,831                           3.3%       3,332,209       2,295,725
resources and sustainable land use
Green transportation                         122,344                           0.1%         331,959         427,217
Products that can reduce resource            660,000                           0.5%                -                -
usage and generate less pollution
(eco-efficient)
Green buildings that meet                    560,000                           0.4%         760,000       1,060,000
nationally, regionally, or
internationally recognized
standards or certifications
MSMEs Activities                           6,091,816                           4.2%       6,041,214       5,834,936




                                                                                                                         65
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       Business Portfolio by Sector and Size [FS6]
       Bank BTPN offers financing to debtors complying with environmental and social regulations. The following is the
       financing according to sector and size. The environmental assessment procedures can be found on page 61 under
       the topic of Environmental and Social Screening Procedures. However, Bank BTPN does not provide regional
       breakdowns as it exclusively operates in Indonesia. Bank BTPN also does not classify savings and checking
       accounts based on personal and business accounts. [FN-CB-000.A]

                               Financing by Business Segment/Sector and Size (in Million Rupiah)
                                                                   [FN-CB-240a.1][FN-CB-000.B]
                                                                  2023                         2022                              2021
                   Description
                                                       Total               Value       Total            Value          Total              Value


        Corporate and Commercial                             2,418     104,904,359        2,204        97,450,293            2,236       85,936,309

        Retail Lending                                    391,016         22,403,012    422,173        23,989,672          472,375       27,364,293

        Micro                                              34,044          1,306,173     21,433          743,076             4,226         489,268

        Small and Medium                                     5,414        13,255,054       4,644       11,257,389            4,651       10,702,612
        Enterprises

        Joint Finance                                     161,533          1,138,955     34,454          145,699            33,804         201,529

        Jenius                                            604,181          2,049,171    303,867          886,694           135,583         325,337

        Others                                               2,395          116,713        2,591         123,300             2,899         135,957

        Total                                          1,201,001         145,173,437    791,366       134,596,053          655,764      125,155,305

       Note:
       - There are data adjustments following business unit changes.




       In the reporting year, MSME loans that encountered delays/defaults amounted to Rp404.5 billion and the NPL was
       7%. [FN-CB-240a.2]

                    Conventional Financing by Business Segment (in Million Rupiah) [FN-CB-410a.1]
                                            Description                                        2023                 2022                 2021

        Household                                                                              25,789,367           25,244,414           28,033,763

        Trading                                                                                18,889,593           18,208,371           16,803,625

        Industry                                                                               32,871,116           34,576,505           27,852,380

        Other services                                                                         33,503,307           27,500,978           22,258,313

        Agriculture                                                                                3,989,350         5,642,226            6,585,951

        Accommodation services                                                                      184,386           127,611               142,577

        Construction                                                                               5,844,721         5,933,424            5,593,954

        Transportation and Communication                                                       12,925,039            7,471,934            8,440,046




66   Sustainability Report 2023 PT Bank BTPN Tbk
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                                                          Green Economy
                                                          Innovation




                             Description                                  2023                2022             2021

Mining                                                                      6,028,609          5,460,463        4,011,595

Others                                                                      5,147,948          4,430,127        5,433,101

Total                                                                     145,173,437        134,596,053     125,155,305




Internal Audit of Environmental and Social Policy Implementation, and Risk
Assessment Procedures [FS9]
Bank BTPN employs an evaluation method using an environmental and social audit system. The main objective
is to assess the company’s operational suitability and performance in accordance with environmental and social
regulations, as well as to identify potential risks that could impact environmental and social sustainability. This
assessment serves not only as an evaluation but also as a preventive measure to ensure that the company
consistently complies with high environmental and social standards.

Furthermore, Bank BTPN conducts credit inspections for the wholesale and commercial segments through
the company’s Internal Audit team, as stipulated in the Annual Audit Plan. This audit process encompasses an
assessment of compliance with environmental and social policies, along with an assessment of risks in accordance
with the Equator Principles.

The findings of the audit on credit disbursement and project financing are communicated to the relevant business
units. Follow-up actions will be initiated if the audit findings reveal a necessity for improvement or adjustment.



ECONOMIC VAluE GENERATEd ANd dISTRIBuTEd [GRI 201-1] [OJK B.1]
In the reporting year, Bank BTPN recorded a consolidated net profit of Rp2.68 trillion. This surge in revenue not only un
derscores the bank’s business triumph but also paves the way for a more substantial positive influence on society an
d the broader economy. It’s worth noting that Bank BTPN accomplished this without relying on any subsidies or financi
al aid from the government as it continues to develop its business.
[GRI 201-4]

                       Distribution of Economic Value Acquisition (in Million Rupiah)

                             Description                                  2023               2022             2021

Direct Economic Value Generated

Interest and Sharia Income                                                18,815,673         15,899,646       14,748,604

Other operating income (net)                                               1,483,729          1,484,485        1,395,381

Total direct economic value generated                                     20,299,402         17,384,131       16,143,985

Direct Economy Value Distributed

Operational Expenses                                                       3,273,766          3,272,015        3,065,316

Employee salaries and allowances                                           3,756,478          3,403,319        3,364,534

Interest expenses and Syirkah funds profit sharing                         6,771,610          4,221,331        3,605,564

Payment of Dividends                                                        619,140                   -                -

Payments to Government (Income Tax and Value Added Tax)                     860,831             813,530          861,017




                                                                                 Sustainability Report 2023 PT Bank BTPN Tbk   67
Page 74
                                          Description                                                  2023                     2022                    2021

        Distribution of CSR Funds                                                                              2,879                    3,468                  4,271

        Total economic value distributed                                                                15,284,704               11,713,663             10,900,702

        Total Retained Economic Value                                                                    5,014,698                5,670,468               5,243,283


       Note:
       • There are data adjustments following business unit changes.
       • The data included in the table above is the consolidated financial data of Bank BTPN, which includes two other subsidiaries, PT Bank BTPN Syariah Tbk (with 70%
           shareholding) and PT Bank Syariah Ventura (with 69.3% indirect ownership through PT Bank BTPN Syariah).




       The Bank’s Approach TO tHE                                                          creative solutions to sustainable finance. Bank BTPN’s
       Challenges Related to Sustainable                                                   commitment is also shown in the RAKB that has been
       Finance [OJK E.5]                                                                   prepared.
       The implementation of sustainable finance presents
       several challenges to be addressed, including:                                      Additionally, Bank BTPN engages in diverse
       • Uncertainty of risks. Sustainable finance                                         communications concerning sustainable finance
          encompasses a range of factors, including shifts                                 with its employees and other stakeholders. These
          in government policies, fluctuations in energy                                   efforts are aimed at enhancing their comprehension.
          prices, crop failures, or delays in mining jobs due                              Throughout the reporting year, Bank BTPN developed
          to climate change. Bank BTPN addresses these                                     three educational posters and wallpapers, which
          challenges by effectively managing these risks                                   were disseminated through internal communication
          within a comprehensive risk management system.                                   channels (BTPN INFO, Vibes, Portal Kita) as well as via
       • Lack of awareness. Not all stakeholders,                                          an external platform (Instagram).
          customers, partners, and employees are fully aware
          of the significance of integrating sustainability into
          their businesses and activities. Consequently,                                   Supply Chain [GRI 2-6]
          Bank BTPN aims to bolster their knowledge and                                    In its operations, Bank BTPN relies on a supply chain
          understanding through a variety of educational                                   comprising businesses integral to its operations.
          initiatives, including seminars and webinars.                                    Bank BTPN has embraced a sustainable approach
       • Collaboration and partnerships. To achieve a                                      to managing its supply chain by engaging external
          substantial positive impact, the implementation                                  service providers for security, customer service, and
          of sustainable finance necessitates collaboration                                teller services. This decision was made to ensure that
          across diverse industries and partnerships with                                  all procurement processes adhere to strict ethical
          the government and other stakeholders. Therefore,                                standards and comply with Bank BTPN’s guidelines.
          Bank BTPN engages in collaborations with various
          parties to cultivate sustainable products and                                    During the reporting year, all suppliers (100%) within
          services.                                                                        Bank BTPN’s supply chain underwent a thorough
       • Long-term investment and short-term performance                                   assessment process based on social criteria. One of
          pressure. Certain sustainable financial practices                                the measures taken is the implementation of Human
          indeed yield long-term impacts, yet the financial                                Rights compliance screening for vendors and suppliers.
          industry frequently faces pressure to deliver                                    To ensure and enhance compliance, Bank BTPN also
          short-term results. This necessitates a paradigm                                 conducts annual sustainability seminars for vendors.
          shift, not only for Bank BPTN but also for other
          stakeholders. Therefore, Bank BTPN advocates                                     By meeting these social criteria, Bank BTPN
          for sustainability education alongside the launch                                demonstrates its commitment to responsible business
          of innovative products and services.                                             practices and its positive contributions to sustainable
                                                                                           development. Consequently, no suppliers have been
       Bank BTPN is optimistic about building sustainable                                  identified as having negative social impacts.
       finance, and works closely with various parties to find                             [GRI 414-1] [GRI 414-2]




68   Sustainability Report 2023 PT Bank BTPN Tbk
Page 75
In addition to the supply chain, Bank BTPN also             Bank BTPN has established standard operating
engages with other goods and services providers,            procedures (SOP) for taxation to guide the
totaling 273 suppliers and a procurement value of           implementation of the company’s tax rights and
Rp667,471,972,303. Bank BTPN ensures that the               obligations. These procedures encompass the
selection process is transparent through the purchase       identification, management, and monitoring of
requisition (PR) process, selection process, and            operational risks, including tax risks. Each business
issuance of work orders (SPK), all managed with             unit and functional line contributes to the identification,
high accountability. In an endeavor to save costs           management, and oversight of the company’s tax
and reduce emissions, Bank BTPN prioritizes the             risks.
procurement of goods and services from the provinces
where it operates. This commitment also promotes            This is essential for mitigating potential tax risks
national economic equality and strengthens the local        associated with all business activities and company
economy. The proportion of expenditure on local             transactions. The evaluation of tax governance and
suppliers throughout 2023 was 99.6%. [GRI 204-1]            controls for compliance is conducted through regular
                                                            assessment procedures and the implementation
                                                            of tax governance protocols. Bank BTPN enforces
TAX                                                         tax-related assurance processes through a review
Approach to Tax [GRI 207-1]                                 mechanism, including assessments stemming
                                                            from internal or external reviews and audits of tax
Bank BTPN views taxes as a crucial funding source
                                                            obligations implementation.
for national development. As a significant contributor
to state revenue, taxes play a pivotal role in propelling
                                                            Bank BTPN is committed to upholding its integrity in
infrastructure    development,     enhancing      public
                                                            the execution of tax rights and obligations. Therefore,
welfare, and serving as a vital tool in economic policy
                                                            Bank BTPN requires all employees, particularly those
formulation. Consequently, Bank BTPN is committed
                                                            with tax-related responsibilities, to sign an Integrity
to consistently and sustainably upholding its rights
                                                            Pact stating their commitment to integrity as outlined
and obligations in taxation in compliance with the
                                                            in the Bank BTPN Code of Conduct. To ensure its
prevailing tax laws and regulations.
                                                            implementation, Bank BTPN provides a channel for
                                                            reporting violations. Non-compliance with the Bank
The Tax Management Division oversees the
                                                            BTPN’s Code of Conduct., including those related to
implementation of tax compliance strategies and
                                                            taxes, may result in internal sanctions for the relevant
obligations within Bank BTPN, with periodic review
                                                            employees.
and approval by the Finance Director. This review is
crucial, particularly in the event of significant changes
                                                            Stakeholders and Tax Compliance
in tax regulations that could impact the company.
                                                            [GRI 207-3]
Specifically, Bank BTPN fulfills its tax rights and
obligations in accordance with the prevailing tax laws      Bank BTPN believes it is crucial to actively cultivate
and regulations.                                            positive relationships founded on openness and
                                                            transparency with the key stakeholders in the taxation
Tax Risk Management and Governance                          sector, particularly the government through the tax
[GRI 207-2]                                                 authorities. Bank BTPN is committed to complying
                                                            with all tax laws and regulations to maintain and
Tax management at Bank BTPN is under the                    enhance its credibility. Furthermore, Bank BTPN’s
responsibility of the Finance Director and the Tax          tax-related policies and strategies are developed with
Management Division. This division is tasked with           input from stakeholders in the taxation field, including
implementing and supervising the company’s tax              tax authorities, the Financial Services Authority (OJK),
strategy, ensuring its execution by the relevant            and the Banking Industry Association.
units within the business and functional lines.
Acknowledging the significance of taxes, Bank BTPN          Bank BTPN operates exclusively in Indonesia, thus
fosters awareness of tax rights and responsibilities        tax reports are solely prepared for the Indonesian
across all business and functional lines within the         authorities.[GRI 207-4]
company.




                                                                                                                          69
Page 76
             PRODUCT
             AND SERVICE
             EXCELLENCE
             IN SUPPORTING
             SUSTAINABILITY
             Bank BTPN is committed to driving the
             transition towards a green economy
             by providing support to initiatives
             and projects that focus on efforts to
             improve environmental sustainability
             and climate management.




70   Sustainability Report 2023 PT Bank BTPN Tbk
Page 77
Products and Services Excellence in
Supporting Sustainability




                               Sustainability Report 2023 PT Bank BTPN Tbk   71
Page 78
       As a bank committed to sustainability, Bank BTPN offers innovative products and services that support various
       sustainability initiatives, including environmental project financing and climate management. In 2023, Bank BTPN
       has launched ESG Deposit products to help corporate customers transition to a green economy and realize their
       sustainable initiatives through deposit products which strategically allocated for initiatives, projects, and activities
       that contribute to supporting sustainable development activities within ESG corridors. In addition, Bank BTPN also
       provides financing support for Micro, Small and Medium Enterprises (MSMEs).




            BANK BTPN’S PRODUCTS
            [GRI 2-6] [OJK C.4]




        JENIUS                                                           •   Digital Micro Loan (unsecured loan)
                                                                             1. Installment Loan
        •    Jenius Application                                          •   People’s Business Credit (KUR)
        •    Savings (Flexi Saver, Dream Saver and Foreign
             Currency)                                                C. Joint Finance/indirect Finance
        •    Term Deposit (Maxi Saver)                                    • Joint Finance
        •    Bill Payment                                                 • Channeling
        •    ATM Card/Debit Jenius
        •    Transfer (RTOL, SKN, RTGS, BI FAST &

        •
             Remittance)
             Top-up e-Wallet
                                                                      BUSINESS BANKING
        •    Loan (Flexi Cash)                                        A. Generic Products
        •    Jenius Pay                                                   • Overdraft Loan
        •    Jenius QRIS                                                  • Demand Loan
        •    Moneytory                                                    • Term Loan/Installment Loan
        •    Sinaya Prioritas on Jenius                               B.  ABF (Asset Based Financing)
        •    Mutual Funds                                             C.  BPR Financing
        •    Jenius Credit Card                                       D. Giro Bisnis
        •    Jenius Paylater                                          E. Giro Mitra
        •    Foreign Currency (FCY)                                   F. Giro Karya



        RETAIL LENDING                                                TRANSACTION BANKING
        BUSINESS                                                      AND SUPPLY CHAIN
        A. Pension Business                                           A. Cash & Digital Solution
            • Pension Loan                                               • Current Account & Term Deposits
            • Pre-Pension Loan                                           • Payment (SKN/RTGS, Payroll, Telegraphic
            • Active Employee Loan                                          transfer, Prima/Bersama)
            • Pension Saving (Tabungan Citra Pensiun)                    • E-Tax Payment (non-import and import taxes)
                                                                         • Collections (SKN/RTGS, Payroll, Telegraphic
        B. Micro-Businesses                                                 transfer, Cheque/Cash Deposit, Giro)
           • Business Partner Saving                                     • Virtual Account
           • Deposit-Equivalent Saving                                   • Internet Banking/ Host to Host
           • Maxi Micro Loan (secured loan):                             • Liquidity Management (Domestic Cash Polling,
              1. Current Account Loan)                                      Auto TD Placement, Cross Border Pooling)
              2. Installment Loan                                        • Auto Debit
              3. Term Loan




72   Sustainability Report 2023 PT Bank BTPN Tbk
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                                                    Produk dan Layanan Unggulan dalam
                                                    Mendukung Keberlanjutan




Bank BTPN not only offers financial solutions to meet customer needs but also prioritizes digital innovation across
all of our products and services. By concentrating on digital technology, Bank BTPN aims not only to provide
a better customer experience but also to reduce negative environmental impact through operational efficiency.
Therefore, our products and services not only reflect our concern for society and the environment but also deliver
relevant and sustainable solutions for our customers’ financial needs.




B. Trade
    • Import & Export Letter of Credit & SKBDN
                                                          WEALTH MANAGEMENT
    • Import & Export Bill Collection                     BUSINESS
    • Import & Export Documentary Collection
    • Bank Guarantee & SBLC & Counter                          A. Wealth
       Guarantee                                                  • Mutual Funds
    • Trade Loan & TR                                             • Bancassurance
    • Foreign Bills Bought & Forfaiting                           • Government Bonds
    • Account Receivable Purchase                              B. Liabilities & Sinaya Prioritas
    • Import Avalization & LC Confirmation                        • Sinaya Savings (Rupiah, Foreign
    • BL Endorsement & Shipping Guarantee                            Currency, Business)
                                                                  • Time Deposit (Rupiah, Foreign Currency,
C. Supply Chain                                                      Flexi, On Call)
   • Supply Chain Financing (Distributor                          • Checking Account (Rupiah, Foreign
      Financing/ Supplier Financing)                                 Currency)
   • Lending Program                                              • Sinaya ATM/Debit Card
                                                                  • Safe Deposit Box
                                                                  • Sinaya Prioritas

TREASURY
   •   Foreign Exchange                                   CORPORATE/
   •
   •
       Derivatives
       Money Market
                                                          WHOLESALE BANKING
   •   Fixed Income                                       A. Hedging Products
                                                             IRS/CCS and foreign exchange transactions

                                                          B. Loan Product
                                                             • Bilateral and Syndicated Loans (IDR, USD
                                                                and, JPY)
                                                             • Working Capital Loan
                                                             • Investment Loan
                                                             • Project/Structured Finance
                                                             • Export Credit Agency (ECA)
                                                             • Sustainability-linked Loan
                                                             • Green Loan
                                                             • Social Loan
                                                             • Other Loans

                                                          C. Funding Product
                                                             ESG Deposit




                                                                                Sustainability Report 2023 PT Bank BTPN Tbk   73
Page 80
       Stakeholders, including customers and regulators,           functional offices, ATM networks, and non-branch
       appreciate Bank BTPN’s products and services. These         networks. Additionally, the bank offers digital services
       offerings have no detrimental social or direct negative     to ensure convenient and fast access, in response to
       environmental impacts. To guarantee that all of Bank        the development of information technology and the
       BTPN’s products, services, and portfolios adhere            community’s transition into the digital era.
       to environmental and social standards, the bank
       employs thorough scrutiny and screening processes.          As part of this development, Bank BTPN made decision
       [OJK F.28] [OJK B.3]                                        to cease 12 branch offices in various regions during
                                                                   the reporting year. To maintain high quality customer
                                                                   service, Bank BTPN added 2 ATMs networks in 2023
       FLAGSHIP PRODUCTS                                           and optimize 8 ATMs in more potential locations.
       JENIUS
                                                                   In addition, Bank BTPN is committed to ensuring
       Bank BTPN offers excellent digital products tailored to
                                                                   accessible facilities for customers with disabilities.
       the tech-savvy generation, Jenius. Jenius empowers
                                                                   This commitment is reflected in the design of its head
       customers to carry out all banking activities digitally,
                                                                   office and branches, which feature ramp pathways to
       from opening an account to managing their finances.
                                                                   facilitate the mobility of customers using wheelchairs.
       With Jenius’ life finance solutions, customers can
                                                                   Additionally, Bank BTPN’s ATMs have been outfitted
       effortlessly manage their finances, including bill
                                                                   with special markers on the number 5, enter, clear, and
       payments, money transfers, setting up savings,
                                                                   cancel buttons to assist individuals with disabilities.
       allocating funds, and segregating funds for savings
                                                                   [FS14]
       and daily transactions.

       Jenius offers a range of savings programs that cater
                                                                   QUALITY PRODUCTS AND SERVICES
       to different needs, offering flexibility, varying time
                                                                   [FS15][OJK.F.27]
       periods, and desired interest rates. Moreover, Jenius’
       moneytary feature automatically tracks cash flow,           Bank BTPN’s commitment to delivering top-notch
       enabling customers to promptly and effortlessly             products is realized through a commitment to ensuring
       access a summary of their financial status. These           that Bank BTPN’s products and services comply with
       innovative Jenius features embody a smart, user-            applicable regulations. This ensures that all of Bank
       friendly, and secure banking revolution.                    BTPN’s products and services are developed in a
                                                                   safe, fair, and responsible manner, meeting the needs
       Jenius is an excellent product that embodies a              of the community.
       Customer-Centric and Science-Based approach,
       designed and developed through extensive research           Bank BTPN adheres to the guidelines set by the
       to tailor the product to the needs and behaviors of its     OJK under OJK Regulation No. 42/POJK.03/2017
       consumers, particularly the millennial generation, both     concerning the Obligation to Prepare and Implement
       in terms of features and experience.                        Credit or Financing Policies for Commercial Banks.
                                                                   Furthermore, all products and services undergo a
       In its operations, Jenius actively contributes to           comprehensive examination process, including:
       Bank BTPN’s sustainability initiatives. By embracing
       digitalization, Jenius effectively minimizes the reliance   1. Alignment of products with Bank BTPN’s vision
       on paper within Bank BTPN’s banking services.                  and mission.
       Furthermore, Jenius’ digital services play a pivotal        2. Alignment of products and services with the needs
       role in curbing emissions associated with customer             and capabilities of customers.
       mobility, which would otherwise occur when visiting         3. Taking into account environmental issues,
       Bank BTPN’s branches for banking needs. This is                including nature conservation initiatives, climate
       made possible by enabling customers to access                  change mitigation, and environmental risk
       all services digitally from any location with internet         management (for instance, waste disposal, and
       connectivity.                                                  pollution management), Bank BTPN sets forth
                                                                      specific requirements pertaining to environmental
                                                                      risks, which must be outlined by the Business Unit
       ACCESS DEVELOPMENT                                             in the loan approval process.
                                                                   4. Taking into account social issues, such as
       In order to enhance public access to financial services,
                                                                      extending credit and offering various training
       Bank BTPN offers a range of facilities, including
                                                                      programs to SMEs.
       head offices, branch offices, sub-branch offices,



74   Sustainability Report 2023 PT Bank BTPN Tbk
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                                                       Products and Services Excellence in
                                                       Supporting Sustainability




5. Providing information based on the principle of                These efforts have yielded positive outcomes, as there
   transparency, Bank BTPN ensures that all products              have been no product withdrawals and no reports of
   and services offered to customers come with a                  non-compliance with economic and social regulations.
   summary of information about the product at the                [GRI 419-1] [OJK F.17] [OJK F.29] [OJK F.27]
   time of the offer and/or the signing of the credit
   agreement. The summary of product provisions
   provided by Bank BTPN adheres to relevant OJK                  IMPROVING SERVICE QUALITY
   regulations, including those related to Consumer               Service Quality Policy
   Protection.                                                    Bank BTPN has implemented a range of
6. Ensuring that each product has undergone                       comprehensive policies to deliver top-notch service
   comprehensive examination:                                     to its customers. One such policy is the establishment
   a. Risk Management Review, related to eight                    of a Service Level Agreement (SLA), serving as
       types of risks: credit risk, market risk, liquidity        the service standard and reference for Bank BTPN
       risk, operational risk, strategic risk, compliance         to meet customer requests and address issues.
       risk, reputational risk, and legal risk;                   Regular evaluations are also carried out to ensure
   b. Compliance Test Review;                                     the compatibility of the established SLA with the
   c. Operational Review;                                         relevant work processes, aiming to provide the best
   d. Financial Review;                                           service in line with customer needs and expectations.
   e. IT Review;                                                  Customer satisfaction is considered a key factor in the
   f. And reviews related to sustainability aspects.              advancement of Bank BTPN’s business.
7. Ensuring that all products have obtained approval
   from relevant parties as regulated in Bank BTPN’s              Customer Complaint Handling
   Product and Service Policy, supported by
                                                                  Bank BTPN is committed to delivering excellent
   standard procedures and adequate infrastructure,
                                                                  and responsive service to all customers. In handling
   including Human Resources (HR) with the required
                                                                  customer complaints, the bank has implemented
   certification, as well as a Business Continuity Plan
                                                                  an integrated procedure, supported by the use
   (BCP) in place.
                                                                  of Customer Relationship Management (CRM)
8. Bank BTPN ensures that products requiring
                                                                  applications to record, monitor and manage all
   approval from regulators are only launched
                                                                  complaints received through various available
   after obtaining the necessary approval from the
                                                                  channels.
   regulator.
                                                                  Each complaint received through our communication
Bank BTPN is committed to providing safe, fair,
                                                                  channels, including telephone, email, and social
and responsible products. For this reason, the
                                                                  media, is promptly and accurately identified and
bank ensures this through regular supervision and
                                                                  recorded. These complaints are then followed up in
evaluation carried out by its Internal Audit Division.
                                                                  accordance with the relevant work processes and SLA
                                                                  to offer the best possible solution to the customer.


                                                                                      Sustainability Report 2023 PT Bank BTPN Tbk   75
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       Bank BTPN also conducts thorough and comprehensive evaluations of the issues faced by customers. This is
       aimed not only at resolving the complaints but also at preventing similar problems from occurring in the future.
       Bank BTPN ensures that its complaint handling practices comply with the regulatory standards enforced in the
       banking sector. In the reporting year, Bank BTPN received 64,935 complaints, of which 97% were resolved within
       the reporting year.


                                                   Complaint Handling 2023 [OJK F.24]

                                                                                                  Unresolved
                                     Resolved Complaints*)       Complaints in Process**)
                Types of Financial                                                               Complaints ***)        Total
        No.
                  Transactions                                                                                        Complaints
                                      Total         Percentage     Total        Percentage   Jumlah      Persentase

        1     Deposits                        26         100%                          0%                                     26

        2     Giro                            66          99%               1          1%                                     67

        3     Saving Account              174             97%               6          3%                                    180

        4     btpnWOW!                         2         100%                          0%                                      2

        5     Jenius                     4,486            98%              75          2%                                  4,561

        6     Pension Savings                  5          83%               1         17%                                      6

        7     Sinaya Savings                  30         100%                          0%                                     30

        8     btpnWOW! Loan                                0%                          0%                                      0

        9     Flexi Cash                 5,134            98%           113            2%                                  5,247

        10    Pay Later                  1,875            99%              10          1%                                  1,885

        11    Split Pay                        4          80%               1         20%                                      5

              Working Capital
        12                                                 0%                          0%                                      0
              Loan

              Pension Credit
        13                                266             95%              14          5%                                    280
              Loan

        14    SME Loan                        43          93%               3          7%                                     46

        15    SME                              2         100%                          0%                                      2

        16    ATM                      17,427             98%           338            2%                                 17,765

        17    Credit Card                8,175            92%           748            8%                                  8,923

        18    Internet Banking                 2         100%                          0%                                      2

        19    Mobile Banking           25,162             98%           395            2%                                 25,557

        20    Remittance/Transfer         132             94%               9          6%                                    141

        21    RTGS/SKN                        29         100%                          0%                                     29

        22    Bancassurance                    8          89%               1         11%                                      9

        23    Mutual Fund                 112             98%               2          2%                                    114

        24    Join Finance                    55          95%               3          5%                                     58

        TOTAL                          63,215             97%         1,720            3%                                 64,935



       CUSTOMER PRIVACY PROTECTION                                         customer personal information is in accordance
       Bank BTPN places the highest priority on protecting                 with the prevailing laws and regulations in Indonesia.
       customer privacy to uphold public trust, particularly               Essentially, Bank BTPN manages information security
       among its customers. The bank’s protection of                       by adhering to risk management principles, including:
                                                                           [FN-CB-230a.2]



76   Sustainability Report 2023 PT Bank BTPN Tbk
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                                                  Products and Services Excellence in
                                                  Supporting Sustainability




1. Training and Education for Information Security           2. The implementation of policies and procedures
   Awareness for:                                               for managing information security for:
   a. Employees: Bank BTPN regularly and                        a. Employees: Bank BTPN has established
      consistently ensures that all its employees                   policies and procedures for managing
      receive ongoing training and education to                     information security, which encompass
      consistently implement sufficient protection                  procedures and guidelines for employees in
      and security measures for the bank’s                          implementing protection and maintaining the
      information and its customers, particularly                   security of information (including customer’s
      their personal information. Furthermore, they                 personal information).
      are also equipped with an understanding of                b. Third Parties Collaborating with the Bank:
      the policies and procedures necessary to                      The policies and procedures for managing
      protect and maintain the security of customers’               information security extend to third parties
      personal information.                                         collaborating with Bank BTPN, in addition to
   b. Customers: Bank BTPN regularly and                            being applicable to employees. In practice,
      consistently provides literacy and education                  Bank BTPN enforces third-party risk
      on information security awareness to its                      management by conducting comprehensive
      customers through various communication                       testing (due diligence), ongoing monitoring,
      channels, including email, text messages,                     incorporating data confidentiality clauses in
      and information on the Bank BTPN website                      contracts, and ensuring the secure disposal
      and application. This ongoing process is                      of information when collaborations with
      continuously updated to address the latest                    third parties come to an end (in accordance
      threats, aiming to ensure that customers have                 with relevant laws and regulations). These
      a comprehensive understanding of how to                       information security policies and procedures
      safeguard their personal information while                    undergo regular review and updates to ensure
      conducting banking activities.                                alignment with applicable laws and regulations.




                                                                                 Sustainability Report 2023 PT Bank BTPN Tbk   77
Page 84
       3. Technology Utilization                                3. Use of easily understandable Indonesian language;
          Bank BTPN consistently updates and employs            4. Use of font size according to regulations;
          cutting-edge security technology to safeguard         5. Notification of changes in features or terms and
          customer data and thwart unauthorized access or          conditions of a product;
          data breaches. This includes the use of Data Loss     6. Easy access to up-to-date information for
          Prevention (DLP) systems, which restrict access          customers and the public;
          to external emails, as well as the implementation     7. Explanation of products through personal
          of authentication and Multi-Factor Authentication.       communication channels for customers;
          Additionally, the bank proactively anticipates        8. Services for consumers with special needs.
          emerging trends in banking crime and deploys
          early detection measures to identify any irregular    The products launched by Bank BTPN have undergone
          transaction patterns.                                 comprehensive evaluation and are constantly
                                                                adjusted to the dynamics of society and the business
       4. Collaboration with the Authorities                    world. Bank BTPN values input and feedback from the
          Bank BTPN collaborates with supervisory and           public regarding its products and services, aiming to
          regulatory authorities (Ministry of Communication     improve the quality of products and services in line
          and Information Technology, Directorate General       with customer needs and expectations.
          of Civil Registration and Population, National
          Police Criminal Investigation Department, and         Bank BTPN is committed to delivering the best
          E-Commerce) to ensure the accuracy and security of    products and services to its customers while
          customer data. This collaboration also ensures that   upholding compliance with all relevant regulations
          Bank BTPN’s security and privacy protocols adhere     in the fields of information, labeling, and marketing.
          to applicable legal standards and regulations.        The bank consistently strives to manage and follow
                                                                up on any incidents related to product and service
           In ensuring the security of customer data, Bank      communication, as well as marketing, in the best
           BTPN enforces stringent and multi-layered            possible manner according to applicable provisions
           protection. Meticulous processes and well-defined    and procedures.[GRI 417-2] [GRI 417-3]
           security measures are implemented to ensure
           the safety and integrity of customer data. Due to
           these precautions, there have been no reports of     CUSTOMER SATISFACTION SURVEY [OJK F.30]
           personal data breaches or customer data loss in      Bank BTPN regularly conducts customer satisfaction
           the reporting year. [GRI 418-1] [FN-CB-230a.1]       surveys as an integral part of our commitment to
                                                                delivering top-notch service. The primary goal of
                                                                these surveys is to gauge the level of customer
       PRODUCT INFORMATION AND MARKETING                        satisfaction with Bank BTPN’s products, services, and
       Bank BTPN recognizes that providing clear and            overall experiences. By comprehending customers’
       accurate information about banking products and          perspectives and experiences, we can pinpoint areas
       services is crucial for enabling customers to make       requiring improvement and fortify aspects that have
       informed and wise financial decisions. As a result,      contributed to satisfaction.
       for products launched, Bank BTPN is required to
       provide comprehensive, clear, transparent, and easily    Customer satisfaction surveys are carried out by
       understandable information about its products and        an independent entity for consumers of the Jenius
       services, in compliance with relevant regulations and    product, utilizing the Customer Satisfaction Score
       regulatory provisions, including: [GRI 417-1]            (CSAT) and Net Promoter Score (NPS) methods,
       1. Summary of product and/or service information;        yielding the subsequent findings:
       2. Features, terms, and conditions;




                                                                        2023              2022             2021

        CSAT                                                             64%              74%              69%
        NPS                                                              +22              +16              -22




78   Sustainability Report 2023 PT Bank BTPN Tbk
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Products and Services Excellence in
Supporting Sustainability




                               Sustainability Report 2023 PT Bank BTPN Tbk   79
Page 86
           STRENGTHENING
           THE CULTURE OF
           EMPOWERMENT
           AND EXPANDING
           THE IMPACT
         Bank BTPN is committed to
         consistently strengthening its positive
         contribution to society through
         empowerment programs that offer
         opportunities for growth and a more
         meaningful life.




80   Sustainability Report 2023 PT Bank BTPN Tbk
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Strengthening the Culture of
Empowerment and Expanding the Impact




                       Sustainability Report 2023 PT Bank BTPN Tbk   81
Page 88
       Bank BTPN’s commitment to implementing sustainable finance principles is realized through various initiatives aimed at
       enhancing the capacity of customers and the general public, providing them with access to growth and a more meaningful life.

       Since 2011, Bank BTPN has launched Daya as its flagship program to promote the development of an inclusive and
       collaborative economic ecosystem for all layers of society and Bank BTPN’s customer segments. For over a decade, Daya
       has achieved numerous awards at both national and international levels. In the planning and execution of Daya programs,
       Bank BTPN emphasizes four main pillars:




                        Competence                                                                   Financial
                        Development                                                                  Literacy


                                                             DAYA
                                                             PILLARS
                          Capacity
                                                                                                   Sustainable
                         to Grow for
                                                                                                     Living
                          Business




       1. Competence Development                                            culture of saving, personal financial management,
          The competence development program encourages                     retirement planning, sound investment practices,
          individuals to enhance their skills and competencies,             banking product awareness for the elderly, and other
          encompassing both technical and non-technical                     relevant topics tailored to the community’s needs.
          aspects, in order to confront the growing intensity
          of market competition. Daya offers a self-capacity                The financial literacy program of Bank BTPN aims to:
          development program through specialized and targeted              • Enhance public awareness of financial products
          programs to match the skills desired by customers.                   and services that align with their needs
          Additionally, amidst the transition from pandemic to              • Providing the public education on how to identify
          endemic, mental health has become essential for                      and avoid fraudulent investments
          maintaining the mental condition of individuals in order          • Enhance the community’s capacity to prudently and
          to remain productive in the workplace.                               responsibly manage finances
                                                                            • Improve the quality of decision-making in financial
           Bank BTPN assists the community to develop their                    management to enhance the community’s well-
           potential and improve their skills through high-quality             being
           seminars and training led by experts in their respective         • Expand financial inclusion.
           fields. The training themes provided include:
           • Dealing with the Inner Child for A Productive Life
           • Working from the Heart                                             Participants of Financial Literacy
           • Becoming a Good People Manager                                                   [FN-CB-240a.4]
           • How to Craft Your Career Breakthrough                                  2,705,138

       2. Financial Literacy [FS16] [OJK F.23] [OJK F.25]
          Financial literacy is an important foundation that can
          influence an individual’s decision-making process in                                    558,185
          managing finances to achieve short-term and long-term
          financial goals. As a business entity operating in the
          financial services sector, it is Bank BTPN’s obligation to
          promote financial literacy within the community.

           Bank BTPN conducts online and offline financial literacy                                             13,632
           training programs and seminars through diverse digital
           channels, targeting a wide range of groups, including
           students, MSME owners, and retirees across different
           regions of Indonesia. The content of these financial
           literacy activities encompasses subjects such as the                        2023         2022         2021



82   Sustainability Report 2023 PT Bank BTPN Tbk
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                                                             Strengthening the Culture of
                                                             Empowerment and Expanding the Impact




3. Capacity to Grow for Business [OJK F.23] [OJK                  Impact Assessment of the Daya
   F.25] [GRI 203-2]                                              Program
   Bank BTPN strives to improve financial access for              Bank BTPN conducted a study of the potential and needs
   individuals engaged in the micro, small, and medium-           of the community as an initial step to ensure that the Daya
   sized enterprise (MSME) sector by offering training            program can provide maximum benefits. All ongoing
   and mentoring to enhance the skills of entrepreneurs.          programs will undergo periodic assessments based on
   Daya offers opportunities for entrepreneurs to                 performance and the satisfaction level of the beneficiaries,
   enhance their capabilities through entrepreneurship            the enhancement of the community’s comprehension of
   training, business insight development, and guidance           the provided materials, and other feedback to be taken
   on new business opportunities and market access.               into account in the implementation of future programs.
                                                                  Bank BTPN offers a facility for the public to provide
   In addition to offering training and learning modules,         input for this program through a whistleblowing program
   Daya also offers solutions to enhance MSME                     detailed on page 134.
   businesses and capacities through marketing MSME
   products on the daya.id website to reach a wider               Daya program also assessed the impact of its programs by
   market. Through this program, MSME players have                measuring social impact or Social Return On Investment
   the opportunity to engage and connect with experts,            (SROI) using globally recognized standards to determine
   providing inspiration and the necessary guidance.              the social investment value obtained from the program.
                                                                  Bank BTPN implemented all (100%) Daya programs with
   This program is expected to enhance the sustainability         utmost care, resulting in no public complaints regarding
   of MSMEs, thereby increasing the role of MSMEs as a            the Daya programs during the reporting year. [GRI 413-1]
   driving force in the Indonesian economy.                       [GRI 413-2] [OJK F. 25]

4. Sustainable Living
                                                                  SROI Daya Program
   Endeavors to enhance the nation’s economy must
   be complemented by endeavors to improve the                    In 2023, Bank BTPN conducted SROI analysis on the
   quality of life for its people. This is because healthy        daya.id website program. The daya.id website, launched
   and prosperous individuals are better positioned               in 2017, serves as a digital platform for the public to
   to work productively. Bank BTPN is committed to                improve their skills and quality of life across multiple
   improving the community’s health and well-being by             domains, encompassing economics, health, and social
   providing access to information and education on               aspects. Through daya.id site, individuals can access
   healthy lifestyles, mental health, and environmental           resources on business management, financial literacy,
   sustainability.



                                                                                    Sustainability Report 2023 PT Bank BTPN Tbk   83
Page 90
       and healthy lifestyles. Additionally, they have the                                                DAYA.ID – A LEADING DIGITAL PLATFORM
       opportunity to engage in free consultations with experts                                           Daya.id is a digital platform that empowers the community
       in these areas.                                                                                    to enhance their capacity and quality of life across
                                                                                                          multiple domains, such as economic, health, and social
       The results of the SROI analysis indicate that the daya.id                                         well-being. Through daya.id, individuals can access
       website has effectively delivered benefits such as:                                                resources on business management, financial literacy,
       1. Enhancing the image of Bank BTPN as a bank actively                                             and healthy lifestyles, and also engage in complimentary
          empowering its customers and the community.                                                     direct consultations with experts in these areas.
       2. Enhancing users’ knowledge, awareness, abilities,
          and profits.                                                                                    Daya.id assists the community in swiftly and easily
       3. Increasing income, expertise in article creation,                                               accessing the information and services they require by
          portfolio development, and branding.                                                            offering excellent services, including:
       4. Increasing profits from loan top-ups, customer base
          expansion, and sales performance.                                                               1. Providing accurate information on entrepreneurship,
       5. Reducing operational costs related to communication                                                financial management, and healthy lifestyles.
          media.                                                                                          2. Providing access to empowerment programs
                                                                                                             available 24/7.
       SROI impact calculation for the daya.id program in 2022                                            3. Boosting the competitiveness of customers’
       resulted SROI Ratio of 2.46. This indicates that for every 1                                          businesses through product and business promotions
       Indonesian Rupiah invested by Bank BTPN in the daya.id                                                on the daya.id website.
       website, it generates a social value of Rp2.46.                                                    4. Facilitating consultations with experienced experts in
                                                                                                             business, finance, and healthy living.
                                                                                                          5. Establishing a network among business players to
                                                                                                             enhance business opportunities.




                                                 News & Tips                                                            Sahabat Daya

                                          1                                                                         9
                                                 Providing the latest news                                              Volunteer program to
                                                 and practical tips for daily                                           empower the surrounding
                                                 activities                                                             community




                      Success Stories                                                                                                         Financial Products
                      Sharing inspirational                                                                                                   Featuring various financial

                2     experiences from actors
                      who have achieved                                                                                                8      products in the form
                                                                                                                                              of savings, loans, and
                      success in business or a                                                                                                investments that can be used
                      healthy lifestyle                                                                                                       as needed


                                                                                       NINE
                                                                                    FEATURES
                Online Training
                Engaging, concise, and                                              ON DAYA.ID                                                      Market Access
                                                                                                                                                    Online
            3                                                                        WEBSITE                                                 7
                easy to-understand
                                                                                                                                                    Promoting selected
                training videos on financial,
                                                                                                                                                    customer products in well
                business, and healthy
                                                                                                                                                    known online stores
                lifestyle topics.




                                                                                                                                           Face-to-face Training
                         Ask an Expert Online
                                                                                                                                           Offline and online training/
                  4      Consultation with
                         experienced & trusted                                                                                       6     seminar schedules to
                                                                                                                                           increase self-capacity
                         experts in their field
                                                                                    Business Opportunities
                                                                                    Providing a wide choice

                                                                                5
                                                                                    of franchise business
                                                                                    opportunities from partners
                                                                                    that have been tested and are
                                                                                    in the low-risk category




84   Sustainability Report 2023 PT Bank BTPN Tbk
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                                                           Strengthening the Culture of
                                                           Empowerment and Expanding the Impact




                                            Number of Daya.id visitors
                                                [FN-CB-240a.4]

                   Website visitors                                                    Registered users



         2,306,562                                                           136,173

                                      2,124,165
                                                                                                  107,053
                       1,684,575
                                                                                                            73,566




            2023         2022           2021                                    2023               2022      2021



In 2023, daya.id was visited by 2,306,562 visitors,             4. INTRAS (Coaching & Training Company)
136,173 of whom were registered users.                          5. Franchise Indonesia Magazine

Daya.id collaborated with experienced professionals             This collaboration has led to the creation of numerous
in the fields of entrepreneurship and health, including:        structured and accurate educational resources aimed
1. Indonesia Sports Medicine Centre (ISMC)                      at empowering the public to make informed decisions
2. Arsanara                                                     that can enhance their quality of life.
3. Tangan Diatas Community




          3,639                         322                                212                        10 partners
        Article Tips            E-learning Module                 Success Stories                      Expert Partners


                                            *Data as of December 31, 2023




In 2023, daya.id introduced several innovations to enhance the effectiveness and reach of its programs, including:
1. Collaboration with expert partners to effectively cater to users’ needs.
2. Improvement of SEO and SEM strategies to enhance website traffic.
3. Development of Disaster Recovery Infrastructure to enhance website service availability.




                                                                                  Sustainability Report 2023 PT Bank BTPN Tbk   85
Page 92
       TESTIMONIALS FROM MSME MENTORING
       DAYA PROGRAM PARTICIPANTS

          Gain Profit Through                                         At one exhibition at SICC Sentul, Bogor, her booth was
                                                                      visited by the President of the Republic of Indonesia,
          Daya’s Training
                                                                      Joko Widodo, who engaged in a discussion about her
                                                                      products.
         Indonesia’s vast marine territory positions it as a
         country with immense potential in the field of maritime
         and fisheries. Unfortunately, certain marine species
                                                                      Challenges
         with short lifespans are frequently underutilized or
                                                                      However, Siti Rochanah’s success in developing
         discarded. One such example is the “Serinding” fish,
                                                                      processed fish products from the Serinding fish was
         also known as Ambassis Nalua, frequently used as
                                                                      the result of persistent effort. Prior to this endeavor,
         animal feed or simply disposed of.
                                                                      she began her business by making pastries in 2021
                                                                      before transitioning to processed Serinding fish. The
         Concerned by the underutilization of the Serinding fish,
                                                                      production of Iwak Nyuzz also entailed numerous trials
         Siti Rochanah (63), a woman from the northern coast
                                                                      to achieve the perfect blend of spices, determine the
         of Semarang, Central Java, was inspired to process it
                                                                      optimal flour thickness, and master the frying process
         into a long-lasting fish product with a delighful flavor.
                                                                      in hot oil. Perfection was the ultimate goal.
         She coats the Serinding fish with various fresh spices
         and flour, then fries it to produce a savory, crispy, and
                                                                      “We once had 25 kg completely ruined because we had
         enjoyable snack.
                                                                      no prior experience in processing it, which led to burnt,
                                                                      overly thick flour. The trials were truly remarkable,
         Siti Rochanah named her processed Serinding fish
                                                                      spanning about two years,” Rochanah revealed.
         product “Iwak Nyuzz,” and its marketing has been highly
         successful. The Iwak Nyuzz brand now offers a total of
                                                                      In addition to the product, Siti Rochanah’s business
         21 variants and has obtained various business permits,
                                                                      of creating snacks from the Serinding fish also
         halal certification, and BPOM certification. Additionally,
                                                                      frequently faced challenges in sourcing raw materials
         Siti Rochanah has patented the Iwak Nyuzz trademark
                                                                      from local fishermen. Despite this, Siti Rochanah
         with the Directorate General of Intellectual Property,
                                                                      continued to develop business strategies to ensure
         Ministry of Law and Human Rights.
                                                                      smooth production. One of the efforts she has made
                                                                      was actively participating in entrepreneurship training
         Siti Rochanah’s processed Serinding fish products
                                                                      programs to enhance her knowledge and business
         are frequently showcased at various exhibitions and
                                                                      acumen, supporting of the production process and the
         events.
                                                                      advancement of her business.




       Production &                                                   Product
       Revenue of Iwak                                                Advantages
       Nyuzz

          500%                                                           1. Produced homemade

          Revenue Increased                                              2. Continuously innovating
                                                                         3. Holds business permits, halal
                                                                            certificates, and BPOM certificates for its
                 100 packs/day (2010)                                       products
                                                                         4. Registered trademark patents for Iwak
                 1,500 packs/day (2023)                                     Nyuzz
                                                                         5. Top-notch service to consumers




86   Sustainability Report 2023 PT Bank BTPN Tbk
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                                                          Strengthening the Culture of
                                                          Empowerment and Expanding the Impact




She participated in the “Daya” program offered by
Bank BTPN, of which she is a customer. This program
aims to enhance the capacity of the community,
particularly Bank BTPN customers across all segments,
from corporations to low-income (productive
underprivileged) individuals.

During this training, Rochanah was introduced to
Coach Ari, who assisted her in developing new
products by utilizing leftover products to create
separate economically valuable products. This led to
the emergence of new products such as shrimp and
fish crumbs with original and spicy variants, thereby
increasing her profits.

“Before meeting Coach Ari, I had never considered
using the remnants of Iwak Nyuzz. However, after our
encounter, I started to explore ways to add economic         packages per day, a substantial increase from the initial
value by utilizing these remnants, ensuring that the         100 packages per day in 2010 when she first started her
entire product was put to good use. I am truly grateful      processed fish business. Consequently, Rochanah’s
for this valuable advice,” she said.                         total turnover has also risen sharply, by more than 500%
                                                             since the inception of her business. With her expanding
She was also encouraged to develop marketing                 business, Siti Rochanah has been able to employ six to
techniques by participating in exhibitions to enhance        seven workers to assist her.
the branding of her products and expand their market
by selling Iwak Nyuzz products at production houses,         The Iwak Nyuzz product is now available beyond the
various retail stores, and to resellers.                     island of Java and throughout Indonesia. Not only is
                                                             it popular domestically, but on July 29, 2023, the Iwak
As a result, the production and sales of Iwak Nyuzz          Nyuzz product successfully made its first export.
have increased significantly. Currently, the production
of processed fish Iwak Nyuzz has reached 1,500




Product Variants                                               Iwak Nyuzz Product
                                                               Prices
1. Soft-boned milkfish (presto milkfish)
                                                                         Rp22,000
2. Swamp baby fish original                                              Baby Fish Crispy Original
3. Sea baby fish original
4. Spicy sea baby fish                                                   Rp24,000
5. Shrimp original                                                       Baby Fish Crispi
6. Spicy shrimp                                                          Balado

7. Baby fish fillet crispy
8. Shrimp and salted fish fried rice seasoning                           Rp30,000
                                                                         Various Sambal
9. Various sambal and fried shallots
10. Crunchy Shrimp and fish flakes with original and
    spicy variants

                                                                                 Sustainability Report 2023 PT Bank BTPN Tbk   87
Page 94
       COMMUNITY EMPOWERMENT PROGRAM                              1. To prepare participants for retirement through
                                                                     dynamic seminar content, such as:
       Daya Program for Retired Customers                            • Retirement Mindset
       This program is designed to cater to the needs of                 This section aims to instill a positive mindset
       retired customers by offering information in the areas            that retirement is a new chapter of life brimming
       of psychology, health, and finance during retirement.             with opportunities for creativity and joy.
       Daya aims to enhance the quality of life for retired          • Retirement Financial Planning
       customers by offering services tailored to the needs              This section offers participants guidance on
       of the elderly, health consultations with medical                 effectively managing their finances to ensure
       professionals, and opportunities to foster a sense of             the fulfillment of all their essential needs during
       community among retirees.                                         retirement.
                                                                     • Activities During Retirement
       Daya Programs for Retired Customers include:                      This section provides information on the
                                                                         diverse opportunities available to stay active
                                                                         and productive during retirement, including
                                                                         actively engaging in social activities, returning
                                                                         to work, starting a business, or becoming an
                     health Seminar                                      investor.
                     Health seminar at the branch office,         2. To provide training and mentorship to participants
                     emphasizing on the treatment,                   aspiring to become entrepreneurs in retirement,
          01         diagnosis, and prevention of diseases
                     and health disorders affecting the
                                                                     enabling them to establish businesses aligned with
                     elderly. The seminar features a                 their potential and interests. The second objective
                     specialist geriatric doctor.                    is manifested in its content, which comprises:
                                                                     • Entrepreneurial Mindset
                                                                         This section assists participants in developing
                                                                         the mindset and acquiring the skills necessary to
                                                                         become resilient and adaptable entrepreneurs.
                                                                     • Business Interest Mapping
                     Teleconsultation                                    This section assists participants in making
                     Online doctor consultations are                     informed decisions regarding the type of
          02         available every working day, allowing
                     patients to seek medical advice
                                                                         business they will pursue based on their
                                                                         hobbies, interests, and risk profiles. Additionally,
                     through text, voice calls, or video calls.          participants are provided with information
                                                                         about various business opportunities offered
                                                                         by Bank BTPN’s partners as potential options
                                                                         for their businesses.
                     Online Community                                • Business Plan Development
                     Platform for retired customers                      This section offers participants guidance
                     to exchange information, share                      on developing comprehensive business
                     experiences, and build camaraderie                  requirements and effective business plans,
          03         with other retired customers. The
                     community is also facilitated by                    thereby enhancing their prospects for success
                     healthcare professionals (doctors) to               in managing their businesses.
                     ensure they receive accurate health             • Business Implementation
                     information.                                        This section offers participants the opportunity
                                                                         to simulate business implementation and
                                                                         provides them with tips for running a business,
                                                                         including strategies for managing business
                                                                         risks.
       Bank BTPN not only offers the Online Retirement
       Preparation program, emphasizing on elderly health,        During 2023, there have been 56 offline and online
       but also offers retirement preparation services to         training activities, attended by 7,698 members of TNI
       Indonesian Army (TNI) and POLRI (Indonesian Police)        and POLRI throughout Indonesia.
       members. The program’s curriculum is designed with
       has 2 main objectives, namely:




88   Sustainability Report 2023 PT Bank BTPN Tbk
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                                                         Strengthening the Culture of
                                                         Empowerment and Expanding the Impact




Daya for Sinaya Prioritas Customers                           This webinar is a tangible manifestation of Bank BTPN
Daya program for Sinaya Prioritas customers aims to           supports the government’s program to synchronize
enhance the loyalty of individual Bank BTPN (Sinaya           NIK and NPWP, as not all customers understand the
Prioritas) customers through a capacity-building              process. This program was attended by 383 Sinaya
program for customers.                                        Prioritas customers.

As a tangible manifestation of Bank BTPN’s                    Sahabat Daya
commitment in providing the best service for Sinaya           Sahabat Daya is a program aimed at enhancing the
Prioritas customers, in 2023 Bank BTPN collaborated           capacity of the Indonesian community by engaging
with PT Kalbe Farma Tbk, to provide an offline                the participation of diverse stakeholders, including
seminar program with a health theme on the changing           employees, partners, and Bank BTPN customers.
health trends from the application of curative and
reactive measures to health phenomena will switch             Sahabat Daya also serves as a platform for Bank
to preventive and predictive measures that are                BTPN to promote a culture of sustainability among its
considered more efficient and improve quality of life.        employees. The program, organized by Bank BTPN,
The seminar was attended by 90 participants from              promotes active employee engagement in a variety
various areas in Jakarta.                                     of Sahabat Daya volunteering activities or Employee
                                                              Volunteering (EV).
Another program for Sinaya Prioritas customers is
a webinar program with a taxation theme which is              The empowerment activities encompass a wide range
divided into 2 topics, namely:                                of topics, including financial management, business
1. Manage Annual Tax Return (SPT) and SP2DK                   management, health check-ups, environmental
    Appeal Letter Wisely                                      initiatives such as greening and mangrove planting, as
2. Matching of the Customs Identification Number              well as literacy education for underprivileged children.
    (NIK) and Taxpayer Identification Number (NPWP):
    Solution to Simplify Tax Administration




                                                                                Sustainability Report 2023 PT Bank BTPN Tbk   89
Page 96
       These diverse Sahabat Daya activities entail collaboration with external partners such as universities, experts, and
       practitioners engaged in these initiatives.

       Through direct employee involvement, it is hoped that the company’s positive impact on society will be further
       enhanced, bolstering Bank BTPN’s reputation as a bank dedicated to empowerment. Additionally, employees
       stand to gain from participating in volunteer activities, as it provides them with a platform for personal growth and
       boosts their self-esteem. Consequently, the commitment to sustainability is not solely a corporate agenda and
       mission but has also become a commitment embraced by the employees.

       The Sahabat Daya programs in 2023 include:


            Program                          Description                                            Impact


                           Sahabat Daya program that accommodates             •   32 volunteers/employees
                           and encourages employees’ sense of social          •   14 boxes of clothes and 5 boxes of books
                           and environmental awareness to help groups/        •   Beneficiary locations: Java and Sumatra
                           institutions in need or support other positive
                           actions in the community through donation
         Sahabat Daya
                           activities.
         Donation

                           The Sahabat Daya program promotes voluntary        •   Total participants: 46 employees from 8
                           participation in low-emission activities, such         central and branch offices
                           as walking or cycling to and from the office, in   •   3,488,431 steps walked
                           order to mitigate the adverse effects of carbon    •   5,950 km cycled
                           emissions on climate change.                       •   625 mangrove trees converted
         Walking x
         Cycling for       The distance covered by employees walking
         the Earth         and cycling is converted into mangrove trees,
                           with 1 mangrove tree planted for every 10,000
                           steps walked or 20 kilometers cycled. The
                           accumulated mangrove trees have been planted
                           in the mangrove conservation areas in Pantai
                           Indah Kapuk and Harapan Island, Thousand
                           Islands, Jakarta.




                           The Sahabat Daya program aims to enhance           •   19 employee teams
                           the community wellbeing through its                •   203 volunteers
                           employees. They are encouraged to participate      •   767 beneficiaries
                           in activities that empower the people in their     •   12 cities including Jakarta (headquarters),
                           community, helping them to feel meaningful to          Medan, Makassar, Tuban, Lampung,
                           their community.                                       Tasikmalaya, Manado, Salatiga, Serang,
         Sahabat Daya
                                                                                  Bekasi, Karawang, Yogyakarta.
         Wellbeing
                           Employees form teams and submit proposal           •   Empowerment activities include financial
                           for empowerment. The selected proposals will           literacy, health check-ups for retired
                           receive financial assistance to carry out the          customers, mangrove planting, teak tree
                           empowerment activities.                                planting, healthy living and cleanliness
                                                                                  campaign, stunting prevention, literacy
                                                                                  enhancement for street children, urban
                                                                                  farming.

                           Employees and/or the public voluntarily provide    Please refer to the Social Responsibility Activities
                           financial literacy counseling to the community,    table on page 92-93.
                           including high school students, university
                           students, and communities (customers/non-
                           customers).
         Sahabat Daya
         Financial
         Literacy




90   Sustainability Report 2023 PT Bank BTPN Tbk
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                                                                    Strengthening the Culture of
                                                                    Empowerment and Expanding the Impact




Testimony of Sahabat Daya Participant
WALKING X CYCLING for the Earth


Merisa Darwis : Our contribution, Meaningfull To The Earth!

            mid her hectic schedule as the Operational

  A         Director of Bank BTPN, Merisa Darwis makes
            time to join the Sahabat Daya Walking x Cycling
            for the Earth (Berjalan Bersepeda untuk Bumi/
                                                                         Recognizing the significant benefits of this initiative, Merisa
                                                                         Darwis expressed her hope that all Bank BTPN employees
                                                                         would continue to be enthusiastic in their efforts to reduce
BBUB) program. She considers this program a meaningful                   emissions and pollution.
and positive endeavor.
                                                                         “The steps or cycling we take may seem small or insignificant,
“We are very grateful to have an office space with large                 but at least we have done something to make the environment
windows. In addition to savoring the Jakarta cityscape from              around us better, rather than doing nothing!” she emphasized.
the BTPN Tower, I often observe the haze in the city’s sky               Meanwhile, another BBUB program participant, Firly Aryanti
caused by pollution. In my view, we all contribute to the                SH, from the Bandar Lampung Branch Office, expressed her
environmental conditions in the capital city,” she said.                 enthusiasm for taking part in a program that benefits both
                                                                         physical health and the environment.
She admitted to feeling extremely enthusiastic when the
Sahabat Daya BBUB program was initiated. This program                    “If before, my walking only benefited me, like feeling healthier,
provides us with the opportunity to take real action in                  now, with the Sahabat Daya BBUB program, my walking
reducing carbon emissions that cause pollution.                          has an additional value for the environment. As we receive
                                                                         a special reward converted into mangrove trees to address
“Participating in this program offers two significant                    pollution issues,” she said.
contributions. First, by walking or cycling, we refrain from
adding to pollution. Second, our efforts in walking or cycling           Another cycling participant in the BBUB program, Akbar
will be converted into the planting of mangrove trees, adding            Ismail, from the Gunung Sahari branch office in Jakarta,
depth and significance to the program. I believe I should be             expressed that BBUB is highly inspiring in contributing to
able to contribute at least one tree!” she exclaimed.                    reduce pollution and carbon emissions, detrimental to the
                                                                         environment.
“I walked in the morning, when I was heading to the office.
From my house, I walked to the MRT station to board the train            “The existing facilities provide robust support for cycling
and disembark at the next station, just to cross the Semanggi            to the office. We can utilize public transportation, followed
intersection. From there, I proceeded on foot to the BTPN                by cycling, and upon arrival, there are facilities available
Tower. During this time, Satrio Street was heavily congested             at the office for cleaning up. Therefore, the process is
with diverse vehicles. By choosing to walk, I avoided the traffic        straightforward and convenient. It’s just a matter of whether
congestion and, most importantly, diminished my impact on                we want to contribute to reducing pollution for the earth or
air pollution. I recently discovered that the sidewalks in that          not,” he said.
area are very pleasant for walking,” she said.

“I have walked to the office 5 times and accumulated over
20,000 steps, thus effectively contributing to the planting of
two mangrove trees,” she continued.
                                                                                           Sustainability Report 2023 PT Bank BTPN Tbk       91
Page 98
       Social Responsibility Activities [OJK F.25]




        Type of Activity       Relevance to SDGs                  Description                      Participation Rate


        Competence         SDG 4 (Quality Education)                                     • 164 participants attended the
                                                          • Seminar: 10 activities
        Development        SDG 5 (Gender Equality)                                         seminar
                                                            Topics:
                           SDG 17 (Partnerships for the
                                                            • Leadership
                           Goals)
                                                            • Performance
                                                              Management
                                                            • People Management
                                                            • Career Development
                                                          • Fund Allocation:
                                                            Rp335,464,511

        Financial          SDG 1 (No Poverty)             • Seminar: 66                  • 3,616 participants attended the
        Literacy           SDG 4 (Quality Education)      • Infographics: 17               seminar
                           SDG 8 (Decent Work and         • Website education: 19        • 5,038 people read educational
                           Economic Growth)               • Education through social       posters (infographics)
                           SDG 10 (Reduced                  media: 189                   • 3,356 visited daya.id and Jenius
                           Inequalities)                  • Fund Allocation:               website content
                           SDG 17 (Partnerships for the     Rp632,630,139                • 2,689,992 viewed social media
                           Goals)                                                          content


        Capacity           SDG 1 (No Poverty)             • Seminar: 34 activities       • 7,691 participants attended the
        to Grow for        SDG 8 (Decent Work and         • Coaching activities: 2         seminar
        Business           Economic Growth)               • Infographics: 36             • 9 participants received coaching
                           SDG 10 (Reduced                  educational posters          • 3,082 read educational posters
                           Inequalities)                  • Daya.id website content:       (infographics)
                           SDG 17 (Partnerships for the     2.210                        • 1,853,371 people visited the website
                           Goals)                         • Social Media Content: 28       daya.id
                                                          • Fund Allocation:             • 127,334 viewed social media content
                                                            Rp334,627,656

        Sustainable        SDG 3 (Good Health and         • Seminars: 16 activities      • 43,519 participants attended the
        Living             Well-Being)                    • Consultation activities at     seminar
                                                            branches: 1,283 activities   • 1,283 people received consultations
                                                          • Online/telephone               at branches
                                                            consultation activities:     • 2,302 people received online or
                                                            2,302 activities               teleconsultations
                                                          • Infographics: 45             • 12,557 read educational posters
                                                            educational posters            (infographics)
                                                          • Daya.id website content:     • 323,825 people visited the website
                                                            875                            daya.id
                                                          • Social media content: 20     • 362,972 people viewed social media
                                                          • Fund Allocation:               content
                                                            Rp195,622,125




92   Sustainability Report 2023 PT Bank BTPN Tbk
Page 99
                                                          Strengthening the Culture of
                                                          Empowerment and Expanding the Impact




Type of Activity       Relevance to SDGs                  Description                            Participation Rate


Daya for           SDG 3 (Good Health and         • Seminars: 29 activities          • 2,944 participants attended the
Corporate          Well-Being)                    • Fund Allocation:                   seminar.
Customers          SDG 4 (Quality Education)        Rp102,705,201
                   SDG 8 (Decent Work and
                   Economic Growth)
                   SDG 10 (Reduced
                   Inequalities)
                   SDG 17 (Partnerships for the
                   Goals)


Courses and        SDG 3 (Good Health and         • 56 activities                    • 7,698 participants
Preparation for    Well-Being)                    • Fund Allocation:
Prospective        SDG 4 (Quality Education)        Rp847,613,244
Retired Civil      SDG 8 (Decent Work and
Servants,          Economic Growth)
Military           SDG 10 (Reduced
Personnel, and     Inequalities)
Police

Development        SDG 4 (Quality Education)      • 4,071 learning sessions          • 105,496 students
of Educational
Facilities
[GRI 203-1]

Daya for           SDG 3 (Good Health and         • 6 seminars activities            • 521 participants
Sinaya Prioritas   Well-Being)                    • Fund Allocation:
Customers          SDG 8 (Decent Work and           Rp36,201,750
                   Economic Growth)


Sahabat Daya       SDG 3 (Good Health and         • 45 volunteer activities          • 415 volunteers from various
                   Well-Being)                    • Fund Allocation:                   backgrounds such as Bank BTPN
                   SDG 4 (Quality Education)        Rp36,599,657                       employees, students, the general
                   SDG 8 (Decent Work and                                              public, and others.
                   Economic Growth)                                                  • 2,030 people benefited from
                   SDG 10 (Reduced                                                     the activities carried out by the
                   Inequalities)                                                       volunteers.


Daya.id            SDG 3 (Good Health and         • Article Tips: 3.639              • 2,705,138 people visited the daya.id
                   Well-Being)                    • Modul e-learning: 322              website
                   SDG 4 (Quality Education)      • Success stories: 212
                   SDG 8 (Decent Work and         • Fund Allocation:
                   Economic Growth)                 Rp357,731,730
                   SDG 10 (Reduced
                   Inequalities)




                                                                                 Sustainability Report 2023 PT Bank BTPN Tbk   93
Page 100
           INCREASING
           CAPACITY FOR
           SUSTAINABILITY
         Exceptional human resources are the
         key to the long-term success of a
         company. Bank BTPN is committed to
         creating a positive work environment
         that facilitates the development of
         employee competencies.




94   Sustainability Report 2023 PT Bank BTPN Tbk
Page 101
Increasing Capacity for
Sustainability




Sustainability Report 2023 PT Bank BTPN Tbk   95
Page 102
       Human Resources Policy of Bank                                   this goal, Bank BTPN offers sufficient facilities
       BTPN                                                             and work equipment, including comfortable
       The human resources policy of Bank BTPN is designed              workspaces, complete work tools, and a
       to comprehensively support the achievement of the                conducive working environment. Furthermore, the
       company’s sustainability goals. Human resources                  bank also provides recreational facilities within
       management is executed through a range policy                    the office premises, such as games and karaoke,
       that prioritizes the principles of environmental                 to allow employees a brief respite. Additionally, a
       sustainability, equality, and transparency in order to           music studio is provided for employees who wish
       cater the interests of employees. Bank BTPN instills             to develop their hobbies.
       these sustainability principles in all individuals within
       the company through a variety of activities, including:      •   Flexible workplace
       [OJK F.1]                                                        Bank BTPN acknowledges that employees have
       1. Disseminating Bank BTPN’s values and                          various needs. As a result, the bank provides a
           sustainability targets to all company members,               flexible workplace, allowing employees to tailor
           particularly to employees in decision-making                 it to their needs. For instance, employees have
           roles.                                                       the option to work from the office, from home, or
       2. Disseminating        the   sustainability    activities       from any other location of their choice. It is not
           implemented by Bank BTPN.                                    mandatory for employees to work in the office
       3. Fostering a culture of good corporate governance              every day. This approach also aligns with energy
           through anti-corruption campaigns and training               conservation initiatives by minimizing employees’
           for Bank BTPN’s employees and partners.                      commuting distances to the office.
       4. Creating a conducive work environment through
           the implementation of strict security systems,           •   Transparent career paths
           adequate facilities, and a positive work culture.            Bank BTPN ensures that employees have the
       5. Maintaining employees’ mental health by                       opportunity to develop and advance in their
           providing various facilities to help manage stress           careers. Therefore, the bank provides transparent
           and work pressure, such as sports facilities and             and clear career paths, allowing employees
           relaxation rooms.                                            to understand their career prospects and the
       6. Encouraging employees to contribute to                        necessary steps to achieve them.
           community development activities through
           training and providing social assistance to              •   Quality training
           improve the community’s quality of life.                     Bank BTPN is committed to developing the
       7. Creating an environment that upholds human                    competencies of its employees. In pursuit of this
           rights by providing human rights training for                goal, the bank offers a wide range of high-quality
           security personnel responsible for protecting the            training programs designed to develop both
           security of customers and Bank BTPN employees.               hard and soft skills, including leadership training.
                                                                        These programs aim to equip employees with
                                                                        the necessary skills and knowledge to effectively
       #MoreThanAJourney
                                                                        perform their duties and responsibilities.
       Bank BTPN is committed to creating a comfortable
       and supportive working environment for its
                                                                    Adoption of Digital Technology for
       employees. This commitment is realized through the
                                                                    Employee Management
       #MoreThanAJourney initiative, emphasizing that
       working life at Bank BTPN is not just a journey, but an      Bank BTPN is accelerating the adoption of technology
       opportunity to make a positive impact on society. The        to ensure the company’s operations remain
       #MoreThanAJourney commitment also embodies                   competitive and relevant in the era of Industry 4.0.
       a sustainable approach to managing Bank BTPN’s               The integration of digital technology serves not only
       employees, encompassing four main pillars:                   to facilitate the operational functions of the bank in
                                                                    delivering financial and banking services, but also
       •   Comfortable working environment
                                                                    to streamline human resources management. This is
           Bank BTPN believes that employees experiencing
                                                                    aimed at bolstering the efficiency, effectiveness, and
           a sense of comfort in their workplace are likely
                                                                    productivity of employee management.
           to exhibit higher productivity and make greater
           contributions to the company. In pursuit of
                                                                    Bank BTPN is undergoing transformation by
                                                                    implementing a cloud-based Human Resources




96   Sustainability Report 2023 PT Bank BTPN Tbk
Page 103
                                                                        Increasing Capacity for
                                                                        Sustainability




Information System (HRIS) as a platform for managing     sustainable growth. Bank BTPN strives to deliver
employee data and providing HR services. This            top-notch HR services for employees, empowering
implementation includes:                                 them to make a more significant contribution to the
• HR Core system, employee and manager self-             company.
     service
• HR Mobile Platform                                     To foster effective communication and transparency
• E-Learning System                                      with employees, Bank BTPN has established an
• HR Communication and collaboration platform            internal communication channel “Portal Kita.” This
• Performance Management System                          platform encompasses the company’s culture and
                                                         values, along with bank-wide activities conducted by
The aim of this digital transformation process is to     Bank BTPN.
provide convenience for employees, as they can access
their entire employee journey and fulfill their needs
through the website and smartphone application.
With this innovation, Bank BTPN is entering a new era
of personalized and real-time HR processes to foster




  The Best Companies to Work for in Asia 2023
  Bank BTPN has been awarded as one of the best workplaces in Asia, “Best Companies to
  Work For in Asia 2023,” by HR Asia. This award is given as an appreciation to companies
  in Asia with outstanding human resources performance, measured through high employee
  engagement and excellent work culture.

  One of the Employee Value Propositions (EVP) offered by Bank BTPN to its employees is the
  opportunity to make meaningful changes in their lives through an exceptional work experience.
  This includes the implementation of a hybrid working system, or flexible working locations, to
  promote a good work-life balance.




Bank BTPN’s Personnel
During the reporting period, the number of employees decreased by 4.8%, from 6,972 to 6,636 employees, to
adjust to the needs and development of Bank BTPN. The following are the employee data of Bank BTPN obtained
from the Human Resources directorate:


                           Total Number of Employees By Employment Contracts
                        (Permanent and Temporary), By Gender [GRI 2-7] [OJK C.3.b]

                                      2023                       2022                                 2021
          Description
                              Permanent   Temporary     Permanent    Temporary             Permanent      Temporary

 Male                             3,500          195        3,707               268               3,786         319

 Female                           2,846           95        2,877               120               2,900         124

 Sub Total                        6,346          290        6,584               388               6,686         443

 Total                                6,636                     6,972                                 7,129




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                                  Total Number of Employees By Employment Contracts
                                (Permanent and Temporary), By Region [GRI 2-7] [OJK C.3.b]


                                              2023                       2022                           2021
                 Description
                                      Permanent    Temporary    Permanent     Temporary      Permanent       Temporary

        Greater Jakarta                    3,032          171        2,918            223           2,767            224

        Java (exclude Greater              1,778           57        1,969              69          2,070             94
        Jakarta)

        Outside Java                       1,536           62        1,697              96          1,849            125

        Sub Total                          6,346          290        6,584            388           6,686            443

        Total                                 6,636                      6,972                          7,129



                              Total Number of Employees By Employment Contracts
                       (Permanent and Temporary), By Gender and Region [GRI 404-1] [OJK C.3.b]

                                              2023                       2022                           2021
                 Description
                                      Permanent    Temporary    Permanent     Temporary      Permanent       Temporary

        Male                               3,500          195        3,707            268           3,786            319

        Female                             2,846           95        2,877            120           2,900            124

        Total                                 6,636                      6,972                          7,129

        Greater Jakarta                    3,032          171        2,918            233           2,767            224

        Java (exclude Greater              1,778           57        1,969              69          2,070             94
        Jakarta)

        Outside Java                       1,536           62        1,697              96          1,849            125

        Sub Total                          6,346          290        6,584            388           6,686            443

        Total                                 6,636                      6,972                          7,129



       Bank BTPN does not employ workers on the basis of         and career development opportunities. The company’s
       “non-guaranteed hours employees” (workers who are         commitment to upholding the principle of equality
       not guaranteed a minimum or fixed number of working       is evident in the absence of discrimination incidents
       hours per day, week, or month, but are required to        during the reporting year.
       be available to work as needed) and does not have
       any workers other than those mentioned above. The
       employee data is retrieved from the database stored       Employee Diversity
       in the HR Directorate. [GRI 2-7] [GRI 2-8]                [GRI 405-1] [OJK C.3.b]
                                                                 Bank BTPN views diversity as a source of innovation
                                                                 and creativity, a crucial aspect in enhancing the
       Inclusive Workplace                                       company’s competitiveness. As a result, the company
       [GRI 406-1] [OJK F.18]                                    values differences and consistently prioritizes a culture
       The company establishes a safe work environment           of diversity in all business activities. The company’s
       that upholds diversity and equality. It does not offer    commitment to diversity is evident in the highly
       disparate treatment, exemptions, or preferences           diverse backgrounds of its employees, ranging from
       based on race, skin color, gender, religion, political    genders, ages, and educational levels. The following
       opinion, lineage, or social origin. The company           is the demographic of Bank BTPN employees that
       opposes all forms of discrimination and guarantees        illustrates the company’s diversity in terms of gender,
       equality in the recruitment process, job assessment,      age, and educational level.




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                      Diversity of the Governance Body and Employees by Gender
                                                   [GRI 405-1] [OJK C.3.b]


                                        2023                                   2022                                      2021
           Position
                            Male       Female         Total       Male        Female        Total          Male         Female      Total

Board of management              5           5            10           6            6              12            6            5         11
                             (50%)       (50%)                     (50%)        (50%)                        (55%)        (45%)      (50%)
Top management                 122          56           178         120           51            171           109 45 (29%)            154
                             (69%)       (31%)                     (70%)        (30%)                        (71%)
Senior management              460         283           743         447          271            718           451          259        710
                             (62%)       (38%)                     (62%)        (38%)                        (64%)        (36%)
Management                   1,744       1,147         2,891       1,789        1,130         2,919          1,732        1,099       2,831
                             (60%)       (40%)                     (61%)        (39%)                        (61%)        (39%)
Officer/Supervisor             794         796         1,590         876          720         1,596            923          693       1,616
                             (50%)       (50%)                     (55%)        (45%)                        (57%)        (43%)
Clerical                       570         654         1,224         727          819         1,556            884          923       1,807
                             (47%)       (53%)                     (47%)        (53%)                        (49%)        (51%)
Total                        3,695       2,941         6,636        3,975       2,997         6,972          4,105        3,024       7,129
                            (56%)       (44%)                      (57%)       (43%)


                       Diversity of the Governance Body and Employees by Age
                                                   [GRI 405-1] [OJK C.3.b]

                                        2023                                   2022                                      2021
Position
                           21-30       30-50         >50 th       21-30       30-50        >50 th         21-30         30-50       >50 th

Board of management                -           3              7           -           4             8               0           5            6
Top management                     -      122             56              -      121               50               0      107          47
Senior management                  3      625            115              6      608             104                4      600         106
Management                    607        2,154           130         598        2,179            142              556     2,159        116
Officer/Supervisor            259        1,305            26         283        1,287              26             275     1,319         22
Clerical                      359         859                 6      466        1,077              13             569     1,223         15
Total                        1,228       5,068           340       1,353        5,276            343         1,404        5,413        312




                                                                                       Sustainability Report 2023 PT Bank BTPN Tbk               99
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                                    Total Number of Employees By Educational Level
                                                      [GRI 405-1] [OJK C.3.b]


                 Education Level                     2023                           2022                      2021

         Doctoral Degree                                            4                            4                          1

         Master’s Degree                                           321                         318                       289

         Bachelor’s Degree                                     5,467                         5,692                      5,783

         Associate’s Degree                                        606                         671                       740

         High School/Equivalent                                    238                         287                       316

         Total                                                 6,636                         6,972                      7,129




        Bank BTPN always strives to maintain gender pay                  Decent and Safe Working
        equality by not discriminating between male and female           Environment [OJK F.21]
        employees in terms of basic salary and remuneration.             Bank BTPN consistently endeavors to cultivate a
        Differences in the amount of remuneration received               decent and safe working environment for the comfort
        by each employee are due to differences in job level,            of its employees, recognizing it as the cornerstone
        length of service, and job placement. The ratio of basic         of their productivity and well-being. By offering a
        wages and remuneration for women to men for each                 decent and safe working environment, Bank BTPN
        job category and in every operational location of Bank           demonstrates its commitment to the well-being of its
        BTPN is consistently maintained at 1:1. [GRI 405-2]              staff, ensuring that employees feel appreciated and
                                                                         supported in performing their duties.

        Proportion of senior management                                  A decent working environment also creates a positive
        from the local community [GRI 202-2]                             work atmosphere, enhances motivation, and fosters
        Bank BTPN is committed to supporting the government              trust and collaboration among teams. Therefore, Bank
        in strengthening the local and national economy. This            BTPN creates a decent and safe working environment
        commitment is demonstrated by prioritizing local                 through the following strategies:
        communities to occupy senior management positions.               1. Room temperature and lighting are adjusted
        Senior management refers to the Bank BTPN’s Board                     according to the Indoor Health and Comfort (IHC)
        of Directors. The majority of the Board members                       standards.
        are Indonesian nationals. Out of the total board of              2. Quality desks and chairs are designed to promote
        directors, 5 individuals (62.5%) hold senior positions                good body posture.
        in the company and are Indonesian nationals.                     3. Positive work culture based on transparent
                                                                              communication.
        The involvement of the local community in business               4. Harmonious industrial relations.
        decision-making is expected to aid the company
        identify the needs of the community and support the
        sustainable economic growth of the region. Information           Employee Recruitment [GRI 401-1]
        regarding job opportunities available at Bank BTPN               Recruiting employees, particularly in the banking
        is disseminated through various channels, such as                sector, has become progressively more challenging
        social media, job portals, career fairs, collaborations          in recent years. Several factors have contributed
        with universities, and other communication platforms.            to this difficulty, such as evolving employee
                                                                         expectations, technological advancements, and a
                                                                         dynamic economic landscape. In response to these
                                                                         challenges, Bank BTPN has implemented a targeted




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strategy in its employee recruitment process. Among                 Through LEAD, employees undergo training to
the innovations and development programs offered by                 refine their leadership and problem-solving skills.
Bank BTPN are:                                                      The program is overseen by senior leaders of Bank
•      Creative Hacknology Intensive Program (CHIP)                 BTPN and distinguished business practitioners.
       CHIP is an employee development program                      Participants will have the chance to directly learn
       aimed at cultivating young talents in the field of           from seasoned mentors and acquire valuable
       technology. The program comprises two stages:                insights into the banking industry and leadership.
       1. During the first stage, participants will undergo   •     Intern     Development,     Enhancement      and
           intensive training in various technological              Acceleration Space (IDEAS)
           aspects, including programming, design, and              The Intern Development, Enhancement, and
           data science.                                            Acceleration Space (IDEAS) Program is an
       2. During the second stage, participants will be             internship program at Bank BTPN aimed at
           assigned to strategic projects within Bank               cultivating the skills and knowledge of students
           BTPN.                                                    and recent graduates. This program offers
       Bank BTPN is establishing partnerships with                  participants the chance to acquire hands-on
       diverse educational institutions to attract high-            work experience at Bank BTPN and develop
       quality candidates. It is hoped that the CHIP                the technical and non-technical skills necessary
       program to enhance Bank BTPN’s image as an                   for a career in the banking industry. Exceptional
       appealing workplace for the younger generation.              performers with high potential may be offered the
                                                                    opportunity to join Bank BTPN upon completing
•      Leadership Acceleration Development (LEAD)
                                                                    the IDEAS program.
       The Leadership Acceleration Development
       (LEAD) Program is Bank BTPN’s acceleration
                                                              Bank BTPN offers equal opportunities to all
       program aimed at empowering individuals with
                                                              prospective employees from diverse backgrounds,
       the potential to become future leaders within the
                                                              without discrimination based on ethnicity, religion,
       company. This program offers participants with
                                                              race, social class, or gender. Any individual meeting
       the opportunity to cultivate leadership skills, gain
                                                              the company’s qualifications has an equal opportunity
       business insights, and build professional networks
                                                              to join and advance their career with Bank BTPN.
       within an intensive and challenging setting.




                                          Employee Recruitment By Gender
            Description            2023             %             2022            %                      2021         %

Male                                      326           54%              535           56%                      446       58%

Female                                    283           46%              413           44%                      330       42%

Total                                     609         100%               948         100%                       776   100%




                                      Employee Recruitment By Age Group
            Description            2023             %             2022            %                      2021         %

    20-30 years old                       331           54%              525           55%                      470       61%

    30-50 years old                       265           44%              418           44%                      295       38%

    Above 50 years old                     13           2%                 5            1%                       11       1%

    Total                                 609         100%               948         100%                       776   100%




                                                                               Sustainability Report 2023 PT Bank BTPN Tbk      101
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                                               Employee Recruitment By Region


                  Description           2023           %          2022            %            2021           %

         Greater Jakarta                       454         75%           654          69%             524         68%

         Java (exclude Greater                  87         14%           155          16%             117         15%
         Jakarta)

         Outside Java                           68         11%           139          15%             135         17%

         Total                                 609      100%             948       100%               776       100%




        Employee Turnover [GRI 401-1]
        Employee turnover is a prevalent occurrence in all companies, and Bank BTPN is no exception. The turnover
        at Bank BTPN can be attributed to a variety of factors. Nevertheless, the bank strives to continuously enhance
        its workforce in accordance with the demands of the ever-evolving banking industry, and to implement human
        resource management policies prioritizing employee development and retention.


                                                Employee Turnover By Gender

                  Description           2023           %          2022            %            2021           %

         Male                                  608         64%           665          60%             731         64%

         Female                                343         36%           446          40%             406         36%

         Total                                 951      100%          1,111        100%           1,137         100%




                                               Employee Turnover by Age Group

                  Description           2023           %          2022            %            2021           %

         20-30 years old                       204          22           288          26%             326         29%

         30-50 years old                       639          67           751          68%             717         63%

         Above 50 years old                    108          11            72          6%               94         8%

         Total                                 951      100%          1,111        100%           1.137         100%




                                                Employee Turnover by Region


                  Description           2023           %          2022            %            2021           %

         Greater Jakarta                       406         43%           521          47%             471         41%

         Java (exclude Greater                 314         33%           272          24%             111         10%
         Jakarta)

         Outside Java                          231         24%           318          29%             555         49%

         Total                                 951      100%          1,111        100%           1,137         100%




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                                          Termination of Employment

             Description                      2023                           2022                         2021

 Retirement                                                 314                             193                    140

 Death                                                       10                               17                    22

 Dismissal                                                   97                               91                    59

 Resignation                                                470                             711                    607

 Others                                                      60                               99                   309

 Total                                                      951                          1,111                    1,137




Based on the data obtained from the Human                         language sessions and “Together with Kopi Tuli, a
Resources Directorate of Bank BTPN, the 2023 data                 coffee shop operated by deaf people” event.
reveals that the percentage of employee recruitment at
Bank BTPN is 9.2% while the percentage of employee
turnover is 12.4%. The relatively low percentage of               EMPLOYEE RIGHTS ASPECTS
employee turnover indicates high job satisfaction, as             Remuneration and Benefits
it reflects the employees’ willingness to remain in their         Bank BTPN values employee performance and
positions within the company for the long term.                   achievements through a fair and transparent
                                                                  remuneration system. The company ensures that
During the reporting year, the company implemented                its wage policies comply with local government
various programs to promote diversity and inclusion               regulations. All employees receive fair compensation,
in the workplace. This included collaboration with the            taking into account performance quality, job level,
SMBC Group, such as participation in the Diversity and            length of service, and employment status. The
Inclusion (D&I) program, partnership with the Indonesia           remuneration ratio at the entry level is the same for
Business Coalition for Women Empowerment (IBCWE)                  male and female employees in equivalent job levels
and Microsoft Indonesia, including programs such as               and positions, maintaining a 1:1 ratio. Furthermore,
Code without Barrier and The TrailblazHER (Women                  the company guarantees that all employees receive
Mentoring Programs). Furthermore, Bank BTPN                       wages equal to or exceeding the Regional Minimum
undertook several other initiatives, including sign               Wage (RMW). [GRI 202-1]



                                      Regional Minimum Wage [OJK F.20]

             Region             Provincial Minimum Wage             Entry-Level Salary                    Ratio
                                         in 2022

 Bali                                            2,713,672                          3,000,000                     111%

 Banten                                          2,661,280                          3,110,000                     117%

 Bengkulu                                        2,418,280                          2,640,000                     109%

 DI Yogyakarta                                   1,981,782                          2,060,000                     104%

 DKI Jakarta                                     4,901,798                          4,910,000                     100%

 Jambi                                           2,943,033                          2,950,000                     100%

 West Java                                       1,986,670                          2,120,000                     107%

 Central Java                                    1,958,170                          1,970,000                     101%

 East Java                                       2,040,244                          2,140,000                     105%

 South Kalimantan                                3,149,978                          3,240,000                     103%

 Lampung                                         2,633,285                          2,660,000                     101%




                                                                               Sustainability Report 2023 PT Bank BTPN Tbk   103
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                     Region                Provincial Minimum Wage       Entry-Level Salary                   Ratio
                                                    in 2022

         Maluku                                           2,812,827                   3,080,000                        109%

         Papua                                            3,864,696                   3,870,000                        100%

         West Sulawesi                                    2,871,795                   2,910,000                        101%

         South Sulawesi                                   3,385,145                   3,390,000                        100%



        Bank BTPN provides allowances in addition to the basic salary to increase employee motivation and productivity.
        However, in terms of remuneration, temporary or part-time employees do not receive the full range of compensation
        components. The details of the allowances received by employees based on their employment status can be seen
        in the following table.



                          Allowances Provided to Full-Time Employees That Are Not Available to
                                     Temporary or Part-Time Employees [GRI 401-2]


                           Description                        Permanent Employee                  Temporary Employee

         Salary


         Holiday Allowance


         Life Insurance


         Disability Insurance


         Employee Health Insurance


         Health Insurance to Employees’ Spouse


         Health Insurance to Employees’ Children


         Pension Fund


         Annual Leave


         Maternity and Miscarriage Leave


         Severance Pay
                                                                                                          -

        Parental Leave [GRI 401-3]
        The well-being of the mother is crucial for the overall       who give birth, ensuring their return to their original
        health and happiness of the family, making it a long-         position. Additionally, male employees are granted
        term investment. Maternity leave is essential for             four days of leave to accompany their wives during
        female employees to adequately prepare for childbirth         childbirth. Importantly, this leave is provided without
        and recuperate afterward, fostering a stronger bond           any deduction or reduction in the employee’s salary,
        between mother and child. Our company offers a                rights, or position within the company.
        three-month maternity leave for female employees



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                                                                                                     Employee continuing
                 Employee entitled to       Employee taking         Employee returning to
    Gender                                                                                            to work 1 year after
                  take parental leave        parental leave           work after leave
                                                                                                       completing leave

 Male                            3,695                        133                         132                          121

 Female                          2,941                        168                         120                          114

 Total                           6,636                        301                         252                          235




Retirement Program [GRI 201-3] [GRI 404-2]                other employment-related matters that safeguard
Bank BTPN appreciates the dedication of all employees     the interests of all (100%) Bank BTPN employees.
who have served until their retirement by providing       All company employees, regardless of their union
a retirement program for all company employees            membership status, are protected in their interests
to ensure financial stability for employees as they       under the Collective Labor Agreement (CLA) for the
conclude their careers. The company is involved in        period 2022-2024.
several retirement programs for employees, including:
1. Pension Security under BPJS of Employment, a           Bank BTPN considers employee feedback to be
    mandatory government program, entails a 1%            a valuable asset that can be utilized to improve
    employee contribution and 2% from Bank BTPN.          productivity and service quality. As part of this
2. Old-Age Security under BPJS of Employment,             commitment, the bank conducts an employee
    a mandatory government program, entails a             engagement survey, allowing employees to evaluate
    2% employee contribution and 3.7% from Bank           their relationship with their work team, including
    BTPN.                                                 their direct supervisors representing Bank BTPN.
                                                          Furthermore, employees can offer constructive
In addition to preparing financial management plans,      suggestions serving as a basis for consideration in
the company also provides entrepreneurship training,      taking necessary actions to address the company’s
along with physical and spiritual health preparation,     challenges.
held two to three years prior to retirement to equip
employees with the skills and mental readiness needed
during retirement. During the reporting period, a total   Child Labor and Forced Labor [GRI 408-1]
of 70 employees took part in the training program.        [GRI 409-1] [OJK F.19]
                                                          Bank BTPN upholds human rights and opposes all
                                                          forms of forced labor within its operational activities.
Collective Labor Agreement [GRI 2-30]                     The company ensures that employees’ working hours
Bank BTPN guarantees the employees’ right to              adhere to the regulations outlined in the Collective
unionize and express their aspirations to protect their   Labor Agreement, stipulating a 5-day workweek
interests and improve work productivity. Therefore, the   with a 1-hour break for every 8-hour work period.
company has established a labor union as a forum for      Additionally, the company compensates employees
employee organization. Bank BTPN ensures that all         who work overtime in accordance with relevant
(100%) employees obtain their rights through the Bank     regulations. Through the implementation of this policy,
BTPN Workers Union, established in September 2007         no incidents of forced labor violations related to
and registered at the Manpower and Transmigration         employees’ rights were recorded during the reporting
Office under the number 256/DPP.SP.BTPNCTT.22-            year. [GRI 409-1] [OJK F.19]
DISNAKER/2007.
                                                          In addition, Bank BTPN is committed to not engaging
The labor union advocates for fostering a harmonious      in child labor or any form of child exploitation in
industrial relationship between employees and             accordance with the standards set by the International
management through the preparation of a Collective        Labor Organization (ILO). The company ensures
Labor Agreement (CLA) agreed upon by both                 that the age limit for employees complies with ILO
parties. The CLA governs matters pertaining to            Convention No. 138 concerning the Minimum Age
occupational health and safety, remuneration, and         for Employment, which sets the minimum age for




                                                                           Sustainability Report 2023 PT Bank BTPN Tbk       105
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        employment at 18 years. No incidents of violations         3.   Bank Acceleration Program designed for fresh
        of employees’ rights related to underage labor were             graduate talents.
        recorded during the reporting year.                        4.   Continuing other competency enhancement
        [GRI 408-1] [OJK F.19]                                          processes through training provided by the
                                                                        bank, including the use of the bank’s e-learning
                                                                        system, access to Massive Open Online Courses
        TRAINING AND DEVELOPMENT                                        (MOOC) for bank employees, and various training
        Training Strategies and Programs                                conducted both online and offline.
        [GRI 404-2]                                                5.   Holding a 2-day BTPN Hybrid Learning Festival on
                                                                        the topics of transformation, growth, and quality.
        In the current era of industrial development, the
                                                                        The festival features seminars by experts, sharing
        competitive nature of business demands that
                                                                        sessions by Bank BTPN leaders, employee
        companies possess a competitive edge. Innovation
                                                                        appreciation programs, learning areas/studios,
        from skilled and professional human resources is
                                                                        and practical training sessions.
        key to enhancing the company’s competitiveness.
                                                                   6.   Continuing collaboration with the SMBC Group
        Improving employee competence through training
                                                                        in the employee development process through
        programs is one of the efforts to cultivate high-quality
                                                                        several programs.
        human resources.

        Bank BTPN fosters a culture of continuous growth
                                                                   Average Employee Training Hours
        by empowering employees at all levels to unlock
                                                                   [GRI 404-1] [OJK F.22]
        and harness their full potential. This is achieved
                                                                   In the reporting year, Bank BTPN held 753 training
        through education and training programs, facilitated
                                                                   programs attended by 6,544 employees for a total of
        by the Human Resources Information System (HRIS),
                                                                   322,849 hours, resulting in an average of 49 hours of
        designed to cater to individual needs. The HRIS utilizes
                                                                   training per employee per year.
        employee data to assess their competencies and
        performance, allowing Bank BTPN to tailor training
        and development programs to each employee’s

                                                                                 6,544
        specific knowledge and skill requirements.

        The company has arranged a comprehensive set of
                                                                                 Number of employees
        technical and non-technical competency development
        programs mandatory for all individuals within the                        undergoing training
        organization, including employees, senior managers,
        and the Board of Directors. The competency
        development programs for employees conducted by
        Bank BTPN in 2023 include:

                                                                                 322,849
        1. Continuing the process of Work Competency
            Certification in the banking sector, including
            certifications in Risk Management, Payment
                                                                                 Training hours
            Systems and Rupiah Money Management,
            Mutual Fund Sales Agent (WAPERD), Securities
            Marketing Intermediary (WPPE-P), and Treasury
            for employees required to possess these
            certifications.
        2. Continuing the process of competency certification
            beyond Work Competency Certification in the
                                                                                 49
            banking sector, including certifications in Human                    Average training hours
            Resource Management, Compliance, Information                         per employee
            Technology, Internal Audit, and Finance.




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                    Number of Training Participants by Position and Gender [GRI 404-1]

                                        2023                           2022                                       2021
        Position Level
                                Male             Female        Male             Female                    Male             Female

Top Management                         126                61          120                  51                     6                  5

Senior Management                      458            282             448                271                     106                43

Management                         1,710             1,120        1,710                1,095                     437            248

Office/Supervisor                      777            787             849                697                 1,610             1,029

Clerical                               570            653             734                818                     837            650

Sub Total                          3,641             2,903        3,861                2,932                 2,996             1,975

Total                                   6,544                          6,793                                      4,971




                          Total Training Hours by Position and Gender [GRI 404-1]

                                        2023                           2022                                       2021
        Position Level
                                Male             Female        Male             Female                    Male             Female

Top Management                     5,612             3,192        6,036                2,488                     80                 72

Senior Management                 19,323            13,825       20,253              12,780                  1,442              602

Management                        70,094            58,424       68,176              50,105                  5,406             3,231

Office/Supervisor                 33,635            49,967       27,221              28,609                 18,583            12,063

Clerical                          23,784            44,997       22,440              31,222                  9,371             7,374

Sub Total                        152,446           170,404      144,126            125,204                  34,882            23,342

Total                                  322,849                        269,330                                     58,224




                         Average Training Hours by Position and Gender [GRI 404-1]


                                        2023                           2022                                       2021
        Position Level
                                Male             Female        Male             Female                    Male             Female

Top Management                          44                52           50                  49                    40                 39

Senior Management                       42                49           45                  47                    37                 41

Management                              40                52           40                  46                     25                26

Office/Supervisor                       43                63           32                  41                     27                25

Clerical                                41                68           31                  38                     28                34

Sub Total                               42                56           37                  43                     31                33

Total                                    49                             39                                         32




                                                                               Sustainability Report 2023 PT Bank BTPN Tbk               107
Page 114
        Improving Employee Competence in                                programs for its employees. Through these programs,
        Sustainable Finance                                             Bank BTPN not only ensures that our employees have
        [OJK E.2] [FS4]                                                 a profound understanding of sustainable finance, but
        A vital aspect of achieving the vision of sustainable           also equips them with the skills and tools necessary
        finance is a commitment to enhancing employee                   to address the challenges in the constantly evolving
        competence in sustainable finance. As a result,                 financial landscape. The wide variety of training
        Bank BTPN has implemented tangible measures                     programs we have conducted include:
        by organizing a variety of training and development



                                                                                                   Training
                    Training Topic                   Date           Number of Participants                           Remarks
                                                                                                   Format

         Sustainability E-Learning             September 15       6,431 employees             E-Learning         Mandatory for all
                                               2023 - December                                                   employees
                                               15 2023
         Net Zero: Maintaining Health X        July 21, 2023      227 employees               Online Seminar
         Maintaining Sustainability
         Sustainable Finance Seminar:          August 11, 2023    113 employees               Offline Seminar
         Crafting Innovative Strategies to
         Boost ESG Impact
         Seminar on Seizing Opportunities in   October 12, 2023   • 247 participants  Offline Offline Seminar
         The Pathway to Net Zero Economy                            (179 customers, 50 Bank
                                                                    BTPN employees, and 18
                                                                    media representatives)
                                                                  • 124 participants
                                                                    Online (58 Bank BTPN
                                                                    employees and SMBC
                                                                    Members, 76 clients /
                                                                    General Public)
         Seminar on Turning Good Intentions    October 20, 2023   100 employees               Online Seminar
         into Sustainable Actions
         Seminar on the Benefits of            November 20,       108 vendor representatives Online Seminar
         Implementing Human Rights in          2023
         Business Activities



        Performance Review [GRI 404-3]                                  security personnel, but also non-physical security,
        Bank BTPN conducts regular performance evaluations              which includes providing human rights training for
        to assess the performance and achievements of all               security officers. This human rights training is a
        employees against predetermined work targets, as                tangible demonstration of Bank BTPN’s commitment
        outlined in their Key Performance Indicators (KPIs).            to integrating human rights principles into all of its
        The outcomes of these performance evaluations are               operational activities. Security officers equipped with
        utilized to determine incentives, rotations, or potential       a solid understanding of human rights are expected
        employee transfers. Performance evaluations also                to deliver professional service to customers. In the
        serve as an evaluation tool for the company to                  reporting year, 99% of Bank BTPN’s security officers
        enhance employees’ skills through the provision of              have undergone training in human rights practices
        relevant feedback and training. These evaluations are           through the Garda Pratama training program. Human
        conducted biannually for all employees, regardless of           rights training is also mandatory for third-party security
        gender, at every organizational level. Furthermore, all         personnel. [GRI 410-1]
        employees (100%) have received their performance
        evaluations in the reporting year.
                                                                        Work-Life Balance
        Human Rights Training for Security                              Work-life balance is a crucial factor that can significantly
        Officers [GRI 410-1]                                            impact employee productivity and performance.
                                                                        Employees maintaining a good work-life balance
        As a financial institution entrusted with managing
                                                                        are likely to exhibit higher job satisfaction, increased
        customer funds, Bank BTPN requires a rigorous
                                                                        motivation, and enhanced productivity. Consequently,
        security system capable of safeguarding all its
                                                                        Bank BTPN has established a supportive work
        valuable assets. Adequate security encompasses not
                                                                        environment that promotes work-life balance through a
        only physical measures, such as alarm systems and
                                                                        range of programs, including:


108   Sustainability Report 2023 PT Bank BTPN Tbk
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                                                                      Increasing Capacity for
                                                                      Sustainability




BTPN Club
         n order to support BTPN Bank employees to be able to work optimally and achieve high
  I      performance, BTPN Bank support is needed for work life balance and employee wellbeing
         at BTPN. The implementation of sports and recreation at Bank BTPN is carried out through
         an employee social organization called the BTPN Club. This organization is facilitated by
Bank BTPN, by deploying employees to manage its own activities. The employees involved were
volunteers, who were then organized into the management of the BTPN Club through board of
directors’ decision letter.

BTPN Club activities include sports, arts, spirituality and interests (hobbies) that are recreational
and not for the pursuit of achievement. The activities are organized voluntarily by several employees
who join communities according to certain interests including Futsal, Badminton, Basketball,
Football, Strong Nation, Gymnastics, Yoga, Tennis, Cycling and Running for the sports category.
Meanwhile, for the arts category there are Dance Club, Vocal Group, and Photography. Apart from
that, there are also spiritual categories such as Islamic Spirituality, Christian Spirituality, and Hindu
Spirituality. The last category contains various interesting hobbies such as Diecast, Nature Lovers,
E-Sport, and Korean Corner.

BTPN club carries out 13 routine activities every week. BTPN Club also holds special events such
as Blood Donations which are starting to be held regularly every 3 months as well as fun games
which are participated by all Bank BTPN’s employees from Sumatra to Papua. The number of
cities actively participating in BTPN club during 2023 is 192 cities, which is led by 1 Champion in
each city.




                                                                     Sustainability Report 2023 PT Bank BTPN Tbk   109
Page 116
          SAHABAT DAYA

           T
                   his program offers Bank BTPN employees the opportunity to engage in community
                   empowerment through a variety of social initiatives and skills training aimed at
                   enhancing community well-being. Further information on Sahabat Daya can be found
          in “Strengthening the Culture of Empowerment and Expanding the Impact” section on page 80.




          beranda

           B
                  eranda is a shared space with a variety of games where employees can take a moment
                  to relax during their busy work schedules. The area also includes a music studio and a
                  karaoke room for employees with a passion in music. Additionally, they also have the
          option for group movie nights in the Beranda theater, featuring a wide screen and high-quality
          sound system, allowing employees to enjoy popular movies and sports events.




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Increasing Capacity for
Sustainability




Sustainability Report 2023 PT Bank BTPN Tbk   111
Page 118
            PRIORITIZING
            ENVIRONMENTAL
            AND CLIMATE
            COMMITMENTS
          Bank BTPN integrates environmentally
          friendly principles into all aspects
          of its industrial operations through
          the implementation of policies and
          regulations, as well as monitoring
          the bank’s operations with the aim
          of reducing the negative impact of
          business activities on the environment.




112   Sustainability Report 2023 PT Bank BTPN Tbk
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  Prioritizing Environmental and
  Climate Commitments




Sustainability Report 2023 PT Bank BTPN Tbk   113
Page 120
        Bank BTPN is committed to building sustainable            1.   Corporate Level
        regional and national economic growth through the              Bank BTPN provides financing for sustainable
        adoption of energy-efficient practices and green               businesses, such as:
        investments. The company’s pursuit of its targets              • Renewable energy industry.
        aligns with its endeavors to establish a green                 • Projects related to energy efficiency initiatives.
        business that mitigates climate change and prevents            • Management of natural biological resources
        environmental damage and overexploitation.                        and sustainable land use.
                                                                       • Green transportation.
        In terms of operations, the environmental impact of            • Green buildings.
        Bank BTPN’s business activities is limited to energy           • Products that can reduce resource usage and
        usage, water, and emissions and does not have a                   produce less pollution (eco-efficient).
        direct and significant effect on the environment and      2.   Individual Level
        climate change. However, as a financial and banking            Bank BTPN offers mutual fund investments with
        service provider, Bank BTPN’s business activities carry        an Environmental, Social, and Governance (ESG)
        the potential risk of indirectly causing environmental         theme through its Sinaya business line.
        impacts, such as carbon emissions from projects
        or business activities carried out by its customers       In addition to covering sustainable financial practices,
        (Financed Emissions).                                     Bank BTPN’s RAKB also encompasses the bank’s
                                                                  strategies and innovations to promote green
        In response, Bank BTPN has implemented policies           operations and mitigate the adverse impacts of the
        and risk management strategies aimed at preventing        company’s activities.
        and minimizing environmental impacts and carbon
        emissions resulting from its financing activities. This
        commitment is being realized through the continuous       Climate Strategy
        expansion of the sustainable financing services           Climate change affects all industries, including
        portfolio, with the goal of achieving Net Zero Emission   banking. For this reason, Bank BTPN has initiated the
        (NZE) targets. This involves no longer financing or       development of a framework to assess climate-related
        being exposed to business activities that contribute to   risks and opportunities in the short, medium, and long
        emissions or industries that cause increased pollution    term. [TCFD S1]
        and temperature, thereby triggering climate change.
                                                                  Climate-related issues that may arise in the short,
        The company’s commitment to environmental                 medium, and long term and have financial impacts on
        protection policies and climate change management         Bank BTPN include: [TCFD S1]
        is realized through the implementation of the RAKB.       • Transition risks, such as changes in government
        The RAKB, as mandated by the Financial Services               policies and regulations, increasing costs of
        Authority Regulation (OJK) 51/2017, is designed to            low-emission technology, rising carbon prices,
        ensure that the company’s operations and business             stranded assets, changes in customer behavior,
        activities align with the principles of sustainable           changes in stakeholder and shareholder
        finance and the SDGs by taking into consideration             preferences, reputational damage due to financing
        social and environmental aspects.                             activities in sectors sensitive to environmental
                                                                      and social issues.
        Bank BTPN’s RAKB encompasses the company’s                • Physical risks, such as increasing of natural
        strategic plan to introduce sustainable finance               disasters at the debtor’s business locations, rising
        programs allocating funding for sustainable projects,         temperatures and sea levels.
        such as clean energy initiatives and natural resource
        management projects. Bank BTPN offers green               To prepare for the implementation of climate-related
        financing to both the corporate and individual levels,    risk assessments, Bank BTPN undertakes the
        including: [OJK F.28]                                     following steps: [TCFD S2]
                                                                  • Conducting studies on the current conditions,
                                                                       such as existing sustainability policies and
                                                                       products.




114   Sustainability Report 2023 PT Bank BTPN Tbk
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                                                                            Prioritizing Environmental and
                                                                            Climate Commitments




•   Holding workshops with relevant departments to         Green Building
    discuss risks and opportunities to be developed        The design and operation process of Bank BTPN’s
    based on the current conditions.                       headquarters building incorporates the concept of
•   Preparing a framework for implementing climate-        green building, focusing on constructing a building
    related risk assessments.                              with careful consideration of its environmental impact
                                                           to improve resource usage efficiency and create a
To mitigate climate issues, Bank BTPN has taken            more comfortable environment for employees.
several initiatives: [TCFD S2]
1. Developing sustainable products, such as Green          Bank BTPN’s headquarters building, the BTPN
    Loan, Social Loan, Sustainability-Linked Loan,         Tower, situated in the Mega Kuningan area of Jakarta,
    ESG Mutual Funds, and ESG Deposit.                     has been awarded the Green Building certification
2. Adjusting credit policy and procedures.                 Greenship Gedung Baru V.1.2 from the Green
3. Striving to conserve electricity and reduce             Building Council Indonesia with a Gold rating since
    emissions from operational activities through a        2020. Currently, the building management of Bank
    range of innovative measures, including organizing     BTPN’s headquarters is in the process of renewing
    electricity-saving competitions among branches,        this certification.
    promoting digital banking, providing shuttle buses
    for employee commuting, and other initiatives.         The Bank BTPN headquarters building implements
4. Conducting sustainability awareness campaigns           the following strategies to create a green building:
    for employees, customers, and suppliers                1. Utilizing sunlight as the primary source of lighting
5. Conducting environmental-themed campaigns               2. Reducing the use of partitions
    through the bank’s internal and external media         3. Using energy-efficient LED lights
    channels.                                              4. Installing motion sensors to automatically turn off
                                                                lights.
Currently, Bank BTPN has not set any climate related
scenarios, including 20C or lower scenario. [TCFD S3]      In addition to reducing the company’s carbon footprint,
                                                           green office buildings enhance employee comfort by
                                                           fostering a healthier work environment. Optimal air
Climate Target [TCFD M1]                                   quality is maintained through the use of open ceilings,
In order to manage the impacts of climate change,          which facilitate the free circulation of fresh air, and
Bank BTPN, part of the SMBC Group, has set the             ultraviolet germicidal irradiation technology, effectively
following targets and measurements:                        eliminating various airborne microorganisms.
• Net zero emissions (NZE) by 2030 for operational
     activities                                            The cleanliness of the building significantly impacts
• Net zero emissions (NZE) by 2050 for loan and            employee comfort. Therefore, the office spaces utilize
     investment portfolio                                  epoxy floor coating, which has been proven effective
                                                           in inhibiting the growth of bacteria, germs, and fungi.
Furthermore, the SMBC Group has a Roadmap                  Healthy and satisfied employees are expected to work
Addressing Climate Change and has adopted the              more productively and make a significant contribution
Equator Principles, providing guidelines for managing      to the company.
the impacts of climate change.

Bank BTPN also carries out measurement of climate-         Digital Services
related risks and opportunities through a range of         Bank BTPN’s vision and mission revolve around
initiatives, such as:                                      leveraging digital technology innovation to deliver
• For specific sectors, Bank BTPN is developing            the highest quality of service to customers. Bank
      stress tests, requiring debtors to meet              BTPN develops digital banking services to streamline
      environmental requirements with metrics set by       customer transactions while also serving as a solution
      official regulations.                                to reduce paper usage.
• Setting targets for the Sustainable Business
      Activities Category (Kategori Kegiatan Usaha         In addition, Bank BTPN utilizes digital calendar
      Berkelanjutan/KKUB) portfolio, including financing   technology to reduce the production of paper-based
      for sustainable businesses, green transportation,    calendars. In the reporting year, paper usage in Bank
      and various other forms of environmentally related   BTPN decreased by 3.2% compared to the previous
      financing.                                           year.




                                                                         Sustainability Report 2023 PT Bank BTPN Tbk    115
Page 122
        Bank BTPN offers comprehensive and innovative                                             Environmental Education
        digital banking services, eliminating the necessity                                       Sustainable business operation relies heavily on
        for customers to visit branch offices for their banking                                   the awareness and comprehension of employees
        needs. Consequently, customers can reduce their                                           regarding the significance of environmental
        reliance on vehicles, leading to a decrease in motor                                      conservation. As a result, Bank BTPN offers training in
        vehicle emissions.                                                                        sustainable finance and green operations, including a
                                                                                                  seminar on low-emission sustainable lifestyles under
                                                                                                  the theme “Healthy People x Healthy Environment,”
                                                                                                  taking place on July 21, 2023. This environmental
                                                                                                  education seminar was attended by 227 participants.



                                                                                                  Energy Usage
                                Paper Consumption
                                                                                                  All company business activities, whether direct or
                                      (reams)
                                                                                                  indirect, have an impact on the environment through
                                                                57,009                            the generated emissions. Bank BTPN records energy
                                                                                                  usage at each branch office and its headquarters to
                                                                                                  measure the efficiency of energy usage and identify
                                             50,848                                               potential opportunities for savings.
                          49,204
                                                                                                  Bank BTPN does not calculate energy consumption
                                                                                                  outside the organization due to the absence of
                                                                                                  significant energy usage processes outside the
                                                                                                  organization [GRI 302-2]. Additionally, Bank BTPN
                                                                                                  does not calculate emissions per product as its
                                                                                                  operations do not involve specific physical products.
                           2023               2022               2021                             [GRI 302-5]


                                    Energy Consumption in the Organization [GRI 302-1][GRI 302-3][OJK F.6]


                                                          2023                                           2022                                       2021
            Types of Energy
                                             Volume                     GJ                  Volume                     GJ                  Volume           GJ

         Fuel (Liters)                    1,019,766.20                  1,393.06          1,107,463.00                36,546.28          1,184,063.85       39,074.11

         Electricity (kWh)               18,542,154.51                66,751.76         18,632,568.19                 67,077.25        19,359,664.18        69,694.79

         Total energy                                                 68,144.81                                     103,623.52                             108,768.90
         consumption

         Number of                                                           6,636                                          6,972                                7,129
         employees (people)

         Energy consumption                                                  10.27                                          14.86                                15.26
         intensity per
         employee (GJ/
         person)

        Note:
        1) Electricity usage in kWh is converted to Gjoules using The Greenhouse Gas Protocol Initiative, 2004.
        2) Fuel usage in liters is converted to Gjoules using The Greenhouse Gas Protocol Initiative, 2004.
        3) Fuel usage (Pertamax) in liters is calculated by dividing the total amount spent on fuel (in Rp) by the price of fuel per liter.
        4) Fuel usage in liters is converted to gigajoules using The Greenhouse Gas Protocol Initiative, 2004.
        5) Denominator chosen in calculating energy consumption intensity is the number of employees as of December 31st.
        6) Recalculation of the energy consumption for the year 2021 was carried out due to a correction in the data of fuel usage for that year.
        7) The types of fuel used are Pertalite, Pertamax, Pertamax Turbo, Pertamax Dex, and Dexlite. [GRI 302-1]




116   Sustainability Report 2023 PT Bank BTPN Tbk
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                                                                                                                                     Prioritizing Environmental and
                                                                                                                                     Climate Commitments




In 2023, Bank BTPN’s endeavors to improve electrical                                                    reduction in fuel usage due to variations in employees’
energy efficiency were realized through the initiative of                                               commuting distances and modes of transportation.
installing a 20 kWp capacity solar panel at the Gunung
Sahari branch. Bank BTPN utilized this Renewable                                                        All initiatives to reduce energy consumption have
Energy (EBT) to meet the branch’s electricity needs.                                                    effectively reduced Bank BTPN’s energy consumption
This further solidifies Bank BTPN’s commitment to                                                       intensity per employee in 2023 by 4.59 gigajoules
sustainable development.                                                                                per person compared to the previous year. This
                                                                                                        figure was obtained from the calculation of the
Bank BTPN is committed to reducing energy                                                               difference in greenhouse gas emission intensity
consumption by encouraging all employees to                                                             from the use of fuel and electricity between
conserve electricity across all branch offices. Bank                                                    the current and the previous year. [GRI 302-4]
BTPN held an energy-saving competition in all
branch offices, resulting in a 1% energy saving from
the previous year [GRI 302-4] [OJK F.7]. In addition,                                                   Emission
Bank BTPN also implements various energy-saving                                                         Bank BTPN conducts emission calculations as a
initiatives, such as:                                                                                   metric used to assess climate-related risks and
1. Implementing the operation of room Air                                                               opportunities. This process involves accurate
      Conditioning (AC) at a Temperature Setting of                                                     measurement and assessment of the company’s
      24°C in the branch office.                                                                        greenhouse gas emissions, taking into account
2. Using shuttle buses for employees to save on                                                         factors such as energy consumption and production
      fuel.                                                                                             processes. By complying with regulatory guidelines
3. Selecting vendors in close proximity to the                                                          and industry standards, Bank BTPN ensures an
      branches that require their services                                                              accurate assessment of its carbon footprint, leading
4. Utilizing energy-efficient lighting.                                                                 to a comprehensive understanding of climate-related
5. Installing a lighting system in the BTPN Tower                                                       risks and opportunities.
      Head Office with motion sensors to automatically
      switch off lights in unoccupied rooms.                                                            This data-driven approach aligns with the company’s
6. Offering a comprehensive digital application                                                         strategy and risk management processes, enabling
      service to reduce the need for customers to                                                       informed decision-making and proactive measures
      physically visit Bank BTPN branch offices.                                                        to address climate-related challenges and leverage
                                                                                                        opportunities for sustainable practices. Bank BTPN
Energy-saving initiatives at Bank BTPN also include                                                     conducts management of greenhouse gas emissions
adjusting employees’ work schedules, allowing them to                                                   by tracking emissions and implementing energy-
work remotely on certain days. While this arrangement                                                   saving programs with the goal of controlling the
undoubtedly decreases fuel consumption, the bank                                                        emissions generated. [TCFD M3]
faces challenges in accurately measuring the resulting

                                                  Greenhouse Gas Emissions in Tons CO2e
                                     [GRI 305-1] [GRI 305-2] [GRI 305-3] [GRI 305-4] [OJK F.11] [TCFD M2]


                     Emissions Source                                                   2023                                       2022                                       2021

  Scope 1 (Fuels)                                                                                 2,506.91                                   2,722.30                                  2,910.64
  Scope 2 (Electricity)                                                                         16,437.87                                  16,526.49                                 17,226.33
  Total GHG Emissions (Scope 1 and 2)                                                           18,944.79                                  19,248.79                                 20,136.97
  Number of Employees                                                                                  6,636                                      6,972                                     7,129
  GHG Emissions Intensity/Employee                                                                      2.85                                       2.76                                      2.82
  (Scope 1 and 2)
  Scope 3
  Business Travel                                                                                    173.17                                     114.48                                        7.62

  Financed Emission*                                                                          228,678.98                                                 -                                          -

  Total GHG Emissions (Scope 3)                                                               228,852.15                                        114.48                                        7.62

Notes:
1.    Calculation of GHG emissions from fuel usage (Pertamax) is based on the reference Technical Guidelines for calculating the baseline of energy-based sector GHG emissions, Bappenas, 2014.
2.    Calculation of GHG emissions from electricity consumption is carried out based on the provisions of the Directorate General of Electricity of the Ministry of Energy and Mineral Resources, 2017.
3.    Calculation of GHG emissions from official travel is carried out in accordance with the standards of the International Civil Aviation Organization (ICAO).
4.    Denominator chosen in calculating the GHG emission intensity is the number of employees as of December 31.
5.    The fuel consumption data for 2021 has been revised, along with the emission factors (for all gasoline types except Pertamax Turbo) used in the calculations for 2021, 2022, and 2023. Therefore,
      adjustments have been made to the emission calculations as follows:
      a)    For emission source - coverage 1 year 2022: recalculation has been performed using adjusted emission factors.
      b)    For emission source - coverage 1 year 2021: recalculation has been performed using adjusted emission factors and corrected 2021 data.
6.    *Notes on Financed Emissions are included in the narrative, following this table.




                                                                                                                                Sustainability Report 2023 PT Bank BTPN Tbk                               117
Page 124
        Energy savings throughout Bank BTPN’s branch                    years, and particularly in 2022. As of the preparation
        offices in 2023 led to a significant reduction in electricity   of this report, none of the debtors have published a
        usage, leading to a reduction in emission of 304 tons           Sustainability Report for 2023. Therefore, the report
        CO2e [GRI 305-5][OJK F.12]. The calculation is based            presents the Financed Emissions for the 2022 period.
        on the reduction in emissions in 2023 compared to the
        previous year, taking into account CO2 gas emissions
        in scopes 1 and 2.                                              Water [OJK F.8]
                                                                        Bank BTPN does not utilize water for production or
        Bank BTPN did not include Ozone Depleting
                                                                        other business processes, but solely for domestic
        Substances (ODS) in its calculations as the bank’s
                                                                        purposes such as sanitation and office upkeep. The
        operations do not significantly involve the use of these
                                                                        bank does not calculate water consumption, as it
        substances. Furthermore, Bank BTPN also did not
                                                                        is deemed to be a component of the building rental
        calculate Nitrogen oxides (NOX), Sulfur oxides (SOX),
                                                                        facilities.
        and other pollutants, as they are not relevant to the
        bank’s business activities. [GRI 305-6] [GRI 305-7]
                                                                        Waste [OJK F.13] [OJK F.14]
        FINANCED EMISSIONS                                              The primary type of waste produced by Bank BTPN’s
        In 2023, Bank BTPN initiated the calculation of                 operations is paper waste. Nevertheless, the quantity
        carbon emissions of its corporate debtors. The                  of paper waste has significantly diminished following
        emission calculation, particularly falling under scope 3        the implementation of the Front End System (FES)
        category 15, includes Financed Emissions utilizing the          digital information system in 2016. This system allows
        Partnership for Carbon Accounting Financials (PCAF,             customers to access it online, eliminating the need
                                                                        for paper in account opening processes and other
        2022) standard. Bank BTPN calculates Financed
                                                                        banking transactions.
        Emissions using option 1: Reported Emissions, which
                                                                        Bank BTPN strives to reduce waste from its operational
        is an emissions calculation based on the sustainability
                                                                        activities by sorting organic and inorganic waste.
        report of the debtors.
                                                                        Inorganic waste, such as plastic and paper, is
                                                                        sorted and collected for reuse. In 2023, Bank BTPN
        During the corporate debtor screening process, Bank
                                                                        strengthened this initiative by collaborating with
        BTPN identified 25 debtors who have disclosed
                                                                        environmental organizations to repurpose the collected
        emissions data in their sustainability reports, as
                                                                        inorganic waste.
        published by the corporations over the past three




118   Sustainability Report 2023 PT Bank BTPN Tbk
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                                                                           Prioritizing Environmental and
                                                                           Climate Commitments




Furthermore, in an effort to reduce plastic waste,         Further implementation is determined by the policies
Bank BTPN actively promotes the use of refillable          of each Board of Directors (BOD) and Board of
water bottles among its employees. The company has         Management (BOM). The Dolfin framework referred to
implemented a reverse osmosis system to provide            is as follows:
high-quality, eco-friendly drinking water, eliminating     1. Identifying a list of activities for each work unit.
the need for plastic bottled water. Waste management       2. Providing tools for accurate check-in/out processes.
is overseen by a third-party certified by the building     3. Providing tools to monitor employees with access to
owner, and as such, the company does not monitor                sensitive bank data/information.
waste quantities.                                          4. Providing tools to monitor tasks assigned to
                                                                employees.
                                                           5. Providing tools to facilitate the digital approval
Dolfin Project Initiative (Digital                              process for documents.
Workspace Flexi Office in New Normal)
                                                           It is expected that the Dolfin Project will yield the
Despite the pandemic being over, Bank BTPN views
                                                           following maximum outcomes:
the opportunity for employees to work from home as
                                                           1. Monitoring of employee working hours and
a method to conserve energy and reduce emissions
                                                                locations
from employee commuting. Additionally, this project
                                                           2. Ensuring individual and departmental performance
                                                                aligns with KPIs
                                                           3. Improving information security during Work From
                                                                Home (WFH)
                                                           4. Reducing paper usage for administrative
                                                                processes and transitioning to digital systems

                                                           The Dolfin Project has been implemented since
                                                           2022 and has been gradually implemented in
                                                           five directorates: Operations, Human Resources,
                                                           Compliance, Legal, Corporate Secretary (CLCS),
                                                           Risk Management, and Internal Audit. The beneficial
                                                           impacts of the Dolfin Project are evident among
                                                           employees, including:
                                                           1. Improved mental well-being for employees,
                                                               particularly those with young children and long
                                                               commutes to the office, in managing their work.
                                                           2. Implementing Work From Anywhere (WFA) with a
                                                               combination of WFH and WFO to enhance office
                                                               space and utilities efficiency.

reduces energy consumption and emissions in the
                                                           In relation to environmental expenses, Bank BTPN
office by reducing the use of office space, thereby
                                                           does not specifically itemize environmental living
contributing to a reduction in electricity usage.
                                                           costs, as they are included in other expenses, such as
                                                           green building maintenance, emission management
However, to ensure seamless work operations and
                                                           costs, and other related expenses. [OJK F.4]
the effectiveness of implementing Work From Home
(WFH), Bank BTPN introduced the Dolfin initiative as
a solution and mitigation for this situation through the
implementation of attendance and surveillance, as well
as a digital workspace. The Dolfin framework serves
as a fundamental requirement for its implementation.




                                                                         Sustainability Report 2023 PT Bank BTPN Tbk   119
Page 126
            INNOVATION IN
            SUSTAINABLE
            GOVERNANCE
          Bank BTPN continues to innovate in
          the practice of governance to consider
          climate impact and advance green
          economy as a manifestation of a deep
          awareness to actively participate in
          efforts to mitigate climate impact and
          commitment to sustainability.




120   Sustainability Report 2023 PT Bank BTPN Tbk
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                 Innovation in
                 Sustainable Governance




Sustainability Report 2023 PT Bank BTPN Tbk   121
Page 128
        Bank BTPN is committed to transforming into a                          Committee for Governance Policy                  (Komite
        sustainable finance institution by integrating ESG                     Nasional Kebijakan Governansi/KNKG).
        aspects into its overall banking governance practices.           6.    Bank’s Articles of Association.
        Good Corporate Governance (GCG) practices are                    7.    Bank Policies and Procedures.
        implemented to enhance customer trust and ensure
        transparent, credible, and accountable operational               Ensuring compliance with legal regulations in the
        activities to all stakeholders.                                  implementation of Good Corporate Governance (GCG)
                                                                         fosters positive relationships between the company’s
        Therefore, in its execution, Bank BTPN complies with             organs and external stakeholders in carrying out their
        regulations, various applicable standards, and best              duties and responsibilities to achieve the company’s
        practices at both national and international levels. The         objectives. Bank BTPN employs diverse governance
        legal bases for Bank BTPN’s governance include:                  strategies that align with business ethics and
        1. Law No. 40 of 2007 concerning Limited Liability               applicable regulations, including:
            Companies.                                                   1. Preventive action,
        2. Law No. 10 of 1998 concerning amendments to                   2. Early detection,
            Law No. 7 of 1992 concerning Banking.                        3. Corrective action,
        3. OJK Regulation No. 17 of 2023 concerning the                  4. Supervision with the four-eyes principle,
            Implementation of Governance for Commercial                  5. Segregation of duties,
            Banks.                                                       6. Audit trail.
        4. OJK Regulations, including those governing the
            Audit Committee, Nomination and Remuneration
            Committee, Board of Commissioners and                        Governance Structure [GRI 2-9]
            Directors, General Meeting of Shareholders,
                                                                         Bank BTPN’s governance structure is established in
            Internal Audit, Public Accountants and Public
                                                                         accordance with Law No. 40 of 2007, stipulating a
            Accounting Firms, as well as Compliance Director
                                                                         governance structure comprising the General Meeting
            and Corporate Secretary.
                                                                         of Shareholders (GMS), the Board of Commissioners,
        5. General Guidelines for Good Corporate
                                                                         and the Board of Directors.
            Governance in Indonesia from the National




                                                      General Meeting of Shareholders


                      Board of Commissioners                                            President Director
                                                                                                               Board of
                                                                                                               Director
                              Audit Committee
                                                         Internal Audit Unit             Risk Management Committee

                          Risk Monitoring Committee
                                                                (AIU)                    Asset and Liability Committee

                             Remuneration and                                                   Credit Committee
                           Nomination Committee
                                                                                            Credit Policy Committee
                                Governance
                                Committee                                                    IT Steering Committee

                                                                                           Human Capital Committee

                                                                                    Information Governance Steering Committee


                                                                                                Fraud Committee

                                                                                            Sustainability Committee




                           Corporate Secretary                  Compliance                      Risk Management




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                                                                                              Innovation in
                                                                                              Sustainable Governance




General Meeting of Shareholders                            2.   Overseeing the implementation of the Board
(GMS)                                                           of Directors’ duties and responsibilities and
The General Meeting of Shareholders (GMS) is                    providing advice to the Board of Directors.
the highest organ in the company responsible for           3.   Directing, monitoring, and evaluating the
making important decisions related to the company.              execution of the Bank’s strategic policies.
According to the law, the authority held by the GMS        4.   Allocating sufficient time to effectively carry out its
is not delegated to the Board of Commissioners and              duties and responsibilities.
the Board of Directors. The authorities of the GMS         5.   Ensuring that the Board of Directors has followed
include:                                                        up on audit findings and recommendations
1. Approval of company reports, such as corporate               from the internal audit unit of the Bank, external
     governance (GCG) implementation reports, board             auditors, the Financial Services Authority’s
     of commissioners’ supervisory task reports,                supervision, and/or the supervision of other
     financial reports, and annual reports;                     regulatory bodies.
2. Determination of the use of profits and/or              6.   In carrying out the supervision as referred to in
     company losses;                                            point 2, the Board of Commissioners is prohibited
3. Changes in the composition of the Board of                   from being involved in making decisions regarding
     Commissioners and the Board of Directors;                  the Bank’s operational activities, except for:
4. Determination of the amount of salaries and                  1) Providing funds to related parties as regulated
     allowances for members of the Board of                          in the Financial Services Authority provisions
     Commissioners and the Board of Directors, and                   on the Maximum Limits of Commercial Bank
     others.                                                         Credit Provision; and
5. Appointment of public accountants and/or public              2) Other matters stipulated in the Bank’s Articles
     accounting firms.                                               of Association or applicable regulations.
6. Approval of company resolution plans.                   7.   Duty of care
7. Elaboration of company reports including the                 The Board of Commissioners is responsible for
     bank’s business plan, sustainable finance action           carrying out its duties and responsibilities in good
     plan, and company action plan.                             faith and based on the principle of prudence
                                                                and professionalism. In this regard, the Board of
Bank BTPN convenes General Meeting of Shareholders              Commissioners must, among other things:
(GMS) at a minimum once a year, and if necessary, an            • Always act honestly and in a good faith.
Extraordinary GMS can be convened. In the reporting             • Always use the principle of prudence in
year, Bank BTPN convened 1 Annual GMS on April 13,                   decision-making.
2023, and 2 Extraordinary GMS on June 22, 2023, and             • Not cause the Company to violate applicable
December 7, 2023.                                                    provisions.
                                                                • Attend and actively participate in Board of
                                                                     Commissioners meetings.
Board of Commissioners                                          • Ensure         the    efficient    and     effective
                                                                     implementation of the internal control system.
The Board of Commissioners is the highest supervisory
                                                           8.   Duty of loyalty
body within a company, responsible for overseeing
                                                                The Board of Commissioners in its decision-
strategic policies, decision-making, and the activities
                                                                making must be carried out solely for the benefit
of the Board of Directors. The Board of Commissioners
                                                                of the Bank, and in this regard, personal or
is tasked with safeguarding shareholders’ interests by
                                                                group interests must be set aside in favor of the
ensuring that the company’s operations comply with
                                                                company’s interests. In this regard, the Board of
applicable laws and regulations, as well as upholding
                                                                Commissioners is prohibited from:
good corporate governance principles to promote the
                                                                • Having direct or indirect transactions with
company’s success.
                                                                     the Bank without first disclosing their related
                                                                     interests and obtaining the approval of the
In general, the Board of Commissioners has the
                                                                     Board of Commissioners and/or the General
following duties and responsibilities:
                                                                     Meeting of Shareholders.
1. Ensuring the implementation of corporate
                                                                • Utilizing the Bank, including but not limited
     governance across all levels of the organization in
                                                                     to using the Company’s assets and facilities,
     every aspect of the Bank’s operations.
                                                                     for personal, family, and/or other parties’
                                                                     interests that may harm or reduce the Bank’s
                                                                     profits.




                                                                          Sustainability Report 2023 PT Bank BTPN Tbk     123
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             •   Disclosing non-public information to third        The Board of Directors establishes committees to
                 parties.                                          manage specific areas and assist in the operational
            • Taking and/or receiving personal benefits            management of the company. These committees
                 from the Bank other than remuneration and         include:
                 other facilities determined by the General        1. Asset and Liability Committee
                 Meeting of Shareholders.                          2. Risk Management Committee
            • Using internal information for personal gain.        3. Information Technology Steering Committee
        9. Evaluate, direct, and monitor the strategic plan for    4. Credit Policy Committee
            Information Technology (IT); and                       5. Credit Committee
        10. Evaluate, direct, and monitor the implementation       6. Information Governance Steering Committee
            of IT governance.                                      7. Human Capital Committee
                                                                   8. Fraud Committee
        The Board of Commissioners has supporting                  9. Sustainability Committee
        structures (committees), as follows:
        1. Audit Committee,                                        The Board of Commissioners and the Board of Directors
        2. Remuneration and Nomination Committee,                  lead Bank BTPN independently without any overlapping
        3. Risk Monitoring Committee,                              positions between the two corporate bodies. The
        4. Corporate Governance Committee.                         independence of the Board of Commissioners and the
                                                                   Board of Directors is crucial for them to carry out their
        Each committee is tasked with conducting reviews           duties and responsibilities objectively and free from the
        and oversight in accordance with the duties and            influence of other parties that may cause conflicts of
        responsibilities outlined in the guidelines and working    interest.
        regulations specific to each committee.
                                                                   Bank BTPN ensures the independence of the Board of
                                                                   Commissioners and the Board of Directors by ensuring
        Board of Directors                                         that: [GRI 2-11]
        The Board of Directors is tasked with managing the         1. They do not have any direct or indirect business
        company and representing the company in and out                 relationship related to Bank BTPN’s business
        the court. The Board of Directors is responsible                activity;
        for the daily operations and the implementation of         2. They do not hold concurrent positions as directors
        policies established by the Board of Commissioners.             or executive officers overseeing the bank.
        In general, the Board of Directors holds the following     3. They do not have family relationships up to the
        duties and obligations:                                         second degree with other members of the Board
                                                                        of Commissioners and/or the Board of Directors.
        1.   The Board of Directors shall be fully responsible
             for the implementation of the Bank’s management.      The committees within the Board of Commissioners
        2.   The Board of Directors shall manage the Bank in       and the Board of Directors mentioned above are
             accordance with its authority and responsibilities    accountable for overseeing Bank BTPN’s impact on
             as stipulated in the Articles of Association and      the economy, environment, and society, within their
             prevailing laws and regulations.                      respective roles and responsibilities. The Board of
        3.   The Board of Directors shall implement the            Directors’ performance is assessed in an objective,
             principles of corporate governance in all business    transparent, and accountable manner using Key
             operations of the Bank across all organizational      Performance Indicators (KPIs) agreed upon with the
             levels.                                               Board of Commissioners. [GRI 2-9]
        4.   The Board of Directors shall follow up on
             audit findings and recommendations from the
             Internal Audit unit, external auditors, supervisory
             examinations by the Financial Services Authority
             and/or other authorities.




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                                                                                                           Innovation in
                                                                                                           Sustainable Governance




Board of Commissioners [GRI 2-9]
The Board of Commissioners is non-executive body that operates independently from the Board of Directors.


                Name                             Position                 Gender                 Tenure              Competence

 Chow Ying Hoong                       President Commissioner                 Male             2022-2025               Economy
 Takeshi Kimoto                                Commissioner                   Male             2022-2025               Economy
 Ninik Herlani Masli Ridhwan         Independent Commissioner             Female               2022-2025               Economy
 Onny Widjanarko                     Independent Commissioner                 Male             2023-2025               Economy
 Edmund Tondobala                    Independent Commissioner                 Male             2022-2025               Economy
 Ongki Wanadjati Dana                          Commissioner                   Male             2022-2025               Economy



                 Name                     Position and Other Commitment                    Representative of Stakeholder

 Chow Ying Hoong                      Senior Regional Advisor, Asia Pacific          Non-Independent, representing the interests
                                      Division of Sumitomo Mitsui Banking            of the controlling shareholder.
                                      Corporation
 Takeshi Kimoto                       Executive Officer, Managing Director of        Non-Independent, representing the interests
                                      Asia Growing Markets Department of             of the controlling shareholder.
                                      Sumitomo Mitsui Banking Corporation
                                      and Sumitomo Mitsui Financial Group
 Ninik Herlani Masli Ridhwan                                                         Independent
 Onny Widjanarko                                                                     Independent
 Edmund Tondobala                                                                    Independent
 Ongki Wanadjati Dana                 Commissioner of PT Bank BTPN                   Non-Independent due to the absence of a
                                      Syariah Tbk                                    cooling-off period from the previous position
                                                                                     as the President Director of Bank BTPN,
                                                                                     thus deemed to have an affiliation with Bank
                                                                                     BTPN



Board of Directors [GRI 2-9]
The Board of Directors is an executive body that operates independently from the Board of Commissioners.


         Name                      Position                 Gender            Tenure                      Competence

 Henoch Munandar               President Director             Male      2022 -2025                          Economy
 Kaoru Furuya           Deputy President Director             Male      2022 -2025                            Laws
 Darmadi Sutanto        Deputy President Director             Male      2022 -2025                        Civil Engineer
 Dini Herdini              Compliance Director              Female      2022 -2025                            Laws
 Atsushi Hino                       Director                  Male      2023 -2025            Business and Commercial Science
 Keishi Kobata                      Director                  Male      2023 -2025                  Information Engineering
 Merisa Darwis                      Director                Female      2022 -2025                  Information Technology
 Hanna Tantani                      Director                Female      2022 -2025                          Economy




                                                                                       Sustainability Report 2023 PT Bank BTPN Tbk   125
Page 132
        Nomination and Selection of Board                               well as diversity of composition without discriminating
        of Commissioners and Directors                                  based on race, ethnicity, gender, and religion.
        [GRI 2-10]
                                                                        The Remuneration and Nomination Committee
        Board of Commissioners                                          proposes selected candidates to the Board of
                                                                        Commissioners for approval and ratification at the
        Policies and Procedures
                                                                        General Meeting of Shareholders. However, prior to
        The policy for nominating members of the Board of
                                                                        this, the Board of Commissioners must have passed
        Commissioners is carried out in the context of the
                                                                        a fit and proper test before carrying out their duties.
        election and/or replacement of members of the Board
                                                                        The Bank’s management must meet the requirements
        of Commissioners, to subsequently be presented at
                                                                        of integrity, competence, and financial reputation.
        the General Meeting of Shareholders. The candidate
                                                                        As of December 2023, all members of the Board of
        selection process is carried out by the Remuneration
                                                                        Commissioners have met the requirements to pass
        and Nomination Committee. The committee takes into
                                                                        the fit and proper test.
        account competence, professional experience, as




                                  Nomination Process for Candidates of Board of Commissioners



             PROPOSAL                            SELECTION &
                                                 RECOMMENDATION                     DECISION

             1.   Proposed Board of              3.   Selection process by          5.   Approval from the OJK for the proposed
                  Commissioners candidates            the Remuneration and               candidates for the Board of Commissioners.
                  from the Shareholders/              Nomination Committee,         6.   Submission of recommendations from the
                  Directors/ Commissioners.           including:                         Remuneration & Nomination Committee to
             2.   Submitting the candidates           a. Analysis of Competence          the Board of Commissioners.
                  list to the Remuneration and             and background of the    7.   The Board of Commissioners proposes
                  Nomination Committee.                    candidates.                   candidates to the General Meeting of
                                                      b. Interview (if needed).          Shareholders (GMS) taking into account the
                                                 4.   Submitting the F&P test            recommendations from the Remuneration &
                                                      result to OJK.                     Nomination Committee.
                                                                                    8.   GMS’s Decision regarding the composition of
                                                                                         the Board of Commissioners.
                                                                                    9.   Notifying OJK on the changes in the
                                                                                         composition of the Board of Commissioners.




        Board of Directors                                              The Remuneration and Nomination Committee
                                                                        proposes selected candidates to the Board of
        Policies and Procedures
                                                                        Commissioners for approval and ratification at the
        The policy for nominating members of the Board
                                                                        General Meeting of Shareholders. However, prior
        of Directors is carried out in order to select and/
                                                                        to this, the Board of Directors must pass a fit and
        or replace members of the Board of Directors, to
                                                                        proper test before assuming their duties. The Bank’s
        subsequently be presented at the General Meeting
                                                                        management must meet the requirements of integrity,
        of Shareholders. The candidate selection process
                                                                        competence, and financial reputation. As of December
        is carried out by the Remuneration and Nomination
                                                                        2023, all members of the Board of Directors have met
        Committee. The committee takes into account
                                                                        the requirements to pass the fit and proper test.
        competence, professional experience, and diversity
        of composition without discriminating based on race,
        ethnicity, gender, or religion.




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                                                                                                   Innovation in
                                                                                                   Sustainable Governance




                              Nomination Process for Candidates of Board of Directors


                                         SELECTION &
     PROPOSAL                                                                 DECISION
                                         RECOMMENDATION

     1.   Proposal of members of         1.   The Selection Process by the    5.   Approval from the OJK for the proposed
          the Board of Directors from         Remuneration & Nomination            Board of Directors candidates.
          Shareholders/Directors/             Committee includes:             6.   Submission of recommendations
          Commissioners.                      a. Analysis of the                   from the Remuneration & Nomination
     2.   Submission of proposed                  candidates’                      Committee to the Board of
          Director candidates to the              competencies and                 Commissioners.
          Remuneration & Nomination               backgrounds.                7.   The Board of Commissioners proposes
          Committee.                          b. Interviews (if necessary).        Director candidates to the General
                                         2.   Submission of the Fit &              Meeting of Shareholders (GMS) while
                                              Proper Test process to the           considering the recommendations
                                              OJK.                                 from the Remuneration & Nomination
                                                                                   Committee.
                                                                              8.   GMS’s Decision regarding the
                                                                                   composition of the Board of Directors.
                                                                              9.   Notifying OJK on the changes in the
                                                                                   composition of the Board of Directors.




Conflict of Interest [GRI 2-15]                                  4.   Employees are prohibited from engaging in any
Conflict of interest impedes a company’s performance                  personal business or enterprise that interferes
when its members prioritize personal interests, leading               with or compromises their professionalism and
to biased decisions that harm the shareholders or                     integrity while employed at Bank BTPN.
other stakeholders. Conflict of interest can lead to             5.   Employees are prohibited from offering any other
the loss of trust from stakeholders, affecting the                    products/services/businesses other than the
company’s reputation and competitiveness.                             bank’s offerings to bank customers.
                                                                 6.   Employees are prohibited from processing a loan
As a result, Bank BTPN has formulated policies and                    application or selecting vendors who are their
procedures aimed at preventing conflicts of interest,                 family members and relatives. In such cases,
outlined in the Bank BTPN Code of Conduct and                         employees are required to notify their manager,
disseminated to all Bank BTPN personnel. The bank                     who will then assign the loan processing or vendor
employs various strategies to identify and prevent                    selection to other employees.
potential conflicts of interest within the organization,
including:                                                       Bank BTPN enforces several regulations to prevent
1. Employees are prohibited from accepting or                    conflicts of interest, including:
     soliciting any form of gift from employees/                 1. Implementing the “Four-Eyes Principle”;
     prospective employees, customers/prospective                2. Separating functions and responsibilities that may
     customers, partners/prospective partners in                     cause a conflict of interest;
     exchange for services that are already part of their        3. Ensuring the implementation of Good Corporate
     job responsibilities.                                           Governance (GCG) to prevent conflicts of interest
2. Employees must report to Human Resources (HR)                     in all Bank BTPN’s operations, including vendor
     should there be any family-bond relationships                   selection process, procurement of goods and
     with other employees/candidates. HR is required                 services, and entertainment of third parties;
     to note it down in each employee’s personal file            4. All potential conflicts of interest aspects are closely
     as one of the considerations relating to transfer               monitored and managed by independent entities,
     and/or promotion.                                               including internal audit teams and external public
3. Employees are prohibited from entering into                       accountants.
     employment agreements with any other parties
     during their working hours, and/or earning income
     other than from Bank BTPN related to their job or
     position in the Bank.




                                                                               Sustainability Report 2023 PT Bank BTPN Tbk    127
Page 134
        The Bank BTPN Code of Conduct is enforced by Bank             channel funds to sustainable projects and industries.
        BTPN’s Board of Commissioners and the Board of                The bank ensures that potential debtors comply with
        Directors to reduce the potential of conflicts of interest.   environmental and social regulations through several
        In the event of a conflict of interest, the matter will be    policies, including:
        addressed and disclosed to the relevant stakeholders          1. Ownership of Environmental Impact Analysis
        in accordance with the established policy.                         (AMDAL) as one of the legal aspects for debtor’s
                                                                           business in a certain segment.
                                                                      2. Performance Achievement in the Company’s
        Policy Commitments [GRI 2-23]                                      Performance Rating Program in Environmental
        Members of the Board of Commissioners, the Board of                Management (PROPER) from the Ministry of
        Directors, and employees of Bank BTPN are required                 Environment and Forestry.
        to carry out their responsibilities in accordance with        3. Requirements for corporations in the plantation
        the company’s integrity principles in order to maintain            sector to own a Plantation Business Permit (IUP),
        the trust and loyalty of customers. Bank BTPN’s                    a Cultivation Plantation Business Permit (IUP-B), a
        commitment to fostering an industrial relationship                 Plantation Business Permit - Processing (IUP-P),
        founded on integrity principles is manifested in the               a Plantation Business Registration Certificate
        Bank BTPN Code of Conduct, serving as the basis for                (SPUP), and a Roundtable on Sustainable Palm
        the conduct of all individuals within Bank BTPN.                   Oil (RSPO) Certificate for those exporting palm oil
                                                                           industry.
        The integrity-related policy commitments outlined in          4. All corporations operating in forest cultivation
        the Bank BTPN Code of Conduct include:                             are required to own a Forest Stewardship
        1. Compliance and risk management                                  Council (FSC) Certificate or Programme for the
        2. Conflict of interest                                            Endorsement of Forest Certification (PEFC).
        3. Establishing a conducive work environment by:              5. And other requirements in accordance with the
            a. Ensuring fair treatment for all employees                   prevailing laws and regulations.
            b. Preventing discrimination and harassment
            c. Maintaining workplace safety
            d. Proper use of company facilities                       The Board of Directors has established this series
            e. Conducting activities outside the company              of policies to be integrated into all Bank BTPN’s
            f. Appropriate use of social media                        business activities. The bank strives to foster a culture
            g. Communication through LInK and HELP                    of sustainability by conducting dissemination on
            h. Implementing the Know Your Employee                    environmental and social policies to all individuals within
                guidelines                                            Bank BTPN and all parties working with Bank BTPN
        4. Information management and security                        through direct communication, training, email, e-learning,
        5. Relations with stakeholders                                integrity pacts, and dissemination via Bank BTPN’s
            a. Relations with customers                               website.These policy commitments can be found on the
            b. Anti-money laundering                                  Bank BTPN website: https://www.btpn.com/id/tentang-
            c. Relations with partners or business associates         kami.
            d. Relations with regulators
            e. Relations with shareholders and subsidiaries
            f. Bribery and corruption                                 Commitment for Responsible
            g. Giving and receiving entertainment and gifts           Business Conduct [GRI 2-24]
            h. Insider information and personal investment            Bank BTPN is committed to conducting its business
                transactions                                          activities in an ethical, transparent, and sustainable
                                                                      manner, as outlined in its business strategy, Standard
        In addition to governance policies, Bank BTPN                 Operational Procedure (SOP), and guidelines. When
        prioritizes human rights in its employment practices.         collaborating with external parties, Bank BTPN ensures
        The company’s employee management policies                    that this commitment is effectively communicated to
        adhere to both Indonesian regulations and international       its business partners.
        labor standards, including the International Labour
        Organization (ILO) conventions.                               Bank BTPN conducts a range of activities, including
                                                                      training, socialization, and the signing of anti-fraud
        Bank BTPN is also committed to contributing to address        integrity pacts and ethical codes, to ensure that all
        climate change through green financing schemes that           business activities align with the company’s ethical
                                                                      standards.




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                                                                                           Innovation in
                                                                                           Sustainable Governance




These activities encompass anti-fraud awareness           Bank BTPN strives to establish a clean work
training, entertainment and gift training, induction      environment free from any violations, whether they
of the Bank BTPN Code of Conduct, and data                are committed by employees, management, or other
confidentiality governance training.                      parties associated with the company. For this reason,
                                                          Bank BTPN has implemented a Whistleblowing
Bank BTPN also integrates compliance and respect          System, allowing stakeholders to submit complaints
for Human Rights as an integral part of the company’s     and report fraud or ethical violations. This system is
business operations, across all aspects and business      designed to provide convenience for both internal
lines of the company. Bank BTPN ensures that external     and external parties of Bank BPTN when submitting
parties as its partners are committed to upholding        complaints or reports. Further information on the
human rights in accordance with the United Nations        Whistleblowing System can be found on page 134.
Guiding Principles on Business and Human Rights,
or have at least complied with relevant human rights
regulations in Indonesia.                                 Internal Control System
                                                          Internal control system is crucial for ensuring good
Bank BTPN has adopted a human rights-centered
                                                          corporate governance. Bank BTPN is committed
approach by integrating the Modern Slavery Act in its
                                                          to upholding integrity and enhancing operational
labor aspects. The Modern Slavery Act aims to address
                                                          effectiveness and efficiency through an internal control
modern slavery practices, human trafficking, and
                                                          system based on the three lines of defense model,
labor exploitation. This act is designed to encourage
                                                          ensuring that each unit operates independently. The
companies to identify and reduce the risk of modern
                                                          functions and responsibilities of the Three Line of
slavery in their supply chains. This commitment is
                                                          Defense in Bank BTPN’s internal control system are
realized through the enforcement of the Modern
                                                          as follows:
Slavery Act screening against Bank BTPN’s business
partners.
                                                          1.   The First Line of Defense comprises the Business
                                                               and Support Units, also known as Risk-Taking Unit
To enforce the Modern Slavery Act and Human Rights,
                                                               responsible for directly managing and controlling
Bank BTPN also strives to enhance vendor capacity
                                                               operational risks in all their work activities with
by organizing human rights seminars. These seminars
                                                               discipline. At the operational level, the bank has
aim to raise awareness and understanding of relevant
                                                               established a Quality Assurance (QA) function to
human rights issues. By taking this approach, Bank
                                                               support the Risk Taking Unit (RTU) in managing
BTPN not only ensures compliance with relevant
                                                               daily operational risks.
regulations but also plays an active role in educating
                                                          2.   The Second Line of Defense comprises the
and promoting social responsibility among its business
                                                               Risk Management Unit (RMU) along with the
partners.
                                                               Compliance Unit and other related units. These
                                                               units serve as risk overseers responsible for
                                                               developing frameworks, policies, procedures,
Processes to Remediate Negative
                                                               methodologies, and tools to define, refine,
Impacts [GRI 2-25]
                                                               coordinate, and ensure the overall risk
Bank BTPN strives to minimize the negative impact              management implementation across all units.
caused by its business operations by adhering to risk     3.   The Third Line of Defense is Internal Audit, which
management principles, including internal control              conducts independent assessments and reviews
systems, data and information leakage mitigation               to ensure that inherent risks have been managed
systems, and other relevant measures.                          and are within the established risk tolerance and
                                                               appetite. Internal Audit carries out supervision and
In terms of environmental impact, Bank BTPN always             assessment of risk management, the effectiveness
strives to minimize significant negative impacts on the        of internal controls, and governance processes
environment through selective credit disbursement              in all aspects of Bank BTPN’s operations. This
processes and responsible operational management.              oversight is extends to the first and second lines
Bank BTPN also applies Social Return On Investment             of defense.
(SROI) analysis to the programs and activities carried
out by the company in an effort to better understand      Periodically, Internal Audit assesses systems and
the environmental and social impacts and to ensure        procedures aimed at safeguarding Bank BTPN’s
that the company continues to prioritize sustainability   assets, ensure the accuracy and reliability of
in its business practices.                                accounting data, and safeguard the funds of the public




                                                                        Sustainability Report 2023 PT Bank BTPN Tbk   129
Page 136
        and other third parties. Additionally, assessments are      Bank BTPN conducts risk identification for all its
        conducted on a range operational activities at Bank         business activities to ensure sufficient controls and
        BTPN, including customer service, infrastructure,           prevent various risks, including fraud. Bank BTPN has
        human resources, and other activities that may pose         found 45 processes with a high level of risk, or 7.29%
        financial and reputational risks.                           of the total processes at Bank BTPN. [GRI 205-1]

        The findings of these assessments are communicated          The tangible manifestation of Bank BTPN’s
        to the President Director, Board of Commissioners,          commitment to combating fraud is demonstrated
        Audit Committee, and the Board of Directors if              through the implementation of signing anti-fraud
        applicable. Additionally, Internal Audit undergoes an       integrity pacts and codes of conduct, as well as
        independent assessment once every three years to            the dissemination of anti-fraud awareness via
        verify compliance with relevant standards and the           e-newsletters, B Connect, Now You Know, News
        reliability of the audit process.                           Sharing, Email Blast, Desktop Wallpaper, and the
                                                                    implementation of training and e-learning to raise
                                                                    awareness of fraud risks. Bank BTPN provides a
        Prevention and Eradication of Fraud                         whistleblowing mechanism for internal and external
        Fraud is a deliberate act of deviation or omission          parties to report suspected fraud, ethical, and integrity
        aimed at deceiving, cheating, or manipulating a bank,       violations.
        customer, or other party. This can occur within the
        bank’s environment and/or using its facilities, leading     Bank BTPN’s anti-fraud education covers several
        to financial losses for the bank, customer, or other        topics, including:
        party, while the perpetrator gains direct or indirect       • Definition of fraud;
        financial benefits. Fraud can manifest as corruption,       • Anti-fraud strategies;
        bribery, asset misuse, report manipulation, document        • Classification of fraud;
        forgery, and other actions that can harm the company’s      • Background of fraud occurrences;
        reputation and erode the trust of customers, investors,     • How to prevent fraud;
        and other stakeholders.                                     • Sanctions for perpetrators of fraud and parties
                                                                        involved in fraudulent activities; and
        Bank BTPN has adopted a zero-tolerance approach to          • Various means to report indications or occurrences
        fraud and has implemented a comprehensive system                of fraud.
        to prevent various fraudulent activities in accordance
        with the OJK Regulation No. 39/POJK.03/2019
        concerning the Implementation of Anti-Fraud Strategy
        for Commercial Banks.


                     Communication and Training on Anti-Corruption/Anti-Fraud by Regions [GRI 205-2]


                                            The Organization Communicated About
                                                                                          Attended Anti-Corruption/Anti-
                                            Anti-Corruption/Anti-Fraud Policies and
                                                                                                 Fraud Training
                                                          Procedures

                                                                                                              Percentage
                                                  Total            Percentage From           Total
                                                                                                            From The Total
                                               (Employee)         The Total Employee      (Employee)
                                                                                                               Employee

         Greater Jakarta                                  3,206                 48%                3,022               47%

         Java                                             1,831                 28%                1,786               28%

         Outside Java                                     1,592                 24%                1,565               25%

         TOTAL                                            6,629                100%                6,373              100%




130   Sustainability Report 2023 PT Bank BTPN Tbk
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                                                                                                  Innovation in
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     Communication and Training on Anti-Corruption/Anti-Fraud by Employee Categories [GRI 205-2]


                                     The Organization Communicated About                Attended Anti-Corruption/Anti-
                                     Anti-corruption/Anti-Fraud Policies and                   Fraud Training
                                                   Procedures

                                      Total Number            Percentage From         Total Number            Percentage
                                      of Participants        The Total Employee       of Participants       From The Total
                                       (Participant)                                   (Participant)           Employee

 Board of Management                                  10                      0,2%                   8                  0,1%
 Top Management                                      177                      2,7%                 170                  2,7%
 Senior management                                   740                     11,2%                 712                 11,2%
 Management                                        2,881                     43,6%               2,747                 43,2%
 Officer/Supervisor                                1,586                     24,0%               1,527                 24,0%
 Clerical                                          1,215                     18,4%               1,195                 18,8%
 TOTAL                                             6,609                     100%                6,359                 100%


All members of the Board of Commissioners and Directors of Bank BTPN, both in Indonesia and abroad, have
completed anti-fraud training via regular e-Learning sessions.

Bank BTPN has also communicated anti-fraud measures to its business partners collaborating with the bank
through sharing sessions and notification letters. The data of business partners collaborating with the bank is as
follows:
            Business Partners Receiving Anti-Corruption/Anti-Fraud Communication [GRI 205-2]

              Description                                  Total                                        %

 Service Provider                                                              446                                         75%
 Supplier                                                                      148                                         25%
 TOTAL                                                                         594                                         100%



Bank BTPN enforces strict measures and imposes                     of interest involving Bank BTPN employees. These
sanctions on individuals involved in fraud, ethical                reports are expected to be made in good faith
misconduct, and breaches of integrity. Any employees,              and should not stem from personal grievances or
management personnel, or business partners found                   defamation.
to be in violation of the regulations will be subject to
sanctions based on the nature of the offense. These                Bank BTPN shall follow up on the complaints
sanctions may include written warnings, demotion,                  submitted according to the following criteria:
termination of employment, and claims for damages.                 1. Whistleblowers must provide their identity,
Bank BTPN does not disclose the number of fraud                       including their name (anonymous is allowed).
cases due to confidentiality reasons. [GRI 205-3]                  2. Active phone number/email for follow-up.
                                                                   3. Reports must at least explain (4W1H): what
                                                                      happened (what), the parties involved (who), time
Whistleblowing System                                                 of incident (when), place of the incident (where),
[GRI 2-26] [FN-CB-510a.2]                                             and how did it happen (how).
In an effort to improve business transparency, prevent
fraud and ethical violations, and uphold integrity, Bank           Bank BTPN guarantees the confidentiality of the
BTPN has implemented a violation reporting system                  whistleblower’s personal data and provides assurance
via whistleblowing channels.                                       of protection against any form of pressure related to
                                                                   the complaints submitted by the whistleblower. Bank
Whistleblowing channels provide a platform for                     BTPN upholds the principle of protecting human rights
individuals to report incidents related to fraudulent              and ensures the confidentiality of the whistleblowers.
activities, legal violations, violations of company                In 2023, the whistleblowing channel received 42
regulations, violations of ethical codes, and conflicts            complaints, with 98% of them have been resolved,
                                                                   while the remaining complaints are currently being
                                                                   processed. [OJK F.24]

                                                                                Sustainability Report 2023 PT Bank BTPN Tbk       131
Page 138
                                                                                                            Whistleblowing Process Flow Diagram




                                                                                                                                                                                                            Finish
                Whistleblower




                                                                              Start

                                                                         Report an Event
                                                              (through the person/ hotline/ mail/ e-mail/
                                                                             Whatsapp)
                                                                                                                                                                                                        Received Response
                                                                                                                                                                          Quarterly
         Management




                                                                                                                                                                        Whistleblowing
         Head of Risk




                                                                                                                                                                           Report*




                                                                          Report from
                                                                                                                                                                                                         Provide response from
                                                                         Whistleblower                                                                         Update Database
                                                                                                                                                                                                         whistleblower request
                Operational & Fraud Risk Management (ORFM)




                                                             Involve BoD/BoM/BoC/Executive
                                                               Officer or related to Financial
                                                                        Statements?
                                                                                                                 YES

                                                                                                                                                                               NO
                                                                                     NO




                                                                                                                           Involve BoD/BoM/
                                                                                                                                                        NO
                                                                                                                         BoC/ Executive Officer
                                                                               Fraud                                                                                Fraud
                                                               NO                                                        or related to Financial
                                                                               Case?                                                                                Case?
                                                                                                                              Statements?

                                                                                     YES                                                                                 YES

                                                                                                                                         YES
                                                                                                                                                      Received
                                                                                                                                                       Report
                                                                          Investigation
         Audit Committee/ Risk Monitoring




                                                                                                   Conduct on
                                                                                                    follow up
                  Committee




                                                                Involve BoD/
                                                                                                  whistleblower
                                                                  BoM/BoC/
                                                                                                      report
                                                                  Executive                                                                YES       Instructed the                               Audit Committee meeting
                                                              Officer or related                  Example: appoint
                                                                                                 internal Audit, other                               status report is                              and/or Risk Monitoring
                                                                 to Financial                                                 Follow up
                                                                                                    internal parties                                   “Closed” to                                Committee and OFRM on
                                                                Statements?                                                    done?
                                                                                                   or third party to                                     OFRM                                           Quarter Basis
                                                                                                        conduct
                                                                                                     investigation
                                                                                                                                    NO
      Compliance atau
       Division Head
        Resources,
          Human




                                                                                                                                    Report results
                                                             Received Report                    Analyzing Cases                       case on
                                                                                                                                      analysis
                Fraud Committee




                                                                                                                                                                                    Fraud Committee meeting and
                                                                                                                                                                                             OFRM




132     Sustainability Report 2023 PT Bank BTPN Tbk
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Communication of Critical Concerns                             Enhancement of the Board of
[GRI 2-16]                                                     Commissioners and Directors’
Bank BTPN has devised a comprehensive strategy to              Capacity [GRI 2-17] [OJK E.2]
mitigate significant risks by presenting procedures to         The successful implementation of strategies and
the Board of Commissioners and the Board of Directors          achievement of corporate goals is greatly influenced
for the swift and efficient detection and management           by the decisions made by the Board of Commissioners
of critical concerns. This process involves the                and the Board of Directors regarding the company’s
dissemination of written reports and participation in          operational policies. Hence, Bank BTPN offers training
meetings of the Board of Commissioners, the Board              in the areas of economics, environment, social, and
of Directors, as well as joint meetings of Board of            governance for the Board of Commissioners and the
Commissioners and Directors.                                   Board of Directors, as follows:

During the reporting year, no critical concerns related
to Bank BTPN’s business operations were brought to
the attention of the Board of Commissioners and the
Board of Directors.



                 Enhancement of the Board of Commissioners’ Capacity [GRI 2-17] [OJK E.2]


 No              Name                                       Trainings                                     Date


 1.    Chow Ying Hoong –           1.   Economic Outlook Update by Raden Pardede               1.   June 6, 2023
       President Commissioner      2.   Executive Risk Management Certification Refresher      2.   July 26, 2023
                                   3.   Leadership Series: Influence for Impact                3.   December 5, 2023
                                   4.   Political Update by Philips J. Vermonte                4.   December 8, 2023

 2.    Takeshi Kimoto -            1.   Economic Outlook Update by Raden Pardede               1.   June 6, 2023
       Commissione                 2.   Executive Risk Management Certification Refresher      2.   July 26, 2023
                                   3.   Leadership Series: Influence for Impact                3.   December 5, 2023
                                   4.   Political Update by Philips J. Vermonte                4.   December 8, 2023

 3.    Ninik Herlani Masli         1. Leadership Series : Creating Strategy to Connect The     1. March 4, 2023
       Ridhwan – Independent          Generation Gap
       Commissioner                2. Economic Outlook Update by Raden Pardede                 2.   June 6, 2023
                                   3. Executive Risk Management Certification Refresher        3.   July 26, 2023
                                   4. Leadership Series: Influence for Impact                  4.   December 5, 2023
                                   5. Political Update by Philips J. Vermonte                  5.   December 8, 2023

 4.    Onny Widjanarko –           1.   Training: Risk Management Certification Level 2        1.   January 12, 2023
       Independent Commissioner    2.   Induction 2022: BTPN Overview                          2.   June 5, 2023
                                   3.   Economic Outlook Update by Raden Pardede               3.   June 6, 2023
                                   4.   Induction 2022 : Compliance                            4.   June 17, 2023
                                   5.   Leadership Series: Influence for Impact                5.   December 5, 2023
                                   6.   Political Update by Philips J. Vermonte                6.   December 8, 2023

 5.    Edmund Tondobala –          1. Leadership Series : Creating Strategy to Connect The     1. March 4, 2023
       Independent Commissioner       Generation Gap
                                   2. Economic Outlook Update by Raden Pardede                 2.   June 6, 2023
                                   3. Executive Risk Management Certification Refresher        3.   July 26, 2023
                                   4. Leadership Series: Influence for Impact                  4.   December 5, 2023
                                   5. Political Update by Philips J. Vermonte                  5.   December 8, 2023

 6.    Ongki Wanadjati Dana -      1. Leadership Series : Creating Strategy to Connect The     1. 4 Maret 2023
       Commissione                    Generation Gap
                                   2. Economic Outlook Update by Raden Pardede                 2.   6 Juni 2023
                                   3. Leadership Series : Managing Global Business Risk        3.   14 Juni 2023
                                   4. Executive Risk Management Certification Refresher        4.   26 Juli 2023
                                   5. Leadership Series: Influence for Impact                  5.   5 Desember 2023
                                   6. Political Update by Philips J. Vermonte                  6.   8 Desember 2023




                                                                               Sustainability Report 2023 PT Bank BTPN Tbk   133
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                             Enhancement of the Board of Directors’ Capacity [GRI 2-17] [OJK E.2]


         No              Name                                       Trainings                                    Date

          1.   Henoch Munandar -           1. Thriving in the age of Analytics with Digital Mindset   1. January 18, 2023
               President Director          2. Leadership Series : Creating Strategy to Connect The    2. March 14, 2023
                                               Generation Gap
                                           3. Media Training                                          3. July 6, 2023
                                           4. Executive Risk Management Certification Refresher -     4. July 26, 2023
                                               2023
                                           5. Sustainable Finance Offline Seminar                     5. August 11, 2023
                                           6. National Seminar “Macroprudential Liquidity Incentive   6. September 13, 2023
                                               Policy”
                                           7. Bank BTPN Sustainability Seminar 2023                   7. October 12, 2023
                                           8. CEO Networking 2023                                     8. November 7, 2023
                                           9. Bank BTPN Economic Outlook 2024                         9. November 22, 2023
                                           10. Year-End Dialogue of OJK Board of Commissioners        10. December 1, 2023
                                               Members and the Financial Services Industry
                                           11. Leadership Series: Influence for Impact with Najwa     11. December 5, 2023
                                               Shihab
                                           12. Political Update by Philip J. Vermonte                 12. December 8, 2023
          2.   Kaoru Furuya –              1. Leadership Series : Creating Strategy to Connect The    1. March 14, 2023
               Deputy President Director       Generation Gap
                                           2. BTPN Leaders’ Onboarding Program: Indonesia             2. May 26, 2023
                                               Professional Etiquette and HR Practices
                                           3. Economic Outlook Update by Raden Pardede                3. June 6, 2023
                                           4. X-Talk Leadership Series : “Managing Global Business    4. June 14, 2023
                                               Risks: A Proactive Approach” by Tantowi Yahya
                                           5. BTPN Supply Chain Approach Workshop                     5. June 25, 2023
                                           6. Media Training                                          6. July 6, 2023
                                           7. Executive Risk Management Certification Refresher -     7. July 26, 2023
                                               2023
                                           8. Sustainable Finance Offline Seminar                     8. August 11, 2023
                                           9. Bloomberg CEO Forum @ASEAN                              9. September 6, 2023
                                           10. Bank BTPN Sustainability Seminar 2023                  10. October 12, 2023
                                           11. Bank BTPN Economic Outlook 2024                        11. November 22, 2023
                                           12. Leadership Series: Influence for Impact with Najwa     12. December 5, 2023
                                               Shihab
                                           13. Political Update by Philip J. Vermonte                 13. December 8, 2023
          3.   Darmadi Sutanto –           1.   Leading in Digital Era                                1.   April 16-21, 2023
               Deputy President Director   2.   Economic Outlook Update by Raden Pardede              2.   June 6, 2023
                                           3.   Media Training                                        3.   July 6, 2023
                                           4.   Executive Risk Management Certification Refresher -   4.   July 26, 2023
                                                2023
                                           5.   Sustainable Finance Offline Seminar                   5.   August 11, 2023
                                           6.   Bank BTPN Sustainability Seminar 2023                 6.   October 12, 2023
                                           7.   Bank BTPN Economic Outlook 2024                       7.   November 22, 2023
                                           8.   Leadership Series: Influence for Impact with Najwa    8.   December 5, 2023
                                                Shihab
                                           9.   Political Update by Philip J. Vermonte                9. December 8, 2023




134   Sustainability Report 2023 PT Bank BTPN Tbk
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                                                                                         Innovation in
                                                                                         Sustainable Governance




No             Name                                Trainings                                       Date

4.   Dini Herdini –        1. Thriving in the age of Analytics with Digital Mindset     1. January 18, 2023
     Compliance Director   2. Leadership Series : Creating Strategy to Connect The      2. March 14, 2023
                               Generation Gap
                           3. HKHPM Seminar “Law on the Development and                 3. March 20, 2023
                               Strengthening of the Financial Services Sector in
                               Indonesia: Implications for the Capital Market Sector”
                           4. ICSA-OJK Webinar: Deepening POJK No.14/                   4. June 8, 2023
                               POJK.04/2019 - Capital Increase of Public Companies
                               by providing Pre-emptive Rights
                           5. Media Training                                            5. July 6, 2023
                           6. Executive Risk Management Certification Refresher -       6. July 26, 2023
                               2023
                           7. Sustainable Finance Offline Seminar                       7. August 11, 2023
                           8. Deloitte Southeast Asia Financial Crime Symposium |       8. October 3, 2023
                               The Emerging Issue of Financial Crime
                           9. Bank BTPN Sustainability Seminar 2023                     9. October 12, 2023
                           10. IMD’s Orchestrating Winning Performance, Singapore       10. November 20-24,
                               Leadership Series: Influence for Impact with Najwa           2023
                               Shihab
                           11. Political Update by Philip J. Vermonte                   11. December 8, 2023
5.   Atsushi Hino –        1.   Economic Outlook Update by Raden Pardede                1.   June 6, 2023
     Director              2.   Media Training                                          2.   July 6, 2023
                           3.   Bank BTPN Sustainability Seminar 2023                   3.   October 12, 2023
                           4.   Talent Insight Discovery Training                       4.   October 16, 2023
                           5.   Bank BTPN Economic Outlook 2024                         5.   November 22, 2023
                           6.   Political Update by Philip J. Vermonte                  6.   December 8, 2023
6.   Keishi Kobata –       1. Executive Risk Management Certification Refresher -       1. July 26, 2023
     Director                 2023
                           2. Sustainable Finance Offline Seminar                       2.   August 11, 2023
                           3. Bank BTPN Sustainability Seminar 2023                     3.   October 12, 2023
                           4. Bank BTPN Economic Outlook 2024                           4.   November 22, 2023
                           5. Leadership Series: Influence for Impact with Najwa        5.   December 5, 2023
                              Shihab
                           6. Political Update by Philip J. Vermonte                    6. December 8, 2023
7.   Merisa Darwis –       1. Leadership Series : Creating Strategy to Connect The      1. March 14, 2023
     Director                  Generation Gap
                           2. Economic Outlook Update by Raden Pardede                  2. June 6, 2023
                           3. IMD - Individual Learning Development – Orchestrating
                               Winning Performance                                      3. June 26-30, 2023
                           4. Media Training                                            4. July 6, 2023
                           5. Executive Risk Management Certification Refresher -       5. July 26, 2023
                               2023
                           6. Sustainable Finance Offline Seminar                       6.   August 11, 2023
                           7. Bank BTPN Sustainability Seminar 2023                     7.   October 12, 2023
                           8. Bank BTPN Economic Outlook 2024                           8.   November 22, 2023
                           9. Leadership Series: Influence for Impact with Najwa        9.   December 5, 2023
                               Shihab
                           10. Political Update by Philip J. Vermonte                   10. December 8, 2023




                                                                      Sustainability Report 2023 PT Bank BTPN Tbk   135
Page 142
         No              Name                                       Trainings                                   Date

          8.   Hanna Tantani–              1. OJK Webinar - Banking Trends in 2023                    1. January 17, 2023
               Director                    2. Thriving in the age of Analytics with Digital Mindset   2. January 18, 2023
                                           3. OJK Webinar - Implementasi Artificial Intelligence di   3. February 2, 2023
                                               Industri Jasa Keuangan
                                           4. OJK Webinar - The Role of GRC in Supporting Financial   4. February 23, 2023
                                               Sector Performance
                                           5. Webinar - PwC Indonesia Economic Update Q1 – 2023       5. March 9, 2023
                                           6. Harvard yang Driving Digital Strategy
                                           7. Leadership Series : Creating Strategy to Connect The    6. March 12-17, 2023
                                               Generation Gap                                         7. March 14, 2023
                                           8. McKinsey session with BTPN on “AI-enabled customer      8. March 16, 2023
                                               service”
                                           9. BCG and AC Ventures’ report launch: Shaping the         9. March 29, 2023
                                               Future of Fintech in Indonesia
                                           10. Economic Outlook Update by Raden Pardede               10. June 6, 2023
                                           11. Empowering Women <IDX>                                 11. June 8, 2023
                                           12. Media Training                                         12. July 6, 2023
                                           13. Executive Risk Management Certification Refresher -    13. July 26, 2023
                                               2023
                                           14. PwC WEBINAR: Tax Breakfast Briefing - Discussion on    14. August 2, 2023
                                               the new rules of Benefits In-Kinds
                                           15. Sustainable Finance Offline Seminar                    15. August 11, 2023
                                           16. Bank BTPN Sustainability Seminar 2023                  16. October 12, 2023
                                           17. Bank BTPN Economic Outlook 2024                        17. November 22, 2023
                                           18. Leadership Series: Influence for Impact with Najwa     18. December 5, 2023
                                               Shihab
                                           19. Political Update by Philip J. Vermonte                 19. December 8, 2023




        Evaluation of the Performance of                               respective fiscal year, as well as fairness principles
        the Board of Commissioners and                                 within the internal peer group and industry standards
        Directors [GRI 2-18]                                           in the banking sector.
        The performance evaluation of the Board of
        Commissioners and the Board of Directors is a crucial          Process to Determine Remuneration 
        factor in guiding the enhancement of the company’s             [GRI 2-20]
        governance body. The Board of Commissioners                    To determine remuneration, Bank BTPN appoints
        and Directors conduct a self-assessment based on               an independent party to conduct a remuneration
        established Key Performance Indicators (KPIs) on an            survey in similar industries. The results serve as a
        annual basis. The results of this evaluation are then          reference for the amount of remuneration for the
        utilized to enhance the governance system of Bank              Board of Commissioners and the Board of Directors.
        BTPN in the following year.                                    In addition, the determination of remuneration takes
                                                                       into account the performance of each individual. The
                                                                       process of determining remuneration commences with
        Remuneration of the Board of                                   proposals from the Remuneration and Nomination
        Commissioners and the Board of                                 Committee, presented to the GMS to gather feedback
        Directors                                                      and secure approval from stakeholders, particularly
        REMUNERATION POLICY [GRI 2-19]                                 the shareholders. In determining the remuneration,
                                                                       Bank BTPN does not include external parties.
        The remuneration of the company’s Board of
        Commissioners and Board of Directors is determined
        by the General Meeting of Shareholders (GMS) and is            Annual Total Compensation Ratio [GRI 2-21]
        aligned with the principle of meritocracy. It is adjusted      Bank BTPN provides fair and just remuneration as a
        based on individual performance assessment and                 form of appreciation for the hard work and dedication
        work achievements. Remuneration is determined                  of its employees. However, Bank BTPN does not
        taking into account the company’s profits in the               disclose the annual total compensation ratio as it is
                                                                       considered company confidential information.



136   Sustainability Report 2023 PT Bank BTPN Tbk
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                                                                                           Innovation in
                                                                                           Sustainable Governance




Risk Management                                           anti-competitive behavior, monopolistic practices,
Bank BTPN implements a risk management system             manipulation, or other legal violations during the
to identify, assess, and manage potential risks arising   reporting period. [FN-CB-510a.1] [GRI 206-1]
from its business operations. Bank BTPN’s risk            [GRI 2-27]
management includes strategies to evaluate corporate
strategies, ensure capital adequacy, facilitate long-     Cyber Risk Management
term planning, and address various other business         In the current digitalization era, effective cybersecurity
activities [FN-CB-550a.2]. Bank BTPN is classified as     management,        including      information     security
a Domestic Systemically Important Bank (D-SIB)            management, has emerged as a top priority for
[FN-CB-550a.1].                                           participants in the financial and banking sector due to
                                                          the escalating threats to cybersecurity and information
Risk management is an integral part of Bank BTPN’s        security, particularly for Bank BTPN.
operations to ensure the continuity of its business.
The risk management policy is established by the          For this reason, Bank BTPN consistently enhances
Board of Commissioners and the Board of Directors,        and reinforces the standards for the implementation
and its implementation is executed through:               and management of the Bank’s cybersecurity through
1. Active supervision by the Board of Commissioners       the issuance of the Cyber Security Risk Management
    and the Board of Directors.                           Policy 0.0. This policy supersedes the previous
2. Adequacy of risk management policies and               Information Management and Security Policy 2.1.
    procedures and setting risk limits.
3. Adequacy of processes for identifying, measuring,      In general, this policy encompasses regulations
    monitoring, and controlling risks, as well as the     governing the management and execution of cyber
    functionality of risk management information          security risk management at Bank BTPN, including:
    systems.                                              1. General Provisions of Cyber Security Risk
4. Comprehensive internal control systems and                 Management
    other processes.                                      2. Duties and Responsibilities of Management and
                                                              Work Units as well as all Employees at BTPN.
The risk management policy and strategy are outlined      3. Bank’s Cyber Security Risk Management
in the Risk Management Policy, approved by the                Framework.
Board of Commissioners and the Board of Directors.        4. Stages of Implementing Cyber Security Risk
The Board of Commissioners oversees the risk                  Management (along with its general provisions):
management conducted by the Board of Directors.               a. Identification
Risks identified by Bank BTPN include:                        b. Protection
1. Credit Risk                                                c. Detection
2. Market Risk                                                d. Response and Reporting
3. Liquidity Risk                                             e. Recovery
4. Operational Risk                                       5. Evaluation
5. Legal Risk                                             6. Annex - Information Retention Period Table
6. Strategic Risk
7. Compliance Risk                                        The Cyber Risk Management 0.0 implementation aims
8. Reputational Risk                                      to protect Bank BTPN’s assets, including information,
                                                          IT assets, and other related assets, with the goal of
Bank BTPN implements a precautionary approach to          preventing potential cybersecurity risks. Ultimately, it
environmental risk management by enforcing a policy       is also expected to build and enhance stakeholders’
that prohibits lending to industries that contravene      interests, such as customers, owners, and others,
national and international environmental regulations,     and to ensure the continuity of the Bank’s operational
as outlined in the Credit Policy and Sustainability       activities and business.
Policy.
                                                          Climate Risk Management
Bank BTPN prioritizes compliance with applicable
laws and regulations in the economic, social, and         During the reporting period, Bank BTPN was selected
environmental domains to prevent any legal or financial   as one of the banks participating in the trial phase of
repercussions stemming from fraud, insider trading,       the Climate Risk Stress Test (CRST) conducted by the
                                                          OJK. This program promotes the integration of climate




                                                                        Sustainability Report 2023 PT Bank BTPN Tbk    137
Page 144
        change considerations into the bank’s overall risk                   distribution networks, and new and existing
        management, encouraging the banking industry to                      activities, taking into account the evolving
        address climate-related risks. In response to this, Bank             risks of money laundering, terrorism
        BTPN is currently in the process of developing a policy              financing, and financing of proliferation of
        or framework regarding climate risk management.                      weapons of mass destruction faced by the
                                                                             bank, as well as recommendations for AML
                                                                             CTF and CPFWMD risk mitigation measures,
        Anti-Money Laundering and Counter                                    ensuring that the bank’s products, services,
        Terrorism Financing Policy                                           and offerings are not utilized to facilitate
        The rising complexity of banking products and                        money laundering, terrorism financing, and/or
        services, driven by the expanding use of technology                  the financing of weapons of mass destruction
        in the banking industry, has the potential to elevate                activities.
        the risk of misuse of banking services for money                d. Coordinating the preparation of targets and
        laundering, terrorism financing, and financing of                    monitoring the regular updating of Customer
        proliferation of weapons of mass destruction. Bank                   Due Diligence (CDD), and strengthening
        BTPN has developed an Anti Money Laundering                          control over the updating of CDD documents.
        (AML) Counter Terrorism Financing (CTF) and                     e. Monitoring, analyzing, and reporting on cash
        Counter Proliferation Financing of Weapons of Mass                   financial transactions, suspicious financial
        Destruction (CPFWMD) program that encompasses                        transactions, fund transfers to and from
        the following activities:                                            abroad, customer information, and reinforcing
        1. Active participation of the Board of Commissioners                control mechanisms (maker-checker) as well
             and the Board of Directors in regular discussion                as the quality of reporting data.
             regarding the execution of the AML CTF and                 f. Reviewing transaction monitoring system
             CPFWMD programs of Bank BTPN, as well as                        parameters and scenarios, and periodically
             relevant issues.                                                adjusting parameters and scenarios based
        2. Regularly updating Bank BTPN’s AML, CTF, and                      on the outcomes of such reviews.
             CPFWMD programs in accordance with changes                 g. Regularly performing a self-assessment of
             in local regulations, the parent company, and the               AML, CTF, and CPFWMD risks within the
             bank’s operational and business landscape.                      AML CFT Division and across the entire bank.
        3. Coordinating with regulators to ensure the              5.   Enhancing and optimizing Bank BTPN’s
             effective implementation of Bank BTPN’s AML,               AML, CTF, and CPFWMD system to facilitate
             CTF, and CPFWMD programs.                                  the execution of the identification, analysis,
        4. Continuously assessing the effectiveness and                 transaction monitoring, and reporting processes
             execution of the AML, CTF, and CPFWMD                      for AML, CTF, and CPFWMD, including:
             programs through:                                          a. Developing a reporting system for regulators
             a. Adapting the Policies and Procedures for                     (APOLO OJK and GoAML PPATK).
                  the implementation of Bank BTPN’s AML,                b. Developing a system for checking DTTOT.
                  CTF, and CPFWMD programs to align with                c. Developing a management information
                  the provisions of OJK Regulation Number 8                  system for AML CTF and CPFWMD-related
                  of 2023 concerning the Implementation of                   reports.
                  Anti Money Laundering, Counter Terrorism              d. Developing a system for monitoring credit
                  Financing,     and    Counter   Proliferation              card transactions.
                  Financing of Weapons of Mass Destruction              e. Developing a transaction screening system
                  Programs in the Financial Services Sector,                 through BI FAST.
                  and incorporating new policies from the               f. Developing a screening system for customer-
                  shareholders relevant to the SMBC subsidiary.              related parties.
             b. Regularly performing an assessment of                   g. Developing a system related to the integration
                  the AML, CTF, and CPFWMD programs’                         of core banking systems.
                  implementation at all Bank BTPN Branch                h. Developing a system for the implementation
                  Offices (Branch Review) carried out by the                 of ISO 20022 (Electronic Message Exchange
                  AML Compliance Champion (ACC) team.                        Standard) on SWIFT and screening
             c. Providing an assessment of the development                   systems for transaction-related transaction
                  of the bank’s product programs and services,               information.




138   Sustainability Report 2023 PT Bank BTPN Tbk
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                                                                                           Innovation in
                                                                                           Sustainable Governance




     i.   Developing a system to enhance the due              e.   Taking part in Bank BTPN’s Business Risk
          diligence process for customers.                         Forum as a participant in mitigating AML CTF
     j. Evaluating the completeness and accuracy                   and CPFWMD risks.
          of customer data processed in the AML CTF           f. Monitoring the completion of mandatory AML
          and CPFWMD system.                                       CTF and CPFWMD training programs via
6.   Promoting a culture of awareness of money                     Bank BTPN’s platform and regularly updating
     laundering, terrorism financing, and financing of             AML CTF and CPFWMD training materials.
     proliferation of weapons of mass destruction to          g. Enhancing the competence and awareness
     all employees through a series of training and                of AML CFT Division staff through training,
     dissemination activities related to AML CTF and               sharing sessions, and dissemination related
     CPFWMD provisions:                                            to AML CTF and CPFWMD materials.
     a. Conducting regular AML CTF and CPFWMD            7.   Participating in the dissemination of regulations,
          training for all Bank BTPN employees,               coordination meetings, and reviews (Financial
          including new hires and existing employees          Integrity Rating/FIR PPATK 2023) organized by
     b. Providing training with AML CTF and                   the regulator.
          CPFWMD materials, as well as thematic
          materials related to AML CTF and CPFWMD
          to branch staff and work units.                Compliance with Laws and
     c. Conducting regular refreshment training          Regulations [GRI 2-27] [FN-CB-510a.1]
          on AML CTF and CPFWMD by the AML               Bank BTPN prioritizes compliance with prevailing laws
          Compliance Champion (ACC) team at              and regulations.As a result, there were no significant
          branches.                                      violations affecting the financial position or liquidity of
     d. Disseminating information on the latest          Bank BTPN throughout the reporting year. [GRI 206-1]
          developments/issues related to AML CTF         [GRI 2-17]
          and CPFWMD through Bank BTPN’s internal
          media to all Business/Support Units.




                                                                        Sustainability Report 2023 PT Bank BTPN Tbk    139
Page 146
            ABOUT
            THE REPORT
          Bank BTPN reaffirms its commitment
          to sustainability reporting as an
          instrument that provides transparent
          and relevant information for
          stakeholders.




140   Sustainability Report 2023 PT Bank BTPN Tbk
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                       About the Report




Sustainability Report 2023 PT Bank BTPN Tbk   141
Page 148
        Sustainability reporting is crucial to measuring,           ASSURANCE
        reporting,     and     understanding     the      social,   Bank BTPN employs assurance services to assure
        environmental, and economic impacts of an entity,           stakeholders of the high reliability and credibility of the
        which is vital for shaping sustainable business             information presented in the sustainability report. The
        practices. Therefore, Bank BTPN is committed to             assurance service provider is selected independently
        publishing an annual sustainability report. This is Bank    to ensure impartiality and prevent conflicts of interest.
        BTPN’s fifth sustainability report, encompassing data       The primary focus in this process is to prioritize
        from January 1, 2023, to December 31, 2023. This            the    quality    of    the    evaluation,     providing
        reporting period aligns with Bank BPTN’s financial          stakeholders with confidence in the reliability
        reporting period. The previous Sustainability Report        and transparency of the sustainability report.
        was issued in March 2023. This report contains
        restatement from the previous report, as explained in       Following a thorough assessment, the management
        the Environmental Section related to carbon emission        has decided that PT. Sucofindo is appointed as
        calculations. Nonetheless, there have been no               the assurer of Bank BTPN’s 2023 Sustainability
        significant organizational changes. [GRI 2-3]               Report [GRI 2-5] [OJK G.1]. In carrying out the
        [GRI 2-4] [OJK C.6]                                         assurance work, Sucofindo employs the AA 1000
                                                                    Assurance Standard V3 and ISAE 3000 ‘Assurance
                                                                    Engagements other than Audits or Reviews of
                                                                    Historical Financial Information’ issued by the
                                                                    International Auditing and Accounting Standards
                                                                    Board of the International Federation of Accountants
                                                                    (IFAC). The independent assurance report on this
              In 2023, there were no significant                    sustainability report can be found on page 149-150.
                   organizational changes.
                                                                    DETERMINATION OF MATERIAL TOPICS
                                                                    AND BOUNDARY [GRI 3-1]
                                                                    The material topics are those that exert the most
                                                                    significant influence on the economic, environmental,
                                                                    and social spheres. These topics are derived from the
        REPORTING STANDARDS                                         GRI Topic Standards 2021, taking into account the
        This report has been prepared in accordance with the        financial sector standards. However, as there is no
        Global Reporting Initiative (GRI) and financial sector      2021 Financial Sector Standard, the Financial Sector
        standards. As a public company in the financial             GRI G4 remains in use.
        services sector, this report has also been prepared
        in accordance with the OJK Circular Letter No. 16/          The determination of material topics in this report
        SEOJK.04/2021 concerning the Form and Content of            follows these steps:
        the Annual Report of Issuers or Public Companies. To        1. Understanding the business context of Bank
        address investor requests, this report also includes             BTPN
        other standard disclosures, such as the Sustainability      2. Identifying actual and potential impacts.
        Accounting Standards Board (SASB) and the Task              3. Assessing the significance of the impacts. Bank
        Force on Climate-related Financial Disclosures (TCFD).           BTPN engages stakeholders through materiality
                                                                         surveys to determine these topics, while also
        The GRI standard, SEOJK 16/2021, and SASB applied                taking into account topics in the Financial Sector.
        in this report are marked with numbering brackets in        4. Bank BTPN proceeds to prioritize the most
        red (for GRI standard), green (for the financial sector),        significant impacts for reporting arising from
        blue (for SEOJK 16/2021), brown (for SASB), and                  steps 2 and 3. In determining material topics,
        purple (for TCFD) on each relevant page. Meanwhile,              Bank BTPN engages external experts, such as the
        the list of GRI, FS, OJK, SASB, and TCFD indices is              National Center for Corporate Reporting (NCCR),
        presented sequentially on page 161-170. [OJK G.4]                to oversee the impacts of Bank BTPN in the
                                                                         economic, environmental, and social domains.




142   Sustainability Report 2023 PT Bank BTPN Tbk
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                                                                                                          About the Report




Bank BTPN determines the same material topics as the previous year, despite the variations in their levels of
materiality compared to the previous year. The following is the flow chart outlining the process for determining
material topics:



              Understanding                                                   Assessing the
              Bank BTPN’s                                                     significance of the
   01         sustainability
              context
                                                                  03          impacts




              Identifying the                                                 Prioritizing the most
              actual and potential                                            significant impacts
   02         impacts                                             04          for reporting




List of Material Topics [GRI 3-2] [GRI 3-3]


      Material Topics                            Reasons Why the Topics are Considered Material

Economic Performance        Have a significant impact on the improvement of the national and regional economy and
and Impact                  stakeholders.
Market Presence             Have a significant impact on human resources, both in terms of well-being and employee
                            careers.
Indirect Economic Impacts   Have a significant impact on the improvement of the regional economy and on community
                            empowerment.
Procurement Practices       Have a significant impact on the development of the local economy.
Anti Corruption             Have a significant impact and influence on the trust of shareholders, the community, and other
                            stakeholders.
Energy                      Have a significant impact on the sustainability of the earth and environmental preservation, in
                            addition to economic savings for Bank BTPN.
Emissions                   Have a significant impact on the sustainability of the earth and environmental preservation, in
                            addition to economic savings for Bank BTPN.
Employment                  Have a significant impact on the comfort and performance of employees.
Education and Training      Have a significant impact on the comfort and performance of employees as well as the
                            capacity/skills of employees.
Diversity and Equality      Have a significant impact on the comfort and performance of employees as well as respect for
                            human rights.
Non-discrimination          Have a significant impact on the comfort and performance of employees as well as respect for
                            human rights.
Marketing and Labelling     Have a significant impact on the improvement of products and customer trust.
Customer Privacy            Have a significant impact on the improvement of products and customer trust.
Security Practices          Have a significant impact on the improvement of products and customer trust.
Local Communities           Have a significant impact on the improvement of welfare and product development for
                            marginalized communities.
Supplier Social Assessment Have a significant impact on the enforcement and implementation of sustainability concepts
                           by business relations/vendors of the company.
Product Responsibility      Have a significant impact on the improvement of products and customer trust.
Information Security        Have a significant impact on the improvement of products and customer trust.
Socio Economic              Have a significant impact on the enforcement and implementation of sustainability concepts
Compliance                  by business relations/vendors of the company.




                                                                                Sustainability Report 2023 PT Bank BTPN Tbk   143
Page 150
        LIST OF NON-MATERIAL TOPICs

        There are several topics that are not considered as material in this report. However, this does not mean that
        Bank BTPN considers these topics do not have a significant role in supporting sustainability or for Bank BTPN’s
        sustainability agenda.

        In the future, Bank BTPN will continue to increase its efforts and initiatives in expanding the sustainability impact
        from the operational and business activities.

        These topics are considered non-material for the following reasons:



            Non-Material Topics                                                    Reasons

         Material                     Bank BTPN does not use specific materials in its business operations.

         Water and Effluent           Bank BTPN does not produce any effluent. Domestic wastewater is managed by the building
                                      management.

         Biodiversity                 Bank BTPN does not operate in protected areas or areas with high biodiversity.

         Waste                        Bank BTPN does not produce significant amounts of hazardous or non-hazardous waste. The
                                      majority of operational waste is domestic waste.

         Environmental Compliance     Bank BTPN’s business is not directly related to the environment.

         Supplier Environmental       Bank BTPN’s suppliers are not directly related to the environment.
         Assessment

         Labor Relations and          Bank BTPN complies with all applicable laws and regulations in Indonesia, including labor
         Management                   relations and management.

         Occupational Health and      Bank BTPN’s operations do not involve heavy equipment or specific hazardous conditions.
         Safety

         Freedom of Association and Bank BTPN complies with all applicable laws and regulations in the field of labor relations.
         Collective Bargaining      There is no area where freedom of association in Bank BTPN is restricted or threatened.

         Indigenous Peoples’ Rights   Bank BTPN’s work area does not adjoin indigenous communities.

         Human Rights Assessment      Bank BTPN complies with all applicable laws and regulations in the field of labor relations, and
                                      no Bank BTPN operations are threatened in the implementation of human rights.

         Public Policy                Bank BTPN is not involved in political activities.

         Customer Health and Safety Bank BTPN’s products and services are not physical products that can harm customers.




144   Sustainability Report 2023 PT Bank BTPN Tbk
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                                                                                                                                         About the Report




MATERIALITY LEVEL
The following graph offers an overview of the materiality level of the reported topics/issues. It is based on the
findings of a materiality level survey conducted through a questionnaire distributed to stakeholders.




                                                                      Employee
                                                                      Education
                                                                      and Training
                                        High




                                                                                                  Sustainable Finance Products


                                                                         Anti-                                    Customer Privacy
                                                                         Corruption



                                                                                       Human Rights
           Important for stakeholders




                                                                        Social Investment (CSR)                Employee Welfare
                                                       Products for
                                                       Marginalized
                                                       Communities                       Climate Change               Economic Performance
                                        Medium




                                                                      Energy
                                                                      Management
                                                                                                   Debtor Screening Based on
                                                                                                   Environmental Criteria


                                                                  Indirect Economic Impact



                                                         Tax
                                        Low




                                                 Low                             Medium                                  High


                                                                  Important for the Company




Bank BTPN consistently strives to enhance the quality of the Sustainability Report. As such, we welcome input
from all our readers to contribute to the advancement and refinement of our next report. We would like to note that
we did not receive any feedback on the 2022 sustainability report. [OJK G.3] Feedback and suggestions can be
submitted by fill out the feedback sheet at the end of this report. [GRI 2-3] [OJK G.2]




                                                                                                            Sustainability Report 2023 PT Bank BTPN Tbk     145
Page 152
        Statement GRI Standards In Accordance
        Check

                                                                                       IAC0262402SA




                                Laporan Kesesuaian dengan Standar GRI dan
                                          SEOJK 16/OJK.04/2021
                           Statement of GRI Standards and SEOJK 16/OJK.04/2021
                                           in Accordance Check

                        National Center for Corporate             The National Center for Corporate
                        Reporting       (NCCR)       telah        Reporting      has    conducted      a
                        melakukan pengecekan kesesuaian           GRI Standards and SEOJK 16/
                        dengan     Standar      GRI     dan       OJK.04/2021 in Accordance Check
                        SEOJK     16    OJK.04/2021     atas      on PT Bank BTPN Tbk Sustainability
                        Laporan Keberlanjutan PT Bank             Report 2023 (“Report”). The check
                        BTPN     Tbk    2023    (“Laporan”).      communicates the extent to which
                        Pengecekan      dilakukan     untuk       the GRI Standards and SEOJK 16/
                        memberikan     gambaran     tentang       OJK.04/2021 have been applied in the
                        sejauh mana Standar GRI dan               Report. The check does not provide
                        SEOJK      16/OJK.04/2021      telah      an opinion on the sustainability
                        diterapkan dalam Laporan tersebut.        performance of the reporter or the
                        Pengecekan ini bukan merupakan            quality of the information provided in
                        opini atas kinerja keberlanjutan          the Report.
                        maupun kualitas informasi yang
                        dimuat dalam Laporan tersebut.

                        Kami menyimpulkan bahwa Laporan           We conclude that this report has
                        ini telah disusun sesuai dengan           been prepared in accordance with
                        Standar GRI dan SEOJK 16/                 GRI Standards and SEOJK 16/
                        OJK.04/2021.                              OJK.04/2021.

                        Jakarta, 13 Februari 2024                 Jakarta, February 13, 2024


                                            National Center for Corporate Reporting
                                                GRI Standards Aligning Service




                                      Andrew K. Twohig, BCom, BA (Hons), MA, CSRA
                                                         Director




146   Sustainability Report 2023 PT Bank BTPN Tbk
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                                                                                                                                                    Appendix




Independent Assurance Statements



                                          Independent Assurance Statement
                                                 No. 0439/KP-II/2024

  To the Management and Stakeholders of PT Bank BTPN Tbk                   Responsibility
                                                                           Bank BTPN is responsible for the preparation of the Report and
  We were engaged by PT Bank BTPN Tbk (“Bank BTPN”) to provide             all information and claims therein, which include establishing
  assurance in respect to its Sustainability Report 2023 (‘the Report’).   sustainability management targets, performance management,
  The assurance engagement was carried out by our assurance                data collection, and other performative actions.
  team, who have extensive relevant professional and technical
  competencies and experience. The assurance team was composed             In performing this engagement, meanwhile, our responsibility
                                                                           to the management of Bank BTPN is solely for the purpose of
  sustainability reporting assurers in order to ensure a high level of     verifying the statements it has made in relation to its sustainability
  competence in carrying out the engagement.
                                                                           expressing our opinion on the conclusions reached.
  Independence
  We carried out all assurance undertakings with independence and          Methodology
  autonomy having not been involved in the preparation of any key          The engagement process thoroughly assessed the accuracy of
  part of the Report. Nor did we provide any services to Bank BTPN
                                                                           the underlying systems and processes that manage and report
  assurance engagement.                                                    them. This included comprehensive reviews of the report, internal
                                                                           policies, documentation, management and information systems,
  Assurance Standards, Levels and Criteria
  Our work was carried out in accordance with AA1000 Assurance             management and reporting functions. Data trails were traced back
  Standards v3 (AA1000AS v3) issued by AccountAbility. In addition,        to their initial aggregated source, and data samples underwent in-
  we have also planned and carried out our work in accordance
  with ISAE 3000 (Revised) ‘Assurance Engagements other than
  Audits or Reviews of Historical Financial Information’ issued by         Scope of Assurance
  the International Auditing and Accounting Standards Board of             We provided a Type 2 assurance engagement under AA1000AS v3
  International Federation of Accountant (IFAC).                           and limited assurance engagement under ISAE 3000 (Revised).
                                                                           This involved:
  Our evidence-gathering procedures was designing to obtain a              1) Assessment of Bank BTPN adherence to the AA1000 AP (2018);
  moderate level of assurance as set out in AA1000AS v3 and limited            and
  assurance engagement as set out in ISAE 3000 (Revised). As such,         2)
                                                                               sustainability performance information contained within the
  have been reduced to a very low level, although not necessarily              Report, focusing on adherence to the agreed-upon scope of
  to zero. Moreover, Bank BTPN adherence to the AccountAbility                 the GRI Standards.
  Principles (AP) was evaluated in accordance with the criteria of             203-1. Infrastructure investments and services supported
  AA1000AP (2018) of Inclusivity, Materiality, Responsiveness and              203-2.
  Impact. In addition, the Report, in relation to the agreed scope, has        302-1. Energy consumption within the organization
  been assessed in accordance with the criteria of GRI Standards.              302-3. Energy intensity
                                                                               305-1. Direct (Scope 1) GHG emissions
  Limitations                                                                  305-2. Energy indirect (Scope 2) GHG emissions
  Our scope of work was limited to a review of the accuracy and                305-3. Other indirect (Scope 3) GHG emissions
                                                                               305-4. GHG emissions intensity
  persons in charge of data collection and processing, as well                 413-1. Operations with local community engagement, impact
  as persons in charge of sustainability performance-related                           assessments, and development programs
  information. It was not designed to detect all weaknesses in the             413-2.
  internal controls over the preparation and presentation of the                       negative impacts on local communities
  Report, as the engagement was not performed continuously
  throughout the period and the procedures performed were
  undertaken on a test basis.




                                                                                                Sustainability Report 2023 PT Bank BTPN Tbk                    147
Page 154
                 Conclusions                                                                    assesses and manages the social, environmental, and economic
                                                                                                consequences on stakeholders, society, and the broader
                 BTPN’s adherence to the AA1000 AP (2018) principles of Inclusivity,
                 Materiality, Responsiveness, and Impact is assessed as follows:
                                                                                                By transparently aligning its impact assessment with the
                 •   Inclusivity
                                                                                                SDGs and using their indicators to provide clear information
                     Bank BTPN is committed to promoting diversity, equity,
                                                                                                and accessible platforms, BTPN would empower stakeholders
                     and inclusion (DE&I) in its operations, as evidenced by its
                                                                                                to actively participate in contributing to achieving global
                     comprehensive policies and procedures designed to meet
                                                                                                sustainable development goals.
                     the diverse needs of all stakeholders. This commitment is
                     further demonstrated by their initiatives and programs, such
                     as training and awareness programs on DE&I. Additionally, the
                     bank has established dedicated feedback platforms to receive           sustainability performance:
                     suggestions from stakeholders.                                         Based on our limited assurance engagement, nothing has come to
                                                                                            our attention that causes us to believe the data of the Report, in
                     Bank BTPN can solidify its position as a leader in inclusivity         relation to the agreed scope, has been materially misstated.
                     by enhancing its communication channels to ensure its

                     to promote inclusion and diversity, the bank can not only              observations and follow-up recommendations have been
                     enhance stakeholder trust and engagement but also improve              submitted to Bank BTPN management in a separate report.
                     long-term business sustainability.

                                                                                            Jakarta, 13 February 2024
                 •   Materiality
                     Bank BTPN demonstrates a clear commitment to materiality
                                                                                            SBU KSP Head
                     principles through its transparent and stakeholder-
                     focused sustainability framework. Their assessment process
                     comprehensively considers diverse stakeholder interests while


                     However, incorporating a more robust stakeholder engagement
                     framework could further enhance this process. Implementing             Rikrik Supriadi
                     enabler technology could create materiality mechanisms that
                     improve accessibility, availability, and reliability of information,
                     fostering better stakeholder understanding of BTPN’s progress
                     towards sustainability goals.

                 •   Responsiveness
                     Bank BTPN’s established mechanisms for transparently
                     addressing stakeholder concerns and ensuring prompt follow-
                     up are commendable. However, taking a more collaborative               as inspection and testing of industrial products, marine surveys, quality
                     approach could elevate their responsiveness. Regularly seeking
                     feedback through diverse channels and actively engaging

                     outcomes and create a culture of shared ownership.                     Company.

                 •   Impact
                     Bank BTPN demonstrates its commitment to sustainability                and its services are recognized not just in Indonesia, but also

                     minimizes negative environmental and societal impacts while            that helps them provide expertise and support their client’s business
                     maximizing positive ones. This comprehensive approach
                                                                                            reliability, integrity, and consistency with delivering quality services.




148   Sustainability Report 2023 PT Bank BTPN Tbk
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                                                                                                                Appendix




SDGs Links in GRI Standards
                                                 GRI Standard
        SDGs             Business Theme                              Disclosure         Title Disclosure        Page
                                                  Relevance

                       Income, salary and     GRI 202: Market       202-1         Ratios of standard entry      103
                       benefits               Presence (2016)                     level wage by gender
                                                                                  compared to local
                                                                                  minimum wage

                       Economic              GRI 203: Indirect      203-2         Significant indirect           83
NO POVERTY             Development in        Economic Impacts                     economic impacts
End poverty            areas of high poverty (2016)
in all its forms
everywhere                                    GRI 207: Tax (2019)   207-1         Approach to tax                69


                                                                    207-2         Tax governance, control,       69
                                                                                  and risk management

                                                                    207-3         Stakeholder engagement         69
                                                                                  and management of
                                                                                  concerns related to tax

                                                                    207-4         Country-by-country             69
                                                                                  reporting

                       Operations that        GRI 413: Local        413-2         Operations with significant    83
                       have an impact on      Communities (2016)                  actual and potential
                       community                                                  negative impacts on local
                                                                                  communities

                       Economic               GRI 201: Economic     201-1         Direct economic value          67
                       Performance            Performance (2016                   generated and distributed

                       Economic              GRI 203: Indirect      203-2         Significant indirect           83
                       Development in        Economic Impacts                     economic impacts
                       areas of high poverty (2016)
ZERO HUNGER
End hunger, achieve    Operations that        GRI 413: Local        413-2         Operations with significant    83
food security and      have an impact on      Communities (2016)                  actual and potential
improved nutrition     community                                                  negative impacts on local
and promote                                                                       communities
sustainable
agriculture

                       Economic               GRI 203: Indirect     203-2         Significant indirect           83
                       development in         Economic Impacts                    economic impacts
                       areas of the highest   (2016)
                       poverty

                       Air Quality            GRI 305: Emission     305-1         Direct (Scope 1) GHG          117
GOOD HEALTH                                   (2016)                              emissions
AND WELL-BEING
Ensure healthy                                                      305-2         Energy indirect (Scope 2)     117
lives and promote                                                                 GHG emissions
wellbeing for all at                                                305-3         Other indirect (Scope 3)      117
all ages                                                                          GHG emissions




                                                                              Sustainability Report 2023 PT Bank BTPN Tbk   149
Page 156
                                                        GRI Standard
                 SDGs             Business Theme                            Disclosure        Title Disclosure           Page
                                                         Relevance

                                                                           305-6         Emissions of ozone               117
                                                                                         depleting substances
                                                                                         (ODS)

                                                                           305-7         Nitrogen oxides (NO), sulfur     118
                                                                                         oxides (SO), and other
                                                                                         significant air emissions

                                 Well-being          GRI 401:              401-2         Benefits provided to             118
                                                     Employement (2016)                  fulltime employees that are
                                                                                         not provided to temporary
                                                                                         or part-time employees

                                 Training and        GRI 404: Training and 404-1         Average hours of training      98, 106,
                                 education           Education (2016)                    per year per employee            107

                                                                           404-2         Programs for upgrading         105, 106
                                                                                         employee skills and
                                                                                         transition assistance
         QUALITY                                                                         programs
         EDUCATION
         Ensure inclusive
         and equitable
         quality education
         and promote
         lifelong learning
         opportunities for all

                                 Equal opportunity   GRI 2: General        2-9           Governance structure and       122, 124,
                                                     Disclosure (2021)                   composition                      125

                                                                           2-10          Nomination and selection         126
                                                                                         of the highest governance
                                                                                         body
         GENDER
         EQUALITY                Gender equality     GRI 202: Market       202-1         Ratios of standard entry         103
         Achieve gender                              Presence (2016)                     level wage by gender
         equality and                                                                    compared to local
         empower all women                                                               minimum wage
         and girls                                   GRI 203: Indirect     203-1         Infrastructure investments        93
                                                     Economic Impacts                    and services supported
                                                     (2016)

                                                     GRI 401:              401-1         New employee hires and         100, 102
                                                     Employment (2016)                   employee turnover

                                                                           401-2         Benefits provided to             104
                                                                                         fulltime employees that are
                                                                                         not provided to temporary
                                                                                         or part-time employees


                                                                           401-3         Parental leave                   104

                                                     GRI 404: Education    404-3         Percentage of employees          108
                                                     and Training (2016)                 receiving regular
                                                                                         performance and career
                                                                                         development reviews




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                                                                                                                 Appendix




                                                  GRI Standard
       SDGs               Business Theme                              Disclosure        Title Disclosure         Page
                                                   Relevance

                                               GRI 405-1:            405-1         Diversity of governance        98
                                               Diversity and Equal                 bodies and employees
                                               Opportunity (2016)

                                                                     405-2         Ratio of basic salary and     100
                                                                                   remuneration of women to
                                                                                   men

                        Anti- discrimination   GRI 406:              406-1         Incidents of discrimination    98
                                               NonDiscrimination                   and corrective actions
                                               (2016)                              taken

                        Social impact of       GRI 414: Supplier     414-1         New suppliers that were       68-69
                        suppliers              Social Assessment                   screened using social
                                               (2016)                              criteria

                                                                     414-2         Negative social impacts       68-69
                                                                                   in the supply chain and
                                                                                   actions taken




CLEAN WATER
AND SANITATION
Ensure availability
and sustainable
management of
water and sanitation
for all

                        Energy Efficiency      GRI 302: Energy       302-1         Energy consumption within     116
                                               (2016)                              the organization


                                                                     302-2         Energy consumption            116
                                                                                   outside of the organization
AFFORDABLE AND
CLEAN ENERGY                                                         302-3         Energy intensity              116
Ensure access to                                                     302-4         Reduction of energy           117
affordable, reliable,                                                              consumption
sustainable and
modern energy for                                                    302-5         Reductions in energy          116
all                                                                                requirements of products
                                                                                   and services




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                                                       GRI Standard
                SDGs            Business Theme                            Disclosure         Title Disclosure        Page
                                                        Relevance

                               Work opportunity     GRI 102: General     2-7           Employees                     97, 98
                                                    Disclosure (2021)

                                                                         2-8           Workers who are not            98
                                                                                       employees

         DECENT WORK           Economic             GRI 201: Economic    201-1         Direct economic value          67
         AND ECONOMIC          improvement          Performance (2016)                 generated and distributed
         GROWTH
         Promote sustained,    Income, wages, and   GRI 202: Market      202-1         Ratios of standard entry       103
         inclusive and         benefits             Presence (2016)                    level wage by gender
         sustainable                                                                   compared to local
         economic growth,                                                              minimum wage
         full and productive
         employment and                                                  202-2         Proportion of senior           100
         decent work for all                                                           management hired from the
                                                                                       local community

                                                    GRI 203: Indirect    203-2         Significant indirect           83
                                                    Economic Impacts                   economic impacts
                                                    (2016)

                                                    GRI 204:             204-1         Proportion of spending on      69
                                                    Procurement                        local suppliers
                                                    Practices (2016)

                                                    GRI 302: Energy      302-1         Energy consumption within      116
                                                    (2016)                             the organization

                                                                         302-2         Energy consumption             116
                                                                                       outside of the organization

                                                                         302-3         Energy intensity               116

                                                                         302-4         Reduction of energy            117
                                                                                       consumption

                                                                         302-5         Reductions in energy           116
                                                                                       requirements of products
                                                                                       and services




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                            GRI Standard
SDGs    Business Theme                            Disclosure         Title Disclosure            Page
                             Relevance

                         GRI 401:                401-1         New employee hires and           100, 102
                         Employment (2016)                     employee turnover

                                                 401-2         Benefits provided to               104
                                                               fulltime employees that are
                                                               not provided to temporary
                                                               or part-time employees

                                                 401-3         Parental leave                     104

       Training and      GRI 404: Training and 404-1           Average hours of training        98, 106,
       Education         Education (2016)                      per year per employee              107

                                                 404-2         Programs for upgrading           105, 106
                                                               employee skills and
                                                               transition assistance
                                                               programs

                                                 404-3         Percentage of employees            108
                                                               receiving regular
                                                               performance and career
                                                               development reviews

                         GRI 405: Diversity      405-1         Diversity of governance            98
                         and Equal                             bodies and employees
                         Opportunity (2016)

                                                 405-2         Ratio of basic salary and          100
                                                               remuneration of women to
                                                               men.

                         GRI 406: Non-           406-1         Incidents of discrimination        98
                         discrimination (2016)                 and corrective actions
                                                               taken

                         GRI 408: Child Labor    408-1         Operations and suppliers at      105, 106
                         (2016)                                significant risk for incidents
                                                               of child labor

                         GRI 409: Forced or      409-1         Operations and suppliers at        105
                         Compulsory Labor                      significant risk for incidents
                         (2016)                                of forced or compulsory
                                                               labor

                         GRI 414: Supplier       414-1         New suppliers that were            68
                         Social Assessment                     screened using social
                         (2016                                 criteria

                                                 414-2         Negative social impacts            68
                                                               in the supply chain and
                                                               actions taken




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                                                          GRI Standard
                SDGs              Business Theme                            Disclosure        Title Disclosure        Page
                                                           Relevance

                                                      GRI 201: Economic    201-1         Direct economic value         67
                                                      Performance                        generated and distributed

                                 Economic              GRI 203: Indirect   203-1         Indirect economic impact      93
                                 Development in        Economic Impacts
                                 areas of high poverty
         INDUSTRY,
         INNOVATION
         AND
         INFRASTRUCTURE
         Build resilient
         infrastructure,
         promote inclusive
         and sustainable
         industrialization and
         foster innovation

                                                      GRI 102: General     2-7           Employees                    97, 98
                                                      Disclosure (2021)

                                                                           2-8           Workers who are not           98
                                                                                         employees

         REDUCED                 Economic              GRI: Tax (2019)     207-1         Approach to tax               69
         INEQUALITIES            Development in
         Reduce inequality       areas of high poverty
         within and among                                                  207-2         Tax governance, control,      69
         countries                                                                       and risk management

                                                                           207-3         Stakeholder engagement        69
                                                                                         and management of
                                                                                         concerns related to tax

                                                                           207-4         Country-by-country            69
                                                                                         reporting

                                                      GRI 401:             401-1         New employee hires and      100, 102
                                                      Employment (2016)                  employee turnover

                                                      GRI 404: Training and 404-1        Average hours of training     104
                                                      Education (2016)                   per year per employee

                                                                           404-3         Percentage of employees       104
                                                                                         receiving regular
                                                                                         performance and career
                                                                                         development reviews

                                                      GRI 405: Diversity   405-2         Ratio of basic salary and     100
                                                      and Equal                          remuneration of women to
                                                      Opportunity                        men.




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                                                                                                               Appendix




                                               GRI Standard
       SDGs            Business Theme                              Disclosure        Title Disclosure          Page
                                                Relevance

                     Infrastructure         GRI 203: Indirect     203-1         Indirect economic impact        93
                     Investments            Economic Impacts
                                            (2016)



SUSTAINABLE
CITIES AND
COMMUNITIES
Make cities and
human settlements
inclusive, safe,
resilient and
sustainable

                                            GRI 302: Energi       302-1         Energy consumption within      116
                                            (2016) Energy                       the organization

                                                                  302-3         Energy intensity               116

                                                                  302-4         Reduction of energy            116
RESPONSIBLE                                                                     consumption
CONSUMPTION                                                       302-5         Reductions in energy           117
AND PRODUCTION                                                                  requirements of products
Ensure sustainable                                                              and services
consumption and
production patterns Air Quality             GRI 305: Emission     305-1         Direct (Scope 1) GHG           116
                                            (2016)                              emissions

                                                                  305-2         Energy indirect (Scope 2)      117
                                                                                GHG emissions

                                                                  305-3         Other indirect (Scope 3)       117
                                                                                GHG emissions

                                                                  305-6         Emissions of ozone             118
                                                                                depleting substances
                                                                                (ODS)

                                                                  305-7         Nitrogen oxides (NO), sulfur   118
                                                                                oxides (SO), and other
                                                                                significant air emissions

                     Information and        GRI 417: Marketing    417-1         Requirements for product        78
                     Labeling of products   and Labeling (2016)                 and service information and
                     and services                                               labeling




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                                                       GRI Standard
                SDGs             Business Theme                           Disclosure        Title Disclosure          Page
                                                        Relevance

                               Economic Impact      GRI 201: Economic    201-1         Direct economic value           67
                                                    Performance (2016                  generated and distributed

                               Energy use           GRI 302: Energy      302-1         Energy consumption within      116
                                                    (2016)                             the organization

         CLIMATE ACTION                                                  302-2         Energy consumption             116
         Take urgent action                                                            outside of the organization
         to combat climate                                               302-3         Energy intensity               116
         change and its
         impacts                                                         302-4         Reduction of energy            117
                                                                                       consumption

                                                                         302-5         Reductions in energy           116
                                                                                       requirements of products
                                                                                       and services

                               Air Quality          GRI 305: Emissions   305-1         Direct (Scope 1) GHG           117
                                                    (2016)                             emissions

                                                                         305-2         Energy indirect (Scope 2)      117
                                                                                       GHG emissions

                                                                         305-3         Other indirect (Scope 3)       117
                                                                                       GHG emissions

                                                                         305-4         GHG emissions intensity        117

                                                                         305-5         Reduction of GHG               118
                                                                                       emissions

                               Air Quality          GRI 305: Emissions   305-1         Direct (Scope 1) GHG           117
                                                    (2016)                             emissions

                                                                         305-2         Energy indirect (Scope 2)      117
                                                                                       GHG emissions

         LIFE BELOW                                                      305-3         Other indirect (Scope 3)       117
         WATER                                                                         GHG emissions
         Conserve and                                                    305-4         GHG emissions intensity        117
         sustainably use the
         oceans, seas and                                                305-5         Reduction of GHG               118
         marine resources                                                              emissions
         for sustainable
                                                                         305-7         Nitrogen oxides (NO), sulfur   118
         development
                                                                                       oxides (SO), and other
                                                                                       significant air emissions




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                                                                                                                Appendix




                                              GRI Standard
        SDGs              Business Theme                         Disclosure         Title Disclosure           Page
                                               Relevance

                                           GRI 305: Emissions   305-1         Direct (Scope 1) GHG              117
                                           (2016)                             emissions

                                                                305-2         Energy indirect (Scope 2)         117
                                                                              GHG emissions

LIFE ON LAND                                                    305-3         Other indirect (Scope 3)          117
Protect, restore and                                                          GHG emissions
promote sustainable                                             305-4         GHG emissions intensity           117
use of terrestrial
ecosystems,                                                     305-5         Reduction of GHG                  118
sustainably manage                                                            emissions
forests, combat
                                                                305-7         Nitrogen oxides (NO), sulfur      118
desertification, and
                                                                              oxides (SO), and other
halt and reverse land
                                                                              significant air emissions
degradation and halt
biodiversity loss

                                           GRI 102: General     2-22          Statement on sustainable        6, 7, 27,
                                           Disclosure (2021)                  development strategy           31, 37, 42

                                                                2-23          Policy commitments                128

                                                                2-24          Embedding policy                  128
PEACE, JUSTICE                                                                commitments
AND STRONG                                                      2-26          Mechanisms for seeking            134
INSTITUTIONS                                                                  advice and raising
Promote peaceful                                                              concerns
and inclusive
communities                                                     2-9           Governance structure and       122, 124,
for sustainable                                                               composition                      125
development,
                                                                2-11          Chair of the highest              124
provide access to
                                                                              governance body
justice for all, and
build effective,                                                2-10          Nomination and selection          126
accountable and                                                               of the highest governance
inclusive institutions                                                        body
at all levels
                                                                2-15          Conflicts of interest             127

                                                                2-17          Collective knowledge of the    133-136
                                                                              highest governance body

                                                                2-19          Remuneration policies             136

                                                                2-25          Process to remediate              132
                                                                              negative impacts

                         Anti-corruption   GRI 205: Anti-       205-1         Operations assessed for           130
                                           corruption (2016)                  risks related to corruption

                                                                205-2         Communication                     131
                                                                              and training about
                                                                              anticorruption policies and
                                                                              procedures

                                                                205-3         Confirmed incidents of            131
                                                                              corruption and actions
                                                                              taken




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                                                       GRI Standard
                SDGs           Business Theme                               Disclosure         Title Disclosure            Page
                                                        Relevance

                                                    GRI 206: Anti-       206-1           Legal actions for                137, 139
                                                    Competitive Behavior                 anticompetitive behavior,
                                                    (2016)                               anti-trust, and monopoly
                                                                                         practices

                                                    GRI 408: Child Labor   408-1         Operations and suppliers at      105, 106
                                                    (2016)                               significant risk for incidents
                                                                                         of child labor

                                                    GRI 410: Security      410-1         Security personnel trained         108
                                                    Practices (2016)                     in human rights policies or
                                                                                         procedures

                                                    GRI 414: Supplier      414-1         New suppliers that were            68
                                                    Social Assessment                    screened using social
                                                    (2016)                               criteria

                                                                           414-2         Negative social impacts            68
                                                                                         in the supply chain and
                                                                                         actions taken

                                                    GRI 417: Marketing     417-2         Incidents of noncompliance         78
                                                    and Labeling (2016)                  concerning product and
                                                                                         service information and
                                                                                         labeling

                                                                           417-3         Incidents of non-                  78
                                                                                         compliance concerning
                                                                                         marketing communications

                                                    GRI 418: Customer      418-1         Substantiated complaints           78
                                                    Privacy (2016)                       concerning breaches of
                                                                                         customer privacy and
                                                                                         losses of customer data

                                                    GRI 419:               419-1         Non-compliance with laws           75
                                                    Socioeconomic                        and regulations in the
                                                    Compliance (2016)                    social and economic area

                                                    GRI: Tax (2019)        207-1         Approach to tax                    69

                                                                           207-2         Tax governance, control,           69
                                                                                         and risk management

                                                                           207-3         Stakeholder engagement             69
         PARTNERSHIP                                                                     and management of
         FOR THE GOALS                                                                   concerns related to tax
         Strengthen                                                        207-4         Country-by-country                 69
         the means of                                                                    reporting
         implementation
         and revitalize the
         global partnership
         for sustainable
         development




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                                                                                                              Appendix




GRI STANDARD INDEX
Statement of use     Bank BTPN has reported in accordance with GRI Standards for the period of January 1, 2023,
                     to December 31, 2023

GRI 1 used           GRI 1: Foundation 2021

Applicable GRI       GRI G4 Financial Services Sector Disclosure
Sector Standard



                        Disclosure
    GRI Standard                                               Disclosure Description                        Page
                         Number

                      GENERAL DISCLOSURE

GRI 2                 THE ORGANIZATION AND ITS REPORTING PRACTICES
General Disclosure
2021                  2-1             Organizational details                                                   48

                      2-2             Entities included in the organization’s sustainability reporting         48

                      2-3             Reporting period, frequency and contact point                         142, 145

                      2-4             Restatements of information                                             142

                      2-5             External assurance                                                      142

                      ACTIVITIES AND WORKERS

                      2-6             Activities, value chain and other business relationships             48, 49, 68,
                                                                                                               72

                      2-7             Employees                                                              97, 98

                      2-8             Workers who are not employees                                            98

                      GOVERNANCE

                      2-9             Governance structure and composition                                  122, 124,
                                                                                                              125

                      2-10            Nomination and selection of the highest governance body                 126

                      2-11            Chair of the highest governance body                                    124

                      2-12            Role of the highest governance body in overseeing the management         38
                                      of impacts

                      2-13            Delegation of responsibility for managing impacts                        38

                      2-14            Role of the highest governance body in sustainability reporting          40

                      2-15            Conflicts of interest                                                   127

                      2-16            Communication of critical concerns                                      133

                      2-17            Collective knowledge of the highest governance body                   133-136

                      2-18            Evaluation of the performance of the highest governance body            136

                      2-19            Remuneration policies                                                   136

                      2-20            Process to determine remuneration                                       136

                      2-21            Annual total compensation ratio                                         136




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Page 166
                                    Disclosure
             GRI Standard                                                  Disclosure Description                    Page
                                     Number


                                  STRATEGY, POLICIES AND PRACTICES

                                  2-22           Statement on sustainable development strategy                      6, 7, 27,
                                                                                                                   31, 37, 42

                                  2-23           Policy commitments                                                   128

                                  2-24           Embedding policy commitments                                         128

                                  2-25           Processes to remediate negative impacts                              132

                                  2-26           Mechanisms for seeking advice and raising concerns                   134

                                  2-27           Compliance with laws and regulations                              137, 140

                                  2-28           Membership associations                                              49

                                  STAKEHOLDER ENGAGEMENT

                                  2-29           Approach to stakeholder engagement                                   40

                                  2-30           Collective bargaining agreements                                     105

         GRI 3: Material Topics   MATERIAL TOPICS
         2021
                                  3-1            Process to determine material topics                                 142

                                  3-2            List of material topics                                           143-144

                                  3-3            Management of material topics                                        143

                                                    SPECIFIC TOPIC DISCLOSURE

         GRI 3: Material Topics   ECONOMIC PERFORMANCE
         2021
                                  3-3            Management of material topics                                        143

         GRI 201: Economic        201-1          Direct economic value generated and distributed                      67
         Performance 2016
                                  201-2          Financial implications and other risks and opportunities due to      58
                                                 climate change

                                  201-3          Defined benefit plan obligations and other retirement plans          105

                                  201-4          Financial assistance received from government                        67

         GRI 3: Material Topics   MARKET PRESENCE
         2021
                                  3-3            Management of material topics                                        143

         GRI 202: Market          202-1          Ratios of standard entry level wage by gender compared to local      103
         Presence 2016                           minimum wage

                                  202-2          Proportion of senior management hired from the local community       100

         GRI 3: Material Topics   INDIRECT ECONOMIC IMPACT
         2021
                                  3-3            Management of material topics                                        143

         GRI 203: Indirect    203-1              Infrastructure investments and services supported                    93
         Economic Impact 2016
                              203-2              Significant indirect economic impacts                                83




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                                                                                                                  Appendix




                           Disclosure
    GRI Standard                                              Disclosure Description                             Page
                            Number


GRI 3: Material Topics   PROCUREMENT PRACTICES
2021
                         3-3            Management of material topics                                             143

GRI 204: Procurement     204-1          Proportion of spending on local suppliers                                 69
Practices 2016

GRI 3: Material Topics   ANTI-CORRUPTION
2021
                         3-3            Management of material topics                                             143

GRI 205: Anti-           205-1          Operations assessed for risks related to corruption                       130
corruption 2016
                         205-2          Communication and training about anti-corruption policies and             131
                                        procedures

                         205-3          Confirmed incidents of corruption and actions taken                       131

GRI 3: Material Topics   ANTI-COMPETITIVE BEHAVIOR
2021
                         3-3            Management of material topics                                             143

GRI 206: Anti-           206-1          Legal actions for anti-competitive behavior, anti-trust, and monopoly   137, 139
Competitive Behavior                    practices

GRI 3: Material Topics   TAX
2021
                         3-3            Management of material topics                                             143

GRI 207: Tax 2019        207-1          Approach to tax                                                           69

                         207-2          Tax governance, control, and risk management                              69

                         207-3          Stakeholder engagement and management of concerns related to              69
                                        tax

                         207-4          Country-by-country reporting                                              69

GRI 3: Material Topics   ENERGY
2021
                         3-3            Management of material topics                                             143

GRI 302: Energy 2016     302-1          Energy consumption within the organization                                116

                         302-2          Energy consumption outside of the organization                            116

                         302-3          Energy intensity                                                          116

                         302-4          Reduction of energy consumptio                                            117

                         302-5          Reductions in energy requirements of products and services                116




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Page 168
                                    Disclosure
             GRI Standard                                               Disclosure Description                                Page
                                     Number


         GRI 3: Material Topics   EMISSIONS
         2021
                                  3-3            Management of material topics                                                 143

         GRI 305: Emissions       305-1          Direct (Scope 1) GHG emissions                                                117
         2016
                                  305-2          Energy indirect (Scope 2) GHG emissions                                       117

                                  305-3          Other indirect (Scope 3) GHG emissions                                        117

                                  305-4          GHG emissions intensity                                                       117

                                  305-5          Reduction of GHG emissions                                                    118

                                  305-6          Emissions of ozone-depleting substances (ODS)                                 118

                                  305-7          Nitrogen oxides (NO), sulfur oxides (SO), and other significant air           118
                                                 emissions

         GRI 3: Material Topics   EMPLOYMENT
         2021
                                  3-3            Management of material topics                                                 143

         GRI 401: Employment      401-1          New employee hires and employee turnover                                    100, 102
         2016
                                  401-2          Benefits provided to full-time employees that are not provided to             104
                                                 temporary or part-time employees

                                  401-3          Parental leave                                                                104

         GRI 3: Material Topics   TRAINING AND EDUCATION
         2021
                                  3-3            Management of material topics                                                 143

         GRI 404:                 404-1          Average hours of training per year per employee                             98, 106,
         Training and Education                                                                                                107
         2016
                                  404-2          Programs for upgrading employee skills and transition assistance            105, 106
                                                 programs

                                  404-3          Percentage of employees receiving regular performance and career              108
                                                 development reviews

         GRI 3: Material Topics   DIVERSITY AND EQUAL OPPORTUNITY
         2021
                                  3-3            Management of material topics                                                 143

         GRI 405: Diversity and 405-1            Diversity of governance bodies and employees                                  98
         Equal Opportunity 2016
                                405-2            Ratio of basic salary and remuneration of women to men                        100

         GRI 3: Material Topics   NON-DISCRIMINATION
         2021
                                  3-3            Management of material topics                                                 143

         GRI 406: Non-            406-1          Incidents of discrimination and corrective actions taken                      98
         Discrimination
         2016

         GRI 3: Material Topics   CHILD LABOR
         2021
                                  3-3            Management of material topics                                                 143

         GRI 408: Child Labor     408-1          Operations and suppliers at significant risk for incidents of child labor   105, 106
         2016




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                                                                                                                  Appendix




                           Disclosure
    GRI Standard                                               Disclosure Description                             Page
                            Number


GRI 3: Material Topics   FORCED OR COMPULSORY LABOR
2021
                         3-3            Management of material topics                                             143

GRI 409: Forced or       409-1          Operations and suppliers at significant risk for incidents of forced or   105
Compulsory Labor                        compulsory labor
2016

GRI 3: Material Topics   SECURITY PRACTICES
2021
                         3-3            Management of material topics                                             143

GRI 410:                410-1           Security personnel trained in human rights policies or procedures         108
Security Practices 2016

GRI 3: Material Topics   LOCAL COMMUNITIES
2016
                         3-3            Management of material topics                                             143

GRI 413: Local           413-1          Operations with local community engagement, impact assessments,            83
Communities 2016                        and development programs

                         413-2          Operations with significant actual and potential negative impacts on       83
                                        local communities

GRI 3: Material Topics   SUPPLIER SOCIAL ASSESSMENT
2016
                         3-3            Management of material topics                                             143

GRI 414: Supplier        414-1          New suppliers that were screened using social criteria                     68
Social Assessment
2016                     414-2          Negative social impacts in the supply chain and actions taken              68

GRI 3: Material Topics   MARKETING AND LABELING
2021
                         3-3            Management of material topics                                             143

GRI 417: Marketing       417-1          Requirements for product and service information and labeling              78
and Labeling 2016
                         417- 2         Incidents of non-compliance concerning product and service                 78
                                        information and labeling

                         417-3          Incidents of non-compliance concerning marketing communications            78

GRI 3: Material Topics   CUSTOMER PRIVACY
2016
                         3-3            Management of material topics                                             143

GRI 418: Customer        418-1          Substantiated complaints concerning breaches of customer privacy           78
Privacy 2016                            and losses of customer data

GRI 3: Material Topics   SOCIOECONOMIC COMPLIANCE
2021
                         3-3            Management of material topics                                             143

GRI 419:                 419-1          Non-compliance with laws and regulations in the social and                 75
Socioeconomic                           economic area
Compliance 2016




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Page 170
        GRI STANDARD - FINANCIAL SECTOR (FS)
        INDEX
         FINANCIAL SECTOR DISCLOSURE                                                                                     Page


         PRODUCT PORTFOLIO

         FS1            Policies with specific environmental and social components applied to business lines             57, 59

         FS2            Procedures for assessing and screening environmental and social risks in business lines           61

                        Processes for monitoring clients’ implementation of and compliance with environmental and         62
         FS3
                        social requirements

                        Process(es) for improving staff competency to implement the environmental and social              108
         FS4
                        policies and procedures as applied to business lines

                        Interactions with clients/ investees/business partners regarding environmental and social         60
         FS5
                        risks and opportunities

                        Percentage of the portfolio for business lines by specific region, Size (e.g. micro/SME/large)    66
         FS6
                        and by sector

                        Monetary value of products and services designed to deliver a specific social benefit for         65
         FS7
                        each business line

                        Monetary value of products and services designed to deliver a specific environmental              65
         FS8
                        benefit for each business line

         AUDIT

         FS9            Coverage and frequency of audits and risk assessment procedures                                   67

         ACTIVE OWNERSHIP

                        Percentage and number of companies held in the institution’s portfolio with which the             60
         FS10
                        reporting organization has interacted on environmental or social issue

         FS11           Percentage of assets subject to positive and negative environmental or social screening           60

         LOCAL COMMUNITY

         FS13           Access points in low-populated or economically disadvantaged areas                                64

         FS14           Initiatives to improve access to financial services for people with disabilities                  74

         PRODUCT RESPONSIBILITY

         FS15           Policies for the fair design and sale of financial products and services                          74

         FS16           Initiatives to enhance financial literacy by type of beneficiary                                  82




164   Sustainability Report 2023 PT Bank BTPN Tbk
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                                                                                                                   Appendix




INDEX SE OJK 16/2021
   Index                                                                                                         Page
                                                        Index Name
  Number

           Sustainability Strategy
A.1        Sustainability Strategy Statement                                                                      57
           Sustainability Performance Highlights
B.1        Economic Performance Overview                                                                       8, 64, 67
B.1.a      Quantity of sold production or service                                                                9, 49
B.1.b      Income or sales                                                                                       8, 49
B.1.c      Net profit or loss                                                                                      8
B.1.d      Eco-friendly product                                                                                    9
B.1.e      Involving local parties related to the Sustainable Finance business process                             9
B.2        Environmental Performance Overview                                                                     12
B.2.a      Energy usage                                                                                           12
B.2.b      Result of the emissions reduction                                                                      12
B.2.c      Waste and effluent reduction                                                                           12
           Social Performance Overview which describe the positive and negative impacts of the                  10, 74
B.3        implementation of Sustainable Finance on society and the environment.
           Company Profile
C.1        Vision, Mission, and Sustainability Values                                                            6, 7
C.2        Company Address                                                                                        48
C.3        Scale of organisation                                                                                  49
C.3.a      Total assets or asset capitalisation and total liabilities                                             49
C.3.b      Number of employees by gender, position, age, education, and status                                  97-100
C.3.c      Percentage of share ownership                                                                          48
C.3.d      Operational area                                                                                       48
C.4        Products, services, and business activities undertaken                                               48, 72
C.5        Membership in the association                                                                          49
C.6        Significant change in organisation                                                                    142
           Report of the Board of Directors
D.1.a      Policies to respond to challenges in fulfilling the sustainability strategy                            31
D.1.b      Sustainable Finance Implementation                                                                     32
D.1.c      Target achievement strategy                                                                           32-33
           Sustainability Governance
E.1        Person in charge of sustainable finance implementation                                               38, 58
E.2        Competency development related to sustainable finance                                             108, 133-136
E.3        Risk assessment on the sustainable finance implementation                                              61
E.4        Relations with stakeholders                                                                            40
E.5        Issues against the sustainable finance implementation                                               32-33, 68
           Sustainability Performance
F.1        Activities to build a culture of sustainability                                                        58




                                                                                   Sustainability Report 2023 PT Bank BTPN Tbk   165
Page 172
            Index                                                                                                       Page
                                                               Index Name
           Number

                     Economic Performance
                     Comparison of production targets and performance, portfolios, financing targets, or                  63
         F.2         Investments, income and profit and loss
                     Comparison of portfolio targets and performance, financing targets, or investments in financial      65
         F.3         Instruments or projects that are in compliance with sustainability
         F4          Environmental Costs                                                                                 119
                     Energy Aspect
         F.6         Amount and intensity of used energy                                                                 116
         F.7         Attempts and achievement of energy efficiency and use of renewable energy                           117
                     Water Aspect
         F.8         Water usage                                                                                         118
                     Emission Aspect
         F.11        Amount and intensity of resulting emissions by type                                                 117
         F.12        Emission reduction efforts and achievements conducted                                               118
                     Waste and Effluent Aspect
         F.13        Amount of waste and effluent generated by type                                                      118
         F.14        Waste and effluent management mechanisms                                                            118
                     Social Performance
                     Commitment of financial services institutions, issuers, or public companies to provide equal         75
         F.17        Services for products and/or services to customers
                     Employment Aspect
         F.18        Equal opportunity to work                                                                            98
         F.19        Child labour and forced labour                                                                    105-106
         F.20        Regional minimum wage                                                                               103
         F.21        Decent and safe work environment                                                                    100
         F.22        Training and capacity building for employees                                                        106
                     Community Aspect
         F.23        Impact of operations on the surrounding communities                                                82-83
         F.24        Public complaints                                                                                 76, 131
         F.25        Environmental social responsibility (CSR) activities                                              82-83, 92
                     Responsibility for Sustainable Product/Service Development
         F.26        Sustainable financial product/service innovation and development                                     65
         F.27        Products/services safety that have been evaluated for customers                                    74-75
         F.28        Impacts of product/service                                                                        74, 114
         F.29        Number of product recalls                                                                            75
         F.30        Customer satisfaction survey of sustainable financial products and/or services                       78
                     Others
         G.1         Written verification from an independent party, if available                                        142
         G.2         Feedback sheet                                                                                    145, 169
         G.3         Responses to the preceding year’s report feedback                                                   145
         G.4         List of disclosure in accordance with POJK No. 51/2017                                              142




166   Sustainability Report 2023 PT Bank BTPN Tbk
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                                                                                                             Appendix




SASB – FINANCIAL SECTOR INDEX
Data Security                                                                                              Page

FN-CB-230a.1        1) Number of data breaches, (2) percentage involving personally identifiable            78
                    information (PII), (3) number of account holders affected

FN-CB-230a.2        Description of approach to identifying and addressing data security risks               76

Financial Inclusion & Capacity Building

FN-CB-240a.1        (1) Number and (2) amount of loans outstanding qualified to programs designed           66
                    to promote small business and community development

FN-CB-240a.2        (1) Number and (2) amount of past due and non-accrual loans qualified to                66
                    programs designed to promote small business and community development

FN-CB-240a.4        Number of participants in financial literacy initiatives for unbanked,                82,85
                    underbanked, or underserved customers

Incorporation of Environmental, Social, and Governance Factors in Credit Analysis

FN-CB-410a.1        Commercial and industrial credit exposure, by industry                               137,139

FN-CB-410a.2        Description of approach to incorporation of environmental, social, and                 131
                    governance (ESG) factors in credit analysis

Business Ethics

FN-CB-510a.1        Total amount of monetary losses as a result of legal proceedings associated          137,139
                    with fraud, insider trading, anti-trust, anti-competitive behavior, market
                    manipulation, malpractice, orother related financial industry laws or regulations

FN-CB-510a.2        Description of whistleblower policies and procedures                                   131

Systemic Risk Management

FN-CB-550a.1        Global Systemically Important Bank (G-SIB) score, by category                          137

FN-CB-550a.2        Description of approach to incorporation of results of mandatory and voluntary         137
                    stress tests into capital adequacy planning, long-term corporate strategy, and
                    other business activities

Activity Metric

FN-CB-000.A         (1) Number and (2) value of checking and savings accounts by segment: (a)               66
                    personal and (b) small business

FN-CB-000.B         (1) Number and (2) value of loans by segment: (a) personal, (b) small business,         66
                    and (c) corporate




                                                                             Sustainability Report 2023 PT Bank BTPN Tbk   167
Page 174
        TCFD INDEX
          No.                     TCFD Disclosure                           SR Section         Sub Title        Page

                Governance                                                 Governance    TCFD Recommendation
                                                                                         on Governance

         G1     Describe the board’s oversight of climate-related                                                38
                risks and opportunities.

         G2     Describe management’s role in assessing and                                                      38
                managing climate-related risks and opportunities.

                Strategy                                                   Risk          TCFD Recommendation
                                                                           management    on Strategy

         S1     Describe the climate-related risks and opportunities                                             114
                the company has identified over the short, medium,
                and long term.

         S2     Describe the impact of climate-related risks and                                               114,115
                opportunities on the company’s businesses, strategy,
                and financial planning.

         S3     Describe the resilience of the company’s strategy,                                               115
                taking into consideration different climate-related
                scenarios, including a 2°C or lower scenario.

                Risk Management                                            Risk          TCFD Recommendation
                                                                           management    on Risk Management

         R1     Describe the company’s processes for identifying                                               59,61,62
                and assessing climate-related risks.

         R2     Describe the company’s processes for managing                                                    61
                climate-related risks.

         R3     Describe how processes for identifying, assessing,                                              61,62
                and managing climate-related risks are integrated
                into the company’s overall risk management.

                Metrics and Targets                                        Environment   TCFD Recommendation
                                                                                         on Metric

         M1     Disclose the metrics used by the company to assess                                               115
                climate-related risks and opportunities in line with its
                strategy and risk management process.

         M2     Disclose Scope 1, Scope 2, and, if appropriate,                                                  117
                Scope 3 greenhouse gas (GHG) emissions, and the
                related risks.

         M3     Describe the targets used by the company to                                                      117
                manage climate-related risks and opportunities and
                performance against targets.




168   Sustainability Report 2023 PT Bank BTPN Tbk
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                                                                                                             Appendix




FEEDBACK SHEET [OJK G.2]

YOUR PROFILE (Please fill out the information below)

Name :__________________________________________________________________________________

Institution/company :_ ____________________________________________________________________

Email:___________________________________________________________________________________

Phone :_ ________________________________________________________________________________


Groups of Stakeholders:
   Shareholders/Investor		                   Customer			                        Employees
   Labor Union			                            Media			                           Suppliers
   Community Organization/NGO                Government/OJK		                   Business Organizations
Others : ____________




                                                 Strongly                                                Strongly
 How do you rate the writing of this report:                   Disagree       Neutral        Agree
                                                 Disagree                                                 Agree

This report is easy to understand

This report is useful

This report describes the performance of
Financial Services Institutions in sustainable
development

  How do you rate the materiality level of        Not at all   Not much                                    Very
                                                                              Neutral       Important
          the following topics:                  important     important                                 important

Economic performance

Indirect economic impact

Sustainable finance performance

Education and training

Employment

Customer privacy

Anti-corruption

Environmental performance


Feedback and suggestions can be submitted to the following address:


   Communications & Daya Division
   PT Bank BTPN Tbk
   Menara BTPN, CBD Mega Kuningan
   Jl. Dr. Ide Anak Agung Gde Agung Kav. 5.5-5.6 Jakarta Selatan - 12950 - Indonesia


   Tel.      : (62-21) 300 26 200
   Fax.      : (62-21) 300 26 309
   Website : www.btpn.com
   Email     : corporate.communications@btpn.com
   Linked in : PT Bank BTPN Tbk




                                                                             Sustainability Report 2023 PT Bank BTPN Tbk   169

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Names mentioned 95 people and organisations named in the text · linked when the evidence is strong

linked org Bank BTPN Syariah Tbk p.14 ×19
linked person Hanna Tantani p.21 ×4
linked person Henoch Munandar. p.23 ×6
linked person Atsushi Hino · Director p.24
linked person Onny Widjanarko p.24
linked org PT Bank DBS Indonesia p.25
linked org Bank Mayapada Internasional Tbk p.25 ×2
linked org PT Bank Mizuho Indonesia p.25
linked org International Finance Corporation p.25 ×5
linked person Keishi Kobata p.25
linked person Rabin Indrajad Hattari p.28
linked person Dini Herdini p.28
linked person Chow Ying Hoong p.32 ×2
linked — Sumitomo Mitsui Banking p.54 ×2
linked org Bank Central Asia Tbk p.54 ×2
linked org PT Solusi Bangun Indonesia. p.62
linked org Kalbe Farma Tbk p.95 ×2
linked org Pantai Indah Kapuk p.96
linked person Merisa Darwis p.97 ×3
possible org Pt Bank BTPN Tbk p.1 ×228
possible org Bank Bank BTPN BTPN Tbk p.20 ×2
possible org PT TASPEN p.26
possible org PT ASABRI (Persero) p.26
possible person Yustinus Prastowo p.28
possible org Bank BTPN’s p.29 ×75
possible org Otoritas Jasa Keuangan p.34
possible org Bank Negara Indonesia (Persero) Tbk p.54 ×2
possible — Mitsui • Sumitomo p.56
possible org Bank Tbk p.59
possible org PT Semen Indonesia p.62
unresolved person Dr. Ide Anak Agung Gde Agung p.1
unresolved org Bank BTPN’s Sustainability Strategy p.8 ×2
unresolved org Bank BTPN’s Strategy p.8 ×2
unresolved org Bank BTPN’s Sustainability Policy p.8 ×3
unresolved org Bank BTPN’s Products p.9
unresolved org Bank BTPN’s Personnel p.10
unresolved org PT Bank Syariah Ventura p.14 ×4
unresolved org PT Kepland Investama p.21 ×3
unresolved org Bank BTPNBTPN Tbk p.21 ×2
unresolved org Ministry of Health p.22 ×2
unresolved org Bank Awarding Institution p.22
unresolved org PT Seino Indomobil Logistics p.25
unresolved org PT SIL p.25
unresolved org Bank BPTN p.26 ×2
unresolved org Financial Services Authority p.27 ×2
unresolved org Indonesia Stock Exchange p.27
unresolved org Ministry of State-Owned Enterprises p.28
unresolved org Minister of Finance p.28
unresolved org Bank BTPN Again p.28
unresolved org Bank BTPN Henoch Munandar p.28
unresolved org Bank BTPN Dini Herdini p.28
unresolved org Bank BTPN Nathan Christianto p.28
unresolved org Bank BTPN Anita Ekasari p.28
unresolved org Bank BTPN Andrie Darusman p.28
unresolved org Bank BTPN’s RAKB p.33 ×3
unresolved org Sumitomo Mitsui Bank Corporation p.34
unresolved org Bank BTPN As p.39
unresolved org Bank BTPN Gunung Sahari Branch p.39
unresolved org Bank Understanding p.39
unresolved org Bank BTPN’s Net p.43
unresolved org Sumitomo Mitsui Banking Corporation p.54 ×2
unresolved person Notary Komar Andasasmita p.54
unresolved person Notary Dedeh Ramdah Sukarna p.54
unresolved person Dr. Ide Anak Agung Linked p.54
unresolved org PT Fitch p.55
unresolved org PT Pemeringkat Ratings Indonesia p.55
unresolved org Bank Pegawai Pensiunan Militer p.56
unresolved org PT Bank Tabungan Pensiunan p.56
unresolved org PT Tabungan Pensiunan p.56
unresolved org Nasional Tbk p.56
unresolved org PT Bank Sumitomo Mitsui Indonesia p.56
unresolved org PT Bank Sumitomo Mitsui p.56
unresolved org PT Bank Sahabat p.57 ×2
unresolved org Bank Indonesia p.57
unresolved org PT ReportReport p.59
unresolved org PTBTPN Bank Tbk p.59
unresolved org PT Kepland p.63
unresolved org Minister of Environment p.67
unresolved org Bank Financing Funding p.71
unresolved org Bank BTPN’s Challenges Related p.74
unresolved org Bank The Tax Management Division p.75
unresolved org Bank BTPN’s ATMs p.80
unresolved org Ministry of Communication p.84
unresolved org Directorate General of Intellectual Property p.92
unresolved org Ministry of Law and Human Rights. p.92
unresolved org Bank BTPN SDG p.99
unresolved org Bank BTPN’s Personnel During p.103
unresolved org Bank BTPN’s Board p.106
unresolved org Bank BTPN. Furthermore p.111
unresolved org Bank Acceleration Program p.112
unresolved org Bank BTPN Energy-saving p.123
unresolved org Directorate General of Electricity p.123
unresolved org Ministry of Energy and Mineral Resources p.123
unresolved org Bank BTPN’s In p.124

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