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2023 sustainability report




                                                 PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                         FAITHFULLY
                         EMPOWERING
                     to Support Sustainability
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PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        BTPN Syariah's unwavering commitment to faithfully empowering in a sustainable way
                                                        reflects the Bank's earnest desire to make a positive impact across economic, environmental,
                                                        and social realms in a cohesive and enduring manner.

                                                        From an economic perspective, the Bank is steadfast in advancing a Sharia-compliant
                                                        digital ecosystem, bolstered by four key pillars: facilitating access to finance, knowledge,
                                                        goods, and markets. Leveraging digital technology, the Bank endeavors to serve inclusive
                                                        communities more effectively, offering tailored digital literacy programs that cater to their
                                                        specific needs, capacities, and cultural contexts, thereby ensuring immediate and tangible
                                                        benefits. Despite the challenges faced in 2023, the Bank's sustained financial performance
                                                        lays a solid groundwork for the forthcoming year.

                                                        In the social sphere, the Bank is dedicated to empowering 100% of its economically
                                                        disadvantaged female clientele through comprehensive financing solutions coupled with
                                                        intensive support services, enabling them to pursue their aspirations for a more meaningful



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                                                Sustainability Performance Highlights




                       FAITHFULLY
                       EMPOWERING
               to Support Sustainability                                                          PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




life. This initiative is spearheaded by #bankirpemberdaya, with 95% of its members being
women, of which 50% are trained high school graduates receiving equal opportunities for
advancement.

Meanwhile, in terms of environmental stewardship, the Bank has embraced a range of
eco-friendly technologies to contribute to the global endeavor of reducing greenhouse gas
emissions, with a view towards achieving the Net Zero Emission. Furthermore, the Bank's
commitment to providing access to financing for the ultra-micro segment underscores its
pledge to refrain from funding projects that are extractive or environmentally detrimental.

With good governance, our business model, which gathers customer funds to be fully utilized
for empowering inclusive communities, Insya Allah, will manifest as steadfastness for the bank,
providing a positive impact on millions of Indonesian people. Together with other stakeholders,
we will always be faithfully empowering and supporting sustainability.




                                                                                                                      3
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                                                        faithfully empowering
                                                                                                                                                          >14 k #bankirpemberdaya
                                                        for sustainability from
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        a social aspect

                                                                                                                                          95%
                                                        Our dedicated efforts to faithfully empowering
                                                        inclusive communities have yielded
                                                        sustainable impacts on our customers and the
                                                        #bankirpemberdaya initiative. Through the                                         resilient women
                                                        Bestee program, infused with the essence of                                       serving customers
                                                        empowerment, we actively engage thousands of                                      wholeheartedly
                                                        passionate students, directly involving them in
                                                        assisting ultra-micro business actors.

                                                        Having a social impact in support of Sustainable
                                                        Development Goals (SDGs)                                                          50%
                                                                                                                                          professionally trained
                                                                                                                                          high school graduate



                                                        *Data from research results from the Demographic Institute of the University of
                                                        Indonesia (LDUI) 2022-2023

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                                                                  Sustainability Performance Highlights




                                          SOCIAL
                                                                       customer appreciation program
                                                                                                          PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




A volunteers program for university students to assist BTPN            free umrah in 1 flight
Syariah customers and with measurable impact. This program



                                                                                       320 customers
provides an opportunity for students to be directly involved in
providing added value to ultra-micro segment customers.




                       1,821 facilitators                              bersemi program



                                                                                       700 k customers
                       257 universities                                daya assistance module



                       49 k customers                                                  >5 mio customers
                                                                                                                              5
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                                                        faithfully empowering
                                                        for sustainability from                             total assets:
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        an economic aspect
                                                        Our steadfast commitment to faithfully
                                                                                                             Rp
                                                                                                                  21.4 t
                                                        empowering inclusive communities in the ultra-
                                                        micro segment is sustained by providing access       net profit:
                                                        to financing and fostering opportunities for
                                                        growth, thereby enabling individuals to lead more
                                                        meaningful lives and realize their dreams.
                                                                                                             Rp
                                                                                                                  1.1 t
                                                        Having a social impact in support of Sustainable
                                                        Development Goals (SDGs)




                                                        *data from LDUI research 2022-2023



                  6
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                                      Sustainability Performance Highlights




ECONOMIC
financing for inclusive communities             inclusive communities
                                                                              PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




             Rp
                  11.4 t                             >257 k communities
        active customers                                area:


                  4.2 mio                            2,600 sub-districts



                                                                                                   7
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                                                        faithfully empowering                              the percentage of decent housing for BTPN Syariah
                                                        for sustainability from
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                                                                                        customers are higher*
                                                        an environmental
                                                        perspective                                                          0.6%
                                                        The spirit of faithfully empowering
                                                        for sustainability by maintaining the                         compared to national average
                                                        environment, keeping careful attention to
                                                        the impacts of climate change, as well as
                                                        supporting sustainable development.                  BTPN Syariah customers have better access to
                                                                                                                           drinking water*


                                                        Having a social impact in support of Sustainable
                                                        Development Goals (SDGs)                                             1.7%
                                                                                                                       compared to non-customers

                                                        *data from LDUI research 2022-2023



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                                                          Sustainability Performance Highlights




ENVIRONMENT
        CO2 Emissions from paper usage:                         BTPN Syariah’s estimated carbon stock reached
                                                                                                                  PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




              1,286               (kg CO2-eq)                                2,690                  t/ha


 CO2 Emissions in 2023 generated from fuel usage                Generated from multi-year project reforestation
                for work travels:                                              in Kalimantan




              170,591                       (kg CO2-eq)




                                                                                                                                      9
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                                                        faithfully empowering                                                rating:
                                                        for sustainability from
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        a governance aspect
                                                        Faithfully empowering sustainability necessitates
                                                                                                                           AAA                  (idn)

                                                        endorsing the implementation of good corporate              with stable prospect affirmed
                                                        governance as the foundation for honorable               by PT Fitch Rating Indonesia in 2023
                                                        company management, in alignment with
                                                        applicable laws and business ethics.


                                                                                                                    capacity building:


                                                                                                                       > 10 k
                                                        Having the social impact in support of
                                                        Sustainable Development Goals (SDGs):
                                                                                                                                              employees

                                                                                                            have taken part in Sustainable Finance training




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                                                    Sustainability Performance Highlights




GOVERNANCE
                                                            Nusantara CSR Awards 2023
awards:
                                                                                                                        PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                                •   Category/SDGs #3 Healthy and prosperous life
                                                                    for the inclusive family healthy life and welfare
Sustainability Index                                                program
                                                                •   Category/SDGs #5 Gender equality for the
                                                                    Program to Achieve Gender Equality Through
           •   Sustainable Responsible Investment
               (SRI - KEHATI)                                       Women's Empowerment in Remote Areas of the
           •   ESG Quality 45 IDX KEHATI                            Country
           •   ESQ Sector Leaders IDK KEHATI

                                                            Bank Indonesia (BI) Award 2023 - BI

                                                            •   Best Supporting Bank for Inclusive Financing
                                                            •   Best BI FMI System (BI-RTGS and BI-SSSS)
The 14th Indonesian Institute for                               participant
Corporate Directorship (IICD)
Corporate Governance
Conference and Award                                        Sustainability Report Competition oleh
                                                            LACP Vision Award 2023

                                                                •   Gold Award
   •   Top 50 Issuers with the Biggest Market
                                                                •   Top 80 Reports Asia-Pacific Region
       Capitalization (Big Cap)
                                                                •   Top 20 Indonesian Report
   •   Best Financial Sector                                    •   Technical Achievement Award




                                                                                                                                      11
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                                                        Sust a inabilit
                                                        HIGHLIGHTS
                                                                        y Performance
                                                        Economic [OJK B.1]


                                                           Rp
                                                                11.4 t                            99.6%                               Rp
                                                                                                                                           12.1 t
                                                          financing                           financing for sustainable business   third party funds
                                                                                              activities




                                                           Rp
                                                                5.3 t                             Rp
                                                                                                         1.1 t                      Rp
                                                                                                                                         21.4 t
                                                          revenue                           net profit                             total assets




                                                               51.6%                                 2.9%                                13.2%
                                                         CAR (capital adequacy ratio)        NPF (non-performing financing)        ROE (return on equity)




                                                        Environment [OJK B.2]
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                          169.95                   kWh/m2          6.3             ton

                                                            electrical energy intensity        waste has been sorted
                                                            (Adequately efficient
                                                            category)




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                                                       Sustainability Performance Highlights




Social [OJK B.3]



           75%                                  22%                                  >   10 k
  business manager levels and          of the Board of Commissioners           inspiring and successful
  above are women                      and Board of Directors are              customers have been assisted
                                       women




           >  5      mio                      30 k                                   49 k
  customers have taken part in         Mitra Tepat took part in empowerment   customers received
  Health, Environment, Social, and     programs                               entrepereneurship assistance
  Entrepreneurship Training Programs                                          programs




       >   10 k                             1,500                                >   400%
  employees received capacity          of underprivileged receiving care      more sub-districts assisted in the
  building on sustainable finance      programs from BTPN Syariah in          Bestee program nationally
                                       2023




    >   350%                                   >   9k
                                                                                                                   PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




  more customers who downloaded        followers on Kita Bestee’s instagram
  Bestee application




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                                                        Table of
                                                        CONTENTS
                                                                                                              company profile                            50
                                                                                                              products and services                      54
                                                                                                              operational areas                          56
                                                                                                              business scale                             56
                                                                                                              supply chain and working partners          57
                                                                                                              significant changes in the company         57
                                                                                                              external initiatives and association
                                                                                                                                                         58
                                                                                                              membership



                                                        sustainability performance highlights
                                                        economic performance                             12
                                                        environmental performance                        12
                                                        social performance                               13



                                                        management report
                                                        president commissioner report                    19
                                                        president director report                        23
                                                        chairman of sharia supervisory board report      29
                                                        statement letter of the board of                      faithfully empowering others
                                                        commissioners and the board of directors              social aspect commitment                   63
                                                        concerning the responsibility for 2023           32
                                                        sustainability report of PT Bank BTPN Syariah         Daya Program                               63
                                                        Tbk                                                   the Bestee program                         69
                                                                                                              the Bestee Platform                        71
                                                        sustainability strategy framework                     Kampus Merdeka Fair (KMF)                  77
                                                        sustainable finance purpose and strategy         36   community testimony                        79
                                                        loyalty for a sustainable ecosystem              37
                                                        sustainable finance program initiative in 2023   38   faithfully empowering the nation
                                                                                                              global and domestic conditions overview    87
                                                                                                              the performance of BTPN Syariah            88
                                                                                                              social and environmental-focused
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                                                                                                                         90
                                                                                                              financing portfolio
                                                                                                              distribution of economic value generated   92




                                                        BTPN Syariah at a glance
                                                        a brief history of BTPN Syariah                  43
                                                        vision, mission, and corporate values            46
                                                        milestones                                       48


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                                                      Sustainability Performance Highlights




faithfully empowering inclusive communities               waste                                          126
product and service commitment and policies     97        assistance and monitoring forest
                                                                                                         128
                                                          restoration activities
Taking the right step to empower people         99
                                                          green building                                 128
digitizing services for inclusive communities   100
customer protection and customer
                                                101
complaint handling
a feature on inspirational customer             103
measurement results                             104




                                                          implementing good governance for sustainable
                                                          empowerment
                                                          commitment to the basic principles and
                                                                                                         133
                                                          governance guidelines at BTPN Syariah
                                                          as a sharia commercial bank                    134

faithfully empowering for endeavors                       as a public company                            134

building a culture of sustainability:                     banking synergy                                136
                                                108
empowering #bankirpemberdaya                              code of conduct and integrity                  137
managing industrial relations at BTPN Syariah   108       hierarchy of bank provisions                   138
establishing a decent and safe work
                                                109
environment
                                                          about this sustainability report
employee competency development                 113
                                                          boundary and reporting period                  178
employee performance evaluation and
                                                115
rewards                                                   reporting standards and assurance              178
accomplishments in 2023 and plans for 2024      118       report determination and materiality topics    178
                                                          contact                                        181
                                                          POJK Index No.51/POJK.03/2017                  182
                                                          GRI standard index                             184
                                                                                                               PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                          feedback form                                  190




faithfully empowering for the environment
commitment to the impacts of climate change     124
energy                                          124
water and environmentally-friendly material     125


                                                                                                                         15
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     PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




16
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 Sustainability Performance Highlights




   02
                                         PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




Management
REPORT
                                                    17
Page 18
                                                        Kemal Azis Stamboel
                                                        President/Independent Commissioner
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




       18
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                                                                          Management Report




PRESIDENT COMMISSIONER
Report
      BTPN Syariah demonstrates a strong commitment to consistently
   accompany the growing and developing inclusive community. Together
 with other stakeholders, the Bank continues to be faithfully empowering to
  support sustainability, bringing positive impact to millions of Indonesians.




Bismillahirrahmanirrahim
Assalamualaikum Warahmatullahi Wabarakatuh

Respected Stakeholders,



The COVID-19 pandemic, geopolitical tensions          Since its inception, the Bank has chosen to serve
affecting energy availability and food security,      the inclusive community in tier-3 and tier-4 cities
and the tangible impact of climate change have        as well as rural areas. This conscious choice
prompted the world to seek balance. Aspirations       continues with high commitment and sincerity.
for sustainability have strengthened. Humanity        The Bank is committed to providing opportunities
is reconsidering its relationship with nature,        for the inclusive community to access financing
reexamining human interactions, aiming for            and knowledge through intensive Assistance for
a harmonious balance, making the earth a              ultra-micro businesswomen. Additionally, the Bank
comfortable place for all. All United Nations         provides opportunities for young women of high
member countries have pledged to collectively         school graduates to become #bankirpemberdaya
achieve the 17 Sustainable Development Goals          in the field as Community Officers (CO). Through
(SDGs) outlined in the 2030 Sustainable               these segment choices and preferences, the
Development Agenda. This global partnership           Bank is committed to contributing to the nation
underscores the importance of countries working       within the corridor of Sharia values, promoting
together to end poverty, improve health and           prosperity for all. Through products, services, and
education, reduce inequality, spur economic           all activities of #bankirpemberdaya, the bank,
growth while addressing climate change, and           along with other stakeholders, strives to achieve
preserving oceans and forests.                        the 17 SDGs, especially goals related to poverty
                                                      alleviation, hunger eradication, promoting healthy
The aspiration for sustainable development brings     and prosperous lives, quality education, gender
                                                                                                            PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




various opportunities. Many new sustainability-       equality, and partnership to achieve common
focused businesses are emerging worldwide. The        goals.
potential of renewable resources is being taken
more seriously. Social mission business models,       We understand that a business model with a
such as the one run by BTPN Syariah, are now          social mission, such as the one implemented by
easier to find, despite the extraordinary challenge   the bank, requires support for healthy financial
of serving the ultra-micro segment.                   performance and collaboration from various
                                                      parties. The sustainability of this business
                                                      model is indeed vulnerable to various uncertain
                                                      economic conditions, including those that occurred
                                                      throughout 2023.




                                                                                                                      19
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                                                        When the national pandemic status was                   provide Assistance by bank officers or Community
                                                        officially lifted by the government on June 21,         Officers (CO). These gatherings aim to instill
                                                        2023, economic recovery did not progress evenly         four key behaviors among inclusive customers:
                                                        as expected. The Board of Commissioners paid            Courage, Discipline, Hard Work, and Mutual
                                                        special attention to the slow economic recovery,        Assistance (BDKS), enabling them to adapt to
                                                        especially in the ultra-micro segment, coupled          challenges and enhance their well-being. Financial
                                                        with various uncertainties in the financial             literacy is also promoted through the Mitra Tepat
                                                        sector. Therefore, all inputs from the Board of         (Right Partners), acting as an extension of the
                                                        Commissioners throughout 2023 were focused              bank in financial transactions. Supported by the
                                                        on the spirit of loyalty to empower sustainability,     Warung Tepat application, these partners offer
                                                        ensuring that the Bank continues to accompany           banking services, allowing customers to perform
                                                        the inclusive community, providing the best             transactions such as deposits, withdrawals,
                                                        services, and committing to maintaining                 account openings, and bill payments, including
                                                        a healthy financial performance, while                  e-commerce services for daily necessities.
                                                        continuously striving to have a broader positive
                                                        impact on the inclusive community in Indonesia.         The Bank invests in developing the capacity and
                                                        The Board of Commissioners consistently                 resilience of COs, starting from their residence
                                                        emphasizes to all #bankirpemberdaya the                 and learning place in boarding houses. High
                                                        importance of continuing to serve inclusive             school graduate women working directly as COs
                                                        customers and collaborating with stakeholders           in the field have the opportunity to grow into
                                                        to expedite the realization of positive intentions.     outstanding individuals as #bankirpemberdaya
                                                                                                                contributing to empowering the inclusive
                                                        achievements of the Board of Directors                  community in remote areas of Indonesia. The Bank
                                                        2023                                                    strengthens the capacity of COs as the spears
                                                        In 2023, the Bank demonstrated its ability to           of the Bank in the field, through various training,
                                                        maintain a sustainable business model amid              Assistance, and awards, demonstrating its
                                                        economic, social, environmental, and governance         commitment to employee loyalty.
                                                        challenges, reflecting the success of BTPN
                                                        Syariah's sustainability strategy. The incorporation    We appreciate the Bank taking even greater steps
                                                        of sustainability values into the bank's vision,        in empowerment through Bestee Tepat to reach
                                                        mission, and core values has provided a robust          the younger generation and involving them to
                                                        foundation for all #bankirpemberdaya to integrate       assist inclusive customers. This direct involvement
                                                        sustainability aspects into products, services, and     contributes to the enrichment of experience,
                                                        daily operations.                                       knowledge, spirit, and even fresh ideas that will
                                                                                                                accelerate the achievement of 17 SDGs that the
                                                        The Board of Commissioners evaluates that               world aims to accomplish.
                                                        the Board of Directors and the Management
                                                        effectively implemented various sustainable             As a commissioner of BTPN Syariah, we
                                                        financial programs aligned with the Sustainable         highly appreciate the achievements of the
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        Financial Action Plan (2020-2024) indicators for        Board of Directors, the Management, and all
                                                        the year 2023. This implementation has positively       #bankirpemberdaya for maintaining loyalty to
                                                        impacted both the financial performance and the         segment choices and preferences for inclusive
                                                        well-being of inclusive customers, as well as social,   communities and women through extraordinary
                                                        environmental aspects, and good governance.             dedication in 2023. The Bank's resilience and the
                                                                                                                commitment of stakeholders also have positive
                                                        The Bank's initiatives to revive regular central        impacts on social and environmental aspects.
                                                        meetings, serving as the primary forum for
                                                        empowerment and building solidarity among
                                                        customers, are commendable. Bi-weekly meetings
                                                        not only facilitate access to financing but also




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                                                                             Management Report




Noteworthy accomplishments include an increase in the number of children of
customers attending school compared to the previous year. Additionally, there has
been an increase in decent housing and improved sanitation for customers, and
their nutritional needs are relatively well met. The Bank's outreach program for the
underprivileged in the community directly impacts 1,500 beneficiaries.

In terms of employment, the Bank's strategy has effectively maintained a commitment
to gender equality, with a dominance of female workers at 95%, and 75% of business
manager (BM) level positions and above occupied by women. The bank continues to
provide facilities and approaches relevant to the needs of Generation Z to maximize
their potential.

We also acknowledge the Board od DIrectors efforts to enhance environmental
performance through the internalization of energy-saving and environmentally friendly
practices at its main office, branches, and boarding houses. Resulting in a 8% increase
in the number of houses switching from wood-burning to stoves.

For all these achievements, we express our deepest appreciation to the Board of
Directors for successfully meeting the targets in the 2023 Sustainable Financial Action
Plan (RAKB) and building trust among all stakeholders of BTPN Syariah.

We extend our gratitude to all stakeholders who remain loyal in supporting
the initiatives of BTPN Syariah. May this spirit of cooperation and outstanding
performance continue in upcoming years.

We believe that the honorable intention to focus on empowering the inclusive
community will consistently bring blessings and proceed under the protection of Allah
Almighty.

Once again, we say Thank You.


Wabillahitaufik Walhidayah Wassalammu’alaikum Warahmatullahi Wabarakatuh.




Kemal Azis Stamboel
                                                                                                 PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




President/Independent Commissioner




                                                                                                            21
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     PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




22
                                                             President Director
                                                                            Hadi Wibowo
Page 23
                                                                            Management Report




PRESIDENT DIRECTOR
Report
BTPN Syariah's unwavering commitment to faithfully empowering
  inclusive communities exemplifies our active contribution to
 operating a sustainable business aligned with the pillars of ESG
            (Environmental, Social, and Governance).




Bismillahirrahmanirrahim
Assalamualaikum Warahmatullahi Wabarakatuh

Valued Stakeholders,



In BTPN Syariah's pursuit of implementing               performance, ensuring that the impact is tangibly
sustainability values, the principle of "Do Good        felt by all stakeholders. Consequently, the Bank's
Do Well" serves as the guiding light for every          sustainability strategy is focused on bolstering
business endeavor. We firmly believe that financial     access to sustainable ecosystems and fostering
success should be intertwined with meaningful           social empowerment, thus steering us towards the
social and environmental contributions. BTPN            attainment of the Sustainable Development Goals
Syariah's business model, centered around               (SDGs).
assisting inclusion communities, aims to enhance
their quality of life and bolster the competitiveness   faithfully empowering to support
of our inclusion customers, ultimately striving         sustainability [OJK D.1.a, OJK D.1.c]
for a more meaningful existence. Consequently,          Since its inception, BTPN Syariah has been
sustainability values aligned with the Sustainable      steadfastly committed to conducting business
Development Goals (SDGs) have been seamlessly           in accordance with sustainability principles. The
integrated into the fabric of BTPN Syariah's            sincerity and resilience of all #bankirpemberdaya
business model.                                         in serving and accompanying inclusive communities
                                                        go beyond mere business and social missions; it is a
                                                        heartfelt calling to effect meaningful life changes
The Bank's steadfast commitment to assisting
                                                        for all members of the inclusive communities we
inclusive communities for over a decade has             serve. Therefore, even in challenging conditions,
propelled sustainable growth, even amid                 the Bank remains unwavering in its dedication
challenging circumstances. Despite the global           to sustainability, as evidenced by its sustained
                                                                                                               PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




economic uncertainty of 2023, exacerbated by the        economic, social, environmental, and governance
Covid-19 pandemic, economic recovery in tier-3          performance. The internalization of a culture of
and tier-4 cities as well as rural areas of Indonesia   sustainability is ingrained in the daily business
has been sluggish, directly affecting our productive    activities of all #bankirpemberdaya. Initiatives
                                                        and programs related to sustainability values are
underprivileged customers. However, these
                                                        designed to translate good intentions into tangible
challenges have only fortified the determination
                                                        positive changes within Indonesian society,
and dedication of #bankirpemberdaya in                  while also solidifying our position as a bank that
serving our inclusive customers. Driven by noble        prioritizes long-term loyalty and support for our
intentions, the Bank consistently harmonizes            customers. [OJK C.1]
economic, environmental, social, and governance




                                                                                                                      23
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                                                        Our Bank's empowerment program, known as                and increasing financial literacy nationwide,
                                                        Daya, has been implemented in a measurable and          are detailed in the Sustainable Financial
                                                        sustainable manner. Through assistance and the          Action Plan (RAKB) document. Regular
                                                        Daya program, customers gain access to knowledge        monitoring of target achievements and impact
                                                        and resources aimed at enhancing their capacity.        measurements is overseen by the Sustainability
                                                        This empowerment enables customers to establish,        Task Force, involving the Board of Directors.
                                                        develop, and explore new opportunities for their        This proactive approach enables the Bank to
                                                        businesses, while also strengthening their families     assess the impact of sustainable business
                                                        in areas such as welfare, education, health, and        activities, identify areas for improvement, and
                                                        beyond. Every customer is entitled to this assistance   continuously strive for positive change.
                                                        throughout the entire financing cycle, ultimately
                                                        contributing to the Bank's sustainable performance.     sustainability performance [OJK D.1.b]
                                                        Our dedicated Community Officers (CO) serve and         According to data from the BPS-Indonesia
                                                        accompany inclusion customers wholeheartedly,           Statistics Statistics Agency, Indonesia's economic
                                                        ensuring that their needs are met and their goals are   inequality reached its worst level in the past
                                                        supported every step of the way.                        five years as of March 2023. This aligns with the
                                                                                                                findings from the Central Bureau of Statistics
                                                        managing challenges in 2023                             (BPS) regarding the recovery of the middle to
                                                        Technological advancements play a crucial role in       upper economic groups, which have progressed
                                                        the Bank's efforts to enhance productivity and          more rapidly towards pre-pandemic conditions
                                                        efficiency for better customer service. However,        compared to the ultra-micro group. These
                                                        the Bank recognizes that direct interaction             conditions, directly impacting Bank customers,
                                                        between people remains a pivotal aspect of its          consequently affect the Bank's sustainability
                                                        strategy to uphold sustainability performance,          performance. However, despite these challenges,
                                                        particularly in the face of the challenges presented    the Bank remains steadfast in its commitment to
                                                        in 2023.                                                empowering inclusive customers and sustaining its
                                                                                                                performance as a healthy financial institution.
                                                        Regular meetings conducted by Community
                                                        Officers (COs) every two weeks at the center allow      The Bank's dedication to the productive
                                                        the Bank to understand the needs of financing           underprivileged segment enhances the
                                                        customers, enabling us to respond with tailored         resilience of financing customers, strengthen
                                                        products and services. This approach aligns with        confidence in funding customers, and motivates
                                                        sustainable financial principles, supporting the        enthusiastic efforts from #bankirpemberdaya.
                                                        achievement of SDGs. The Bank acknowledges              Overall, the Bank has successfully maintained
                                                        that sustainable finance is not solely about            sustainable performance across economic, social,
                                                        regulatory compliance but revolves around               environmental, and governance dimensions despite
                                                        creating lasting impact for both present and            challenging circumstances.
                                                        future generations.
                                                                                                                economic aspect performance
                                                        In embracing sustainable finance principles,            In the economic aspect, as of December 2023,
                                                        the Bank adopts a responsible investment                the Bank successfully channeled financing
                                                        approach, formulates sustainable business               to the productive pre-financial inclusion
                                                        strategies, and carefully manages social                segment, predominantly women, totaling IDR
                                                        and environmental risks. Transparent and                11.4 trillion. Additionally, the Bank achieved
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        responsible corporate governance is integral            a net profit after tax of IDR 1.1 trillion. The
                                                        to navigating business challenges effectively.          Bank's performance metrics exceeded industry
                                                        Recognizing the importance of inclusivity, the          averages, including a Return on Assets (RoA)
                                                        Bank develops products and services that                of 6.3%, Return on Equity (ROE) of 13.2%, and
                                                        are not only easily accessible and secure but           a capital adequacy ratio (CAR) of 51.6%. The
                                                        also provide additional product knowledge               Bank maintained performance through several
                                                        and assistance to users. Collaboration with             quality improvement strategies targeted
                                                        various stakeholders is a cornerstone principle         financing and assistance to revive superior
                                                        in achieving sustainability goals and managing          character of Courage, Discipline, Hard Work,
                                                        impacts. A series of initiatives, encompassing          and Mutual Assistance (BDKS).
                                                        wider financial access, integration of social
                                                        and environmental risks in business decisions,




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                                                                             Management Report



Through diligent distribution of assistance              There are various incentive programs, mentoring,
financing, prudent risk management, assistance           and rewards for financing customers throughout
and effective communication with customers,              2023. The Bersemi (Blessing of Brotherhood)
the Bank has maintained a Non-Performing                 incentive program for 700 thousand customers
Financing (NPF) ratio of 2.94%, well below the           and My Customer My Spirit (NSKu) has reached
regulatory threshold of 5% set by the OJK.               447,350 customers. The Grow Together with My
Moreover, the Bank's focus on maintaining                Customer (TBNKu) program has successfully
financing quality has led to stable returns              assisted 2,658 customers. Even this year, the
aligned with humanitarian benefits. The                  Bank provides an appreciation program for
increased level of customer trust is evidenced           320 selected customers to perform Umrah
by the rise in Third Party Funds (DPK) to IDR            worship. The selected customers are inspirational
12.1 trillion, up from IDR 12 trillion in the previous   customers who have successfully practiced BDKS
year. Additionally, the Bank's total assets grew         behavior: Courage to Try, Discipline, Hard Work,
to IDR 21.4 trillion, marking a 1.3% year-on-year        Mutual Assistance. All incentive or appreciation
increase.                                                programs given are a manifestation of the Bank's
                                                         commitment to continue to empower the inclusive
These achievements not only demonstrate                  community and committed to being able to
the Bank's sustained performance but also                provide the best and sustainable service.
underscore its commitment to creating
economic value that positively impacts                   To monitor the development of welfare
stakeholders and society as a whole.                     improvement and the performance of the inclusive
                                                         community business, the Bank always applies a
social aspect performance                                strict socio-economic impact evaluation approach.
From a social aspect, the Bank's belief in do            Based on the Poverty Probability Index (PPI)
good do well (perform well while having a real           survey, inclusive customers who have spent 5
social impact) continues to show positive effects        years together with the Bank have a real positive
for the lives of the inclusive community. Their          impact, reflected in education, housing quality, and
financial literacy has increased, accompanied            economic improvement.
by wider access to banking services for the pre-
prosperous and sufficiently prosperous groups.           During 2023 the number of families who have
Various programs to improve the quality of life and      decent housing has increased to 94.6% and
economy of millions of active financing customers        customers who have decent toilets have increased
during 2023, directly contribute to the country's        to 85.3%. The number of children going to school
efforts to reduce social disparity.                      also continues to increase to 92.5%. Of course,
                                                         BTPN Syariah is not the only factor causing an
One of the rapidly growing empowerment                   increase in customer welfare.
programs is the Bestee program. Through this
digital application-based program, The Bank              However, at least, the assistance provided by the
invites anyone to get involved in empowering             Bank is the key to the operation of the Bank's
the inclusive community easily. As of December           financing business model to directly contribute to
31, 2023, the Bank has collaborated with                 improving the lives of the inclusive community. The
Kemendikbudristek, mentor institutions and 257           relationship between the Bank and the productive
universities in Indonesia. The number of universities    pre-prosperous women has manifested into a
has significantly increased from 42 universities         strong relationship between humans, not just
                                                                                                                PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




in the previous year, as well as the number of           between financial service institutions and their
students and lecturers involved as facilitators.         customers.
The number of facilitators increased from 108
people to 1,821 people in 2023, assisting 49,000         The "humanizing" human relationship is also
customers in 827 regions in 24 provinces. Regular        reflected in the Bank's internal organization.
training programs for financing customers, Mitra         We understand, quality industrial relations
Tepat training programs, and community training          and the implementation of good Occupational
programs achieved over 100% of the RAKB target.          Health and Safety (K3) are part of the Bank's
                                                         responsibility to protect employees from work




                                                                                                                       25
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                                                        risks, and to maintain harmonious relationships       reforestation project planting 2,009 Kahoi and
                                                        between the Bank, employees, and stakeholders.        Lumua plants in East Kalimantan, BTPN Syariah
                                                        We also respect human rights, implement anti-         has estimated a carbon stock of 2,690 t/ha.
                                                        discrimination, do not employ underage children,
                                                        and ensure the implementation of gender               In terms of financing customers, programs
                                                        equality. To date, the Bank has more than 14,000      aimed at enhancing the quality of life have
                                                        #empowering bankers spread across 26 provinces,       also contributed to reducing household carbon
                                                        with 95% of them being women, and 50% of              emissions. The decrease in the use of firewood for
                                                        them are high school graduates. In addition to        cooking as the economy improves is evident, with
                                                        implementing standard training, 97.7% of our          the number of families transitioning from firewood
                                                        employees have also received training related to      expected to increase by 8% by 2023.
                                                        Sustainable Finance. The harmonious relationship
                                                        between the Bank, employees, and stakeholders         These efforts underscore our commitment to
                                                        will ultimately enable us to empower the inclusive    environmental stewardship, reducing the impacts
                                                        community for sustainability.                         of global warming and climate change, and
                                                                                                              ensuring a sustainable future for our planet.
                                                        These achievements prove that BTPN Syariah is
                                                        not soleli growing as a financial institution with    governance aspect performance
                                                        maintained performance, but also as an entity         BTPN Syariah strengthens corporate governance
                                                        that has a significant social impact.                 as an integral part of our commitment to
                                                                                                              sustainability. We have implemented good and
                                                        environmental aspect performance                      transparent governance practices, including
                                                        Environmental aspects also remain a priority          enhancing accountability, integrity, and decision-
                                                        for the Bank. We contribute to environmental          making effectiveness. This is reflected in the
                                                        preservation through a range of eco-friendly          enforcement of strict internal policies, improved
                                                        initiatives, such as digitalization to reduce paper   risk monitoring, and increased stakeholder
                                                        usage, providing water without plastic cups,          engagement.
                                                        employing green buildings, and utilizing smart
                                                        lights that automatically turn off in unoccupied      In carrying out our operational activities, BTPN
                                                        rooms. The program to instill an environmentally      Syariah is certainly not immune to risks associated
                                                        friendly culture and operations at BTPN Syariah       with sustainable finance implementation. We
                                                        has achieved 90% of its target.                       understand that our focus on providing financing
                                                                                                              to inclusive communities entails high risks. To
                                                        Additionally, we have expanded data collection        mitigate these risks, we employ unique methods
                                                        on water, electricity, fuel, paper, and waste         through the community system we have built with
                                                        management usage across our operational areas         our financing customers. One of these mitigation
                                                        compared to the previous year. This data collection   patterns involves regularly conducting Routine
                                                        aims to enhance resource use efficiency, and          Center Meetings (PRS) with guidance from our
                                                        overall, we have observed a decrease in resource      Community Officers (COs) for customers. To date,
                                                        intensity in line with our targets.                   the bank has served 257 thousand communities in
                                                                                                              2,600 locations across 26 provinces in Indonesia
                                                        In 2023, BTPN Syariah recorded an electrical          with very good risk mitigation. These efforts have
                                                        energy intensity of 169.95 kWh/m2 per year,           earned BTPN Syariah affirmation from PT Fitch
                                                        meeting the 'fairly efficient' category according     Ratings Indonesia with a AAA (Idn) Outlook Stable
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        to the IKE standard value based on SNI-6197-          rating.
                                                        2011 concerning Energy Consumption Intensity
                                                        of Indonesian Buildings in the office building        These measures affirm that BTPN Syariah
                                                        sector. Furthermore, CO2 emissions resulting          operates with the highest ethical standards and
                                                        from fuel consumption and business travel in          compliance, supporting the achievement of our
                                                        2023 are estimated to be 170,591 (kg CO2-eq).         strategic goals and long-term sustainability.
                                                        CO2 emissions from paper usage amounted to
                                                        1,286 kg CO2-eq. Moreover, through a multi-year




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                                                                           Management Report



our commitment to faithfully                          We are deeply grateful to our shareholders,
empowering inclusive communities                      government, regulators, Board of Commissioners,
For 2024, our commitment to empowering                Sharia Supervisory Board, and all stakeholders
productive underprivileged customers in an            for their support and collaborative efforts in
inclusive society remains unwavering. We              advancing sustainability and serving the inclusive
will also persist in building a sustainable           society.
ecosystem by enhancing access (to finance,
knowledge, supply, and markets) through various       Lastly, we express our gratitude to Allah SWT for
tailored conveniences to meet their needs and         His blessings and guidance. With His grace, we will
characteristics.                                      continue to move forward, steadfast in our mission
                                                      to empower productive underprivileged customers
We firmly believe that only through collaboration,    and positively impact the lives of millions of
innovation, and ongoing dedication from all           Indonesians. May our intentions and efforts bring
parties, including stakeholders, can we, InshAllah,   meaning to the lives of many.
realize our vision for the future.
                                                      Thank you.
appreciation
On behalf of the Board of Directors, I extend my      Wabillahitaufik Walhidayah Wassalammu’alaikum
heartfelt gratitude to all who have contributed       Warahmatullahi Wabarakatuh.
to our journey in 2023. To our valued customers,
thank you for your unwavering trust and loyalty.
Your confidence in us fuels our drive to innovate,
provide top-notch service, and remain steadfast in
our commitment to the inclusive segment. To our
dedicated #bankirpemberdaya team, I commend
your unwavering commitment, resilience, and
loyalty in overcoming challenges and making real      Hadi Wibowo
contributions to our sustainability efforts.          President Director




                                                                                                            PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




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                                                        H. Ikhwan Abidin, MA
                                                        Chairman of Sharia Supervisory Board
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




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                                                                              Management Report




CHAIRMAN OF SHARIA
Supervisory Board Report
        The core belief of BTPN Syariah is to faithfully empowering and
      promoting sustainability through the teachings of sharia, spreading
                    Allah SWT's mercy and blessings to all.




Bismillahirrahmanirrahim
Assalamu'alaikum Warahmatullahi Wabarakatuh,

Praise be to Allah SWT, Lord of all the worlds. May     based on sharia principles, between funding
prayers and greetings continue to be poured out on      customers, financing customers (those seeking
the Prophet Muhammad SAW, his family, his friends       funds), and the Bank itself, all working together
and his loyal followers.                                to generate profits. One way in which equality is
                                                        promoted is through empowering underprivileged
Praise be to Allah, we have successfully faced the      individuals with the resources and skills needed
challenges of 2023. Though progress in the ultra-       to manage their businesses effectively, while also
micro market remains slow, our business model           instilling important values such as courage, discipline,
continues to prioritize the needs of underprivileged    hard work, and mutual assistance (known as BDKS).
individuals by providing opportunities for growth       Through this approach, the Bank is fulfilling its
through financing and support. This aligns with         role of connecting those previously excluded from
Islamic values that promote compassion and              traditional banking services with necessary funding
inclusivity. Our ultra-micro financing initiatives      to grow and develop their businesses.
reflect our commitment to promoting a green
economy and addressing economic, social, and            To empower underprivileged customers, the Bank
environmental concerns. To continue making a            has enlisted 1,821 facilitators from students and
positive impact on millions of Indonesians, we strive   lecturers through our Bestee program. This initiative
for strong economic, social, and environmental          allows us to actively contribute to creating a more
performance while maintaining sustainable               inclusive society, in addition to the efforts made
governance in accordance with sharia law.               by #bankirpemberdaya or Community Officers
                                                        (COs) in the field. Recognizing the challenges
In Islam, it is mandated that wealth should be          faced by COs in reaching remote areas, the Bank
distributed amongst people to promote overall           provides comfortable guesthouses and motorbikes
prosperity and well-being, rather than being held       with petrol money for easier mobility. Advanced
                                                                                                                   PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




in the hands of a select few. The business model of     technology is also given to COs so they can
the Bank provides opportunities for individuals to      effectively assist and serve inclusion customers. The
contribute towards creating a more inclusive society.   Bank's commitment to human rights in employment
By using the Bank's funding products, customers         is evident in the equal and harmonious working
have the chance to support underprivileged              relationships within BTPN Syariah offices. We
individuals who are striving to achieve their dreams    believe that serving an inclusive society requires
of success. This is achieved through partnerships,      individuals who are dedicated to making a difference




                                                                                                                          29
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                                                        for those in need. By providing necessary work           Overall, the Sharia Supervisory Board The Sharia
                                                        facilities and fostering healthy industrial relations,   Supervisory Board of 2023 praises BTPN Syariah
                                                        the Bank supports all #bankirpemberdaya to work          for its unwavering commitment to empowerment
                                                        with gratitude, as Islam teaches that work is a form     and successful integration of sustainability
                                                        of worship. This productivity ultimately drives the      practices. They commend the diverse range of
                                                        Bank to consistently achieve healthy and sustainable     sustainability initiatives undertaken by BTPN
                                                        economic performance, benefiting all stakeholders        Syariah, highlighting the exceptional collaboration
                                                        involved.                                                between the Board of Commissioners, The Board of
                                                                                                                 Directors, and management. This synergy extends to
                                                        Employees benefit from the direct distribution of        #bankirpemberdaya, fostering strong relationships
                                                        economic value through their salaries and other          with customers and all stakeholders involved.
                                                        allowances, while the state receives taxes and
                                                        shareholders receive dividends. Customers also           InsyaAllah, all #bankirpemberdaya will be enabled
                                                        reap rewards through competitive profit sharing          and empowered in 2024 to consistently improve
                                                        and various incentives, such as a sponsored Umrah        economic, social and environmental performance in
                                                        pilgrimage for 320 selected customers in 2023. The       sustainable governance. May Allah SWT continue
                                                        Bank's social responsibility (CSR) activities also       to bless our efforts and strengthen BTPN Syariah's
                                                        benefit the wider community. In the long term,           steps to remain steadfast in all its activities, loyally
                                                        a more equal spread of economic value will help          empower for sustainability, and provide benefit to
                                                        decrease disparities and bring advantages to all         the people.
                                                        individuals.
                                                                                                                 Wabillahitaufik Walhidayah Wassalammu’alaikum
                                                        We are thankful that the Bank operates its business      Wassalamu'alaikum Warahmatullahi Wabarakatuh.
                                                        endeavors with a dedication to preserving the earth
                                                        as a creation of Allah SWT. Although the Bank's
                                                        business model does not directly exploit natural
                                                        resources, it still recognizes its responsibility as
                                                        global citizens to collaborate in reducing greenhouse
                                                        gas emissions. This initiative is working towards
                                                        preventing the escalating effects of climate change
                                                        and protecting the well-being of future generations.     H. Ikhwan Abidin, MA
                                                        We applaud the Bank for instilling a culture of          Chairman of Sharia Supervisory Board
                                                        sustainability among its employees through
                                                        regulations, infrastructure, training, and appeals.
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




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                                                             Management Report




     PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




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                                                        Statement Letter of the Board of Commissions and the Board of Directions
                                                        CONCERING THE RESPONSIBILITY FOR 2023 SUSTAINABILITY REPORT
                                                        OF PT BANK BTPN SYARIAH Tbk




                                                        We, the undersigned, declare that all information contained in the 2023 Sustainability Report of
                                                        PT Bank BTPN Syariah Tbk has been presented in its entirety, and that we assume full responsibility for the
                                                        accuracy of the contents of the Sustainability Report of PT Bank BTPN Syariah Tbk. [GRI 2-14]

                                                        This statement is made in truth.


                                                                                                 Jakarta, February 2024

                                                                                                board of commissioners




                                                                                                 Kemal Azis Stamboel
                                                                                           president/independent commissioner




                                                             Mulya Effendi Siregar                  Dewie Pelitawati                 Ongki Wanadjati Dana
                                                            independent commissioner            independent commissioner                  commissioner
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




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                                                       Management Report




                       Jakarta, February 2024

                        board of directors




                          Hadi Wibowo
                         president director




    Arief Ismail                                Fachmy Achmad
 compliance director                                director
                                                                           PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




Dwiyono B. Winantio                             Dewi Nuzulianti
      director                                      director




                                                                                  33
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     PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




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         Sustainability Performance Highlights




               03
                                                 PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




Sustainability Strategy
  FRAMEWORK     [OJK A1][GRI FS1, FS2]




                                                        35
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                                                                      BTPN Syariah faithfully empowers inclusive communities in
                                                                      alignment with sustainable development goals to cultivate
                                                                                        a more meaningful life




                                                        BTPN Syariah is dedicated to fostering Sustainable          financial products and/or services that apply
                                                        Development through the establishment of a                  Sustainable Finance principles so that they are
                                                        sustainable sharia ecosystem and ongoing support            able to contribute positively to financial system
                                                        for an inclusive society. This commitment is realized       stability ;
                                                        through the implementation of sustainable               •   Reducing social disparities, reducing and
                                                        financial concepts and strategies aligned with              preventing environmental damage, maintaining
                                                        BTPN Syariah's vision and mission.                          biodiversity, and encouraging efficient use of
                                                                                                                    energy and natural resources; And
                                                        sustainable finance purpose and strategy                •   Develop financial products and/or services that
                                                        [GRI 2-22]
                                                                                                                    apply Sustainable Finance principles.
                                                        Aligned with sustainability objectives, BTPN
                                                        Syariah recognizes that its actions today will          Meanwhile, the objectives of implementing
                                                        impact future generations. By embracing                 sustainable finance at BTPN Syariah which are
                                                        sustainability, humanity can harmonize its              in line with the business sector are formulated as
                                                        interactions both amongst themselves and with           follows:
                                                        nature.                                                 1. Portfolio
                                                                                                                     Providing inclusive, compact, simple but safe
                                                        In pursuit of sustainability ideals, nations                 financial products and service packages to
                                                        worldwide, including Indonesia, are embracing the            support poverty alleviation.
                                                        concept of Sustainable Development through the          2. Accessibility
                                                        implementation of the 17 Sustainable Development             Providing financial services products that are
                                                        Goals (SDGs). Achieving sustainable development              easily accessible, available at any time, and
                                                        and conducting business activities necessitates              supported by the application of the latest
                                                        financial support not only from governments but              information technology.
                                                        also from financial service institutions.               3. Business process
                                                                                                                     Providing financial services that integrate social
                                                        Banking policies, including those of BTPN Syariah,           risk and governance in products, services and
                                                        geared towards sustainability, will expedite the             in business decision making as well as carrying
                                                        realization of sustainable development. This                 out banking operations that are increasingly
                                                        support is reinforced by various government                  environmentally friendly.
                                                        regulations that advocate for ESG, such as              4. Financial Literacy
                                                        Financial Services Authority Regulation no. 51/              Organizing financial literacy learning methods
                                                        POJK.03.2017 concerning the Implementation                   that are specific, easy to understand, and
                                                        of Sustainable Finance for Financial Services                effective as a form of support for creating
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        Institutions, Issuers, and Public Companies.                 equitable financial inclusion throughout
                                                                                                                     Indonesia.
                                                        The objectives of implementing sustainable finance      5. Learning and Growth
                                                        are as follows:                                              Develop the Bank's capacity and capability,
                                                        • Provide funding sources needed to achieve                  both internally and through partnerships,
                                                           sustainable development goals and climate                 to implement and improve the quality of
                                                           change related funding in adequate amounts;               sustainable finance in accordance with
                                                        • Increasing the resilience and competitiveness              customer needs, business development
                                                           of Financial Services Institutions (OJK), Issuers         directions, and sustainability goals in particular
                                                           and Public Companies through better social and            in the social sector.
                                                           environmental risk management by developing




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                                                         Sustainability Strategy Frame Work




loyalty for a sustainable ecosystem                       6. Governance Principles
Throughout 2023, BTPN Syariah remained                       Enforcement of governance through
dedicated to adhering to the eight principles of             management and business operations which
sustainable finance while steadfastly pursuing               includes, among other things, transparency,
its vision and mission of supporting an inclusive            accountability, responsibility, independence,
society. By prioritizing social humanity, the bank           professionalism, equality and fairness.
aimed to expedite the realization of the Indonesian       7. Principles of Priority-Leading Sector
people's positive intentions and facilitate the              Development
building of more meaningful lives through                    The Bank must consider the priority leading
impactful management across the ESG pillars for              sectors that have been determined by the
a sustainable ecosystem.                                     government.
                                                          8. Principles of Coordination and Collaboration
BTPN Syariah's commitment to loyal                           In order to align strategies and policies,
empowerment persisted through the                            business opportunities and product innovation
implementation of sustainable finance practices              with national interests, the Bank actively
in 2023, rooted in the following eight principles of         participates in forums, activities and
Sustainable Finance:                                         cooperation related to Sustainable Finance,
1. Principle of Responsible Investment                       both at the local, regional and national levels.
    Responsible investment is an investment
    approach that considers economic, social,             The BTPN Syariah strategy is meticulously crafted
    environmental and governance factors in               to manage impacts and foster loyalty among BTPN
    investment decisions. In this way, the Bank can       Syariah and its stakeholders. The bank continuously
    manage risks better and generate sustainable          endeavors to enhance:
    long-term profits.                                    1. Faithfully empowering the NATION
2. Principle of Sustainable Business Strategy and            Contributing to sustainable economic
    Practices                                                performance and supporting government
    The Bank must determine and implement                    initiatives.
    sustainable business strategies and practices         2. Faithfully empowering PEOPLE
    in every decision they make. Business strategies         Upholding humanity by supporting societal needs.
    and practices in question include vision,             3. Faithfully empowering INCLUSIVE
    mission, organizational structure, strategic             COMMUNITIES
    plans, standard operational procedures, work             Providing capital assistance, digitalization
    programs and determining risk factors in                 tailored to specific needs, and aid for productive
    collecting and distributing funds.                       and moderately prosperous customers
3. Principle of Social and Environmental Risk             4. Faithfully empowering For ENDEAVORS
    Management                                               Promoting good employment practices and
    The Bank must have prudential principles in              fostering a safe and comfortable working
    measuring social and environmental risks from            environment.
    acquisition and disbursement of funds.                5. Faithfully empowering for the ENVIRONMENT
4. Principle of Governance                                   Supporting nature and environmental
    Implementing governance through business                 sustainability efforts.
    management and operations that encompass,             6. Implementing good GOVERNANCE for
    among others, transparency, accountability,              sustainable empowerment
                                                                                                                  PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




    responsibility, independency, professionalism,           Upholding sustainable corporate governance
    and fairness.                                            practices.
5. Principle of Informative Communication
    The Bank must have the principle of prudence in       In line with its commitment to sustainability goals
    measuring social and environmental risks from         and strategies, BTPN Syariah has established
    fund collection and distribution activities. These    various long-term (5 years) and short-term (1 year)
    activities include identification, measurement,       program initiatives. Regular reporting of results
    mitigation, surveillance, and monitoring.             to regulators and the public ensures transparency
                                                          and accountability in achieving these objectives.




                                                                                                                         37
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                                                        sustainable finance program initiative in                           •   Mitra Tepat empowerment training program.
                                                        2023                                                                •   Group Empowerment Program, providing
                                                        BTPN Syariah's Sustainable Finance Action                               group-based empowerment sessions during
                                                        Plan (RAKB) aligns with the bank's overarching                          regular meetings or tailored to specific
                                                        strategy, characterized by the ethos of "We are                         customer groups' needs.
                                                        different, we are #bankirpemberdaya," which                         •   Enhancing BTPN Syariah's internal Capacity
                                                        permeates every facet of its operations.                                Building regarding Environment, Social, and
                                                                                                                                Sustainable Governance (LST).
                                                        The RAKB comprises various short-term and                           •   Analysis and adjustment of organizational
                                                        long-term program initiatives rooted in Sharia                          policies, procedures, and risk management
                                                        principles, aimed at fostering the loyal spirit                         integrated with ESG principles.
                                                        of empowering inclusive communities and                             •   Implementation of environmentally friendly
                                                        addressing challenges stemming from social and                          culture and operations.
                                                        environmental issues. The 2023 sustainable finance                  •   Preparation of Sustainability Report 2023.
                                                        program initiatives encompass:
                                                                                                                            All RAKB 2023 program initiatives were
                                                        •   Productive financing for productive pre-                        successfully realized, meeting 100% of the set
                                                            prosperous communities, particularly women.                     targets, with detailed targets and achievements
                                                        •   Exploration of alternative financing for other                  outlined in various chapters of the Sustainability
                                                            productive pre-financial inclusion communities,                 Report.
                                                            including Mitra Tepat and third-party
                                                            collaborators.                                                  These initiatives are aligned with business
                                                        •   The Individual Assistance Empowerment                           activities aimed at advancing the Sustainable
                                                            Program, providing intensive one-on-                            Development Goals (TPB), with 12 out of the 17
                                                            one entrepreneurial assistance through                          TPB identified and implemented throughout 2023
                                                            Inspirational Customer Assistance and the                       as part of BTPN Syariah's daily operations.
                                                            Bestee Program.                                                  [GRI 2-22]



                                                                             SDGs Description               BTPN Syariah Achievements


                                                                             No Poverty

                                                                                                            •   100% financing for pre and moderately productive productive communities
                                                                                                            •   4.2 million active customers with intensive assistance from
                                                                             End poverty in all its forms
                                                                                                                #bankirpemberdaya
                                                                             everywhere
                                                                                                            •   The results of external measurements stated that within 3 years, BTPN
                                                                                                                Syariah customers experienced a reduction in extreme poverty by 11.1%.

                                                                             Zero Hunger
                                                                                                            •   The results of external measurements show that consumption of adequate
                                                                                                                and nutritious food among BTPN Syariah customers is better than non-
                                                                             End hunger, achieve food
                                                                                                                customers.
                                                                             security and improved
                                                                                                            •   95.17% of customers consumed meat in the last 7 days, 2% higher than non-
                                                                             nutrition and promote
                                                                                                                customers.
                                                                             sustainable agriculture
                                                                                                            •   88.19% of customers consumed bananas in the last 7 days, 3% higher than
                                                                                                                non-customers.

                                                                             Good Health and Well-being
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                                             End hunger, achieve food
                                                                                                            •   99% of employees have been vaccinated
                                                                             security and improved
                                                                                                            •   The percentage of customer spending on cooking fuel is higher (3.7%)
                                                                             nutrition and promote
                                                                                                                compared to non-customers (1.9%).
                                                                             sustainable agriculture




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                                             Sustainability Strategy Frame Work




SDGs Description               BTPN Syariah Achievements

Quality Education
                               •   Consistently providing education and assistance through the Daya Program
                                   aimed at providing access to knowledge to customers and the community
Ensure inclusive and
                               •   Providing access to knowledge to customers through the Bestee digital
equitable quality
                                   platform, which is divided into a university Assistance program and a Bestee
education and promote
                                   Army Assistance program, so that the quality of empowerment and customer
lifelong learning
                                   engagement increases.
opportunities for all
                               •   The percentage of customers who experience an increase in technological
                                   literacy is 35% higher than non-customers

Gender Equality

                               •   95% of #bankirpemberdaya and 100% of financing customers are women
Achieve gender equality
                               •   The results of external measurements state that there is an increase in the
and empower all women
                                   autonomy score of BTPN Syariah female customers in 2023 (2.6 out of 3)
and girls
                                   compared to 2020 (2.35 out of 3)


Clean Water and Sanitation

Ensure availability and
sustainable management         External measurement results state that BTPN Syariah customers have access
of water and sanitation        to adequate drinking water which is 1.7% higher than the national figure.
for all


Decent Work and Economic Growth
Supporting sustainable
and inclusive economic
                               •   Providing work opportunities for high school graduates (50% of the total
growth, opening up the
                                   #bankirpemberdaya)
widest possible productive
                               •   External measurement results show that customers have experienced an
employment opportunities
                                   increase in income within 3 years of being a BTPN Syariah customer
and creating decent work
for all

Industry, Innovation, and Infrastructure

Promote sustained,
inclusive, and sustainable
                               Encourage appropriate banking technology, including improving Bestee Platform
economic growth, full and
                               technology to loyally serve inclusive communities
productive employment
and decent work for all

Reduce Inequalities


                               •   Faithfully serving inclusive communities in 257 communities in 26 provinces in
Reduce inequalities within
                                   Indonesia.
and among countries
                               •   Has 30 thousand Right Partners spread across all corners of Indonesia



Sustainable Cities and Communities


Make cities and human
                               External measurement results state that 61.21% of BTPN Syariah customers
settlements inclusive, safe,
                                                                                                                    PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                               have livable houses, slightly higher than the national average (60.66%).
resilient and sustainable



Management of Climate Change


Act quickly to combat
climate change and its             Operational process automation and green building
impacts



Partnerships for the Goals

                               •   Partnership with Dagangan through BTPN Syariah Ventura to support access
Strengthen the means
                                   to supply for communities in small towns and rural areas
of implementation
                               •   Collaborating with 1,821 facilitator, 49 thousand customers, the Merdeka
and revitalize the
                                   Campus/Kemendikbud-Ristek, 7 community institutions, and 257
global partnership for
                                   universities in the Bestee program with a loyal spirit of empowering inclusive
sustainable development
                                   communities.


                                                                                                                           39
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     PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




40
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    Sustainability Performance Highlights




    04
                                            PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




BTPN Syariah
 AT GLANCE

                                                      41
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     PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




42
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                                                                 BTPN Syariah at a glance




A  Brief Hist
BTPN SYARIAH
              o ry of
   BTPN Syariah, with unwavering dedication, actively contributes to
    realizing the Sustainable Development Goals (SDGs), particularly
    by prioritizing initiatives that empower diverse and marginalized
                     communities, specifically women.




Initially BTPN Syariah was established under the name PT Bank Purba Danarta, based
on Deed of Establishment Number 10 dated March 7, 1991, then amended by Deed of
Amendment to Articles of Association Number 39 dated May 25, 1992, and Deed of
Amendment Number 25 dated July 11, 1992. All three were made in the presence of Haji
Abu Jusuf, S.H., notary in Jakarta and has received approval from the Minister of Justice
of the Republic of Indonesia, as has undergone several changes and is henceforth referred
to as the Minister of Law and Human Rights of the Republic of Indonesia (Menkumham)
in Decree Number C2.5839. HT.01.01-TH.92 dated July 21, 1992, which was registered in
the general register at the Semarang District Court Registrar's Office on July 30, 1992
under Number 206A/1992/II, and has been published in the State Gazette of the Republic
of Indonesia Number 81 dated October 9, 1992, additional Number 5020 with a business
license to carry out business activities as a commercial bank obtained based on Decree of
the Minister of Finance Number 1060/KMK.017/1992 dated October 14, 1992.

Furthermore, in 2009 PT Bank Purba Danarta again changed its name to PT Bank
Sahabat Purba Danarta (BPSD), then in 2013 it changed its name again to PT Bank
Tabungan Pensiunan Nasional Syariah. The name change is based on the Deed of
Amendment to the Articles of Association Number 25 dated August 27, 2013 which was
made before Hadijah, S.H., M.Kn., notary in Jakarta and has received approval from the
Minister of Law and Human Rights in Decree Number AHU-50529.AH.01.02. 2013 dated 1
October 2013 and has been announced in the State Gazette of the Republic of Indonesia
Number 94 of 2013, additionally the State Gazette of the Republic of Indonesia Number
                                                                                            PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




124084 dated November 22, 2013.




                                                                                                   43
Page 44
                                                        BTPN Syariah also changed its domicile from Semarang to South Jakarta, as based on the
                                                        Deed of Shareholder Decision Statement Number 15 dated October 31, 2013 which was made
                                                        before Indah Indriani, S.H., M.Kn., notary in Jakarta and was registered with the Ministry Law
                                                        and Human Rights of the Republic of Indonesia in accordance with the decision and Approval
                                                        of Amendments to the Company's Articles of Association Number AHU-60408.AH.01.02. 2013
                                                        dated November 21, 2013 and receipt of Notification of Amendments to the Company's Articles
                                                        of Association Number AHU. AH.01.10-47895 dated November 12, 2013.

                                                        On January 20, 2014, the Extraordinary General Meeting of Shareholders of PT Bank Tabungan
                                                        Pensiunan Nasional Tbk (now called PT BANK BTPN Tbk abbreviated as BTPN) approved the
                                                        separation of the Sharia Business Unit (hereinafter referred to as UUS BTPN), which was stated
                                                        in the Deed of Separation of the BTPN Sharia Business Unit By way of Transfer of Rights and
                                                        Obligations to the Company Number 8 dated July 4, 2014, made in the presence of, Hadijah,
                                                        S.H., M.Kn., notary in Central Jakarta. In accordance with Bank Indonesia Regulations, BTPN
                                                        then chose to separate UUS BTPN by transferring all rights and obligations of UUS BTPN to the
                                                        existing sharia business entity.

                                                        After the spin off of UUS BTPN was decided at the BTPN Extraordinary General Meeting of
                                                        Shareholders on January 20, 2014 as mentioned above, BTPN then carried out the acquisition of
                                                        70% (seventy percent) of the Company's shares, after obtaining approval from Bank Indonesia
                                                        based on the Letter Bank Indonesia Number 15/10/DPB1/PB1-5/Rahasia dated July 19, 2013
                                                        with the condition that changes be made to the business activities of PT Bank Sahabat Purba
                                                        Danarta (now BTPN Syariah) which was originally a Conventional Commercial Bank, changed to
                                                        a Sharia Commercial Bank.

                                                        Furthermore, PT Bank Sahabat Purba Danarta, has obtained approval from the Financial
                                                        Services Authority to convert business activities from previously Conventional Commercial Bank
                                                        business activities, to Sharia Commercial Bank business activities based on Financial Services
                                                        Authority Letter Number S-67/PB.131/2014 dated May 23, 2014 regarding the Decision to Grant
                                                        a Business License for Conventional Commercial Bank Business Activities to Become a Sharia
                                                        Commercial Bank issued by the Director of Research, Development, Regulation and Sharia
                                                        Banking Licensing. Bank BTPN then received approval for the plan to spin off UUS BTPN, based
                                                        on Financial Services Authority Letter Number S-17/PB.1/2014 dated June 23, 2014 regarding the
                                                        Application for Approval of the Separation (Spin Off) of UUS BTPN, which was issued by the
                                                        Deputy Commissioner for Supervision Banking I Financial Services Authority.
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




    44
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                                                                    BTPN Syariah at a glance




BTPN Syariah officially traded its shares on the Indonesia Stock Exchange on May 8,
2018 with the stock code BTPS.

On April 16, 2020, the Bank officially changed its name to PT Bank BTPN Syariah
Tbk as based on Deed Number 26, made before Ashoya Ratam, S.H., M.Kn., notary
in South Jakarta, which had received approval from the Ministry of Law and Human
Rights of the Republic of Indonesia based on Letter Number AHU0034666.AH.01.02.
TAHUN 2020 dated May 8, 2020, and Letter of Acceptance of Notification of
Changes to the Articles of Association Number AHUAH.01.03-0214020 dated May
8, 2020, and has obtained approval for this Bank Name Change based on the Letter
from the Financial Services Authority (OJK) number S-66/PB.101/2020 dated June
4, 2020 regarding Application for Determination of the Use of a Business License
due to the Change of Name of PT Bank Tabungan Pensiunan Nasional Syariah Tbk
to PT Bank BTPN Syariah Tbk and a Copy of the Decree of the Deputy Commissioner
for Banking Supervision I OJK Number KEP-99/PB.1/2020 dated June 4, 2020.

Since 2010, BTPN Syariah has ardently adhered to a business model singularly
centered on empowering the inclusion segment, commonly referred to as the
"unbankable." Rather than viewing this as a challenge, BTPN Syariah perceives it as
both an opportunity and a noble calling to contribute positively to society.

The guiding ethos of "Do Good, Do Well," wherein success is measured not only in
financial performance but also in genuine social impact, unifies all individuals within
BTPN Syariah under the common identity of #bankirpemberdaya.




                                                                                               PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                                                                     45
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                                                        Vision,Mission and
                                                        COMPANY VALUES                                        [OJK C.1] [GRI 2-22]




                                                           mission                                                 vision
                                                         To be the best Sharia Bank                             Together, we create
                                                         for financial inclusion,                               opportunities
                                                         making a difference in                                 for growth and a more
                                                         the lives of millions of                               meaningful life
                                                         Indonesians




                                                          company values

                                                         PRISMA
                                                         PRofessionalism,
                                                         Integrity,
                                                         Mutual ReSpect,
                                                         TeaMwork
                                                         The Board of Directors and Board of Commissioners have reviewed and ensured the
                                                         alignment of BTPN Syariah's Vision and Mission for 2023 as stated in the Bank Business
                                                         Plan (RBB) and Sustainable Financial Action Plan (RAKB) which were proposed by
                                                         the Board of Directors and approved by the Board of Commissioners at the Board of
                                                         Directors and Board of Commissioners meeting on November 22, 2023 and which has
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                         been submitted to the OJK.


                                                         Disclosure of the alignment of Vision and Mission is as stated in the Governance
                                                         Implementation Report in connection with the Board of Directors' and Board of
                                                         Commissioners' Duties Implementation Report in this 2023 Annual Report.




     46
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                                                         BTPN Syariah at a glance




    socialization of the company's vision,
    mission, values, and collective identity

Various active efforts have been made by the Board of Directors to ensure that the
Company's Mission, Vision and Values, as well as Shared Identity continue to be upheld
and implemented throughout 2023, including through:

1. Induction program for all new employees up to executive officer level.
2. Implementation of corporate values and shared identity in every activity at BTPN
   Syariah.




  collective identity
A collective identity has been adopted to galvanize the passion of
all employees in advancing the Company's Mission and Vision.

#bankirpemberdaya is the collective identity that resonates with all BTPN Syariah
employees, encapsulating the diverse roles within banking. These are the bankers
who dedicate themselves to raising funds from welfare groups and directing them
towards empowering underprivileged families. They stand apart, driven by a deep-
seated desire to make a meaningful difference in the lives of others.

In alignment with the Company's Mission and Vision, embracing the role of an
#bankirpemberdaya entails wholeheartedly committing to uplifting productive
                                                                                         PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




underprivileged families in Indonesia. #bankirpemberdaya collaborate seamlessly,
fulfilling their respective functions and responsibilities with the shared goal of
expediting the realization of benevolent aspirations.




                                                                                                47
Page 48
                                                        MILESTONES




                                                                                                                                    November 16
                                                                                                                                   Changing the status from a
                                                                                                                                   Closed Company to a Public
                                                                                             Starting to expand services for       Company and changing the
                                                                                             productive inclusion customers        name from previously PT
                                                                                             to all areas of Jakarta, Banten,      Bank Tabungan Pensiunan
                                                           PT BANK BTPN Tbk (formerly
                                                           known as PT Bank Pensiunan        West Java, East Java, Central         Nasional Syariah to PT
                                                           Nasional Tbk) formed a Sharia     Java, Sumatra and East Nusa           Bank Tabungan Pensiunan
                                                           Business Unit                     Tenggara                              Nasional Syariah Tbk




                                                         2008                 2010           2011                 2014             2017              2018



                                                        Piloting Project Tunas              July 14                              May 8
                                                        Usaha Rakyat which
                                                        focuses on serving                 PT Bank Tabungan                     PT Bank Tabungan
                                                        customers from productive          Pensiunan Nasional Syariah           Pensiunan Nasional Syariah
                                                        communities, starting with         became the 12th Sharia               Tbk has officially become
                                                        three communities in the           Bank in Indonesia, which             a public company with the
                                                        Banten and Pandeglang              was the result of the                share code BTPS on the
                                                        areas                              merger of PT Bank Sahabat            Indonesian Stock Exchange
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                                                           Purba Danarta which
                                                                                           had obtained a permit to
                                                                                           convert business activities
                                                                                           into a sharia commercial
                                                                                           bank and the BTPN Sharia
                                                                                           Business Unit which had
                                                                                           obtained a spin off permit.




   48
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                                                                           BTPN Syariah at a glance




                                                                    April 14
                                                                   PT Fitch Ratings Indonesia affirmed that the
                                                                   National Long-Term Rating remains at AAA
                                                                   (idn) Stable Outlook
                                October 23                           June 26
                               Establishment of Subsidiary,        Received ISO 27001 certification in
                               PT BTPN Syariah Ventura             Information
                                October 30                         SecurityManagement System

                               PT Bank BTPN Syariah Tbk             August 8
                               became a Bank Group based           1,821 Mahasiswa berhasil direkrut dari
                               on Core Capital 2 (KBMI 2)          program MBKM untuk magang di BTPN
                               based on the redefinition           Syariah.
  July 14                      of bank groupings referring
                               to POJK Number 12/                    October 26
It has been five years                                             The Treasury System has been officially
                               POJK.03/2023 concerning
since PT Bank Tabungan
                               Commercial Banks                    used as an effort to automate the Treasury
Pensiunan Nasional
                                                                   transaction process
Syariah Tbk became a            November 2
Sharia Commercial Bank                                                December 1
and is the only financial      PT Fitch Ratings Indonesia
institution focused            affirmed the National Long-         Updates to the Tepat Mobile Banking
on serving productive          Term Rating at AAA (idn)            e-channel service: opening online savings
inclusive families             Stable Outlook                      applications via Proper Mobile




 2019                       2020                   2021                        2022                      2023



   June 2                                              May 30

 PT Bank Tabungan                                    PT BTPN Syariah Ventura,
 Pensiunan Nasional Syariah                          as a Subsidiary, officially
 Tbk changed its name to PT                          operates
 Bank BTPN Syariah Tbk, in
 line with the Parent Entity                           June 2
                                                     Updating the Proper Mobile
                                                                                                                  PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




   June 7                                            Banking and Internet Banking
 PT Bank BTPN Syariah                                e-channel services for funding
 Tbk upgraded from BUKU                              customers
 2 Group Bank to BUKU 3
 Group Bank organically                                September 30

                                                     PT Fitch Ratings Indonesia
   November 18
                                                     affirmed that the National
 PT Fitch Ratings Indonesia                          Long-Term Rating remains
 raised its National Long-                           at AAA (idn) Stable
 Term Rating from AA+ (idn)                          Outlook
 Stable Outlook to AAA
 (idn) Stable Outlook




                                                                                                                         49
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                                                        Company
                                                        PROFILE                    [GRI 2-1]




                                                        company name                                         market scope
                                                        PT Bank BTPN Syariah Tbk                             [GRI 2-6]
                                                        The change in the name of the Bank is effective on   Financing productive pre- and moderately
                                                        June 4, 2020 based on a copy of the Decree of the    prosperous communities throughout Indonesia
                                                        Deputy Commissioner for Banking Supervision I of
                                                        the Financial Services Authority Number KEP-99/      operational area and service network
                                                        PB.1/2020 dated June 4, 2020 concerning the          [OJK C.3.d] [GRI 2-6]
                                                        Determination of the Use of a Business License       Has 15 Branch Offices and 41 Functional
                                                        in the Name of PT Bank Tabungan Pensiunan            Operational Offices spread throughout Indonesia.
                                                        Nasional Syariah Tbk to Become a License             In addition, there are more than 7 million
                                                        Business on behalf of PT Bank BTPN Syariah Tbk.      customers (4.2 million active), and cover 257
                                                                                                             thousand communities spread across 24 provinces
                                                        head office address & corporate secretary            in Indonesia and 2,600 sub-districts.
                                                        [OJK C.2] [GRI 2-3]
                                                        Menara BTPN Lantai 12                                website and other corporate emails
                                                        CBD Mega Kuningan                                    www.btpnsyariah.com
                                                        Jl. DR. Ide Anak Agung Gde Agung Kav. 5.5-5.6,       corporatecommunications@btpnsyariah.com
                                                        Jakarta Selatan 12950                                investorrelation@btpnsyariah.com
                                                                                                             corsec@btpnsyariah.com
                                                        Phone: +62-21 300 26 400
                                                        Facsimile: +62-21 252 0356 (general)                 Sustainability Reports and other information
                                                        Mail: corsec@btpnsyariah.com                         regarding BTPN Syariah are listed on the
                                                                                                             Company's Website
                                                        shareholders [OJK C.3.c]
                                                        (as of December 31, 2023)                            social media
                                                        PT BANK BTPN Tbk (70.00%)                            Instagram: @btpnsyariah
                                                        Publik (29.99%)                                      https://www.instagram.com/btpnsyariah/
                                                        Saham Treasuri (0.01%)
                                                                                                             Instagram: @saya.bankirpemberdaya
                                                        effective date of operation as a sharia              https://www.instagram.com/saya.
                                                        commercial bank                                      bankirpemberdaya/
                                                        July 14, 2014
                                                                                                             Facebook: BTPN Syariah/@btpnsyariah.id
                                                        authorized capital                                   https://facebook.com/btpnsyariah.id
                                                        Rp2,750,000,000,000 (Two Trillion Seven Hundred
                                                        and Fifty Billion Rupiah)                            YouTube: BTPN Syariah
                                                                                                             https://www.youtube.com/BTPNSyariah
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        issued and fully deposited capital
                                                        Rp770,370,000,000 (Seven Hundred Seventy             LinkedIn: BTPN Syariah
                                                        Billion Three Hundred Seventy Million Rupiah)        https://www.linkedin.com/company/btpnsyariah

                                                        business activity                                    Tiktok: @btpnsyariah
                                                        [OJK C.4] [GRI 2-6]
                                                        Sharia-based banking                                 legal entity
                                                                                                             Limited Liability Company (PT)




  50
Page 51
                                                                  BTPN Syariah at a glance




legal basis for establishment
•   Deed of Establishment of PT Bank Purba           •   Deed of Decree of the Annual General
    Danarta Number 10 dated March 7, 1991, which         Meeting of Shareholders of PT Bank Tabungan
    was later revised by Deed of Amendment to the        Pensiunan Nasional Syariah Tbk Number 26
    Articles of Association Number 39 dated May          dated April 16, 2020, made in the presence
    25, 1992, and Deed of Amendment Number 25            of Ashoya Ratam, S.H., M.Kn., regarding
    dated July 11, 1992 made before Notary H. Abu        the change of name of PT Bank Tabungan
    Jusuf, S.H.                                          Pensiunan Nasional Syariah Tbk to PT Bank
•   Deed of PT Bank Purba Danarta Meeting                BTPN Syariah Tbk and has obtained approval
    Decision Statement Number 5 dated August             from the Minister of Law and Human Rights
    27, 2007 made before Notary Winarti Lukman           of the Republic of Indonesia based on Decree
    Widjaja, S.H., regarding adjustments to Law          No. AHU-0034666.AH.01.02.Year 2020 dated
    Number 40 of 2007 concerning Limited Liability       May 8, 2020 and Letter of Acceptance of
    Companies and has obtained approval from             Notification of Amendments to the Articles of
    the Minister of Law and Human Rights of the          Association No. AHU-AH.01.03-0214020 dated
    Republic Indonesia dated January 18, 2008            May 8, 2020.
    number AHU-02507.AH.01.02.Year 2008, which
    was announced in the State Gazette of the        changes to the articles of association
    Republic of Indonesia dated March 14, 2008       •   Deed of Statement of Decision of Shareholders
    number 22, Supplement number 3032.                   of PT Bank Tabungan Pensiunan Nasional
                                                         Syariah Number 15 dated October 31, 2013
change of name                                           made before Notary Indah Indriani, S.H.,
•   Deed of Statement of Decisions of the                M.Kn., regarding the change of domicile of the
    Extraordinary General Meeting of Shareholders        Company from Semarang to South Jakarta
    of PT Bank Purba Danarta No. 01 dated April          and has been registered with the Ministry of
    1, 2009 made before Notary Winarti Lukman            Law and Human Rights of the Republic of
    Widjaja, S.H., regarding the change of name of       Indonesia in accordance with the decision and
    PT Bank Purba Danarta to PT Bank Sahabat             Approval of Changes to the Company's Articles
    Purba Danarta and has obtained approval              of Association Number AHU-60408.AH.01.02.
    from the Minister of Law and Human Rights of         Year 2013 dated November 21, 2013 and Receipt
    the Republic of Indonesia dated July 22, 2009        of Notification of Changes to the Company's
    number AHU-34303 .AH.01.02.Year 2009.                Articles of Association Number AHU.AH.01.10-
•   Deed of Amendment to the Articles of                 47895 dated November 12, 2013.
    Association of PT Bank Sahabat Purba             •   Deed of Meeting Decision Statement Number
    Danarta also known as Bank Sahabat Number            27 dated January 30, 2014 made before
    25 dated August 27, 2013 in conjunction with         Notary Hadijah, S.H., M.Kn., regarding the
    Notarial Deed Number 30 dated September              separation of the Sharia Business Unit of PT
                                                                                                          PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




    25, 2013 made before Notary Hadijah S.H.,            Bank Tabungan Pensiunan Nasional Tbk ("UUS
    M.Kn., regarding the change of name of PT Bank       BTPN") from PT Bank Tabungan Pensiunan
    Sahabat Purba Danarta ( BSPD) became                 Nasional Tbk (" BTPN”) and has received
    PT Bank Tabungan Pensiunan Nasional Syariah          Notification of Amendments to the Articles of
    (BTPN Syariah) and has received approval from        Association of PT Bank Tabungan Pensiunan
    the Ministry of Law and Human Rights based           Nasional Syariah Number AHU-AH.01.10-04338
    on Decree No. AHU-50529.AH.01.02. 2013               dated February 12, 2014.
    dated 1 October 2013 and announced in State      •   Deed of Shareholder Decision Statement,
    Gazette Number 94, addition No. 124084 dated         Amendment to the Articles of Association of
    November 22, 2013.                                   PT Bank Tabungan Pensiunan Nasional Syariah
                                                         Number 57 dated November 16, 2017 made
                                                         before Notary Jose Dima Satria, S.H., M.Kn.,
                                                         regarding the change in status to a public
                                                         company and has obtained approval from


                                                                                                                    51
Page 52
                                                            the Minister of Law and Human Rights of the        changes in the composition of the Board
                                                            Republic of Indonesia with its Decree dated        of Directors, Board of Commissioners and
                                                            November 16, 2017 number AHU-0024076.              Sharia Supervisory Board
                                                            AH.01.02. 2017 and notification of changes to      •   Deed of Statement of Decision of the
                                                            its Articles of Association has been received          Extraordinary General Meeting of PT Bank
                                                            and recorded by the Minister of Law and                Tabungan Pensiunan Nasional Syariah Tbk
                                                            Human Rights of the Republic of Indonesia in           Number 02 dated September 2, 2019 made
                                                            accordance with his letter dated November 16,          before Notary Ashoya Ratam, S.H., M.Kn.,
                                                            2017 number AHU-AH.01.03-0191730.                      concerning the Composition of the Board
                                                        •   Deed of Shareholder Decision Statement,                of Commissioners, Directors and Sharia
                                                            Amendment to the Articles of Association               Supervisory Board and notification of this
                                                            of PT Bank Tabungan Pensiunan Nasional                 has been obtained. change to Company Data
                                                            Syariah Tbk Number 8 dated April 5, 2018 made          dated September 17, 2019 number AHU-
                                                            before Notary Jose Dima Satria, S.H., M.Kn.,           AH.01.03-0332927.
                                                            concerning amendments to the Articles of           •   Deed of Statement of Decisions of the Annual
                                                            Association of BTPN Syariah and has obtained           General Meeting of Shareholders of PT Bank
                                                            approval from the Minister Law and Human               BTPN Syariah Tbk Number 36 dated April 21,
                                                            Rights of the Republic of Indonesia with its           2021 made by Notary Ashoya Ratam, S.H.,
                                                            Decree dated April 10, 2018 number AHU-                M.Kn., concerning the Composition of the
                                                            0007953. AH.01.02.Year 2018;                           Board of Directors, Board of Commissioners
                                                        •   Deed of Shareholder Decision Statement,                and Sharia Supervisory Board and obtained
                                                            Amendment to the Articles of Association of            approval from the Minister of Law and Human
                                                            PT Bank Tabungan Pensiunan Nasional Syariah            Rights of the Republic of Indonesia based on
                                                            Tbk Number 178 dated May 31, 2018 made                 the Letter of Acceptance of Notification of
                                                            before Notary Jose Dima Satria, S.H., M.Kn.,           Changes to Company Data of PT Bank BTPN
                                                            concerning amendments to the Articles of               Syariah Tbk No.AHU-AH.01.03-0260167 dated
                                                            Association (capital) of BTPN Syariah and has          April 23, 2021.
                                                            been obtained notification of changes to the       •   Deed of Statement of Decisions of the Annual
                                                            Articles of Association has been received and          General Meeting of Shareholders of PT Bank
                                                            recorded by the Minister of Law and Human              BTPN Syariah Tbk Number 42 dated April
                                                            Rights of the Republic of Indonesia according to       21, 2022 made by Ashoya Ratam, SH, MKn,
                                                            June 21, 2018 number AHU-AH.01.03-0215425.             concerning the Composition of the Board of
                                                        •   Deed of Statement of Decisions at the                  Directors, Board of Commissioners and Sharia
                                                            Annual General Meeting of PT Bank Tabungan             Supervisory Board and obtained approval
                                                            Pensiunan Nasional Syariah Tbk Number 26               from the Minister of Law and Human Rights of
                                                            dated April 16, 2020, made before Notary               the Republic of Indonesia based on the Letter
                                                            Ashoya Ratam, S.H., M.Kn., regarding changes           of Acceptance of Notification of Changes to
                                                            to the Company's Articles of Association               Company Data of PT Bank BTPN Syariah Tbk
                                                            and has obtained approval from the Minister            No. AHU-AH.01.09-0010849 dated May 1,
                                                            of Law and Human Rights Republic of                    2022.Deed of Statement of Resolutions of the
                                                            Indonesia based on Decree No.AHU-0034666.              Extraordinary General Meeting of Shareholders
                                                            AH.01.02.Year 2020 dated May 8, 2020                   PT Bank BTPN Syariah Tbk Number 25 dated
                                                            and Letter of Acceptance of Notification of            October 13, 2022 made by Ashoya Ratam,
                                                            Amendments to the Articles of Association No.          SH, MKn, concerning the Composition of the
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                            AHUAH.01.03-0214020 dated May 8, 2020.                 Board of Directors, Board of Commissioners
                                                        •   Deed of Statement of Decisions of the Annual           and Sharia Supervisory Board and obtained
                                                            General Meeting of PT Bank BTPN Syariah                approval from the Minister of Law and Human
                                                            Tbk Number 35 dated April 21, 2021, made               Rights of the Republic of Indonesia based on
                                                            before Notary Ashoya Ratam, S.H., M.Kn.,               the Letter of Acceptance of Notification of
                                                            concerning Amendments to the Company's                 Changes to PT Company Data Bank BTPN
                                                            Articles of Association and has obtained               Syariah Tbk No. AHU-AH.01.09-0067440 dated
                                                            approval from the Minister of Law and Human            October 20, 2022.
                                                            Rights of the Republic of Indonesia based          •   Deed of Statement of Decisions of the Annual
                                                            on Letter of Acceptance of Notification of             General Meeting of Shareholders of PT Bank
                                                            Amendment to Articles of Association No.               BTPN Syariah Tbk Number 27 dated April
                                                            AHU-AH.01.03-0309443 dated May 17, 2021.               12, 2023 made by Ashoya Ratam, SH, MKn,
                                                                                                                   concerning the Composition of the Board of
                                                                                                                   Directors, Board of Commissioners and Sharia


     52
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                                                                  BTPN Syariah at a glance



    Supervisory Board and obtained approval          securities administration bureau
    from the Minister of Law and Human Rights of     PT Datindo Entrycom
    the Republic of Indonesia based on the Letter    Jl. Hayam Wuruk No. 28
    of Acceptance of Notification of Changes to      Jakarta 10120
    Company Data of PT Bank BTPN Syariah Tbk         Telephone: +62-21 350 8077 (Hunting)
    No. AHU-AH.01.09.0112366 dated April 19, 2023;   Facsimile: +62-21 350 8078
    and
•   Deed of Statement of Decisions of the Annual     securities rating company
    General Meeting of Shareholders of PT Bank       PT Fitch Ratings Indonesia
    BTPN Syariah Tbk Number 46 dated April           DBS Bank Tower, Lt. 24, Suite 2403
    27, 2023 made by Ashoya Ratam, SH, MKn,          Jl. Prof. Dr. Satrio Kav. 3-5
    concerning the Composition of the Board of       Jakarta 12940
    Directors, Board of Commissioners and Sharia     Telephone: +62-21 2988 6800
    Supervisory Board and obtained approval          Facsimile: +62-21 2988 6822
    from the Minister of Law and Human Rights of
    the Republic of Indonesia based on the Letter    company ratings
    of Acceptance of Notification of Changes to      National Long-Term Rating:
    Company Data of PT Bank BTPN Syariah Tbk         Affirmation with AAA (Idn) rating, Outlook stable
    No. AHU-AH.01.09.0112846 dated April 27, 2023.   by PT Fitch Ratings Indonesia on September 30,
                                                     2022
subsidiary
PT BTPN Syariah Ventura                              list of stock performance indexes on the
                                                     indonesian stock exchange
stock exchange                                       •   IHSG
PT Bursa Efek Indonesia                              •   Indeks IDX80
• April 25, 2018 BTPN Syariah Go Public              •   Indeks LQ45
   Registration declared effective by the Capital    •   Indeks IDX30
   Market Supervisory Financial Services Authority   •   Indeks Quality 30
• May 3, 2018 BTPN Syariah was officially listed     •   Indeks Growth 30
   on the Indonesia Stock Exchange                   •   Indeks ISSI
• May 8, 2018 Initial Listing and Trading of BTPN    •   Indeks JII70
   Syariah Shares                                    •   IDX SMC Liquid
                                                     •   IDX SMC Composite
ticker code                                          •   Indeks MNC36
BTPS                                                 •   Indeks INFOBANK15
                                                     •   Indeks Bisnis-27
ISIN code                                            •   Indeks KOMPAS100
ID1000142805                                         •   Indeks Pefindo25
                                                     •   Indeks ESGS KEHATI
Taxpayer Identification Number (NPWP)                •   Indeks ESGQ KEHATI
PT Bank BTPN Syariah Tbk
01.551.806.1-511-000

Business Identification Number (NIB)
                                                                                                         PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




PT Bank BTPN Syariah Tbk
9120209291387

independent auditor
Siddharta Widjaja & Rekan
(an Indonesian partnership and member firm of
the KPMG network of independent member firm
affiliated with KPMG International Cooperative)

Wisma GKBI Lantai 32, Jl. Jend. Sudirman No. 28,
Jakarta 10210, Indonesia
Telephone: +62-21 574 2333
Facsimile: +62-21 574 1777




                                                                                                                53
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                                                        Products and
                                                        SERVICES                   [OJK C.4][GRI 2-6]




                                                        sharia-based funding
                                                                    Tepat Tabungan Syariah
                                                                    Savings product with a wadiah yad dhamanah agreement given to both Tepat Tabungan
                                                                    Syariah customers and non-financing customers.

                                                                    This product, which supports inclusive finance, makes it easy to make bill payment
                                                                    transactions, purchase credit, transfer funds as well as make cash deposit and cash
                                                                    withdrawal transactions at Mitra Tepat BTPN Syariah. This service is also equipped
                                                                    with a payment service feature for products for daily needs of BTPN Syariah customers,
                                                                    making it easier and improving the welfare of their families and the environment.
                                                                    Tepat Tabungan
                                                                    Can be opened without a minimum deposit, with a wadiah yad dhamanah contract.
                                                                    Customers have the convenience of making transactions at all Bank branches, free of
                                                                    monthly administration fees.



                                                                    Tepat Tabungan Platinum
                                                                    Savings managed based on a profit sharing contract (mudharabah mutlaqah) provide
                                                                    the freedom to make unlimited cash withdrawals and free monthly administration fees
                                                                    (terms and conditions apply) for optimal returns.



                                                                    Tepat Tabungan Rencana
                                                                    To easily make various dreams come true, with various monthly deposit options and time
                                                                    periods (mudharabah mutlaqah contract)




                                                                    Rekening Tabungan Jamaah Haji
                                                                    Savings product for customers who plan to carry out the Hajj pilgrimage to the Holy
                                                                    Land. Based on sharia principles with the wadiah yad dhamanah contract, this safe
                                                                    and secure product has an online connected system with SISKOHAT of the Indonesian
                                                                    Ministry of Religion.


                                                                    Tepat Deposito
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                                    Deposits based on a profit sharing contract (mudharabah mutlaqah) between BTPN
                                                                    Syariah (mudharib) and the customer as the owner of the funds (shahibul maal) with
                                                                    terms ranging from 1-28 days and 1, 2, 3, 4, 5, 6, 7, 8 , 9, 10, 11, 12, and 24 months, in Rupiah
                                                                    currency.


                                                                    Tepat Giro
                                                                    The fund placement product uses a contract contract, providing flexibility for customers
                                                                    to make transactions using checks or Bilyet Giro.




     54
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                                                                   BTPN Syariah at a glance




sharia-based financing
            Tepat Sharia Financing – Group
            Financing specifically aimed at inclusive women is carried out based on a sale and
            purchase agreement (wakalah wal murabahah agreement). Tepat Sharia Financing
            (previously called PMD) focuses on building customer character and good habits, namely
            Courage, Discipline, Hard Work, Mutual Assistance (BDKS).


            Tepat Pembiayaan Syariah Modal Kerja for Financing Companies
            Through this product, the Bank distributes financing to sharia financing companies to
            meet the financing needs of end user customers from sharia financing companies which
            currently cannot be fulfilled by the Bank. The Bank synergizes with PT BANK BTPN Tbk
            as the parent entity to strengthen the implementation of the prudent principle in the
            process of distributing financing to customers.

            Tepat Sharia productive financing for institutions that support the ultra micro
            segment
            Working capital and investment financing aimed at Companies or Institutions that
            Support the Ultra Micro Segment, through sale and purchase agreements (murabahah
            contracts) to increase Bank assets and build a business ecosystem with strategic
            partners to expand service reach and increase financing benefits so that they can meet
            needs customers who are currently unable to be met by BTPN Syariah.
            Tepat Working Capital Financing Facilities for Mitra Tepat
            With the Tepat product, Working Capital Financing Facilities for Tepat Partners, Tepat
            Partners as agents find it easy to use revolving financing from the Bank according to
            the products needed. Customers can use the financing facility to cover liquidity needs
            for rotating capital in serving customers who make transactions with agents or rotating
            capital supplies. This facility is provided using several contract options, including:
            1. Qardh contract for liquidity needs;
            2. Murabahah agreement for purchasing supplies.
            Tepat Pembiayaan Syariah for Individual
            Tepat Pembiayaan Syariah for individuals is a financing product for working capital,
            investment and consumer purposes provided to community and non-community
            customers.



            Distribution of financing through collaboration schemes with bank partners
            (channeling)
            Financing will be channeled through collaboration with partners in the form of providing
            working capital financing limits. Partners will play a role in utilizing the financing limit
                                                                                                           PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




            by distributing it to members/users (hereinafter referred to as BTPN Syariah customers
            (end users)) in accordance with the provisions determined between BTPN Syariah and
            Partners.




                                                                                                                 55
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                                                        Operat
                                                        AREA
                                                               i onal       [OJK C.3.d][GRI 2-6]

                                                        The location of operational areas supported by 15 branch offices and 41 functional offices of BTPN Syariah
                                                        is depicted below:

                                                        Serving:




                                                                                                             2

                                                                            1




                                                                                                 3


                                                                 1. Sumatra                                           4
                                                                 2. Kalimantan & Sulawesi
                                                                 3. Java
                                                                 4. NTT



                                                        Additionally, there are more than tens of thousands of Mitra Mitra spread across 24 provinces in Indonesia
                                                        who serve BTPN Syariah financing customers. In 2023, there was a change in the number of functional
                                                        offices (KFO) from the original 47 KFO to 41 KFO.




                                                        Business
                                                        SCALE                   [OJK C.3.a][GRI 2-7]

                                                                                                                               Period
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        Description                            Unit
                                                                                                           2023                 2022                 2021
                                                        Total employees                       people          12,661,362           12,757,021               12,218
                                                        Total Revenue                       Rp million           5,259,749         5,029,350             4,279,210
                                                        Third party funds                   Rp million           12,142,817        12,048,529           10,973,460
                                                        Total Liabilities                   Rp million        12,661,362           12,753,981            11,449,156
                                                        Equity                              Rp million            8,777,133         8,407,995            7,094,700
                                                        Total Assets                        Rp million       21,435,366             21,161,976          18,543,856




     56
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                                                                                BTPN Syariah at a glance




Supply Chain and
WORKING PARTNERS                                                           [GRI 2-6]

In its strategic endeavors, BTPN Syariah underscores the imperative of collaborative engagement and
necessitates the unwavering support of a diverse array of stakeholders, encompassing various work associates.
The composition of this comprehensive network includes technology facilitators, vendors of work-related
materials, educational service providers, training entities, legal professionals, notaries, outsourcing providers,
and more, collectively constituting a cohesive sharia digital ecosystem.

The meticulous selection of work partners by BTPN Syariah is guided by the principles of equity and
transparency. Those chosen to collaborate are meticulously enlisted in the Partner List, subject to overarching
criteria ensuring competence, adherence to labor regulations, and a willingness for thorough examination
at any given juncture. The catalog of BTPN Syariah's collaborative alliances undergoes periodic scrutiny and
assessment, with additional considerations introduced during the pandemic, specifically pertaining to the
implementation of health protocols by work partners.

BTPN Syariah remains steadfast in its commitment to favor local partners with proximate geographical
proximity to the company's operational centers. Nevertheless, should the requisite goods and services
not be locally accessible, the company seeks fulfillment through work partners situated elsewhere, even
internationally.
                                      2023                            2022                                  2021
 Area                       Total          Procurement      Total          Procurement           Total          Procurement
                          Suppliers           Value       Suppliers           Value            Suppliers           Value
 Sumatra                              43          6,539               52               4,417               52          7,481
 Java                             344           659,774           346             746,309             335            49,630
 Kalimantan                            7           868                13                462                12           184
 Sulawesi                             8            426                 7                 311               6             141
 Bali and East Nusa
                                      17        43,487                14           26,520                  17         16,047
 Tenggara
 Total                            419           711,095           432             778,019             422           523,482




Significant Changes
IN THE COMPANY                                              [OJK C.6][GRI 2-6]

There are changes to the composition of the Management as follows:
• Changes to the composition of the Board of Commissioners in connection with the resignation of Yenny Lim as
                                                                                                                               PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




   Commissioner and the appointment of Mulya Effendi Siregar as Independent Commissioner. These changes are
   based on the decision of the BTPN Syariah Annual General Meeting of Shareholders as outlined in the Deed of
   Statement of Decisions of the Annual General Meeting of Shareholders of PT Bank BTPN Syariah Tbk Number 46
   dated April 27, 2023 made by Ashoya Ratam, SH, MKn.
• Changes to the composition of the Board of Directors in connection with the resignation of Gatot Adhi Prasetyo as
   Director and the appointment of Dewi Nuzulianti as Director. These changes are based on the decision of the BTPN
   Syariah Annual General Meeting of Shareholders as outlined in the Deed of Statement of Decisions of the Annual
   General Meeting of Shareholders of PT Bank BTPN Syariah Tbk Number 27 dated April 12, 2023 made by Ashoya
   Ratam, SH, MKn.

The composition of the Board of Commissioners at BTPN Syariah has taken into account the diversity of expertise,
experience and knowledge needed to strengthen the organization to achieve the company's goals and targets in
the corridor of sustainable finance. In more detail, this change in management composition is contained in the 2023
BTPN Syariah Annual Report in the Governance Implementation Report section.


                                                                                                                                      57
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                                                        External Initiatives and
                                                        ASSOCIATION MEMBERSHIP                                                                      [OJK C.5][GRI 2-28]




                                                        BTPN Syariah maintains an unwavering commitment to ceaselessly empower customers within the
                                                        underprivileged and moderately prosperous segments, aligning its efforts seamlessly with the overarching
                                                        objectives of the globally endorsed sustainable development paradigm encapsulated in the Sustainable
                                                        Development Goals (SDGs).

                                                        In pursuit of this objective, BTPN Syariah actively engages in collaborative endeavors with diverse
                                                        international institutions and associations, assuming roles both as esteemed members and cooperative
                                                        partners, as show in the following:


                                                                                                                                           Working
                                                                                                                                           Group/              Funds
                                                        No    Associate/Initiative Name   Purpose
                                                                                                                                          Committee         Contribution
                                                                                                                                         Participation
                                                                                          Mandatory in nature

                                                                                          distribute the rights of equity securities
                                                              PT Kustodian Sentral Efek
                                                                                          holders in the form of money and/or
                                                        1     Indonesia (KSEI)                                                             Member             Rp11,000,000
                                                                                          securities and assist in implementing
                                                                                          corporate actions by providing a List of
                                                                                          Equity Securities Holders and Securities
                                                                                          Holders' KTUR

                                                              Asosiasi Emiten Indonesia   Is an organizational forum for BTPN Syariah
                                                        2                                                                                  Member             Rp12,000,000
                                                              (AEI)                       as a Public Company

                                                              Indonesia Corporate
                                                                                          Is an organizational forum for the corporate
                                                        3     Secretary Association                                                        Member              Rp5,000,000
                                                                                          secretary of BTPN Syariah
                                                              (ICSA)
                                                              Perhimpunan Bank            Mandatory in nature
                                                        4     Swasta Nasional             Is an association forum for BTPN Syariah as      Member             Rp36,000,000
                                                              (Perbanas)                  a National Private Bank
                                                              Asosiasi Bank Syariah       Mandatory in nature
                                                        5     Indonesia (ASBISINDO)       Is an association forum for BTPN Syariah as      Member           Rp150,000,000
                                                                                          a Sharia Commercial Bank in Indonesia
                                                              Forum Komunikasi            Is a forum for consultation and
                                                        6     Direktur Kepatuhan          communication between Indonesian Banking         Member              Rp5,000,000
                                                              Perbankan (FKDKP)           Compliance Directors
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




   58
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                                                                                BTPN Syariah at a glance




                                                                                     Working
                                                                                     Group/            Funds
No    Associate/Initiative Name   Purpose
                                                                                    Committee       Contribution
                                                                                   Participation
      Dewan Syariah Nasional      is a forum for realizing the aspirations of
7     (DSN) Majelis Ulama         Muslims regarding the economy from a               Member          Rp36,000,000
      Indonesia (MUI)             Sharia perspective
                                  Is an Alternative Dispute Resolution
      Lembaga Alternatif
                                  institution that is professional, fair,
      Penyelesaian Sengketa
8                                 trustworthy, and the first choice for              Member           Rp17,500,000
      Perbankan Indonesia
                                  customers and banks in resolving banking
      (LAPSPI)
                                  disputes.
                                                                                                     Rp18,000,000
                                                                                                         (For South
                                  is a means of communication forum for                            Kalimantan, East
      Forum Komunikasi Industri
9                                 coordination between the Financial Services        Member         Nusa Tenggara,
      Jasa Keuangan (FK-IJK)
                                  Industry and Regulators.                                          South Sulawesi
                                                                                                          and North
                                                                                                          Sumatra)
                                  is an organization that represents all
                                  payment system players and is a partner of
      Asosiasi Sistem
                                  Bank Indonesia in realizing Bank Indonesia's
10    Pembayaran Indonesia                                                           Member          Rp35,000,000
                                  objectives in carrying out the task of
      (ASPI)
                                  regulating and maintaining the smooth
                                  running of the payment system.



As a financial services institution, BTPN Syariah is committed to fulfilling the implementation of
sustainable finance in line with POJK Number 51/POJK.03/2017 concerning the Implementation of
Sustainable Finance for Financial Services Institutions, Issuers and Public Companies. [GRI 2-27]

The implementation that has been carried out at the Bank is through the availability of a Sustainable
Finance Action Plan that is in accordance with the principles of sustainable finance, made by the Board of
Directors and approved by the Commissioner and reported to the Regulator, where the Bank has outlined
the realization of its implementation every year in the Sustainability Report submitted to all stakeholders
in a timely manner. [GRI 2-23]
                                                                                                                      PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                                                                                            59
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     PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




60
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        Sustainability Performance Highlights




           05
                                                PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




Faithful Empowering
        OTHE RS
               [GRI 413-1, FS13, FS14]




                                                          61
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     PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




62
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                                                             Faithfully Empowering OTHERS




     Continuously accompanying and serving inclusive customers is a
    manifestation of the bank's loyalty to sustainable values. This loyalty is
                expected to have a real positive social impact.




social aspect commitment [OJK F.23][GRI 2-23, 2-24, 2-25]
Remaining faithful in our commitment to benefit others, BTPN Syariah firmly believes that by addressing
social issues within inclusive communities, we can also enhance the sustainability of our business. For us,
engaging in social activities is an integral aspect of our operations, and we continually evaluate our efforts
for ongoing enhancement.

Rooted in the "Do Good, Do Well" philosophy ingrained in our institution since its inception, we collaborate
with stakeholders who share our commitment to safeguarding, nurturing, and advancing the inclusive
community economy. Through initiatives like the Daya and Bestee Programs, we extend our support
to communities across the nation, accompanying them on their journey towards empowerment and
prosperity.

Daya Program [OJK F.25]
In the BTPN Syariah Unique Value Proposition, the Daya Program stands out as a vital component of the
company's social initiatives, dedicated to reinforcing financial literacy and inclusion within the inclusive
communities. This program achieves its objectives through training and empowerment activities in the
domains of health, entrepreneurship, and the environment.

The Daya Program's Access to Knowledge (A2K) component is structured into various segments:
1. Mini Meeting
   Mini Meetings serve as the initiation for the financial inclusion program. During these sessions, the
   Community Officer (CO) introduces potential customers to various bank products and services.
2. Basic Membership Training
   This involves a routine one-hour training conducted over five days for new customers from inclusive
   communities. During these sessions, the CO imparts an understanding of the customers' conditions,
                                                                                                                 PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




   requirements, rights, and obligations as recipients of bank financing. Additional knowledge on financial
   management is provided, with ongoing motivation and encouragement to instill values such as Dare to
   Try, Discipline, Hard Work, and Helping Each Other.
3. Regular Center Meetings
   Conducted bi-weekly at community center locations, these meetings encompass a range of Assistance
   and empowerment activities. The agenda includes sessions on health, environment, entrepreneurship,
   and business support. The goal is to enhance customers' skills and capabilities based on their specific
   needs. The program offers a diverse set of 100 modules and games to facilitate the growth and
   development of inclusion community customers.




                                                                                                                        63
Page 64
                                                        Through these comprehensive initiatives, the Daya Program is positioned as a key driver in empowering
                                                        inclusive communities, fostering financial inclusion, and contributing to the holistic development of its
                                                        participants.

                                                        The development of training materials in the form of tips from 2020 to 2023 is shown in the following
                                                        data:



                                                                         2021                                       2022



                                                                              44
                                                                           Daya Tips
                                                                                                                           22
                                                                                                                        Daya Tips




                                                                                                                                    Health:
                                                                            2023
                                                                                                                                    19 Modules




                                                                                                     63
                                                                                                  Daya Tips
                                                                                                                                       Environment:
                                                                                                                                       8 Modules




                                                                  Entrepreneurship:
                                                                  36 Modules
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




    64
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                                                                                                               Faithfully Empowering OTHERS




Entrepreneurship
Tips                                                                                               •
                                                                                                   •
                                                                                                   •
                                                                                                       x
                                                                                                           •


                                                                                                   •
                                                                                                   •
                                                                                                   •
                                                                                                   •       •
                                                                                                   •
                                                                                                   •
                                                                                                   •
                                                                                                   •

                                                                                                           •

                                                                                                   •



                                                                                                           •
                                                                                                   •




             Meraup rezeki dari                                          4
             popok bekas                                                 3

                                                                         2

                                                                         1




                                                                                                                         Environmental
                                                                   Posisi dibalik



                                                       1. Pot plastik    3. Popok lapisan kesatu
                                                       2. Kantong kresek 4. Popok lapisan kedua




                                                                                                                         Tips
            Popok bekas sekali pakai atau pospak      2. Membuat pot dari pospak
            bisa mendatangkan rezeki jika didaur
            ulang. Caranya adalah dengan              Bahan dan alat yang dibutuhkan:
            mengubah pospak menjadi pot dan           • Lapisan luar pospak (2-3 lembar)
            media tanam. Selain mendatangkan          • Sabun /detergen untuk membilas
            rezeki, mendaur ulang pospak akan         • Semen 1 sekop & air secukupnya
            mengatasi masalah lingkungan seperti      • Wadah untuk adonan semen
            timbunan sampah dan bau tak sedap.        • Kantong kresek untuk sekat
                                                      • Pot ukuran 30 cm untuk pola
            Nah berikut ide mendaur ulang pospak      • Kuas kecil untuk melapis
            dalam bentuk media tanam dan pot.
                                                      Cara membuatnya:
                         1. Lapisan dalam popok       • Ambil lapisan luar pospak. Cuci
                         2. Lapisan luar popok          bersih dengan sabun dan air lalu
                                                        jemur sampai kering.
                                                  2
                                                      • Rendam lapisan luar pospak ke
                                  1
                                                        dalam adonan semen dan air.
                                                        Pastikan seluruh bagian terendam
                                                        sempurna di dalam adonan.
                                                      • Siapkan pot dalam posisi dibalik
             1. Membuat media tanam dari pospak         lalu bungkus dengan kantong
                                                        kresek sebagai cetakan.
             Pospak memiliki 2 lapisan: lapisan       • Letakkan rendaman adonan
             dalam yang berbahan gel dan lapisan        tersebut pada pot yang sudah
             luar yang berbahan plastik. Lapisan        dibalik lalu jemur sampai kering.
             dalam berfungsi untuk menyerap           • Setelah kering, lapisi kembali
             cairan dari kotoran bayi, sedangkan        dengan sisa adonan semen
             lapisan luar berfungsi untuk menahan       menggunakan kuas lalu jemur
             cairan agar tidak keluar.                  kembali sampai kering.
                                                      • Apabila adonan sudah kering,
             Lapisan dalam bisa dimanfaatkan            angkat dari cetakan dan lepaskan
             sebagai media taman. Caranya, robek        kantong kreseknya.
             lapisan dalam pospak, ambil gel-nya      • Agar terlihat menarik, pot yang
             kemudian masukkan ke dasar pot lalu        sudah jadi ini bisa dicat sesuai
             timbun dengan tanah. Gel ini akan          dengan selera masing-masing.
             berfungsi sebagai cadangan air pada      • Pot yang sudah dicat dapat dijual
             saat musim kemarau.                        atau dipergunakan sendiri.




 Diolah dari berbagai sumber




                                                                                                                                              PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




Health
Tips                                                                                                   x                       x




                                                                                                                                                    65
Page 66
                                                           The Bank's empowerment activities integrated within its business operations and services have become
                                                           increasingly crucial for inclusive communities, particularly those included in the inclusive segment. The
                                                           demand for broader empowerment initiatives, reaching even remote communities across the country,
                                                           reflects the Bank's commitment to achieving Indonesia's financial inclusion index targets. [GRI 413-1, FS13,
                                                           FS14]


                                                        4. Group Empowerment
                                                           entails empowerment activities provided either in group settings or tailored to specific customer
                                                           groups within the TBNI (Growing with Inspirational Customers) and TBNS (Growing with Successful
                                                           Customers) categories. These activities are conducted regularly or as needed, adjusted to the unique
                                                           requirements of the communities served.

                                                           The Group Empowerment Program comprises:
                                                           a. Regular Provision of Entrepreneurship, Health, and Environment Modules/Tips at Customer Center
                                                               Meetings
                                                           b. BDKS (Courage, Discipline, Hard Work, and Mutual Assistance) Module at Routine Center
                                                               Meetings (PRS) that serves as an empowerment tool aimed at encouraging increased customer
                                                               attendance. Following the Covid-19 Pandemic, the Bank anticipates that customer engagement
                                                               at these meetings will enhance, consequently elevating the overall quality of BTPN Syariah
                                                               customers.




                                                           c.   The Power Card Game is provided during specific Center Routine Meetings (PRS) for
                                                                customers who have made installment payments through the Right Partner. These interactive
                                                                empowerment activities utilize game cards as a medium to deliver training material and
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                                engage participants in a dynamic learning experience.




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                                                       Faithfully Empowering OTHERS




Throughout 2023, 2,048 centers have played the Daya Card game.


                             1. Layout/5R (24 cards)




                                2. Innovation (25 cards)




                          3. Basic Marketing (4 cards)
                                                                                      PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




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                                                                      HONJE 2 Center                       Al ikhlas Center                    DUSUN TUO 04A Center
                                                                  MMS CIRANJANG-CIANJUR               MMS PUJER-BONDOWOSO                    MMS MARO SEBO ULU-JAMBI
                                                                       JABAR 2 - DH 1                      JATIM 1 - DH 3                          SUM 5 - DH 4


                                                           d. This program involves providing webinar training sessions to equip participants with valuable
                                                              skills and knowledge. Throughout 2023, a total of 2,481 successful customers have participated
                                                              in these training sessions, benefiting from the expertise and guidance offered through the
                                                              program.




                                                                                  Successful customer participating in entrepreneurship webinar.

                                                        The material provided during the successful customer assistance program in 2023 is:
                                                               Period                                              Material provided
                                                                                                                       Entrepreneurial Mindset and Business Opportunities
                                                                                                                                                             Business Identity
                                                        May
                                                                                                                                                         Packaging That Sells
                                                                                                                                                          Financial Recording
                                                                                                                                                                   Marketing
                                                                                                                                                   Introduction to Technology
                                                        June
                                                                                                                                                             Excellent Service
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                                                                                                       Business Diversification and Innovation
                                                                                                                       Entrepreneurial Mindset and Business Opportunities
                                                                                                                                                           Business Branding
                                                        August
                                                                                                                                                         Packaging That Sells
                                                                                                                                                          Financial Recording
                                                                                                                                                                   Marketing
                                                                                                                                                   Introduction to Technology
                                                        September
                                                                                                                                                             Excellent Service
                                                                                                                                               Business Growth & Innovations




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                                                                   Faithfully Empowering OTHERS




       Period                                             Material provided
                                                                              Using Video for Business Development
October
                                                                           Benefits of Becoming Mitra Tepat (MT)
                                                 Get to know the latest marketing strategies via social commerce
November
                                                        Attractive Promotion Methods for the Right Partners (MT)

   e. Individual Assistance Empowerment Program
      Entrepreneurship assistance is provided through the Inspirational Customer Assistance activities
      and the Bestee Program, which entail intensive one-on-one assistance programs:
      • Inspirational Customer Assistance
         This program involves one-on-one intensive entrepreneurship Assistance conducted by Senior
         Business Managers (SBMs) for Inspirational Customers. In 2023, a total of 550 Inspirational
         Customers have received personalized Assistance support.
      • Bestee Assistance Program
         The Bestee Assistance Program is an intensive entrepreneurship Assistance initiative conducted
         by students for customers.

5. Collaborative Empowerment through Digital Solutions
   This component offers online assistance to selected customers through the Bestee Platform. The
   platform offers various formats such as video, written articles, and infographics, allowing customers
   to self-study. By 2023, the Bestee Platform will have a total of 368 modules, representing a significant
   increase from the previous year's 68 modules. The creation of 300 additional modules in 2023 is based
   on customer needs identified through prior assessments.

However, the primary challenge lies in expanding the reach of the assistance program to more customers
and increasing the number of contributors involved. To address this challenge, proactive measures are
being taken to promote wider awareness of the Bestee assistsance program both within BTPN Syariah
internally and externally through social media campaigns and socialization classes.

The Bestee program stands as BTPN Syariah's flagship initiative, characterized by multi-party
collaboration known as Penta-helix collaboration. This collaboration involves various stakeholders including
Banks, Customers, Government, Community, and Academics. Such multi-party collaboration aligns
with Sustainable Development Goal (SDG) no.17, emphasizing partnerships for the goals. It is envisaged
that this collaborative effort will enhance the quality of impact generated, furthering BTPN Syariah's
commitment to faithfully accompany an inclusive society towards sustainable development.

the Bestee Program [OJK F.25]
The Bestee is a collaborative initiative between the campus and BTPN Syariah designed to engage
students in providing direct assistance to MSME (Micro, Small, and Medium Enterprises) entrepreneurs,
aiming to enhance their knowledge and skills in a measurable and sustainable manner.

Assistance Mechanism

                                                 Introduction to
                                                                                                                     PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                          Observation/          MHS > Customer
                                                                         Assistance to 12
      Debriefing          acquaintance          (accompanied by
                                                                        Customers/Session
                                                                                                  Reporting
                                                                         (months) Total 4
                           mhs><mms                   MHS)                   months




The assistance program operates in two periods annually, each spanning four months (four sessions) per
semester:
1. Period 1: February – June
2. Period 2: September – December

The commencement and conclusion of the Assistance period align with the MBKM schedule established by
the Ministry of Education, Culture, Research, and Technology.




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                                                        As of 2023, the Bestee program has collaborated with Merdeka Campus/Kemendikbud-Ristek, 7 mentor
                                                        institutions, and 257 universities across Indonesia. This marks a significant increase from 42 universities in
                                                        2022. Moreover, the program has engaged 1,821 facilitators, including students and lecturers, compared to
                                                        108 facilitators in 2022. These facilitators have assisted >33,000 BTPN Syariah financing customers across
                                                        474 regions spanning 24 provinces in Indonesia.

                                                        BTPN Syariah remains dedicated to empowering customers through the Bestee assistance program, which
                                                        unfolds as follows:
                                                        1. 2022: Piloting stage conducted from July to December for 1,703 customers under the Sahabat Daya
                                                           program.
                                                        2. 2023: Transition from Sahabat Daya program to Bestee program (Bersama Berdaya Sahabat Tepat
                                                           Indonesia). Scale-up stage 1 executed from March to June, empowering a total of >16,000 customers.
                                                        3. Scale-up stage 2 carried out from September to December, empowering >33,000 customers.

                                                        The distribution of customers who have been accompanied by the Bestee program is as follows:


                                                               7


                                                                    2




                                                                          5
                                                                              6




                                                                                  9


                                                                                      3
                                                                                          4
                                                                                                1
                                                                                                      8    10




                                                                                          Total Mentored                                            Total Mentored
                                                         No    Province                                            No   Province
                                                                                            Customers                                                 Customers
                                                         1     East Java                      >9400                6    Jambi                           >2200
                                                         2     North Sumatra                  >8800                7    Aceh                            >1900
                                                         3     West Java                      >6300                8    Bali                            >1500
                                                         4     Central Java                   >6300                9    Lampung                         >1500
                                                         5     West Sumatra                   >3000                10    West Nusa Tenggara             >1050


                                                        The primary objective of this assistance program is to enhance entrepreneurship literacy among
                                                        customers, thereby fostering a deeper understanding that positively influences their business development.
                                                        Throughout its activities, customers are furnished with tailored materials and practical guidance aligned
                                                        with their specific needs, empowering them to navigate and surmount various obstacles and challenges
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        encountered in their business endeavors. Additionally, this assistance aims to instill a lasting positive
                                                        impact on customers, facilitating meaningful transformations in their businesses and ensuring their
                                                        sustainability.




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                                                          Faithfully Empowering OTHERS



The diverse modules and assistance provided until December 2023 encompass:
                           Modules                                          Grand Total
Brand identity                                                                                    >10rb
Bookkeeping for beginner                                                                            >3rb
How to make Logo                                                                                 >2,5rb
Personal Selling - Promotion by WA                                                                >1,8rb
Tagline & Product Information                                                                     >1,6rb
How to make promotional media by Canva                                                            >1,6rb
Traditional Marketing                                                                             >1,5rb
The importance of brand identity to make bussiness grow                                           >1,5rb
Price list                                                                                        >1,2rb
Record sold item                                                                                 >0,9rb
5R                                                                                               >0,9rb
Price tag                                                                                        >0,7rb
Others                                                                                              >11rb
Grand Total                                                                                       >38rb


From the data recorded up to June 2023, the trend for several types of businesses is experiencing
positive changes, as follows:

From data taken until December 2023 there's a trend of various businesses experiencing positive
changes. 3 biggest businesses experiencing positive changes are culinary (43% of customers), retail
trade (17%), and grocery/grocery stall (16%).

The positive impact generated by the Bestee program fuels the Bank's growth and development,
enabling it to benefit millions of people.

the Bestee Platform [GRI 203-1]
The Bestee Platform serves as a digital empowerment tool, offering customers access to business
knowledge to foster customer engagement and increase business literacy through digital means.
Continuously evolving, the Bestee platform is regularly enhanced to ensure its effectiveness in
supporting stakeholders in assisting customers, particularly inclusive communities, in a sustainable
manner.

Built with cutting-edge web-based technology and integrated mobile apps, the Bestee platform caters
to various user roles. Web-based applications are utilized by Facilitators, Mentors, and Admins, while
mobile apps-based applications are designed for Facilitators (Kita Bestee) and Customers (Bestee
Ku).

The digital empowerment platform known as Bestee is designed to grant customers access to
                                                                                                            PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




knowledge, with the aim of enhancing the quality of empowerment and fostering greater customer
engagement. The Bank anticipates that by offering this access, customers will benefit from improved
support and guidance. Moreover, the platform is continually enhanced and refined year after year
to ensure its effectiveness in serving stakeholders and assisting in the empowerment of inclusive
communities. This ongoing development and improvement reflect the Bank's commitment to
facilitating the advancement of an inclusive society through accessible and valuable resources.

Bestee Platform, consists of four types of platforms that are integrated with each other, two of which
are in the form of applications. The Android application is called Bestee Ku for customers and Kita
Bestee for Contributors. The other two are in Web form, namely Web Mentor which is used by Mentors
and Web Admin which is used for data centers.

The following is the Bestee platform application used by stakeholders in assisting the Bestee program:




                                                                                                                       71
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                                                        Customer Application (Bestee Ku)
                                                        The application used by financing customers as a learning medium takes the form of digital learning
                                                        modules according to the customer's type of business.




                                                                                 1. Profile
                                                                                    Contains user (Customer) profile data
                                                                                    information as a user of the Bestee Ku
                                                                                    application.




                                                                                                          2. My Courses
                                                                                                               Contains content (material) that
                                                                                                               customers can study at any time.




                                                                                 3. Recommended
                                                                                    Content
                                                                                     Contains recommended content
                                                                                     automatically adapts to the customer's
                                                                                     business type.




                                                                                                          4. Popular
                                                                                                             Learning
                                                                                                               Displays content that is frequently
                                                                                                               accessed by users (Customers).




                                                                                 5. Search Content
                                                                                     Search feature that makes it easier
                                                                                     for users (customers) to find desired
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                                                     content (material).




                                                                                                          6. Contact
                                                                                                             the Facilitator
                                                                                                               Feature to contact the accompanying
                                                                                                               Facilitator to get the information
                                                                                                               needed directly.




                                                        The Recommendation Module and Help Center menu is a new menu in 2023.




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                                                                    Faithfully Empowering OTHERS



Contributor Application (Kita Bestee)
Application used by contributors / students / volunteers / other stakeholders as a means to convey
material in Assistance activities to customers and a tool for monitoring contributor activities.




                         1. Register
                            The feature used to register and create
                            a Bestee account by the Facilitator
                            to be able to access all the features
                            and menus in carrying out Assistance
                            activities.



                                             2. Performance
                                                Dashboard
                                                   The initial display page of the Kita Bestee
                                                   application that contains a summary of
                                                   the Facilitator's performance such as
                                                   important schedule reminders, the amount
                                                   of content (material) taught to customers
                                                   and information on the leaderboard of all
                                                   Facilitators participating in the Bestee
                                                   program.



                         3. My activities
                             An important menu that requires
                             Facilitators to plan the activities that will
                             be carried out.




                                             4. Assistance
                                                   A menu that facilitates Mentor and
                                                   Mentee (Facilitator) to mutually plan
                                                   Assistance activities.




                         5. Forum
                             A menu that facilitates Mentors and
                             Mentees (Facilitators) to share Insights
                             into discussion materials in the form of
                                                                                                      PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                             articles, journals, photos or documents
                             supporting other Assistance materials.
                             This menu can also be used as a
                             discussion forum.




                                               6. Scoreboard
                                                    A menu that shows the level of
                                                    performance excellence resulting from the
                                                    activity of the Facilitators obtained based
                                                    on the KPI values given by the Mentor.




Photo Geotagging menu, Notice Board, Recommendation Module, Assessment Module, Digital
Recruitment Dashboard, Gamification, Flagging Fraud, and Assistance Survey are new menus throughout
2023.

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                                                                                                                  Bestee Admin Web


                                                                                                                  The platform used by the admin as a data
                                                                                                                  integration center for all forms of activities,
                                                                                                                  programs, communication, information, and a
                                                                                                                  center for handling problems with assistance
                                                                                                                  at bestee. This superior feature on Web Admin
                                                                                                                  is used to review contributor performance and
                                                                                                                  activities through Assistance reports assessed
                                                                                                                  by mentors.




                                                                                                                  Bestee Mentor Web


                                                                                                                  Platform used by expert mentors to support
                                                                                                                  the Assistance process with their contributors /
                                                                                                                  mentees during the program. The main features
                                                                                                                  on Web Mentor include assessing contributor
                                                                                                                  reports, creating a Assistance schedule,
                                                                                                                  providing direction via the personal chat feature
                                                                                                                  and also providing article posting or insight for
                                                                                                                  contributors in the forum feature.




                                                        In general, the development of the platform throughout 2023 consisted of adding companion survey
                                                        features, SMO and SMC reports, report creation features on Web Mentor, and the Recommendation
                                                        Module Menu and Help Center.

                                                        Utilization of the Bestee Platform [GRI 203-2]
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        The Bestee platform is used for the Bestee Assistance Program in the form of intensive assistance
                                                        provided by facilitators to customers. Throughout 2023, this Assistance program is divided into 3 large
                                                        groups, namely:
                                                        1. University Assistance Program. Assistance program carried out by students for customers intensively or
                                                           one on one. This program is carried out by students as a means of internship with a variety of position
                                                           options.
                                                        2. Army Bestee Assistance Program. Assistance program carried out by Bestee Alumni (Bestee Army) with
                                                           a variety of program forms and a more flexible number of customers. There are 3 (three) Assistance
                                                           programs by Bestee Army in 2023, namely:
                                                           a. Bestee Ceria: is an Empowerment program carried out among BTPN Syariah customers by
                                                              providing materials such as health, entrepreneurship, beauty and the environment.




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                                                        Faithfully Empowering OTHERS



   Bestee Ceria has been implemented throughout 2023:
   1) at MMS Lowok Waru, Malang
   2) at MMS Cimaung, Bandung
   3) at MMS Bendosari, Solo
   4) at MMS Kedungkandang, Malang
   5) at MMS Cimaung, Bandung
   6) at MMS Depok, Yogyakarta




                   Flat Tummy Exercise                          Glowing Skincare
                      MMS Cimaung                               MMS Lowokwaru




                   Flat Tummy Exercise                        Healthy Eating Menu
                  MMS Kedung Kandang                            MMS Bendosari



   The Bestee Army involved as volunteers/facilitators are alumni of the Bestee piloting 1 and 2
   programs in the previous year.
                                                                                                           PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




b. Bestee Individual Assistance : is an Empowerment program carried out by providing individual offline
   assistance for 1 month per customer. In 2023, the materials presented and implemented are Price List,
   Business Identity and Personal Selling, the location of the assistance will be in Medan and Semarang.




                                                                                                                  75
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                                                                                                   Activity

                                                                                               •   Accompanying customers in teaching entrepreneurship material
                                                                                                   offline
                                                                                               •   Accompanying 1 customer
                                                                                               •   The volunteering location is adjusted to the volunteer's domicile




                                                                                                   Report

                                                                                               •   Army Bestees have finished providing assistance
                                                                                               •   Materials presented: Price List, Business & Personal Selling
                                                                                                   (Promotion via WA)
                                                                                               •   Implementation: Medan and Semarang




                                                        c. Bestee Ambassador: is an Empowerment program where the Bestee Army explains and invites
                                                           customers who have not participated in the Bestee program to want to take part in the program. In
                                                           2023, it will be implemented in 4 centers in the Bandung area.



                                                                                                   Activity

                                                                                               •   Explain the Bestee program and invite customers to join the program
                                                                                               •   Activities are carried out in customer groups (PRS/Routine Meetings
                                                                                                   Center)
                                                                                               •   The volunteering location is adjusted to the volunteer's residence




                                                                                                   Report

                                                                                               •   1 army bestee has finished doing Bestee Ambassador.
                                                                                               •   Carried out in the Bandung area, in 4 centers




                                                        d. Bestee International: is a collaboration program between BTPN Syariah and International
                                                           Internship where BTPN Syariah through the Daya division provides opportunities for students
                                                           from various universities in Australia who want to know more about the customer empowerment
                                                           program at BTPN Syariah. Intern students have the opportunity to provide direct assistance
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                           to BTPN Syariah customers by being accompanied by local students as translators between
                                                           customers and foreign students as well as partners during the internship activities.

                                                        v   Throughout 2023, the International Bestee program ran 3 times (3 batches). The following are
                                                            details of the number of apprentices for each batch:




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                                                              Faithfully Empowering OTHERS




                                                          Batch 1

                                                      6 Students
                                                      (3 Australian students and 3 Indonesian students)
                                                      4 Facilitators
                                                      2 Social Media Officer
                                                      6 Nasabah accompanied
                                                      Month: January 2023
                                                      Location: Ciomas, Bogor

                                                          Batch 2

                                                      2 Students
                                                      (1 Australian student and 1 Indonesian student)
                                                      Facillitators + SMO (Social Media Officers)
                                                      7 customers accompanied
                                                      Month: June-August 2023
                                                      Location: Tangerang, Serpong Barat

                                                          Batch 3

                                                      3 Students (2 Australian students and 1 student
                                                      Indonesia)
                                                      Social Media Officer

                                                      Promoting the Program
                                                      Bestee in tier-3 -4 and International

                                                      Month: November-December




Throughout the 3 batches of the Bestee International program mentioned above, a variety of activities
were carried out. In batch 1 and batch 2, BTPN Syariah customers received direct assistance from
students. For batch 3, students utilized the knowledge gained from Assistance in previous batches to
create promotional content for the Bestee program across different media platforms. The goal is to
spread awareness and generate positive outcomes for customers and the Bestee program in the years
to come. BTPN Syariah remains hopeful for increased stakeholder involvement in the Bestee program,
demonstrating their dedication towards empowering inclusive communities in Indonesia.

Merdeka Fair Campus
BTPN Syariah has once again collaborated with MBKM in order to provide the widest possible
opportunities for students to learn and train themselves to be better prepared when they enter the real
world of work.
                                                                                                          PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




KMF activities, especially in 2023, are aimed at introducing vocational education to the community by
providing a space for creative collaboration, as well as building a spirit of sustainable collaboration
regarding MBKM policies in the future.




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                                                        The Merdeka Fair Campus was held on December 11-12 at Graha Bhakti Budaya, Taman Ismail Marzuki
                                                        Complex, Cikini, Menteng, Central Jakarta. Apart from BTPN Syariah, various partners invited by MBKM
                                                        include:
                                                        1. Banking: Bank Mandiri, BRI, BTPN Syariah
                                                        2. State Companies: Telkomsel, Pertamina, PLN, INKA etc
                                                        3. Private Companies: Blibli, Astra International, SCM, Kompas Gramedia etc.

                                                        Throughout 2023, this activity has generated a positive impact for more than 25 thousand customers.
                                                        BTPN Syariah.




                                                        Daya Market
                                                        BTPN Syariah has a lofty goals for creating a sustainable ecosystem. Through its system, BTPN Syariah
                                                        aims to provide both financial and knowledge access to inclusive communities, including facilitating their
                                                        entry into markets.

                                                        The current access to market programs includes selling products through assisted marketing platforms
                                                        such as IG Live, Shopee, and Online Bazar. This mentorship program offers various activities, including:
                                                        1. Broadcasting live on IG or Shopee to sell products.
                                                        2. Consignment sales, with shipping costs from customer to MB covered by BTPN Syariah.
                                                        3. Communicating the Pasar Daya program to BTPN Syariah employees and external parties (Bestee
                                                            Army, bestee, universities, ministries, etc.).

                                                        The Pasar Daya program offers a diverse range of products, including food items (dry goods, honey, coffee,
                                                        etc.) and non-food items (batik fabrics, weaving, household items, clothing, bags, shoes, hijab, etc.).
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        Through various social activities and a strong spirit for empowering inclusive communities, BTPN Syariah
                                                        has positively impacted over 25 thousand customers in 2023. These sustainable efforts have spread
                                                        benefits to millions of people in both the short and long term.




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                                                              Faithfully Empowering OTHERS




community testimony
BTPN Syariah values testimonials from the community, particularly those who support the Bestee
program. These testimonies serve as valuable feedback for evaluating and improving the program's
effectiveness in empowering individuals in the future. Both mentors and students play a crucial role in
faithfully empowering customers through the Bestee program.

Mentor
The mentor's role is to provide assistance, teaching, and counseling to the mentee/student in a consistent
and structured manner. Each mentee has one mentor who will be a discussion partner during the Bestee
program. A minimum assistance schedule of once per week must be maintained via the platform. Every
assistance session must be documented and reported via the platform.




                                           The experience I gained, Masya Allah, added value to me,
                                           especially in empathy, inclusion, and literacy in the fields
                                           of finance, entrepreneurship, and MSMEs, which was
                                           extraordinarily enjoyable. Wherever I am, Assistance is also
                                           very convenient to do because everything is digitally based on
                                           the Bestee platform. Assistance through the Bestee Program
                                           has the potential to increase entrepreneurial inclusion for
                                           customers, and the benefits can be felt directly by customers.



                                           Restu
                                                                                                             PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                           Lecturer at FEB Unisma




During the assistance program, each mentor is assigned to accompany around 10-15 mentees. The
assistance schedule must be submitted by the mentor every week in accordance with the agreement
between the mentor and the mentee.

Discussions during assistance include: student findings in the field, customer business constraints,
modules that suit the customer's business profile and constraints, obstacles encountered when mentoring
customers, and how to make reports both on the Bestee Platform and on the MBKM website.




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                                                                 There is a special pride in gaining the trust to be part of the
                                                                 BTPN Syariah Bestee Program as a Mentor, because we
                                                                 not only have the opportunity to apply our knowledge, but
                                                                 also to participate in increasing the capacity of the younger
                                                                 generation in their role as MSME Facilitators. The Bestee
                                                                 program has proven to have a direct positive impact on
                                                                 many parties, from academics, organizations, government,
                                                                 to society. Hopefully, in the future, there will be more bright
                                                                 young leaders coming from alumni of the BTPN Syariah
                                                                 Bestee Program.



                                                                 Adib F. Hidayat
                                                                 Mentor



                                                        In general, the main task of mentors is to brainstorm and provide direction to students regarding the
                                                        obstacles they face during mentoring.

                                                        Mentors are not the only parties expected to provide solutions to students, but rather peer groups and
                                                        other support systems that can help students find the best solutions to the problems they face. Mentors
                                                        only guide and provide insight from the results of their mentees' discussions.




                                                                                                         This experience has given me the opportunity to be directly
                                                                                                         involved in the development and empowerment of ultramicro
                                                                                                         business actors for BTPN Syariah customers. We
                                                                                                         engage with enthusiasm and a positive spirit, exchange
                                                                                                         ideas, and commit to achieving common goals. Thank you
                                                                                                         to the Daya team for providing this opportunity to loyally
                                                                                                         participate in empowering MSMEs. I am confident that with
                                                                                                         our cooperation and dedication, we can continue to have a
                                                                                                         positive impact on the development of Indonesian MSMEs



                                                                                                         Roby Ardianto
                                                                                                         Mentor
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        Another important role for mentors, apart from guiding, is to conduct assessments and act as supervisors
                                                        for their mentees. If violations are found during the Assistance process, it is the mentor's responsibility to
                                                        remind and follow up on these findings with internal parties




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Student
As facilitators, students must display strong integrity and are responsible for conducting home visits with
customers to provide intensive assistance. This involves 4 sessions per week per customer.

Before assistance begins, students are provided with all the necessary materials until they understand and
are ready to begin. During Assistance sessions, students are required to submit a report to their mentor
after each customer Assistance session, including photos, videos, and descriptions of the meeting results.
They will also receive briefings from the mentor for the next Assistance session. BTPN Syariah will conduct
a comprehensive evaluation after the Assistance period is completed. Students will receive appreciation,
certificates, and will be included in the Bestee program alumni group.

There are at least four positions offered to students who want to join the Bestee program, including:
1. Facilitator
2. Social Media Officer
3. Social Media Coordinator
4. Community Empowerment Officer

Facilitator:
The primary task of a facilitator is to assist BTPN Syariah customers in increasing their knowledge and
skills related to entrepreneurship for approximately one month per session.

Social Media Officer (SMO):
The main task of the Social Media Officer is to document activities carried out by the Facilitators to ensure
proper documentation and publication of Assistance activities. Additionally, SMOs play a role in providing
module recommendations to facilitators regarding access to the market (A2M).

Social Media Coordinator (SMC):
The Social Media Coordinator is responsible for creating content plans, evaluating the results of SMO
documentation, and managing Bestee's social media presence across various platforms.

Community Empowerment Officer (CEO):
Responsibilities include curating customer assistance data provided by facilitators, monitoring pre- and
post-customer data, evaluating reporting activities conducted by facilitators, etc.




                                           This Bestee program is highly beneficial for students. We
                                           gained valuable insights during the customer assistance
                                           process, which can be used as valuable experience and
                                           knowledge as we graduate from college. Hopefully, this
                                                                                                                PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                           Assistance experience will also be rewarding for students as it
                                           not only serves as an internship but also has a real impact on
                                           improving customers' skills and business income.




                                           Intan Permata Sari
                                            Fasilitator




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                                                        For students interested in joining the Bestee program, they must meet at least three main requirements,
                                                        including:
                                                        1. Active student status
                                                        2. Minimum semester 5
                                                        3. Interest in empowerment

                                                        Key Performance Indicators (KPIs) for students in this program:
                                                        1. Teach customers to use the Bestee Platform (technological literacy)
                                                        2. Assist customers by teaching assistance material from the Bestee Platform according to the
                                                           customer's profile (access to knowledge)
                                                        3. Apply the material learned in the customer's business to demonstrate improvements as evidenced by
                                                           the before-and-after Assistance results
                                                        4. Submit regular reports on each Assistance session promptly to the mentor, which will be reported to
                                                           MBKM/Kemendikbud and to BTPN Syariah via the Bestee Platform.




                                                                This program offers a valuable opportunity for students
                                                                to earn 20 credits and gain real-world work experience.
                                                                Students are accompanied and guided by extraordinary
                                                                mentors to empower underprivileged mothers who are
                                                                MSMEs. It is crucial to understand the obstacles, barriers,
                                                                and problems faced by MSME women, find solutions,
                                                                and implement them to develop their businesses. With
                                                                the Bestee program, all parties can benefit from this
                                                                exceptional assistance.




                                                                Rohmat Khasan Bisri
                                                                Fasilitator
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




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                                                             Faithfully Empowering OTHERS




                                         Being a co-facilitator in this Bestee activity is truly exciting.
                                         I can explore myself to hone both my soft and hard skills.
                                         Additionally, I've gained valuable learning from playing
                                         a supporting role and making a real impact in increasing
                                         the knowledge and skills capacity of MSME mothers. This
                                         experience has inspired me, showing that women can also play
                                         a crucial role in driving the family economy forward.




                                         Salsabila H. Fatimah
                                         Fasilitator




Mentors and students who have joined the Bestee program are using the knowledge they gained from
higher education to empower and support inclusive communities with a strong sense of loyalty. They
understand their meaningful role in contributing to the development of their country.




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          Sustainability Performance Highlights




            06
                                                  PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




Faithfully Empowering
     T HE NATI ON

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                                                    Faithfully Empowering THE NATION




         The dedication to faithfully empowering women in the
     inclusion community drives BTPN Syariah to steadfastly offer
      sustainable assistance and financing, tailored with precision
       to suit their specific needs, thereby enhancing community
                                 resilience.




global and domestic economic overview                7-Day Reverse Repo Rate (BI7DRR) by 25 bps
[GRI 2-22]                                           to 6.00%, the Deposit Facility rate by 25 bps to
Bank Indonesia's recent publication highlights       5.25%, and the Lending Facility rate by 25 bps
a forecasted global economic slowdown,               to 6.75%. This increase aims to strengthen the
accompanied by widening growth disparities           stabilization policy of the Rupiah exchange rate
among nations. Projections indicate a modest         from the impact of escalating global uncertainty
3% growth in 2023, declining further to 2.4% in      and as a pre-emptive and forward-looking
2024.                                                measure to mitigate its impact on imported
                                                     inflation, thus keeping inflation controlled within
In the US, robust economic growth persisted in       the target of 3.0±1% in 2023 and 2.5±1% in 2024.
2023, buoyed by resilient household consumption
and domestic service sectors. Conversely, China      Inflation pressure in Indonesia in December
experienced a slowdown due to weakened               2023, was still recorded at 2.61% yoy in Bank
consumer spending and a sluggish property            Indonesia's inflation corridor, decreased from the
sector. Geopolitical tensions contributed to         previous one in December 2022 of 5.51% yoy.
increased energy and food prices, sustaining
elevated global inflation levels.                    The current account balance in the third
                                                     quarter of 2023 recorded a surplus of USD 3.3
Mounting global economic and financial               billion. Indonesia's foreign exchange reserves in
uncertainties, compounded by escalating              December 2023 amounted to USD 146.4 billion,
geopolitical tensions, necessitated robust policy    an increase from December 2022 of USD 137.2
responses to safeguard domestic economic             billion.
resilience, particularly in Emerging Market
Economies (EMEs) like Indonesia.Global               Demographic data shows that the population
economic growth is slowing amid escalating           in Indonesia in 2022 amounted to 278.7
uncertainty.                                         million people in 2023, an increase compared
                                                     to 275.8 million people in 2022. The number
These global economic conditions also impacted       of poor people in Indonesia recorded at 25.9
Indonesia's domestic economy. The Bank               million people in March 2023. Meanwhile,
                                                                                                           PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




Indonesia Board of Governors Meeting (RDG)           the unemployment rate in Indonesia in 2023
on October 18-19, 2023, decided to raise the BI      decreased to 5.32% from 5.5% in 2022.




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                                                        Macroeconomic Indicators of Indonesia
                                                                                                     Unit                                              2023                  2022           2021

                                                        • Gross Domestic Product                     (annual % change)                                          5.0                  5.01          5.03

                                                        • Inflation                                  (annual % change)                                          2.61                  5.5            1.9

                                                        • Government Debt                            (% of GDP)                                                  38                  39.9          41.0

                                                        • Exchange Rate                              (IDR/USD)                                               15,397             15,568         14,269

                                                        • Current Account Balance                    (% of GDP)                                                 0.2                     1           0.3

                                                        • Benchmark Interest Rate                    (%)                                                           6                  5.5            3.5

                                                        • Population                                 (in million)                                             278.7                 275.8          273.9

                                                        • Poverty                                    (% of population)                                         9.36                   9.5            9.7

                                                        • Unemployment                               (% of workforce)                                          5.32                   5.5            6.5

                                                        • Foreign Exchange Reserves                  (In billion USD)                                         146.4                 137.2          144.9

                                                        For GDP, Government Debt in 2023 is a forecasted figure, and for Poverty in 2023 is the position as of March 2023.



                                                        Several national economies are showing signs of a "K-shaped recovery" following the Covid-19 pandemic.
                                                        While the upper-middle economic group has successfully driven economic growth, the lower-middle
                                                        economic bracket, representing the inclusive society, still faces challenges in bouncing back to pre-
                                                        pandemic levels. This aligns with data from the Central Bureau of Statistics (BPS), which indicates that
                                                        the productivity index of Micro Small Enterprises (UMK) remains below pre-pandemic levels. On the other
                                                        hand, Medium to Large Enterprises (UMB) have experienced significant recovery in productivity.

                                                        This presents a unique challenge for BTPN Syariah to remain committed to empowering productive women
                                                        from the inclusive community to achieve sustainability in Indonesia. For BTPN Syariah, success is not
                                                        solely measured by financial performance but also by the positive impact the Bank creates in benefiting a
                                                        broader spectrum of society.

                                                        Sharia Banking
                                                        According to data from the Islamic Banking Statistics—December 2023, published by the Financial Services
                                                        Authority (OJK), the number of Sharia Commercial Banks and Sharia Business Units remains unchanged
                                                        from the previous year, totaling 33 units. Meanwhile, the number of Sharia People's Financing Banks
                                                        (BPRS) in Indonesia has increased to 173 from 167 in December. The number of BPRS branch offices has
                                                        also seen an increase from 668 offices in December 2022 to 694 offices in August 2023.

                                                        BTPN Syariah periodically measures its internal performance and compares it with peers (benchmarking).
                                                        The results of benchmarking serve as a basis for periodic evaluation, providing comparative information,
                                                        and understanding the strengths and weaknesses of the company that can be utilized for the
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        improvement and development of BTPN Syariah in the future.

                                                        Maintaining the performance of BTPN Syariah [OJK F.2][GRI 2-22]
                                                        The condition of Islamic banking in October 2023 is more or less similar to conventional banking. The ROA
                                                        of Islamic banking stands at 1.88%, lower than conventional banks at 2.74%. However, BTPN Syariah
                                                        maintains an ROA of 6.3%, significantly above the average for both Islamic banks and conventional banks.
                                                        BTPN Syariah manages to maintain its BOPO at 78.4%, below the average of Islamic banks (78.31%) and
                                                        conventional banks (78.92%). With a strong capital adequacy reflected in BTPN Syariah's CAR at 49.8%,
                                                        approximately above average of Islamic banks (25.41%) and conventional banks (27.65%).




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                                                      Faithfully Empowering THE NATION



BTPN Syariah remains committed to serving productive pre-financial inclusion families scattered across
various regions in Indonesia, with various innovations in its services. With assets of IDR 21.430 billion,
the Bank serves 7 million customers, including 4.2 million active customers, operating in 257 thousand
communities in 2,600 rural areas in Indonesia, strengthening the Bank's presence in the productive
financial inclusion segment of society to continue contributing to poverty alleviation, reducing social
inequality, and ensuring sustainability for future generations.

For BTPN Syariah, which remains faithful in empowering inclusive communities (the bottom segment of
the economic pyramid), the COVID-19 pandemic situation in 2023 continues to have a significant impact
on business operations, company performance, and customer conditions, especially financing customers.
This is evident from BTPN Syariah's 2023 NPF, which was slightly higher than the previous year. However,
thanks to the hard work, resilience, and full support of all empowerment bankers, financing customers,
funding customers, supplier partners, Government/Regulators, Shareholders, and other stakeholders,
BTPN Syariah managed to close 2023 with sustained business performance.

Towards financing customers, BTPN Syariah continues to assist those affected by the pandemic situation,
ensuring disbursements to customers while prioritizing caution and thorough assessment. The Bank also
provides financial management training, entrepreneurship tips (access to knowledge), and assistance in
accessing markets for financing customers.

The commitment and support from customers who entrust their funds to assist in financing inclusive
communities are vital elements in maintaining a sustainable ecosystem. BTPN Syariah values the loyalty of
its customers, which serves as a driving force to continue empowering productive families in remote areas
across the nation.

In fostering a digital ecosystem that promotes sustainability, BTPN Syariah has implemented the
development of the "Warung Tepat for Mitra Tepat” application, which reached approximately 30,000
agents by 2023. This agency model development aims to enable the Mitra Tepat (Right Partners) to serve
financing customers in saving (deposit and cash withdrawal), support the payment process of financing
customers' installments (access to finance), and facilitate local communities in purchasing daily necessities
(access to supply) in a cashless manner.

BTPN Syariah believes that the quality of service provided to customers also depends on the quality of
goods and services from supplier partners. Therefore, BTPN Syariah conducts periodic evaluations of all
supplier partners, including suppliers of goods, information technology products, and service providers,
such as operating system services. Towards supplier partners, BTPN Syariah prioritizes cooperation with
local supplier partners as a commitment to supporting regional economic development. BTPN Syariah
maintains a list of vendor and supplier partners, both satisfactory and unsatisfactory, obtained from
evaluations of financial capabilities, workforce, and the quality of goods and services provided during a
certain period.

Regarding the Government and Regulators, BTPN Syariah ensures compliance with various regulations
impacting social and environmental aspects in 2023. BTPN Syariah disburses cash dividends to
Shareholders in 2023 for the 2022 fiscal year performance to shareholders and remains committed to
                                                                                                                PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




updating information periodically, both through press releases and during Public Presentations aimed at
promoting transparency regarding the condition of BTPN Syariah to the public. PT Fitch Ratings Indonesia
reaffirms BTPN Syariah's Long-Term National Rating remains at AAA (idn) with a Stable Outlook. This
rating is given to companies with the lowest expectation of default risk compared to all other issuers or
bonds in the same country or monetary union.




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                                                        At the end of 2023, BTPN Syariah's disbursed financing increased by Rp11.4 trillion, 1.2% compared to
                                                        the previous year, which was made possible thanks to the support of all stakeholders, the unwavering
                                                        commitment of the team, and resilient customers. The Bank has responsibly booked provisions amounting
                                                        to Rp1.214 billion. The higher provision formation is due to challenging customer conditions and as a Bank's
                                                        anticipation of POJK Relaxation related to the Covid-19 pandemic.

                                                        Third-party funds in 2023 reached Rp12.1 trillion, growing by 0.8% compared to the previous year's Rp12.0
                                                        trillion. Strong funding supported by strong capital makes BTPN Syariah's liquidity very adequate. In 2023,
                                                        BTPN Syariah was able to record strong net profit of Rp1.1 trillion, a decrease of 39.4% from the previous
                                                        year's Rp1.8 trillion.

                                                        Below is a summary of the balance sheet position changes and the profit and loss table of BTPN Syariah,
                                                        illustrating BTPN Syariah's performance in 2023.


                                                        Summary of BTPN Syariah's Economic Performance in 2023
                                                                                                                    2023               2022               2021
                                                        Balance Sheet Summary (in IDR million)
                                                        Total Assets                                                 21,435,366          21,161,976        18,534,856
                                                        Productive Assets                                            20,304,224         19,422,089         17,075,443
                                                        Financing Granted                                             11,387,861         11,527,463        10,443,469
                                                        Total Liabilities                                              2,737,413         2,910,720          2,543,053
                                                        Customer Deposits and Temporary Syirkah Funds                 12,142,817        12,048,529         10,973,460
                                                        Total Equity                                                   8,777,133         8,407,995         7,094,900
                                                        Income Statement Summary (in IDR million)
                                                        Net Interest Income                                           5,259,749          5,029,350          4,279,210
                                                        Other Operating Income                                             60,949             65,646             22,332
                                                        Operating Expenses                                           (2,043,512)        (1,869,492)        (1,693,292)
                                                        CKPN Expenses                                                (1,898,117)         (945,052)          (728,220)
                                                        Net Operating Income                                          1,379,069          2,280,452         1,880,030
                                                        Net Profit for the Year                                      1,080,588           1,779,580         1,465,005


                                                        Social and Environmental-focused Financing Portfolio [GRI 2-23, GRI 2-24, GRI 2-25, FS6, FS16]
                                                        The unevenness of economic development, especially in rural areas where communities lack financial
                                                        inclusion, is one of the issues in sustainable development. This disparity poses one of the greatest
                                                        challenges for Islamic banking to serve inclusive communities.

                                                        Since its inception, BTPN Syariah has consistently directed its financing towards the inclusive segment,
                                                        specifically targeting women and mothers from inclusive communities who previously had no access to
                                                        banking financial services, whether conventional or Islamic. BTPN Syariah's financing portfolio is focused
                                                        on this segment, which is more laden with a social aspect approach. This approach enables financing
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        customers to improve their economic capabilities, consequently leading to the development of their social
                                                        lives. In addition to fulfilling customers' financial access needs, BTPN Syariah also provides other non-
                                                        financial support implemented through four main pillars.

                                                        The four main pillars that serve as the facilities of BTPN Syariah's Right Financing products are financial
                                                        packages, empowerment programs, membership systems, and Assistance at BTPN Syariah. These
                                                        four main pillars are interconnected in building the four superior customer behaviors, namely: Courage,
                                                        Discipline, Hard Work, and Mutual Assistance (BDKS).




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  5-year financial package                                                     Daya
  Financial solution in one package:                                           Training program
  • Venture capital                                                            Training for capacity
  • Free life insurance                                                        improvement in health,
  • Savings (free monthly fee) for                                             education, entrepreneurship,
     the future. Tabungan                                                      and environment
  • Business capital increases
     with each cycle
  • after the 3rd year               5 year financial                   Daya
     of financing, renovation        package
     of home & improvements
     in education
                                                        4
                                                Superior Behaivor:
                                                 Courage, Discipline,
                                                    Hard Work,
                                                 Mutual Assistance
                                                                               Community Officer
                                                                               •   #bankirpemberdaya
  Membership System                   Membership                  Community
                                                                                   trained to exemplify the
  •   Group is selected by            system                         Officer       behaviors:
      customers                                                                    honest
  •   Regular                                                                      polite
  •   Mandatory Savings                                                            disciplined
  •   Joint Liability                                                          •   Becoming a facilitator for
                                                                                   Daya program



The four main pillars of Sharia Financing Excellence are:
1. Financing Program
   Financial Aid packages provided to customers to meet the needs of building and expanding productive
   businesses. This assistance is repaid in biweekly installments, and customers also receive additional
   benefits such as life insurance for themselves and their spouses, savings with no minimum balance and
   administrative fees, as well as installment exemptions on Eid al-Fitr. After successfully completing three
   cycles, customers have the opportunity to obtain financing for home improvements and their children's
   education.
2. Daya Program
   Daya Nasabah Program aims at continuously enhancing capabilities and knowledge through ongoing
   programs in health, entrepreneurship, and environmental fields.
3. Membership System
   Customer Membership System where customers form groups and establish centers. Regular meetings
   are held within these centers to provide banking services. If any customers encounter difficulties, the
   members of the group within the center will assist each other.
4. Community Officers
   Trained Community Officers who regularly serve and provide assistance to financing customers by
   meeting at customer centers.

These four pillars are the primary foundation for fostering four exemplary behaviors that inclusive
customers should possess: Courageous Entrepreneurship, Discipline, Hard Work, and Mutual Assistance.
                                                                                                                PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




The implementation of these four main pillars of Sharia Financing Excellence is consistently carried out
alongside rigorous oversight. Community Officers are required to fill out a series of forms that serve
as data inputs on tablets for BTPN Syariah in managing the financing portfolio risks from all customer
centers.

At a higher level, Business Coaches assisted by Quality Assurance are obligated to evaluate the adherence
of all levels in implementing these four pillars. Subsequently, Internal Audit randomly conducts periodic
inspections to ensure compliance with the implementation by all levels. Therefore, the application of these
four pillars simultaneously serves as a procedure for identifying and mitigating social risks that could
affect the quality of financing. [FS2, FS9]




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                                                        Regarding financing for business development for financing customers, it is carried out using a wakalah
                                                        wal murabahah contract, which allows financing customers who do not yet have a business to obtain
                                                        financing for the purchase of new business capital goods or business support goods for those who are
                                                        establishing a new business.

                                                        The purchase of goods is represented by the financing customer with a wakalah agreement, which outlines
                                                        the details of the goods to be purchased along with their prices. Subsequently, the financing customer
                                                        is required to repay the financing for the purchase of goods plus the predetermined margin by making
                                                        installments according to the agreed-upon timeframe.

                                                        In 2023, the key priorities outlined in the RAKB indicators for financing customers at BTPN Syariah include
                                                        alternative exploration financing aimed at inclusive communities. This involves providing Sharia-compliant
                                                        financing for working capital purposes to individuals, extending financing to partners (Mitra Tepat), and
                                                        collaborating with the Ministry of Public Works and Public Housing (PUPR) to distribute subsidies to BTPN
                                                        Syariah customers for home repair or renovation purposes (BP2BT Program). These three products align
                                                        with BTPN Syariah's commitment to community empowerment initiatives.

                                                        The need for financing by customers, especially to recover from the pandemic, presents a unique
                                                        opportunity for BTPN Syariah to provide tangible assistance. The business performance of financing to
                                                        productive inclusive families in 2023 continues to demonstrate sustained performance.

                                                        Here is the financing performance according to the main geographical areas:
                                                        Net Financing Summary (in Million Rupiah)               2023                 2022                2021
                                                        Java                                                       6,462,888            7,286,758           6,729,329
                                                        Bali and Nusa Tenggara                                         454,684              420,917          363,392
                                                        Sumatra                                                     2,832,317            2,647,194         2,304,562
                                                        Kalimantan and Sulawesi                                        588,593              538,989         455,020

                                                        From the financing achievement of Rp 11.388 billion, 99.6% is financing for MSMEs.

                                                        Financing can grow due to intensive efforts made by #bankirpemberdaya, namely Community Officers
                                                        in the field. This fostered positive trust within inclusive communities to face the challenges in 2023. As a
                                                        result, financing customers become adaptive, creative, positive, and resilient in revitalizing and running
                                                        their businesses. They become tenacious and resilient so that their business wheels can turn again and
                                                        continue to operate. The bank also continues to enhance the quality of financing through diversification of
                                                        strategies and activities in the field. The reach for new customers is continuously expanded along with a
                                                        strengthened selection process for prospective financing customers.

                                                        Distribution of Economic Value Generated [GRI 201-1]
                                                        The total economic value distributed by BTPN Syariah in 2023 to stakeholders amounted to IDR 3 trillion,
                                                        down 7.8% from the value of IDR 3.2 trillion in the previous year. In this year, BTPN Syariah also successfully
                                                        fulfilled its commitment to shareholders by distributing dividends totaling Rp681 billion.

                                                        BTPN Syariah provides two types of contributions to the country, namely direct and indirect financial
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        contributions and non-financial contributions.




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Direct financial contributions take the form of income tax payments and other levies. The value of financial
contributions reached IDR 421 billion, down 17.6% from the previous year's IDR 510 billion. Meanwhile,
indirect financial contributions take the form of realization of intermediary functions, so that business
customers from the inclusive community who previously did not have access to banking support, now
and in the future receive financial support to develop their businesses. The development of businesses by
inclusive business actors in these inclusive segments will ultimately increase tax payments to the state. In
addition to taxes, the increasing scale of business activities in the inclusive community can reduce poverty
levels and income disparities in society.

Meanwhile details of the non-financial contributions provided can be found in the Faithfully Empowering
Others, Faithfully Empowering Inclusive Communities, Faithfully Empowering for Endeavors, Faithfully
Empowering the Environment, and Good Governance for Sustainable Empowerment chapters in this 2023
Sustainability report.

In carrying out its business activities, BTPN Syariah does not receive financial assistance from the
Government to realize all operational activities, whether in the form of tax exemptions, subsidies, grants
for research and product development, and so forth. In order to support business development, BTPN
Syariah retains an Economic Value amounting to Rp1.9 trillion as detailed in the following table.


Details                                                               2023           2022          2021
Direct Economic Value Received
Income from Fund Management by BTPN Sharia as Mudharib                 5,304,149    5,051,508      4,408,251
Other Operating Income (Expense) - Net                                 502,800        387,808        287,923
Total direct economic value received                                   4,801,349    4,663,820      4,120,328
Direct Economic Value Distributed
General Operating Expenses                                               681,107       676,351       546,113
Employee Salaries and Allowances                                       1,362,405      1,193,141     1,147,179
Third-party Rights to Profit Sharing of Temporary Syirkah Funds         486.433       344,440        394,632
Payments to the Government (Income Tax and Value Added Tax)             420,516       510,301        434,535
Total direct economic value distributed                                2.950.461     3,199,859      2,776,612
Total Economic Value Retained                                         1.850.888      1,463,841      1,343,716


Support for Sustainable Development Goals (TPB)
The sustainability ethos of Islamic banking revolves around maslahah, prioritizing human welfare. This
guiding principle underscores BTPN Sharia's steadfast commitment to continuously assist inclusive
communities through an inclusive approach. Together with stakeholders, the bank remains dedicated to
serving wholeheartedly, extending its support to every corner of the nation.

All of BTPN Sharia's financing is directed towards inclusive communities, aligning with sustainable
business practices rooted in inclusivity, particularly catering to Micro, Small, and Medium Enterprises
(MSMEs). This financing model actively contributes to the achievement of Sustainable Development
Goals (SDGs), notably Goal 1 (Ending poverty), Goal 8 (Decent work and economic growth), and Goal 10
(Reducing inequalities).
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            Sustainability Performance Highlights




               07
                                                    PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




  Faithfully Empowering
INCLUSIVE COMMUNITIES


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                                                                         Faithfully Empowering
                                                                     INCLUSIVE COMMUNITIES




    In 2023, our dedication to providing quality and equitable products
   and services, safeguarding customers, adeptly addressing complaints,
   and furnishing technological support for the betterment of millions of
                individuals is a source of collective gratitude.



Through our array of funding products, customers have the opportunity to allocate funds to productive
underprivileged individuals striving to achieve prosperity. With an unwavering commitment to
empowerment, we endeavor to provide optimal financial solutions and services, enabling inclusive
communities to evolve into sustainable sources of inspiration.



products and services commitment and                          were no incidents of non-compliance regarding
policies [OJK F.17] [GRI 2-23, GRI 2-24, GRI 2-25, FS15)      customer confidentiality and marketing
Conducting responsible business behavior, applying            communications. [GRI 417-3, GRI 418-1]
the precautionary principle, respecting human              c. BTPN Syariah carries out regular reviews of
rights are commitments that are in line with our              the products and services currently available to
good and sincere intentions. With the spirit of               suit customer needs, in line with developments
faithfully empowering customers in an inclusive               in mobile banking and the latest technology
society, we have policies and procedures that pay             applications. The review concerns various
attention to the following:                                   relevant aspects and involves all relevant
a. Prioritize the suitability of products and                 departments and directorates. BTPN Syariah
    services to customer needs and capabilities and           has a Business Development Division which
    in accordance with the Mission and Vision of              will continue to manage and develop banking
    BTPN Syariah.                                             products and services to meet the needs of
b. For each product and service offered to                    today's customers and inclusive society.
    customers, the Bank makes a summary of                 d. In order for customers to understand the
    information regarding products and services               sharia financing products offered, prospective
    delivered to customers via the official BTPN              customers are required to attend basic
    Syariah website, at the start of the offer                membership training lasting 1 (one) hour for
    and/or when an agreement is reached with                  5 (five) days delivered by the BTPN Syariah
    the customer which is reflected during the                Community Officer (CO). Only customers
    process of signing the agreement with the                 who are declared disciplined in attending and
    customer . The summary of product and                     passing the inauguration will be processed
                                                                                                                 PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




    service information refers to OJK provisions              further as customers.
    and follows applicable sharia principles. If           e. Disbursement to financing customers is always
    there are changes to the terms and conditions             carried out in regular meetings agreed upon
    or features of a product, customers will be               and witnessed by all center members. Financing
    notified. Through Know Your Customer (KYC),               customers are also given installment and
    BTPN Syariah can find out customer profiles               savings cards which will be updated every time
    and explore their needs, so that they can offer           they make a transaction. In this way, customers
    appropriate solutions. The Bank emphasizes                know the amount of their obligations and
    ethics in communicating with customers                    savings balance.
    and always maintains the confidentiality of            f. A product, financial service and banking
    customer privacy in accordance with the Bank's            solution can be offered to customers if the
    code of conducts. In the reporting period there           following conditions are met:




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                                                           •   Products and services have been approved         Syariah emphasizes the importance of mitigating
                                                               in accordance with sharia principles and         social risks within the communities where potential
                                                               other applicable authorities including           customers reside, as well as addressing social and
                                                               having received regulatory approval. To          environmental risks associated with opening new
                                                               date, no products, financial services and        centers in inclusive community environments. [GRI
                                                               banking solutions have been suspended or         FS2]
                                                               withdrawn after launch. [GRI 417-1, GRI 417-2]
                                                           •   Products and services have been evaluated        Several provisions are implemented to mitigate
                                                               for safety supported by standard                 these risks:
                                                               procedures that regulate the process             a. Business activities are conducted in alignment
                                                               of these products and services, and                  with Sharia principles and do not violate any
                                                               these procedures have been approved in               applicable laws or regulations, including social
                                                               accordance with applicable regulations,              and environmental regulations.
                                                               the infrastructure is available, including       b. BTPN Syariah maintains a friendly relationship
                                                               procedures, systems, outreach and human              with local community leaders, sub-district
                                                               resources. [OJK F.27]                                heads, and heads of local neighborhoods (RW)
                                                                                                                    to inform them about the bank's presence
                                                        We view all these activities as integral to                 and its mission to assist mothers in the local
                                                        our commitment to maintaining fair and                      community where centers are located.
                                                        secure product and service policies for                 c. Existing center members recommend
                                                        inclusive communities, thereby fostering loyal              prospective financing customers to
                                                        empowerment within a sustainable ecosystem.                 join together in a center or form a new
                                                                                                                    center, fostering a supportive community
                                                        The Service Level Agreement (SLA) serves as a               environment.
                                                        cornerstone in our service quality control policy,      d. All center members commit to participating
                                                        mandating adherence at all levels in delivering             in basic membership training stages and
                                                        services to customers. Each function and position           attending regular center meetings where
                                                        within the bank is assigned specific SLA targets            relevant knowledge is shared.
                                                        corresponding to their duties and responsibilities.     e. Members within a center share a commitment
                                                        Achievement of SLA targets is a key performance             to supporting and assisting each other in their
                                                        assessment metric across all levels. BTPN Syariah           business activities and business development
                                                        rigorously implements product and service launch            endeavors.
                                                        policies to demonstrate adherence to all relevant       f. BTPN Syariah provides financing insurance to
                                                        laws and regulations. Consequently, there have              customers and insurance for their spouses in
                                                        been no recorded incidents of regulatory violations         the event of death, alleviating the financial
                                                        pertaining to product development or related to             burden on the family.
                                                        social and environmental aspects.
                                                                                                                Community Officers consistently accompany
                                                        Our Financing Policy is readily accessible to all       productive female customers, demonstrating 4
                                                        parties within BTPN Syariah, regularly updated          (four) superior behaviors: Courage, Discipline, Hard
                                                        in accordance with internal regulations, and            Work, and Mutual Assistance (BDKS). This support
                                                        approved by the Board of Directors and Board of         aims to boost their fighting spirit and enhance
                                                        Commissioners. It undergoes a thorough review           their quality of life, with qualified assistance being
                                                        process, complemented by the input of the Sharia        crucial to BTPN Syariah's success in serving high-
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        Supervisory Board, to ensure compliance with            risk inclusion segment financing customers.
                                                        Sharia principles. Within the financing policy, BTPN




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                                                                          Faithfully Empowering
                                                                      INCLUSIVE COMMUNITIES



Taking the right step to empower people
At the heart of BTPN Syariah's business model lies the collection of funds from those with the means to
afford it, which are then channeled to inclusive communities in need, guided by Sharia principles.

Funding customers are given the opportunities to empower millions of productive underprivileged families
across Indonesia, thereby enriching their lives with greater meaning. To expedite this noble endeavor,
BTPN Syariah offers a range of funding products with competitive profit sharing, coupled with services
focused on customer comfort and satisfaction. The bank's commitment to this cause is evident through
the exemplary performance of #bankirpemberdaya, its solid reputation, robust financial health, and
transparent fund management practices.

Driven by its Funding Unique Value Proposition (UVP), encapsulated in the Power program, Sustainable
Superior Performance, optimal returns, and excellent service, #bankirpemberdaya excels in serving
customers. Moreover, BTPN Syariah has continually evolved the sustainability development of its Unique
Value Proposition (UVP) concept for #bankirpemberdaya. This evolution underscores the bank's dedication
to demonstrating that the principle of Together Taking The Right Step in Empowering People, rooted in
Sharia, is intricately woven into the fabric of its business operations. Through customer surveys conducted
between 2022 and 2023, it is evident that customers perceive BTPN Syariah's unwavering commitment
to faithfully serving inclusive communities positively, recognizing their involvement in the bank's
empowerment initiatives.




                                      Excellent
                                                                 Daya
                                       Service




                                        Optimum               Sustainable
                                        Returns                 Superior
                                                              Performance




                                     Funding Unique Value Proposition (UVP)


Funding customers hold a strong belief in BTPN Syariah's genuine adherence to Sharia principles in its
empowerment efforts. They recognize the crucial importance of sufficient funding for the growth and
                                                                                                                PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




development of inclusive communities, facilitated through the assistance of #bankirpemberdaya at BTPN
Syariah. Moreover, these customers trust that the funds they entrust to BTPN Syariah are managed with
integrity, ensuring activities with a significant positive social and environmental impact, thereby expanding
their charitable reach and fostering inner satisfaction.

Despite the fluctuating returns across the banking industry throughout 2023, BTPN Syariah remains
steadfast in optimizing its funding business. The bank achieves this by fostering synergy between
#bankirpemberdaya and its customers, ensuring a consistent provision of empowerment to inclusive
communities.

Alhamdulillah, the collection of funds by BTPN Syariah yields sustainable benefits for millions of people,
underlining the enduring impact of the bank's initiatives.




                                                                                                                      99
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                                                        Digitizing services for inclusive                    feature. This technological advancement not
                                                        communities [OJK F.26]                               only enhances customer convenience but also
                                                        We strive to provide Sharia-based banking            bolsters security in managing their finances at
                                                        products, services, and solutions tailored to the    BTPN Syariah. Looking ahead, we are actively
                                                        unique conditions, backgrounds, and geographic       pursuing the development of the QRIS feature,
                                                        circumstances of inclusive communities. Through      currently pending approval by regulators.
                                                        this approach, we aim to address and mitigate        The implementation of QRIS will streamline
                                                        social and environmental challenges effectively.     transactions for customers, saving them valuable
                                                                                                             time as they no longer need to physically visit
                                                        Recognizing the prevalent technological              branch offices or the nearest ATM locations.
                                                        advancements and the adaptive nature of inclusive
                                                        communities, we acknowledge the necessity            Aplikasi for Mitra Tepat
                                                        of establishing a Sharia digital ecosystem to        In its commitment to faithfully empowering
                                                        stimulate economic growth within the inclusion       inclusive communities across Indonesia, BTPN
                                                        segment.                                             Syariah introduced Mitra Mitra as a branchless
                                                                                                             banking network, tailored to cater to the needs
                                                        Our efforts and initiatives for suitable and         of productive women in inclusive societies. Mitra
                                                        adaptable digital solutions are conducted            Mitra offers banking services and products
                                                        in phases, focusing on the development of            designed to facilitate financial literacy and provide
                                                        applications with efficient and effective            financing customers with faster and more efficient
                                                        automation, user-friendly interfaces tailored        transaction convenience.
                                                        to the needs of customers, partners, and
                                                        #bankirpemberdaya, all united under the              By the end of 2023, BTPN Syariah successfully
                                                        mission of "technology for good." This endeavor      achieved its target of establishing 30,000 Mitra
                                                        aims to enhance accessibility for marginalized       Tepat outlets nationwide. These outlets are
                                                        communities residing in disadvantaged or remote      equipped with application technology for Mitra
                                                        areas of Indonesia that have previously lacked       Tepat featuring face recognition capabilities,
                                                        access to banking services. [GRI FS13, FS14]         streamlining the registration process for Mitra
                                                                                                             Mitra partners.
                                                        By fostering a Sharia-based digital ecosystem that
                                                        supports an inclusive community, we anticipate       The development of application technology
                                                        an increase in customer loyalty among both           for Mitra Tepat underscores the bank's loyal
                                                        funding and financing customers, leading to          commitment to empowering and supporting
                                                        more efficient management of third-party funds       sustainable financing. Mitra Tepat outlets serve
                                                        from funding customers. These funds are then         as transaction points for cash deposits and
                                                        channeled towards financing business capital for     withdrawals, simplifying installment payments
                                                        financing customers, ultimately enhancing overall    for financing customers with enhanced time and
                                                        operational efficiency.                              space efficiency.

                                                        TEPAT Mobile Banking and Internet Banking            Since 2022, BTPN Syariah has collaborated with
                                                        By offering easy and efficient payment               strategic institutions, supported by BTPN Syariah
                                                        facilities through Mobile Banking and Internet       Ventura, to provide product payment services.
                                                        Banking, we aim to enhance the accessibility         The Warung Tepat application, utilized by Mitra
                                                        of financial services provided to our customers.     Tepat outlets, facilitates cashless transactions for
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        The development of internet banking with             essential goods, enhancing convenience for local
                                                        comprehensive features is a testament to our         residents across 298 districts and cities.
                                                        commitment to utilizing technology for the
                                                        benefit of both individual and corporate funding     Furthermore, BTPN Syariah, in collaboration with
                                                        customers, ensuring that benefits are distributed    business partners, has introduced the pay-later
                                                        fairly and equitably.                                murabahah feature within the Warung Tepat
                                                                                                             application. This feature serves as an alternative
                                                        Throughout 2023, we focused on enhancing Mobile      payment method for goods traded through the
                                                        Banking and Internet Banking by introducing          bank's partner platform, facilitating 14,600
                                                        account opening functionalities through the          transactions by the end of 2023, including bill
                                                        appropriate mobile application and internet          payments for BPJS, PLN, and credit and data
                                                        banking platforms, catering to both existing and     packages.
                                                        new customers while incorporating the eKYC




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                                                                         Faithfully Empowering
                                                                     INCLUSIVE COMMUNITIES



Through its digital services and technology, BTPN Syariah aims to consistently and faithfully empower
customers by offering customer-centric banking services aligned with the needs of inclusive societies.

Terra (Tepat Prospera)
All #bankirpemberdaya, including Community Officers (CO), have been equipped with Android-based
tablet devices featuring the Terra Application, aimed at faithfully empowering inclusive communities in
general and financing customers in particular.

Developed with an agile mindset, the Terra application streamlines the process from customer
financing application to approval, as well as operational activities related to the team's
daily fieldwork. This technological advancement enhances transparency and efficiency in
#bankirpemberdaya activities, with processing times becoming more accurate and faster compared
to manual methods. Moreover, the use of the Terra application promotes efficiency in paper usage,
aligning with sustainable practices.

These technology-based services contribute to increased customer satisfaction, comfort, and ease in
accessing banking services at BTPN Syariah, ultimately enhancing the overall customer experience.




                                           Mitra Tepat                          Warung Tepat
     Terra Aplication                      Aplication                            Aplication

    Terra Application                  Mitra Tepat                           Application that offers
    simple and securedCO               Application Reliable                  access to supply/goods
    daily application                  application to help
                                       Mitra Tepat/ agents



•   Terra Application                                     by the spirit of faithfully empowering the inclusive
    CO daily application with the simple and              communities.
    secured concept
                                                          BTPN Syariah regulates the General Principles
•   Mitra Tepat Application                               of Consumer Protection including transparency,
    Reliable application to assist the agent/ Mitra       fair treatment, reliability, confidentiality and
    Tepat                                                 security of consumer data/information, and
                                                          handling complaints and resolving consumer
•   Warung Tepat Application                              disputes simply, precisely and in accordance with
    Application that offers access to supply/goods        regulations. The guidelines used include:

Simplified, user-friendly, and secure product             •   Circular Letter No. 17/SEOJK.07/2018 regarding
and service innovations, coupled with support                 Guidelines for Implementing Consumer
for sustainable usage, serve as the cornerstone               Complaint Services in the Financial Services
of success in enhancing digital literacy and the              Sector,
welfare of inclusive communities in Indonesia.            •   POJK No. 18/POJK.07/2018 concerning
                                                              Consumer Complaint Services in the Financial
                                                                                                                 PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




Moving forward, we are committed to further                   Services Sector,
developing and innovating Sharia digital                  •   POJK No. 6/POJK.07/2022 concerning Consumer
products and services using agile working                     and Public Protection in the Financial Services
methods. This approach enables us to                          Sector,
continuously enhance our offerings, ensuring              •   Bank Indonesia PADG Circular Letter No.
increased service quality, customer comfort, and              23/17/PADG/2021 concerning Procedures
ecosystem security, all aligned with the spirit of            for Implementing Bank Indonesia Consumer
faithfully empowering.                                        Protection,
                                                          •   Bank Indonesia Regulation No 22/20/PBI/2020
customer protection and customer                              concerning Bank Indonesia Consumer Protection,
complaint handling [GRI 2-25]                             •   Board of Directors Decree Number. SK.005/
One of BTPN Syariah's commitments to provide                  DIR/OPTS/IX/2022 concerning Duties and
protection and handle customer complaints, is                 Responsibilities of the Consumer & Community
implemented by opening complaint channels and                 Protection Function.
providing solutions as quickly as possible underline

                                                                                                                 101
Page 102
                                                        BTPN Syariah has established a Consumer                                 resolved, both consumer complaints received
                                                        Complaint Resolution Unit (UPPK), which is                              through the person in charge of the contact
                                                        within the Operations function of the Directorate                       channel and through the OJK traceable
                                                        in charge of Finance and Operations. This unit                          application in APPK (Consumer Protection
                                                        was formed to handle and resolve complaints                             Portal Application).
                                                        submitted by consumers. This unit handles                            d. Based on OJK Regulation no. 31/POJK.07/2020
                                                        customer complaints based on the Policies and                           concerning the Implementation of Consumer
                                                        Procedures regarding handling, resolving and                            and Community Services in the Financial
                                                        reporting consumer complaints. [OJK F.24]                               Services Sector by the Financial Services
                                                                                                                                Authority, if there is a case where the customer
                                                        BTPN Syariah has built a consumer complaint                             is dissatisfied with the resolution from the
                                                        service mechanism. Complaints can be submitted                          Bank, the customer is given the opportunity to
                                                        via contact channels at Branch Offices, Sub-                            mediate with BI or LAPS (Alternative Dispute
                                                        Branch Offices and Functional Operational Offices                       Resolution Institution ) already registered.
                                                        (KFO) throughout Indonesia and the BTPN Syariah                      e. On a regular basis, UPPK will submit
                                                        Contact Center with telephone number 1-500-300                          consolidated consumer complaint reports to
                                                        and Toll Free telephone number 0-800-1500-300.                          the Regulator in accordance with applicable
                                                        There is no charge for any complaints submitted by                      regulations. [GRI 417-2, GRI 417-3, GRI 418-1]
                                                        consumers.
                                                                                                                             In 2023, BTPN Syariah received 9,406 incoming
                                                        a. Complaints are submitted directly through                         contacts, consisting of 60.3% Requests, 34.1%
                                                           the contact channel, recorded and resolved by                     Questions and 5.6% Complaints. All (100%)
                                                           officers and officials in that section.                           consumer complaints can be resolved in
                                                        b. Complaints that enter the contact line and                        accordance with regulatory provisions, in less
                                                           require further investigation, after being                        than 20 working days (on average completed
                                                           recorded by the person in charge of the contact                   within 5 working days). There were no incidents
                                                           line, are then submitted to the UPPK work unit.                   of non-compliance with regulations regarding
                                                           Furthermore, UPPK follows up on the resolution                    product information and labels and marketing
                                                           of consumer complaints received in accordance                     communications. Therefore, during 2023 none of
                                                           with applicable BTPN Syariah Policies and                         our products and services will be withdrawn from
                                                           Procedures.                                                       the market. [OJK F.29][GRI 417-2, GRI 417-3]
                                                        c. UPPK carries out monitoring to ensure that
                                                           the handling of consumer complaints has been


                                                        Public Complaints Report for 2021 to 2023
                                                        Period                  Resolved              Incoming Contact      Incoming Request        Question             Complaints
                                                        2021                      100%                       6,976              26.40%              67.30%                 6.30%
                                                        2022                      100%                       12,625             53.50%              42.20%                 4.30%
                                                        2023                      100%                       9,406              60.30%              34.10%                 5.60%



                                                        Public Complaint Report based on complaint mechanism
                                                                                                      2023                               2022                           2021
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        Reporting Mechanism
                                                                                         Total           Percentage          Total         Percentage       Total         Percentage
                                                        WBS                                      0                     0             0                  0           0                  0
                                                        Email                                    10                   2%             9              2%              0                  0
                                                        Phone (hotline)                      279                      51%        323              60%           341                78%




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                                                                               Faithfully Empowering
                                                                           INCLUSIVE COMMUNITIES



Public Complaint Report based on complaint mechanism
                                          2023                           2022                                2021
Reporting Mechanism
                              Total         Percentage       Total         Percentage           Total          Percentage
Branch                            219               44%          202                     37%            92             21%
Social Media                          6              2%              2                    0             6               1%
APPK/Regulators                       9              1%              5                    1%             1                  0
Head Office                           2                  0           1                    0             0                   0
Total                             525             100%           535                    100%          440             100%

Numbers of Complaints Based on Complaint Topic in 2023
                                                                                           Finished
                      Complaint Topic
                                                                                Total                           %
Mitra Tepat                                                                      35                             7%
Mobile Banking                                                                  229                            44%
Financing                                                                       157                            30%
Savings                                                                          21                             4%
ATM                                                                              69                            13%
Deposit                                                                           1                             0
Internet Banking                                                                 13                             2%
Total                                                                           525                            100%



In supporting businesses that are loyal to empowering inclusive communities, BTPN Syariah has
made comprehensive improvements in handling consumer complaints by continuously improving the
infrastructure and process for resolving consumer complaints. This is also done to increase customer
loyalty and satisfaction, inclusive society in Indonesia.

We believe that customers should not only make BTPN Syariah a financial institution for them, but more
than that, make us a partner who always accompanies them to do good, develop their business and realize
their dreams and aspirations to achieve a meaningful future.

To faithfully empowering inclusive communities can be carried out optimally, BTPN Syariah periodically
assesses the impact of its products/services and activities on the welfare of financing customers, the
development of the welfare of local communities and prepares development programs through Daya
activities. [OJK F.28][GRI 413-1]

a feature on inspirational customer
Nancy, a resilient single mother raising two children, never imagined she would triumph over her
adversities. Her weaving venture, which began seven years ago, is now blossoming. Furthermore, Nancy is
branching out into the pastry industry.
                                                                                                                                PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




Residing in a village in East Nusa Tenggara with her 98-year-old father and her four-year-old second child,
while her eldest lives in Jakarta, Nancy relies on BTPN Syariah as her financial partner. Beyond providing
capital loans, BTPN Syariah extends support through the Daya BTPN Syariah program and guidance from
the Bestee BTPN Syariah Program, facilitated by students.




                                                                                                                                103
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                                                               Initially, life was arduous for the 45-year-old woman. Following her husband's departure,
                                                               Nancy faced the uphill battle of providing for her family. With scarce resources, she
                                                               established a small shop at her doorstep. To augment her income, Nancy learned the art of
                                                               weaving from her sister. However, her weaving enterprise encountered setbacks, depleting
                                                               her resources.

                                                               A relative introduced Nancy to BTPN Syariah. Upon the recommendation of a BTPN Syariah
                                                               community officer, she formed a business group of ten individuals, securing an initial
                                                               loan of IDR 2 million. Despite encountering obstacles, Nancy remained undeterred. Her
                                                               perseverance bore fruit, and she successfully revived her business.

                                                               With her enterprise back on track, Nancy sought additional funding from BTPN Syariah,
                                                               amounting to IDR 3 million, to scale up production. Her efforts yielded remarkable results,
                                                               with Nancy's weaving enterprise experiencing unprecedented growth. At one point, she even
                                                               garnered a profit of IDR 2 million in just two days. In addition to her weaving and grocery
                                                               endeavors, Nancy is now venturing into the confectionery business.

                                                               Nancy extols the virtues of BTPN Syariah, which not only provides financial assistance
                                                               but also nurtures the growth of its clients' businesses. Through mentorship, she acquired
                                                               invaluable skills, ranging from bookkeeping and promotional strategies to inventory
                                                               management and general business acumen. During challenging times, BTPN Syariah
                                                               community officers offered invaluable support and encouragement, enabling Nancy to
                                                               persevere.

                                                               Moreover, BTPN Syariah actively promotes Nancy's business, inviting people to purchase
                                                               her products further bolstering her enterprise. She expresses gratitude for BTPN Syariah's
                                                               unwavering support.

                                                               Nancy hopes that the Bank continues to serve the community with the same dedication and
                                                               commitment. BTPNS Number One!!!




                                                        measurement results [GRI 413-1, FS2]
                                                        Measuring sustainable social impact is a paramount effort for BTPN Syariah to gauge the loyal impact of
                                                        empowering inclusive communities. These measurements serve as crucial benchmarks for evaluating the
                                                        success of assistance programs, assessing environmental and social risks faced by customers, enhancing
                                                        customer service, and strategically planning various Assistance activities aimed at improving the lives of
                                                        inclusive communities.

                                                        Presently, the Bank utilizes the Poverty Probability Index (PPI) measurement scorecard to measure welfare.
                                                        This tool is designed to assess customer welfare and is implemented periodically by the Bank to monitor
                                                        changes in customer welfare over time. Based on the PPI report, BTPN Syariah customers exhibit the
                                                        following conditions over the course of 5 years since joining as customers:
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




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                                                                          Faithfully Empowering
                                                                      INCLUSIVE COMMUNITIES



Q1.                                 Q2.                                  Q3.
Do all household members            Wildest floor type ?                 What type of tollet
ages 6 to 18 go to school?                                               management does the household
                                                                         have?
Yes                                 Soil or bamboo                       None or latrine


        84.7%    90.1%    92.5%            10.5%     8.2%     5.4%              15.8%     9.2%     5.2%




        Year 1   Year 3   Year 5           Year 1   Year 3   Year 5             Year 1   Year 2   Year 3


Q4.                                 Q5.                                  Q6.
What is the main cooking fuel?      Does the household have              Does the household have
                                    refrigator or freezer?               motorcycle or motorized boat?
Gas/LPG,kerosene electricity,       Yes                                  Yes
others

        90.8%     95.4%    98.7%           57.0%    70.0% 84.5%                 86.9%    92.7%    94.8%




        Year 1   Year 3   Year 5           Year 1   Year 3   Year 5             Year 1   Year 3   Year 5
                                                                                                            PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




The results of the impact scorecard clearly demonstrate that, in tandem with the growing number of
times inclusive communities have become BTPN Syariah customers, there has been a steady improvement
in economic welfare and overall quality of life for these customers. This tangible progress validates our
genuine commitment to faithfully accompanying inclusive communities, thereby contributing to the
advancement of the Sustainable Development Goals (SDGs).




                                                                                                            105
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                                                                     08
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        Faithfully Empowering
                                                           FO R E N D E AVOR S
                                                                [G R I 2-2 3 , G R I 2-2 4 , G R I 2-2 5]




106
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                                                              Faithfully Empowering for ENDEAVORS




      PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




107
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                                                                  Faithfully empowering inclusive communities and wholeheartedly
                                                                             serving them are core values at BTPN Syariah.
                                                               Upholding fidelity in enhancing competencies, continuously improving
                                                              performance, and prioritizing customer-centricity are integral to shaping
                                                                the identity of #bankirpemberdaya - a dependable and progressively
                                                                                       beneficial figure for society



                                                        BTPN Syariah remains steadfast in developing            Managing Industrial Relations at BTPN
                                                        strategies, services, and infrastructure to nurture     Syariah
                                                        the capabilities and loyalty of #bankirpemberdaya.      Studies, evaluations, and improvements to services
                                                        Prioritizing quality industrial relations, embracing    and policies are continuously conducted by the
                                                        sustainability principles, and fostering a              Human Capital team through the HC Service
                                                        collaborative spirit between the Bank and               and Policy Improvement program. This is solely
                                                        #bankirpemberdaya are essential for serving with        to enable the bank to continually provide better
                                                        dedication.                                             services, thus enhancing business productivity and
                                                                                                                employee engagement and loyalty.
                                                        Building a Culture of Sustainability:
                                                        Empowering #bankirpemberdaya [OJK F.1]                  The bank consistently accommodates and
                                                        Various initiatives have been implemented by            considers employee aspirations in reviewing
                                                        BTPN Syariah to cultivate processes and a               and implementing all policies in the aspect of
                                                        sustainable culture within the Bank, fostering          human resource management. BTPN Syariah
                                                        an agile mindset and innovative approaches to           ensures that the rights and freedoms of
                                                        implementing sustainable finance. Demonstrating         employee expression are covered in the Company
                                                        its commitment, the Bank allocates and optimizes        Regulations that have been approved by the
                                                        education and training funds in a manner that is        Ministry of Manpower. Since its establishment,
                                                        both appropriate and sustainable. The knowledge         these Company Regulations have been applied
                                                        and expertise of #bankirpemberdaya are essential        at BTPN Syariah to all (100%) employees, with
                                                        for fulfilling their roles effectively.                 regular updates. Communication in carrying out
                                                                                                                operational activities is well-established and
                                                        BTPN Syariah's Human Capital function plays a           smooth between employees and management,
                                                        significant role in addressing the challenges posed     as well as good relations between management
                                                        by the digital business transition and the entry of a   and commissioners and DPS. [GRI 407-1]
                                                        new generation into the workforce, which indirectly
                                                        impacts organizational culture. In response, BTPN       Emphasizing the principle of caution in the
                                                        Syariah has digitalized its employee recruitment        implementation of policies that can have a
                                                        and selection system, Learning Management               significant impact on employees, the Board
                                                        System (LMS), as well as career development and         of Directors has a policy of socialization and
                                                        leadership programs for key talents within the          communication delivery that is measured
                                                        organization. Talents proficient in the digital realm   and directed hierarchically before the
                                                        and committed to wholehearted service are pivotal       implementation of new changes is formally
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        for realizing BTPN Syariah's vision of a sustainable    applied. Of course, this policy is tailored to
                                                        ecosystem. Furthermore, the Bank is dedicated to        ensure the establishment of a harmonious
                                                        fulfilling its pipelines, with the Recruitment Team     industrial relationship between the company and
                                                        actively conducting selective employee selection        its employees. [GRI 402-1]
                                                        to continuously provide employment opportunities
                                                        for the Indonesian workforce. Notably, the Bank
                                                        emphasizes local talent-based recruitment,
                                                        particularly for the role of Community Officer.
                                                        [GRI 413-1]




108
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                                                 Faithfully Empowering for ENDEAVORS




Establishing a Decent and Safe Work                    2. Equality of Opportunity [OJK F.19][GRI 406-1, GRI
Environment [OJK F.21]                                    408-1]
BTPN Syariah recognizes the importance of                 BTPN Syariah prioritizes equal opportunities
providing a decent workplace and a safe working           for all employees in their careers, regardless of
environment to build employee loyalty and                 ethnicity, race, age, ethnic background, religion,
enhance productivity.                                     or gender. This commitment is particularly
                                                          important as the majority of BTPN Syariah
To ensure certainty for employees that their              employees (95%) are women.
workplace is a second home with guaranteed
quality and safety, BTPN Syariah has                      BTPN Syariah implements a fair performance
implemented a Code of Conducts and an                     appraisal system to provide equal opportunities
Occupational Safety and Health Program. These             for career growth and development, fostering
initiatives prioritize respectful work relationships      employee loyalty in their work.
and communication flows based on mutual
respect, while strictly prohibiting any activities        BTPN Syariah maintains a zero-tolerance
containing violence and/or harassment in all              policy toward all forms of discrimination
forms.                                                    and harassment. The company prohibits any
                                                          actions or words leading to harassment in the
Several management policies have been                     workplace, ensuring compliance with applicable
implemented to create a safe, comfortable, and            norms and customs. Additionally, the minimum
conducive workplace environment that enhances             age requirement for applicants is set at 18
employee loyalty:                                         years to prevent child labor.

1. Fair Treatment and Human Rights Protection             All forms of discrimination, threats, and acts of
   [OJK F.18]                                             violence in the workplace will be processed in
   The Board of Directors is dedicated to                 accordance with applicable regulations.
   upholding fair employment practices and
   promoting safe working conditions. We are           3. Workplace Safety
   committed to protecting human rights and               BTPN Syariah prioritizes and maintains the
   maintaining healthy industrial relations               safety and health of its employees as regulated
   in accordance with relevant laws and                   in the Company's Regulations through the
   regulations.                                           implementation of occupational health and
                                                          safety (K3) procedures.
   We prioritize equal opportunities for all
                                                                                                               PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




   employees, regardless of ethnicity, race, age,         Every endeavor for job protection are aimed
   religion, or gender, as evidenced by our diverse       at ensuring that employees are protected
   workforce where 95% of employees are                   from risks in the workplace and work-related
   women.                                                 illnesses, thus creating a safe and conducive
                                                          working environment. [GRI 403-1]
   At BTPN Syariah, we strive to treat
   all employees fairly and provide equal                 Through these measures, BTPN Syariah aims
   opportunities for career development and               to foster a culture of trust, respect, and loyalty
   self-improvement through a transparent                 among its employees, ultimately contributing
   performance appraisal system. Our goal is to           to the company's success and sustainability.
   foster loyalty among employees and ensure              [GRI 403-5]
   their well-being in the workplace.




                                                                                                               109
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                                                             Training Name                             Material                          Organizer         Time and Place
                                                                                                       Fire and Natural Disaster
                                                             Fire and Natural Disaster                                                                     Branch Office, Mar – Oct
                                                                                                       Emergency Response                Internal
                                                             Emergency Response Simulation                                                                 2023
                                                                                                       Simulation
                                                                                                       Tsunami & Earthquake
                                                             Tsunami & Earthquake Emergency                                                                Branch Office, Aug – Sep
                                                                                                       Emergency Response                Internal
                                                             Response Simulation                                                                           2023
                                                                                                       Simulation
                                                                                                       K3 Fire Safety Training
                                                             K3 Fire Safety Training Level D
                                                                                                       Level D Certification from                          Tangerang, 18 – 20 Sep
                                                             Certification from the Indonesian                                           Candi Academy
                                                                                                       the Indonesian Ministry of                          2023
                                                             Ministry of Manpower
                                                                                                       Manpower

                                                        4. Use of Company Facilities and Assets
                                                           BTPN Syariah provides adequate work equipment and facilities for employees to support their work at
                                                           the Bank. Members of the Board of Directors, Board of Commissioners, Sharia Supervisory Board, and
                                                           employees, in accordance with their respective functions, are required to protect the Bank's assets and
                                                           ensure their efficient use. Therefore, Bank assets can only be used for the Bank's business interests.

                                                        5. Activities Outside the Company
                                                           KEmployees are prohibited from becoming members of associations, clubs, or organizations not
                                                           recognized by the Government and/or adhering to values contrary to the company's values. However,
                                                           employees, in their individual capacity, may participate as members of organizations or associations
                                                           outside the company. As citizens, employees also have the freedom to engage in politics but are not
                                                           permitted to hold active administrative positions within political parties.

                                                        6. Social Media Usage
                                                           Social media networks enable employees to share knowledge, insights, and information with the
                                                           general public. To minimize risks to the Bank and its employees, internal guidelines are in place to
                                                           provide parameters and clarity regarding acceptable behavior on social media. Employees are obligated
                                                           to adhere to company policies, procedures, and standards at all times and are required to safeguard
                                                           the Bank's confidential assets and information.

                                                        BTPN Syariah upholds various international human rights standards related to equality, as outlined in
                                                        the Convention on the Elimination of All Forms of Discrimination against Women (CEDAW) in 1979, the
                                                        Universal Declaration of Human Rights in 1948, the International Covenant on Economic, Social and
                                                        Cultural Rights in 1966, and the International Covenant on Civil and Political Rights in 1966. Additionally, in
                                                        alignment with the global sustainable development agenda, BTPN Syariah supports SDG point 8, which
                                                        emphasizes that economic growth and decent work are essential for sustainable and inclusive economic
                                                        growth, fostering widespread employment opportunities, productivity, and the creation of decent work for
                                                        all. [GRI 2-27, GRI 406-1]

                                                        For this reason, we consistently implement the application of the principle of equality at various levels of
                                                        positions at BTPN Syariah [GRI 406-1]. The composition of BTPN Syariah's human resources shows diversity
                                                        as seen in the following data:
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        Employee Composition Based on Employment Contract Status and Gender
                                                        [OJK C.3.b][GRI 2-7, 2-8, 405-1]

                                                                                                   2023                              2022                          2021
                                                         Status
                                                                                           Male             Female          Male              Female      Male             Female
                                                         Permanent                               598               3,014           592            3,304          582           3,689
                                                         Non Permanent                            75              10,623            79           8,806            56           7,891
                                                         Total                                     14,310                            12,781                       12,218




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                                                           Faithfully Empowering for ENDEAVORS



Employee Composition Based on Operational Area and Gender
[OJK C.3.b][GRI 2-7, 405-1]

                                             2023                                   2022                                    2021
 Operational areas
                                  Male                Female            Male                 Female                Male              Female
 Java                                      202              8,112                205               6,759                  205             6,789
 Sumatra                                    36             3,546                  39               3,150                   37              2,944
 Kalimantan                                  4                 485                 8                  432                  10               394
 Jabodetabek                               418                 355               406                  828                 375               549
 East Indonesia                             13              1,139                 13                  941                  11               904
 Sub total                                 673             13,637                671              12,110                  638             11,580
 Total                                       14,310                                 12,781                                 12,218


Considering that our financing customers are inclusive communities spread across almost all corners
of Indonesia, we prioritize empowering local workers to assist in operational activities as a crucial step
towards building a sustainable ecosystem and fostering financial inclusion. [GRI 413-1]

We firmly believe that a deep understanding of culture, local wisdom, and the local language among these
workers significantly enhances their ability to interact effectively with the inclusion segment, particularly
the unbanked segment. This understanding facilitates the absorption and comprehension of the programs
we implement, as trust has been established between prospective financing customers and local workers.
By leveraging these localized insights, we aim to optimize the management of economic, social, and
environmental impacts associated with financial activities in the field. Through these efforts, we are
committed to fostering sustainable development and inclusive growth in the communities we serve.

Employee Composition Based on Age Group and Gender [OJK C.3.b][GRI 2-7, 405-1]

                                                 2023                                  2022                                 2021
           Age Group
                                     Male               Female              Male                Female             Male              Female
 < 25 years old                             30                 7,038               30                  5,411               29              5,421
 25 - 29 years old                          96                 4,359               95                 4,504                86              4,214
 30 - 34 years old                          132                1,576               143                 1,613              153              1,487
 35 - 39 years old                          179                 473               170                    412              170               307
 40 - 44 years old                          122                 102                126                   90               109                 73
 45 - 49 years old                           67                  46                65                    37                55                 42
 50 - 54 years old                          35                   34                29                    33                26                 29
 55 - 59 years old                           8                    7                10                       9              8                  6
 > 59 years old                              4                    3                    3                    1               2                  1
 Sub Total                                  673             13,637                 671                12,110              638             11,580
 Total                                       14,310                                    12,781                               12,218
                                                                                                                                                   PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




Employee Composition Based on Position Level and Gender [OJK C.3.b] [GRI 2-7, 405-1]

                                      2023                                   2022                                         2021
      Position Level
                              Male                Female             Male              Female               Male                 Female
 Board of
                                       3                   1                 2                    2                 2                          2
 Commissioners
 Sharia Supervisory
                                       2                   -                 2                    -                 2                          -
 Board
 Independent
                                       -                   2                 -                    2                 -                          2
 Committee




                                                                                                                                                        111
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                                                                                               2023                              2022                                      2021
                                                             Position Level
                                                                                       Male             Female          Male              Female              Male                  Female
                                                         Board of
                                                                                                4                   1           5                    -                5                           -
                                                         Directors
                                                         Senior Employees
                                                         (Including Executive                 124                  60          115                 60                115                        54
                                                         Officers)
                                                         Supervisors                          369             1,453            347            1,353                  324                      1,235
                                                         Staff                                171            12,120            196           10,692              190                     10,287
                                                         Sub Total                            673            13,637            671           12,110              638                         11,580
                                                         Total                                 14,310                            12,781                                    12,218


                                                        Employee Composition Based on Education Level and Gender [OJK C.3.b] [GRI 2-7,405-1]

                                                            Education                    2023                                    2022                                        2021
                                                              level             Male                Female              Male               Female                Male                 Female
                                                         Graduate
                                                                                        48                    37                47                       35                 42                  28
                                                         degree
                                                         Undergraduate
                                                                                       486                5,413                482                 5,207                   456                5,130
                                                         degree
                                                         Diploma                        78                   979                81                   964                    80                 962
                                                         High school
                                                                                         61              7,208                  61                 5,904                    60                5460
                                                         equivalent
                                                         Subtotal                      673               13,637                671                 12,110                  638               11,580
                                                         Total                           14,310                                  12,781                                     12,218


                                                        It is believed that a precise and careful recruitment and selection process can yield #bankirpemberdaya
                                                        with high-quality talent and potential, who can passionately empower productive women in an inclusive
                                                        society towards sustainability. Therefore, BTPN Syariah remains committed to enhancing the effectiveness
                                                        of its recruitment efforts by refining policies, improving the quality of workforce sources, and streamlining
                                                        the selection process to be more accurate and expedient.

                                                        Throughout 2023, the Bank will continue its initiatives related to the development of digital talents
                                                        through the following programs:
                                                        1. Sharia Full-stack Engineer Development (SHIFTED) Program:
                                                            This program focuses on nurturing digital talents as programmers to develop the digital ecosystem.
                                                            In 2023, the SHIFTED program will entail in-class training, on-the-job training (OJT), and mentoring.
                                                            Participants will undergo intensive education in both technical and leadership skills, with the aim of
                                                            preparing them to become Tech Leads in the future.
                                                        2. Sharia Digital Ecosystem Apprentice (SHINE) Management Trainee Program:
                                                            The SHINE program aims to recruit top university graduates and develop them into young leaders with
                                                            in-depth knowledge of the unique BTPN Syariah business model.
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        3. SHINE launched in Q1 2023, the program currently involves on-the-job training with rotating project
                                                            assignments in the Financing, Funding, and Operations Directorate. It is expected that through SHINE,
                                                            BTPN Syariah will cultivate future leaders who possess a profound understanding of the intricacies of
                                                            business in the ultra-micro segment.




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employee competency development [OJK F.22][GRI 404-2]
BTPN Syariah is committed to enhancing Human Capital competency within a sustainable ecosystem
by implementing the Grow Right Full of Benefits career path, which offers structured training and
development stages for Customer Officers (COs). Additionally, training programs for other employees are
meticulously prepared and executed through a structured curriculum. These initiatives are complemented
by a work culture that fosters an agile mindset and encourages innovative approaches to work.

policy and implementation of competency development in 2023
The Bank ensures equitable treatment regarding participation in training programs for all employees,
aiming to refine their competencies and skills for enhanced sustainability in their lives. Various innovative
development programs, managed both online and offline, along with diverse work assignments within their
respective fields, provide employees with opportunities to explore their potential.

Furthermore, the Bank provides training and development support to assist employees in transitioning
into new or pre-position responsibilities. The Human Capital Division is tasked with providing policies,
procedures, and processes to support training work processes, ensuring compliance with statutory
requirements.

Since 2018, BTPN Syariah has embraced the Agile Software Development method. The adoption of an
agile mindset and practices is facilitated by the People Talent Squad (PTS) through sharing sessions with
internal and external Agile practitioners, as well as dialogues tailored to specific objectives. Communities
of Practice (CoP) are established as learning groups to collectively develop technical areas.

Regular Agile Health Checks are conducted to gather feedback and continuously improve work methods.
Additionally, under the auspices of the PRISMA Club, Islamic spiritual activities are organized, including
Barokah Friday sessions and one-hour sessions with Ustadz, held regularly to enhance employees'
worship quality. These activities aim to foster a strong religious foundation, nurturing future leaders with
characters aligned with Sharia principles.

Throughout 2023, BTPN Syariah through the HC Division has held 856 training sessions attended by
58,138 participants with a total of 608,509 hours of training with an average of 10.6 hours per participant.
We are optimizing competency development activities in 2023 to faithfully empowering businesses in a
sustainable manner.

Average Training Hours Based on Employee Category and Gender [GRI 404.1]

                                                 Training Hours a Year               Average training hours
              Position Level
                                               Male                Female           Male              Female
Board of Commissioners                                  43                    29           6.14                9.67
Committee                                                                     20                                 10
Board of Directors                                     214                    23           6.48                3.83
Executive Officers                                    1,336                   911          6.02                4.10
Senior employees                                      5795                  2,996          8.04                6.89
Supervisors                                        13,194                45,835            5.84                6.65
                                                                                                                       PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




Staff                                                 9,617              528,577           5.25                11.62
Total                                                    608,590                              10.64




                                                                                                                        113
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                                                        Average training hours by gender [GRI 404-1]

                                                                                              average hours 2023            average hours 2022                  average hours 2021
                                                                  Position Level
                                                                                             Male           Female         Male            Female            Male             Female
                                                         Board of Commissioners                  6.14             9.67          6.70              3.33             2.43             2.54
                                                         Committee                                                    10       3.00               8.50                -                  12
                                                         Board of Directors                     6.48              3.83          3.19                 -             3.78                   -
                                                         Executive Officers                     6.02              4.10         6.03               6.15            5.20              4.95
                                                         Senior employees                       8.04              6.89          6.28              5.43            5.05              3.84
                                                         Supervisors                            5.84              6.65          5.89              5.19            5.30              4.25
                                                         Staff                                   5.25             11.62        6.05               5.42            6.56              6.07
                                                         average hours                           5.95            10.90         6.00               5.40             3.67             6.25



                                                        training related to social and environmental issues [OJK E.2][GRI FS4]
                                                        In line with the enactment of POJK 51/POJK.03/2017 concerning the Implementation of Sustainable
                                                        Finance for Issuer Financial Services Institutions and Public Companies, BTPN Syariah makes sustainable
                                                        finance one of the focuses of learning programs for employees.
                                                        1. Sharia provides opportunities for employees at various levels to develop competencies related to
                                                             sustainable finance. Including, competency development for the Sustainability Task Force which
                                                             consists of various levels of employees and across directorates.
                                                        2. The Board of Directors and Board of Commissioners at BTPN Syariah participate in competency
                                                             development

                                                        A core training on sustainability awareness is mandatory for all employees, aiming to strengthen their
                                                        awareness as #bankirpemberdaya (empowered bankers). This training is conducted throughout the
                                                        year from January to December 2023, with a total of 5,934 participants. Additionally, the Learning
                                                        Management System (LMS) platform is gradually implemented to cover all competency and skills modules
                                                        required by 9,772 Customer Officers (COs) in their career pursuits. This training module encourages self-
                                                        learning and is monitored by superiors, who can also assign direct tasks to ensure skill mastery. [GRI 404-1]

                                                        Furthermore, BTPN Syariah remains committed to integrating Environmental, Social, and Governance
                                                        (ESG) practices into every activity, product, and financial service offered. This commitment entails ongoing
                                                        training initiatives aimed at introducing and integrating ESG practices among all employees throughout
                                                        2023, reflecting the bank's unwavering dedication to sustainability.


                                                                     training                       date                   facilitators                  form             participants
                                                         Personal Branding and
                                                         Business Etiquette                      Feb – May 2023                        Talk Inc            Training                  90
                                                         Communication
                                                         Dynamic Presentation                    Feb – Nov 2023                     T & DON                Training                277
                                                         Growth Mindset                                 4 Mar 2023         Samel P. Amarta                 Training                  25
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                         Pengelolaan Aset Informasi                     11 May 2023               Vedapraxis               Training                  28
                                                         Professional Communication
                                                                                                           Jun 2023           Ace Learnings                Training                  39
                                                         & Negotiation Skills Workshop
                                                         Professional Facilitating Skills
                                                                                                           Jul 2023           Ace Learnings                Training                  84
                                                         Workshop
                                                         Leadership for First Line
                                                                                                 Sep – Nov 2023                   Augmenta                 Training                  50
                                                         Managers




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training for retirement preparation
BTPN Syariah offers pre-retirement training to employees who are approaching retirement age, aiming
to facilitate a smooth transition from work to retirement. This training provides relevant insights and
understanding to empower employees to plan their finances effectively, adjust their lifestyle, and prioritize
their health and asset management. The objective is to ensure that employees entering retirement can
enjoy a comfortable and meaningful retirement period.

In 2023, pre-retirement training sessions were held in February and July, with a total of 19 employees
participating. The details of the training sessions are as follows:


        Date              Training title         location         total participants        organizers
                      Retirement
22 – 24 Feb 2023      Preparation Period            Yogyakarta                         4                 GML
                      Training
                      Tips for Facing
27-29 Jul 2023        Retirement &                  Yogyakarta                     15                    GML
                      Entrepreneurship



employee performance evaluation and rewards
BTPN Syariah conducts periodic assessments of employee performance at every level of position, based
on Key Performance Indicators (KPIs) determined collaboratively by teams and individuals at the start of
each year. These performance assessments serve as a basis for strategic career development planning
for the employees involved, alongside managing individual, unit, and company performance. Each year, all
employees (100%) undergo performance reviews according to their respective KPI criteria. [GRI 404-3]

The management of employee performance, through both team and individual KPIs, is consistently
implemented with various adjustments. Employee performance results are consistently recognized and
appreciated, fostering encouragement and motivation among employees to continue serving the inclusive
community segment with dedication and integrity.

In terms of employee awards, BTPN Syariah adheres to its Wage Structure and Scale provisions, ensuring
that wages are not lower than the minimum wage for new employees at the lowest level. These wages
are regularly reviewed and adjusted, taking into account factors such as inflation rates, company
capabilities, market survey results, and employee performance. The bank also provides employment
benefits based on the Salary Grade Level (SGL) range, which outlines the balance of position levels, duties,
and responsibilities for each individual, along with additional benefit packages such as Holiday Allowance
(THR), health insurance, pension plans, health service coverage, maternity leave, and other leave rights as
per regulations. [GRI 401-2]

The remuneration package for each employee is determined based on their position level, competency,
and performance assessment results, with no differentiation between genders for any position. The basic
salary for new employees at the lowest level is compared with the Minimum Wage, ensuring fair and
equitable compensation practices across the organization.
                                                                                                                PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                                                                                 115
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                                                        Comparison of the basic salary of new employees at the lowest level with minimum wage [OJK F.20][GRI 202-1]
                                                                                     2023                                          2022                                        2021
                                                            Area
                                                                       Basic                                     Basic                                          Basic
                                                                                   UMR         comparison                    UMR             comparison                      UMR          comparison
                                                                       salary                                    salary                                         salary
                                                         Jakarta       4,902,000   4,902,000             1:1     4,642,000   4,642,000                    1:1   4,585,000    4,490,500           1.02 : 1


                                                         Bandung       4,048,500   4,048,500             1:1     3,775,000   3,775,000                    1:1    3,815,000   3,742,500           1.02 : 1


                                                         Semarang      3,420,000   3,060,500          1.12 : 1   3,080,000   2,835,500                1.09:1     3,135,000   2,810,500           1.12 : 1


                                                         Surabaya      4,525,500   4,525,500             1:1     4,411,000   4,411,000                    1:1   4,500,000    4,411,000           1.12 : 1


                                                         Medan         3,624,500   3,624,500             1:1     3,371,000   3,371,000                    1:1   3,330,000    3,330,000              1:1


                                                         Makassar      3,523,500   3,523,500             1:1     3,295,000   3,295,000                    1:1   3,355,000    3,255,500           1.03 : 1


                                                         Kupang        2,715,000   2,188,000          1.24 : 1   2,510,000   1,975,000                1.27:1    2,410,000    1,950,000           1.24 : 1


                                                         Banjarmasin   3,500,000   3,236,500         1.08 : 1    3,228,500   3,228,500                    1:1    3,228,500   3,228,500              1:1


                                                         Pontianak     2,800,000   2,751,000         1.02 : 1    2,710,000   2,580,000                1.05:1     2,515,000   2,515,000              1:1


                                                         Samarinda     3,329,500   3,329,500             1:1     3,138,000   3,138,000                    1:1    3,112,500    3,112,500             1:1




                                                        BTPN Syariah is committed to upholding the                                 1. Training for Executive Officers
                                                        principles of fair labor practices and ensuring the well-                     • Advanced Personal Branding & Public
                                                        being of its employees. The Company Regulations,                                 Speaking: Designed to help participants
                                                        outlined in Chapter IV - Working Time, articles 13 and                           discover their personal characteristics and
                                                        14, serve as the foundation for preventing forced labor                          effectively convey ideas and opinions as
                                                        within BTPN Syariah. Employees are not subjected to                              representatives of the organization.
                                                        forced labor, and any instances of working beyond the
                                                        regulated hours are compensated with overtime pay,                               •   Advance and Intensive Public Speaking
                                                        as per applicable employment regulations. [GRI 409-1]                                Training: A program aimed at enhancing
                                                                                                                                             participants' communication skills to deliver
                                                        Moreover, BTPN Syariah has implemented a                                             clear and persuasive presentations.
                                                        comprehensive leave policy specifically for female
                                                        employees who give birth. Female employees are                             2. Training for Leadership Development
                                                        entitled to a total of 90 (ninety) days of maternity                          • Leaders With Purpose (LEAP): Prepares
                                                        leave, during which they are guaranteed the right                                Future Leaders to address diverse business
                                                        to return to work after the leave period ends.                                   and organizational challenges
                                                        Throughout the maternity leave period, employees
                                                        continue to receive their salary and various forms of                            •   Leadership refreshment program: Targets
                                                        benefits, ensuring their financial stability and well-                               division and department heads with
                                                        being during this important time. [GRI 401-2]                                        extensive leadership experience to refresh
                                                                                                                                             their leadership skills.
                                                        Talent-Based Career Development
                                                        BTPN Syariah is dedicated to supporting its                                      •   Leadership Series: Sharpens leaders'
                                                        employees' professional growth through talent-                                       abilities in change management, team
                                                        based career development initiatives. The bank aims                                  leadership, stakeholder communication, and
                                                        to cultivate a talent pool comprising outstanding                                    expectation management.
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        employees with exceptional performance and skills,
                                                        providing them with opportunities to potentially                                 •   Leadership Development Program: Equips
                                                        become future organizational leaders. The talent pool                                leaders with the skills necessary for leading
                                                        is meticulously formed through rigorous selection                                    change, managing teams, and effectively
                                                        processes, including specialized training programs                                   communicating with stakeholders.
                                                        and rotational placements across various divisions,
                                                        enabling employees to broaden their perspectives and                             •   Business Manager Leadership Excellence:
                                                        enhance their leadership capabilities.                                               Enables Business Managers to develop their
                                                                                                                                             teams, collaborate effectively, and ensure
                                                        The bank offers pre-service training programs for                                    business continuity.
                                                        employees who receive promotions. Below is a brief
                                                        overview of the various pre-service training programs                            •   Appropriate Leadership: Refreshes leaders'
                                                        organized by BTPN Syariah: [GRI 404-2]                                               technical knowledge to ensure adherence to
                                                                                                                                             proper procedures


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   •   Leadership for First Line Managers:              5. Counseling and Socialization Seminar on
       Prepares leaders at the initial leadership          Adaptation to New Habits:
       level to effectively lead teams and manage          Socialization carried out for employees to
       stakeholder expectations                            emphasize the importance of maintaining
                                                           health and also safety riding and disaster
   •   Becoming a Trusted Leader for BM: Aims              response.
       to optimize the potential and capacity of
       Business Managers and their teams.               6. Employee Assistance Program (EAP):
                                                           This is world-of-work-based professional
   •   Growth Mindset: Develops a growth-                  assistance designed to help companies and
       oriented mindset through effort and                 employees with work productivity problems
       continuous learning                                 and other personal problems that impact
                                                           performance and interpersonal relationships,
   •   Landmark Forum: Focuses on                          both in the work environment and in personal
       transformative learning methods to improve          life.
       participants' quality of life and enhance
       their long-term thinking in various aspects.     7. Leadership & Inclusive Training (LIT)
                                                           To instill the values of inclusivity and get to
3. Training for Staff                                      know the world of disabilities better, starting in
   • Resilent together with #bankirpemberdaya              2021 BTPN Syariah has collaborated with the
      Training: Aims to enhance self-motivation            Helping Hands Foundation (YHH), a non-profit
      and productivity among employees to                  organization whose mission is to promote
      empower the community.                               the values of inclusivity through character
                                                           development programs. bringing together the
   •   Effective Interviewing: Equips participants         worlds of disabilities and non-disabilities.
       with essential skills for conducting effective
       interviews during the recruitment and               Until 2023, there have been 45 volunteers from
       selection process, ensuring optimal results.        BTPN Syariah employees who have joined
       Through these comprehensive training                the YHH Leadership & Inclusive Training (LIT)
       programs, BTPN Syariah demonstrates its             program, by becoming mentors for class XII
       commitment to nurturing and developing its          SLB students. This regular interaction between
       employees, enabling them to thrive in their         Mentor and Mentee is aimed at developing the
       careers and contribute effectively to the           Mentee's self so that they gain broader insight
       organization's success.                             and a better picture of the world of work and
                                                           career experience from the mentors and that
4. Community Officer (CO) Training                         they have the same opportunities if they work
   • Cool Class: Face-to-face technical learning           hard to develop their potential.
     with lecture strategies, simulations and
     role plays carried out by COs who have just           For the mentors, this interaction provides a
     joined after completing learning with the             better understanding of the world of disabilities
     Cool application, facilitated by a facilitator        while increasing the Mentee's leadership
     or business manager.                                  abilities in self-development, social sensitivity,
                                                           and empathy.
                                                                                                                PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




   •   Tepat Nostalgia: Training that aims to
       refresh the technical knowledge of leaders in
       the field, so that leaders can re-emphasize
       Tepat procedures to their teams




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                                                           In 2023, collaboration with YHH was enhanced       compared to the previous year's results. However,
                                                           by trialling a work internship program for         these scores are still higher than those found in
                                                           people with disabilities who were previously       surveys conducted at high-performing companies
                                                           mentored in the LIT program. There are 3           worldwide. These positive results demonstrate
                                                           mentees with disabilities who are now at           that the majority of employees feel valued and
                                                           university to get to know the world of work at     supported by BTPN Syariah, enabling them to
                                                           BTPN Syariah. This program provides a better       continue growing.
                                                           understanding of the world of disabilities and
                                                           increases empathy for more BTPN Syariah            Of course, there are areas that require further
                                                           employees. Furthermore, the number of              improvement, and we value employee input in
                                                           participants in the internship program for         identifying these areas. Throughout 2023, follow-
                                                           people with disabilities will increase in 2024.    up programs based on the survey results were
                                                                                                              implemented. Training programs were expanded
                                                        Accomplishments in 2023 and Plans for 2024            to reach more employees, studies were conducted
                                                        Throughout 2023, various initiatives and activities   to improve pay & benefits for better employee
                                                        were carried out with the following results:          welfare, and more face-to-face or online dialogue
                                                                                                              was established within each division to maintain
                                                        Employee Engagement                                   open communication channels and provide support
                                                        The management of BTPN Syariah sees our unique        for employees.
                                                        business model as a 'people business'. With 12,000
                                                        employees serving 4 million financing customers,      BTPN Syariah is committed to conducting the EES
                                                        it is crucial to listen to employee feedback and      annually and responding promptly to employee
                                                        aspirations. In 2022, we began conducting             feedback.
                                                        an Employee Engagement Survey (EES) in
                                                        collaboration with consultants who have global        At BTPN Syariah, 95% of our employees hold
                                                        expertise and reputation in this field.               high school diplomas or vocational degrees, and
                                                                                                              their experience with us is often the first after
                                                        The EES measures Engagement and Enablement            completing their education. With such a diverse
                                                        scores, which reflect employees' commitment           range of backgrounds and expectations in the
                                                        and loyalty as well as their perception of the        workforce, it is not surprising that we have
                                                        company's support in allowing them to work            experienced turnover. Therefore, we are actively
                                                        and develop optimally. The results from the           working to streamline and improve our recruitment
                                                        beginning of 2023 showed an Engagement score          process to ensure smooth business operations
                                                        of 78% and an Enablement score of 81%, with           and maintain a safe employee turnover rate while
                                                        an 83% participation rate among employees.            also meeting the needs of our employees in the
                                                        This indicates a high level of engagement and         field and helping new employees adjust to our
                                                        enablement, although there was a slight decrease      organization. [GRI 2-7]
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                                                             Faithfully Empowering for ENDEAVORS



Employee Turnover [GRI 2-7, GRI 401-1]

                      2023                                         2022                                     2021
                     55.4%                                         44.8%                                   37.5%


Employee Turnover Based on Age Group and Gender [GRI 2-7, GRI 401-1]

                                              2023                                 2022                               2021
          Age Group
                                   Male                Female              Male            Female         Male               Female
         < 25 years old                       8              4.855                10           3.354              5              2.801
      25 - 29 years old                       21             2.338                23           1.894              7              1.369
      30 - 34 years old                       17              262                 14                192          22               209
      35 - 39 years old                       11                33                16                 34          10                   33
      40 - 44 years old                       13                   6               9                  4          10                    3
      45 - 49 years old                       5                    4               2                  7           1                    0
      50 - 54 years old                        1                   2               1                  1           3                    2
      55 - 59 years old                       4                    3               4                  3           2                    0
         >59 years old                         1                   0               1                 0           0                     0
           Sub Total                          81             7,503                80           5,489             60              4,417
             Total                            7,584                                5,569                           4,477


Employee Turnover Based on Operational Area and Gender [GRI 2-7, GRI 401-1]

                                                   2023                            2022                            2021
 Operational Areas
                                     Male                 Female           Male            Female         Male               Female
 East Indonesia                                    3            658                2                541           2               389
 Jabodetabek                                   36                  34             36            285              29                   123
 Java                                          36             4,976               35           3,274             27              2,746
 Kalimantan                                        2            257                2            208               1                   169
 Sumatra                                           4          1,578                5            1,181             1               990
 Total                                         81             7,503               80           5,489             60              4,417



Reason for Resignation [GRI 2-7, GRI 401-1]

                                                   2023                            2022                            2021
 Age Group
                                     Male                 Female           Male            Female         Male               Female
 Self request                                  57             3,046               47           2,594             45              2,596
 Disciplinary Punishment and
                                               15             4,371               20           2,754              5              1,639
 Dismissal for Defaulters
 Retirement                                        2                   1           6                 4            3                     1
                                                                                                                                            PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




 End of Employment
                                                   4               67              2                124           -                   163
 Contract
 Others *                                          3               18              5                 13           7                   18
 Total                                         81             7,503               80           5,489             60              4,417

 * does not pass probation




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                                                        BTPN Syariah seeks to reduce the CO turnover rate by:
                                                        1. Implement BIJAK Onboarding more effectively
                                                        2. Implementing Stay Rate Incentives for Homesteads
                                                        3. Accelerate CO fulfillment by increasing Resourcing productivity and sourcing quality through the
                                                           KAGUM program
                                                        4. Strengthen the role of line managers in managing team members with a series of leadership exercises

                                                        BTPN Syariah also strives to retain and develop the Company's best talents:
                                                        1. Implementing a Leadership capability development program for company talents through the LEAP
                                                           (Leaders with Purpose) program
                                                        2. Implementing the Smart Mother program as an effort to pay attention to the needs of employees, the
                                                           majority of whom are women in productive age, and strengthen the proposition for female employees
                                                           in the company.

                                                        BTPN Syariah continues to strive to increase employee engagement:
                                                        1. Developing an Employee Engagement Playbook to design engagement programs in each Division.
                                                        2. Carry out training programs across the board.
                                                        3. Shorten communication lines between superiors and subordinates through various communication
                                                           channels, online or offline.

                                                        Employee Productivity
                                                        Employee productivity levels based on the Earnings per Employee ratio indicator can be maintained
                                                        according to the data:
                                                                                                  2023                   2022                    2021
                                                        Profit                                            1,081                   1,780                     1,465
                                                        Total Employees                                  14,310                  12,781                    12,218
                                                        EPE                                              7.55%                  13.90%                     11.99%


                                                        These indicators prove that every activity and budget that has been realized to support employee
                                                        competency development has made a positive contribution to the Company's performance.
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                                                Faithfully Empowering for ENDEAVORS




2024 Plan
Anticipating future challenges, the Human Capital Development Team plans to implement several
programs and strategies in 2024 by focusing on managing Gen Z. This is focused considering that
the majority of BTPN Syariah employees are Gen-Z employees. The unique culture, competencies and
management of this generation are both challenges and opportunities for BTPN Syariah.

Further development strategies in 2024 will be carried out with various programs:
1. BM Excellaration Program
   New breed of Business Manager (BM) development program by designing and implementing
   recruitment programs, and accelerated development academies
2. Sharia My Way
   Re-instilling sharia values in employees to increase their soft competence
3. Kakak Curhat
   Developing the capabilities of Senior Community Officer (CO) and BM employees to conduct
   counseling and manage the mental health of field employees.
4. CO Stage
   Organizing engagement events from CO to CO which aims to provide a platform for appreciation
   and empowerment for CO Gen-Z employees according to their interests and aspirations.
5. Movement to Manage a Generation
   A training program developed and implemented to help employees recognize and effectively
   handle generational differences, promoting positive interactions between different age groups.
   This focuses on developing specific skills necessary for managing and collaborating with
   individuals from varying generations.

All of these programs and strategies are BTPN Syariah's priorities in an effort to increase employee
satisfaction and loyalty which leads to improved and easier service to customers, an inclusive society.




                                                                                                          PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




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            Sustainability Performance Highlights




             09
                                                    PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




Faithfully Empowering
T HE E N V I R ON ME N T


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                                                              BTPN Syariah remains steadfast in its commitment to safeguarding the
                                                              environment for the sake of sustainability and minimizing the impact of
                                                             Greenhouse Gases (GHG). This dedication is reflected in our multifaceted
                                                             efforts to preserve nature and adapt to our surroundings, both within and
                                                                                  beyond the confines of the bank



                                                        commitment to the impacts of climate
                                                        change [OJK F.16][GRI 2-23, 2-24, 2-25, 307-1]           5. utilizing cloud-based technology (private cloud
                                                                                                                     data center) in order to make information
                                                        BTPN Syariah remains steadfast in its                        technology infrastructure efficient and
                                                        commitment to managing environmental                         encourage energy efficiency.
                                                        impacts, particularly concerning water use,              6. utilizing LED lights and lights with motion
                                                        energy efficiency, paper conservation, waste                 sensors (motion triggered lamps) in managing
                                                        management, and emission reduction efforts.                  indoor lighting activation;
                                                        These initiatives are geared towards preventing          7. using double-layer glass on the windows
                                                        environmental pollution, enhancing natural                   which allows sunlight to enter the work space
                                                        resource efficiency, and contributing to the global          optimally. The use of window glass can also
                                                        effort to reduce Greenhouse Gas (GHG) emissions.             reduce the intensity of light use during the day;
                                                                                                                 8. use environmentally friendly air conditioning
                                                        Throughout 2023, BTPN Syariah diligently                     and have a policy of limiting the use of air
                                                        monitored its business activities and                        conditioning according to needs.
                                                        #bankirpemberdaya initiatives to ensure                  9. Implementing a community center based
                                                        compliance with environmental laws and                       service business model, so that each member
                                                        regulations. As a result of our proactive                    of the center does not need to use a vehicle
                                                        measures and loyal commitment to assisting and               regularly to meet #bankirpemberdaya but
                                                        empowering inclusive communities, the bank did               a #bankirpemberdaya regularly visits the
                                                        not encounter any reports of non-compliance with             community center which has an average of 15
                                                        environmental regulations during this period.                customers;
                                                                                                                 10. BTPN Syariah Branch Offices and
                                                        energy [OJK F.5, OJK F.7, OJK F.12][GRI 302-1]               Functional Operational Offices also feature
                                                        BTPN Syariah acknowledges the significant                    environmentally friendly designs by utilizing
                                                        environmental impact associated with managing                live plants to maximize green space and
                                                        energy consumption in our banking operations. By             lower air temperatures. The design also helps
                                                        optimizing our energy usage, we aim to enhance               reduce energy use and displays a beautiful
                                                        natural resource efficiency, reduce Greenhouse Gas           environment.
                                                        (GHG) emissions, and achieve cost-efficient office       11. Starting in 2023, the Bank will use electric
                                                        operations.                                                  cars to support the operations of the Board of
                                                                                                                     Directors.
                                                        The efforts carried out in 2023 are as follows:
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        1. Implementation of Public Expose, Meetings             The digitalization and process automation
                                                           with Analysts and hybrid meetings;                    program which has a direct impact on reducing
                                                        2. Implementation of information disclosure and          paper use as a result of implementation,
                                                           press releases in digital form and delivered via      perfecting environmental management
                                                           electronic mails;                                     baselines and socializing the implementation of
                                                        3. Reducing the use of transportation modes;             environmentally friendly operations which is the
                                                        4. Implementation of the General Meeting of              realization of RAKB.
                                                           Shareholders and Extraordinary General Meeting
                                                           of Shareholders held electronically, which not only
                                                           supports paper reduction through eliminating
                                                           printed materials, but is no less important in the
                                                           form of reducing travel modes of transportation
                                                           and reducing carbon by Shareholders by
                                                           conducting it online and providing proxies
                                                           electronic attendance and voting.

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                                                                                 the environment




Environmental performance achievements

                                                   Unit            2023*                     2022                     2021
Electricity
Electricity Usage                                   Kwh                4,122,674            2,303,425                 1,593,834
Area Size                                           M2                     24,258                 18,767                   18.993
Energy Consumption Intensity                      Kwh/M2                   169.95                 122.74                    83.92
Decreased Electricity Use                           %             unquantifyable                        12                       14
Fuel
Average fuel usage/month/KDO unit                  Liter                    125.5                   174.7                    147.2
Travel by domestic flight                          total                    2,978                   1,819                      256
Travel by international flight                     total                       0                         0                        0
Train travel                                       total                     365                      176                        21
                                                                                    Description *: data for all offices in BTPN Syariah

BTPN Syariah has revised its electricity usage data for 2022 and 2021, with the disclosure now
encompassing not only the head office but also all branch offices and functional offices. Unlike
previous years where only the head office data was considered, this comprehensive approach reflects
our commitment to more diligently manage electricity consumption across a wider spectrum of our
operations.

Conducting a Greenhouse Gas (GHG) inventory marks the initial step in our emissions management
strategy. By comprehensively understanding our carbon footprint profile, we can better formulate
strategies for emission reduction.

Throughout 2023, BTPN Syariah recorded an electrical energy intensity of 169.95 kWh/m2 per year. This
figure remains within the 'fairly efficient' category based on the IKE standard value outlined in the SNI-
6197-2011 regulation concerning Energy Consumption Intensity of Indonesian Buildings in the office building
sector.

Furthermore, CO2 emissions resulting from fuel use and business travel in 2023 amounted to 170,591 kg
CO2-eq. These emission calculations were conducted using the Defra Greenhouse Gas Conversion Factors
2019 standard.

water and environmentally-friendly material [OJK F.8][GRI 303-3, GRI 303-5]
To conserve water, which is entirely supplied by the local water utility (PDAM), BTPN Syariah remains
committed to diligently maintaining and repairing water installations across its head office and branch
offices. Additionally, sensory faucets have been installed to minimize water wastage. These collective
efforts have resulted in the following depiction of water usage at the BTPN Syariah head office:
                                                                                                                                          PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                           Unit               2023                              2022
PDAM water                                                 M3                       1,006.00                                    na
Gallon Drinking Water                                      M3                            25.15                             25.32
Total Water Usage                                          M3                        1,031.16                                   na

Since 2023, BTPN Syariah has been dedicated to incorporating various environmentally friendly materials
into its operational activities. Below are the data reflecting our efforts in this regard:
Description                      Unit    2023
LED Lights Usage                 Pcs     1,669




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                                                        waste [GRI 306-1, GRI 306-2]                                     bookkeeping instructions to branches (KFO/KC), has
                                                        BTPN Syariah recognizes the waste generated                      been automated to simplify processes and improve
                                                        during banking operations, particularly paper                    efficiency at the Head Office.
                                                        waste. In our commitment to reduce paper                     10. Socialization of Online Operational Provisions
                                                        waste, we have implemented various policies and                  through facilitating online operational provisions,
                                                        work programs aimed at shaping a culture of                      work coordination, and meetings, promoting
                                                        responsible paper use and management. These                      efficient communication and collaboration among
                                                        initiatives include:                                             stakeholders.
                                                        1. Digitizing processes through the Terra                    11. Reports are now submitted to regulatory authorities
                                                            Application, which integrates Community                      through e-reporting platforms, including SIPENA
                                                            Officers' daily activities such as financing                 OJK Sharia Banking Supervisor, IDX Net, and OJK
                                                            applications, disbursements, and installment                 Net, eliminating the need for hard copy submissions
                                                            payments. This digitalization enhances                       and reducing paper usage.
                                                            transparency, accuracy, and efficiency, reducing         12. During the 2022 Annual General Meeting of
                                                            the need for paper.                                          Shareholders, BTPN Syariah provided the Annual
                                                        2. Utilizing communication media such as email and               Report and Sustainability Report in USB form.
                                                            Microsoft Teams to eliminate the need for printing           Meeting Rules, Additional Information, and
                                                            materials for presentations and follow-ups, as               Information Disclosure documents were also made
                                                            everything is recorded digitally.                            available on the Bank's website, demonstrating
                                                        3. Sending documents for review via email before                 a commitment to supporting paper savings and
                                                            printing for approval.                                       sustainability initiatives.
                                                        4. Implementing double-sided printing settings on all
                                                            head office PCs and laptops to maximize paper            Paper is a processed product from trees, The Bank is
                                                            usage.                                                   aware of this through the efforts made in managing
                                                        5. Providing employee documents, such as BPJS Health         the paper used to save trees. Trees are a source of life
                                                            and Employment e-Letter Cards, transfer and              capable of absorbing carbon dioxide (air pollution)
                                                            promotion decrees, SOPs, and technical guidelines,       and producing oxygen, cooling the temperature of the
                                                            online through the Human Capital system.                 earth's surface, protecting and maintaining soil fertility,
                                                        6. BTPN Syariah has streamlined document submission          and as a habitat animal. No matter how small, our role
                                                            and communication between Divisions and                  is to protect trees contribute to reducing CO2 emissions,
                                                            Directorates by optimizing the use of email.             and participate in preventing the effects of house gases
                                                        7. Documents are stored in softcopy format using
                                                            electronic filing systems such as Cofilib/Corporate      In 2023, our office operations used 5,270 kg of paper,
                                                            Filing and Library, reducing reliance on physical        equivalent to emitting 6,429 kgCO2-eq based on
                                                            paper storage.                                           emission factor calculations.
                                                        8. BTPN Syariah has automated Microfinance
                                                            Management System (MMS) transaction services             Starting in 2023, we have expanded our paper usage
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                            for customers, including regular transactions during     calculation to include all paper usage within BTPN
                                                            routine center meetings, billing/collection processes,   Syariah, not just for financing customers. This reflects
                                                            and other transactional improvements.                    our commitment to managing paper usage more
                                                        9. Implementation of cash management and                     comprehensively and seriously across all operations.
                                                            monitoring (cash management) MMS, along with




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                                                                                                 Faithfully Empowering
                                                                                                       the environment




Generation of paper waste [GRI 306-3]
                                                      unit                      2021              2022                  2023
 Paper procurement cost                        million Rp                                6,587           1,478                 1,805
 Paper used                                    kg                                        5,270           1,182                 1,444
 Paper reduction                               kg                              unquantifyable             262                   578
 CO2 Emission from paper                       kgCO2-eq                                  6,429           1,443                 1,762
 Potential for the reduction of
                                               kgCO2-eq                        unquantifyable             320                   705
 CO2 emission
 *There are differences between paper calculations in 2023 and previous year



In 2023, BTPN Syariah implemented the Waste Management program at its head office, enhancing waste
management practices by regularly sorting organic and inorganic waste to effectively manage office
waste.
 Type of waste                                                                         Unit                      2023
 Organic Waste                                                                         Ton                       4.20
 Inorganic Waste                                                                       Ton                       2.08




                                                                                                                                       PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                                                                                                       127
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                                                        assistance and monitoring of forest restoration activities
                                                        The Bank's involvement in forest restoration activities is aimed at recognizing the crucial role of forests in
                                                        maintaining climate balance, reducing pollution impacts, absorbing CO2, and mitigating global warming.
                                                        Understanding the vital role of forests in sustaining human life, the Bank has initiated reforestation efforts in
                                                        Kampung Minta, Penyinggahan, Kutai Barat.

                                                        The reforestation activities began in August 2020, involving residents in planting 1,000 beluma trees (Syzigium
                                                        sp) and 1,009 kahoi trees (Shorea blangeran) in an area of 3 hectares. This reforestation effort was initiated
                                                        following a wildfire incident in the Kahoi Forest to assist in the restoration of the ecosystem of wetlands and
                                                        peat swamps in the area. Through these activities, the Bank also aims to contribute to reducing the effects of
                                                        global warming and climate change.

                                                        The community's involvement has led to an increased level of awareness and ownership of the forest. This is
                                                        reflected in the absence of logging and forest fires, especially in the vicinity of Kampung Minta. From 2020 until
                                                        now, the Bank's reforestation activities have resulted in a carbon stock of 2,690 tons per hectare, as reported
                                                        by WWF in 2022.

                                                        green building
                                                        In implementing sustainable development principles, BTPN Syariah has embraced an environmentally friendly
                                                        office environment, demonstrated through the presence of the BTPN Syariah headquarters building. This
                                                        building not only reflects business progress but, more importantly, serves as a testament to the company's
                                                        commitment to environmental sustainability by occupying a building that has been awarded the Gold
                                                        Standard Certificate for Green Building by the Green Building Council Indonesia.

                                                        A standout feature of the building is its open ceiling design concept, not only aesthetically pleasing but also
                                                        significantly boosting oxygen levels within the structure by up to 50%, thereby fostering a healthier and more
                                                        productive work environment. Furthermore, the building maximizes natural light usage, eliminating the need
                                                        for window blinds and reducing the reliance on light-blocking partitions.
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                                                                                    the environment




In an era where hygiene is paramount, the building employs ultraviolet germicidal irradiation
technology for disinfection, sterilizing the air from microorganisms and contributing to public
health efforts. Additionally, the use of epoxy floor coating helps curb bacteria and germ
growth.

Prioritizing energy efficiency, the building employs an eco-friendly air conditioning system,
carefully regulating cooling usage to ensure comfort while minimizing energy wastage.
This reflects BTPN Syariah's unwavering commitment to sustainability and environmental
stewardship.

Extending beyond the main building, BTPN Syariah Branch Offices and Functional Operational
Offices also embrace eco-friendly practices. Incorporating live plants not only enhances
aesthetics but also plays a pivotal role in reducing air temperature and enhancing air quality,
consequently lowering energy needs for cooling and fostering a more visually appealing and
revitalizing atmosphere.

The BTPN Syariah Jakarta Head Office Building epitomizes the harmonious integration
of modern architecture and sustainability principles, creating a workspace that is not only
functional but also environmentally friendly and conducive to well-being. This represents a
significant stride forward in Indonesia's pursuit of sustainable development.




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      Sustainability Performance Highlights




           10
Implementing Good
                                              PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




GOVERNANCE FOR
  SUSTAINABILITY


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                                                      implementing good GOVERNANCE
                                                          for sustainable empowerment




 BTPN Syariah is dedicated to enhancing transparency, accountability, and
   professionalism within the Bank while prioritizing fairness and ensuring
 complete and comprehensive Sharia compliance. These concerted efforts
  aim to establish a solid foundation for the Bank to consistently pursue its
     aspiration of "faithfully empowering to support sustainability."




implementing good governance for                      commitment to the basic principles and
sustainability                                        governance guidelines at BTPN Syariah
In line with its commitment to bolstering the         [GRI 102-16, 102-17]
Government and Financial Services Authority           In alignment with the objective of achieving
programs aimed at accelerating Sharia economic        sustainable development that is inclusive and
development, BTPN Syariah continuously                supported by a resilient national economic system,
integrates Environmental, Social, and Governance      BTPN Syariah places paramount importance on
(ESG) aspects into its product and service            fostering harmony among economic, social, and
development processes to align with Sustainable       environmental aspects while implementing the
Finance objectives. These efforts encompass:          principles of Good Corporate Governance (GCG).
1. Encouraging value creation opportunities
     through product innovation and proactive         Continuously, BTPN Syariah enhances the
     anticipation of future trends.                   overall implementation of GCG to strengthen its
2. Enhancing risk management practices                supervisory function and uphold a commitment
     and optimizing capital allocation based on       to consistently improve the quality of GCG
     heightened awareness of ESG issues, including    implementation for all stakeholders. Specifically,
     considerations of natural and social capital     the Bank believes that ongoing efforts to develop
     constraints.                                     an environmentally friendly financial institution
3. Becoming a catalyst for organizational change.     system are in line with the mandates outlined in
                                                      Law Number 32 of 2009 concerning Environmental
Aligned with these objectives, BTPN Syariah           Protection and Management, as well as
executes sustainability initiatives outlined in       subsequent amendments introduced by Law
the RAKB (Risk Appetite, Key Risk, and Business       Number 6 of 2023 concerning the Determination of
Plan) as part of the Bank's commitment to             Replacement Government Regulations. Moreover,
managing social and environmental risks, reducing     compliance with Law Number 2 of 2022 concerning
social disparities, and mitigating/preventing         Job Creation is deemed essential for the collective
environmental harm, all while adhering to the         interests of all stakeholders.
principles of Good Corporate Governance.
                                                      The implementation of GCG at BTPN Syariah
Recognizing the pivotal role of good governance       is grounded in 6 fundamental principles:
in fostering resilience and competitiveness, BTPN     Transparency, Accountability, Responsibility,
                                                                                                            PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




Syariah is dedicated to enhancing transparency,       Professionalism, Fairness, and Sharia Compliance.
accountability, and professionalism within the        As a public company, adherence to GCG guidelines
Bank. This entails promoting fairness, complete       at BTPN Syariah encompasses five aspects,
adherence to Sharia principles, and comprehensive     eight principles of good GCG, and 25 applications
compliance practices. These ongoing efforts serve     of GCG aspects and principles, ensuring a
as the foundation for the Bank to consistently        comprehensive and sustainable approach.
fulfill its aspiration of "faithfully empowering to
support sustainability."




                                                                                                            133
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                                                        as a sharia commercial Bank
                                                        As a sharia commercial Bank, BTPN Syariah adheres to the sound implementation of the basic principles
                                                        of GCG, namely Transparency, Accountability, Responsibility, Professionalism, Fairness, and Sharia
                                                        Compliance.

                                                        The implementations of these principles are as follows:


                                                                                    In maintaining objectivity in conducting business, the Bank must provide material and
                                                                                    relevant information in a way that is easily accessible and understood by stakeholders.
                                                        Transparency                The Bank must take the initiative to disclose not only issues required by statutory
                                                                                    regulations, but also matters that are important for decision making by Shareholders,
                                                                                    Customers and other Stakeholders
                                                                                    The Bank must be able to account for its performance transparently and fairly. For this
                                                                                    reason, the Bank must be managed correctly, measurably and in accordance with the
                                                        Accountability              interests of the Bank while still taking into account the interests of Shareholders and
                                                                                    other stakeholders. Accountability is a necessary prerequisite for achieving sustainable
                                                                                    performance;
                                                                                    The Bank must comply with all Sharia Principles and applicable laws and regulations,
                                                                                    as well as carry out their responsibilities towards God Almighty, Shareholders, society,
                                                                                    the environment and other relevant stakeholders so that from time to time the
                                                        Responsibility
                                                                                    implementation of Sharia Principles is carried out and maintained properly. optimal long-
                                                                                    term business sustainability and gaining recognition as a good entity that complies with
                                                                                    sharia law and applicable positive law;
                                                                                    To ensure the implementation of good GCG principles, the Bank is managed
                                                                                    independently so that each organ of the Bank does not dominate each other and cannot
                                                        Professional
                                                                                    be intervened by other parties and has competence, is able to act objectively, is free from
                                                                                    any influence and has a high commitment to developing the Bank
                                                                                    In carrying out its activities, the Bank always pays attention to the interests of
                                                        Fairness                    Shareholders and other stakeholders in fulfilling stakeholder rights based on the principles
                                                                                    of justice and equality
                                                                                    The Bank is a banking institution that carries out financial intermediation functions,
                                                                                    managed and operated based on Sharia Principles as the soul and spirit of the Bank's
                                                                                    establishment. Therefore, compliance with Sharia Principles in all activities and products
                                                        Sharia Compliance           for distributing and collecting funds and other banking service products is a necessity
                                                                                    and mandatory, including in this aspect the ethical and moral standards of all Bank
                                                                                    management and employees in their daily activities do not conflict with Sharia Principles
                                                                                    and Values

                                                        as a public company
                                                        As a public company, the implementation of GCG guidelines at BTPN Syariah includes 5 (five) aspects, 8
                                                        (eight) good GCG principles and 25 (twenty five) applications of good GCG aspects and principles, namely:



                                                                                    1. Aspects of Public Company Relations with Shareholders in guaranteeing Shareholder
                                                        ASPECTS of Good GCG            Rights;
                                                        Implementation for Public   2. Aspects of the Function and Role of the Board of Commissioners and the Sharia
                                                        Companies,                     Supervisory Board;
                                                        including:                  3. Aspects of the Function and Role of the Board of Directors;
                                                                                    4. Aspects of Stakeholder Participation;
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                                                    5. Aspects of Information Transparency
                                                                                    1. Increasing the Value of Holding General Shareholders Meetings (GMS);
                                                                                    2. Improving the Quality of Public Company Communication with Shareholders or
                                                        PRINCIPLES for                 Investors;
                                                        implementing good GCG       3. Strengthening the Membership and Composition of the Board of Commissioners;
                                                        Guidelines for Public       4. Improving the Quality of Implementation of Duties and Responsibilities of the Board of
                                                        Companies,                     Commissioners;
                                                        including:                  5. Strengthening the Membership and Composition of the Board of Directors;
                                                                                    6. Improving the Quality of Implementation of Directors' Duties and Responsibilities;
                                                                                    7. Improving Corporate Governance Aspects through Stakeholder Participation;
                                                                                    8. Improving the Implementation of Information Disclosure




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                                                          implementing good GOVERNANCE
                                                              for sustainable empowerment



                          1.  Public Companies have technical methods or procedures for collecting votes, both
                              openly and privately, that prioritize independence and the interests of shareholders;
                          2. All members of the Board of Directors and members of the Board of Commissioners
                              of Public Companies are present at the Annual GMS;
                          3. A summary of the GMS minutes is available on the Public Company Website for at
                              least 1 (one) year;
                          4. Public Companies have a communication policy with shareholders or investors;
                          5. The Public Company discloses the Public Company's communication policy with
                              shareholders or investors on the Website;
                          6. Determining the number of members of the Board of Commissioners takes into
                              account the conditions of the Public Company;
                          7. Determining the composition of members of the Board of Commissioners takes into
                              account the diversity of skills, knowledge and experience required;
                          8. The Board of Commissioners has a self-assessment policy to assess the performance
                              of the Board of Commissioners;
                          9. Self-assessment policy to assess the performance of the Board of Commissioners,
                              disclosed through the Public Company's Annual Report;
                          10. The Board of Commissioners has a policy regarding the resignation of members of the
                              Board of Commissioners if they are involved in financial crimes;
                          11. The Board of Commissioners or the Committee that carries out the Nomination and
                              Remuneration function prepares a succession policy in the Nomination process for
                              members of the Board of Directors;
IMPLEMENTATION OF
                          12. Determining the number of members of the Board of Directors takes into account the
GOOD ASPECTS and
                              condition of the Public Company and effectiveness in decision making;
PRINCIPLES of GCG,
                          13. Determining the composition of members of the Board of Directors takes into
including:
                              account the diversity of skills, knowledge and experience required;
                          14. Members of the Board of Directors who are in charge of accounting or finance have
                              expertise and/or knowledge in the field of accounting;
                          15. The Board of Directors has a self-assessment policy to assess the performance of the
                              Board of Directors;
                          16. The self-assessment policy for assessing the performance of the Board of Directors is
                              disclosed in the Public Company's Annual Report;
                          17. The Board of Directors has a policy regarding the resignation of members of the
                              Board of Directors if they are involved in financial crimes;
                          18. Public Companies have policies to prevent insider trading;
                          19. Public Companies have anti-corruption and anti-fraud policies;
                          20. Public Companies have policies regarding the selection and improvement of supplier
                              or vendor capabilities.
                          21. Public Companies have policies to fulfill creditor rights.
                          22. Public Companies have a whistle-blowing system policy;
                          23. Public Companies have a policy of providing long-term incentives to Directors and
                              employees;
                          24. Public Companies make wider use of information technology other than Websites as
                              a medium for information disclosure;
                          25. The Annual Report of a Public Company discloses the ultimate beneficial owner
                              in Public Company share ownership of at least 5% (five percent), in addition to
                              disclosure of the ultimate beneficial owner in Public Company share ownership
                              through the main and controlling shareholders.

sustainable governance within the                         In partnership with BTPN as the Parent Entity,
financial group [GRI 2-12]
                                                          BTPN Syariah leverages Banking Synergies to
The implementation of Good Corporate
Governance (GCG) principles in BTPN Syariah               enhance operational efficiency by optimizing
is intricately intertwined with the governance            resources, expertise, and networks. This
                                                                                                                      PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




framework of the Financial Group, alongside               collaboration generates added value for both
PT BANK BTPN Tbk (BTPN) as the Parent Entity,             Sharia and conventional commercial banks.
both entities operating under the ownership of the
SMBC group. This integration is facilitated through       In line with the commitment to oversee Banking
functions such as Integrated Risk Management,             Synergy, BTPN Syariah and BTPN exercise
Integrated Compliance, and Integrated Internal            supervision at the Board of Commissioners level
Audit. Supported by other organizational functions        through the Corporate Governance Committee.
within the Bank's structure, these units collaborate      This committee comprises members of the
to ensure the realization of sound GCG principles         Independent Board of Commissioners from
across all entities.                                      BTPN as the Coordinating Entity, alongside
                                                          representatives of the Independent Commissioners




                                                                                                                      135
Page 136
                                                        and members of the Sharia Supervisory Board of        To oversee its implementation, BTPN Syariah
                                                        BTPN Syariah as permanent meeting invitees.           has established a dedicated Banking Synergy
                                                                                                              Monitoring Work Unit, overseen by the
                                                        The Corporate Governance Committee is tasked          Corporate Secretary Unit acting as Coordinator.
                                                        with monitoring internal and integrated controls      Both BTPN Syariah and BTPN conduct regular
                                                        within the SMBC financial group, ensuring             coordination between the two entities through
                                                        prudent and transparent governance practices          semi-annual Banking Synergy Monitoring
                                                        aligned with the principles of a Conventional         Coordination Meetings and Governance
                                                        Commercial Bank, Sharia Commercial Bank, and          Coordination Meetings.
                                                        Public Company.
                                                                                                              implementation of banking synergy with
                                                        banking synergy                                       BTPN Syariah Ventura
                                                        Guided by POJK No. 16/POJK.03/2022 concerning         BTPN Syariah's commitment to developing Sharia
                                                        Sharia Commercial Banks in relation to Banking        banking is realized by the realization of a strategic
                                                        Synergy in order to improve the efficiency of         capital investment initiative by BTPN Syariah and
                                                        the national banking industry and develop a           BTPN in a Sharia venture capital company, namely
                                                        sustainable sharia economy, BTPN Syariah              PT BTPN Syariah Ventura, as a subsidiary company
                                                        synergizes with BTPN, as the Parent Entity and        which is a non-bank financial services institution
                                                        Conventional Commercial Bank, in various              which has been effectively carrying out operational
                                                        partnerships strategy to improve the efficiency       activities since May 30, 2022.
                                                        and development of BTPN Syariah as outlined in
                                                        the Cooperation Agreement.                            BTPN Syariah Ventura is dedicated to accelerating
                                                                                                              the fulfillment of evolving customer needs and
                                                        In line with the terms of the cooperation             enhancing the welfare of pre- and moderately
                                                        agreement, BTPN Syariah continually enhances          prosperous customers. Our mission is to serve a
                                                        the quality of infrastructure supporting banking      larger customer base in a sustainable manner by
                                                        synergy. This includes aligning internal provisions   leveraging technology for positive impact, thereby
                                                        and procedures at BTPN Syariah with Sharia rules      realizing our vision of creating a Sharia digital
                                                        and principles, as well as implementing Good          ecosystem for unbanked.
                                                        Corporate Governance (GCG) principles, both as a
                                                        Sharia commercial bank and as a public company.       In order to support business development at
                                                        These efforts are reflected in the Banking Synergy    BTPN Syariah Ventura, BTPN Syariah and BTPN
                                                        commitment outlined in the Governance Policy,         as shareholders have carried out additional
                                                        Compliance Policy, and Risk Management Policy of      authorized capital and additional issued and
                                                        both BTPN and BTPN Syariah.                           paid-up capital which was completed in 2022. The
                                                                                                              Annual Report and Sustainability Report for the
                                                        implementation of banking synergy with BTPN           2022 financial year contains a complete report
                                                        In support of activities aimed at delivering          regarding capital participation in the Subsidiary.
                                                        added value, BTPN Syariah engages in strategic        The Subsidiary also held its inaugural Annual
                                                        collaboration with BTPN to enhance efficiency         General Meeting of Shareholders on April 12, 2023.
                                                        and foster business development. In 2023,
                                                        this collaboration is formalized through 10           Complementing the strengthening of capital, to
                                                        Partnership Agreements (PKS) covering various
                                                                                                              support the development of BTPNS Ventura in
                                                        areas such as Human Capital, Information
                                                                                                              company management, the implementation of
                                                        Technology Infrastructure, Sharia Banking
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        Services, Cash Management, Multifinance               synergy between BTPN Syariah and BTPN Syariah
                                                        Segment Financing, Productive Financing for           Ventura has been signed through a Cooperation
                                                        Institutions supporting the ultra-micro segment       Agreement covering 11 (eleven) fields, namely
                                                        development, Implementation of Specific               Human Resources, Information Technology,
                                                        Work, Vendors Management, Implementation              Compliance, Legal and Litigation, Corporate
                                                        of Anti-Fraud/APU PPT and PPSPM Policies,             Secretary, Internal Audit, Finance and Treasury,
                                                        and a Joint Agreement serving as an Umbrella          Risk Management, Corporate Communication,
                                                        PKS regulating banking synergy between BTPN           DAYA and Operations.
                                                        Syariah and BTPN.




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                                                               implementing good GOVERNANCE
                                                                   for sustainable empowerment



code of conduct and integrity [GRI 102-17]                     code of conduct enforcement efforts
To ensure sustainable success in implementing Good             BTPN Syariah is dedicated to upholding the
Corporate Governance (GCG) at the Bank, it is widely           principles of good corporate governance by
acknowledged that a culture of high integrity must             implementing the Code of Conduct throughout
permeate all levels of the organization. Therefore, the        all levels of the organization. This commitment
establishment of a comprehensive code of conduct is            not only fosters ethical behavior among
essential. This code serves as a tangible embodiment           employees but also aligns with societal ethical
of the overarching principles of GCG and serves as a           standards.
guiding reference for every organ and employee of the
Bank in their daily business endeavors, ultimately shaping     To cultivate this behavioral development, every
the company's culture.                                         employee is expected to embody the attitudes,
                                                               actions, and commitment outlined in the Code of
At BTPN Syariah, the Code of Conduct serves as                 Conduct, thus contributing to the creation of a
a fundamental framework, providing guidance on                 corporate culture at BTPN Syariah that reflects
appropriate attitudes and behaviors for the Board of           ethical norms.
Commissioners, Sharia Supervisory Board, Directors,
Independent Parties, and all Employees. It delineates          Employee engagement with the Code of
their duties, authorities, obligations, and responsibilities   Conduct is facilitated through an annual
in decision-making processes, ensuring alignment with          refresher socialization program. This involves
the Mission, Vision, and Company Values of BTPN                digitally disseminating the Code of Conduct
Syariah, as well as compliance with relevant laws and          or distributing printed copies, followed by
regulations.                                                   employees signing acceptance sheets and
                                                               confirming their responses via electronic
This Code of Conduct sets a standard of behavior that          socialization channels.
is not only reasonable and appropriate but also fosters
trustworthiness among all Bank personnel. It governs           Recognizing the importance of instilling a culture
their interactions with stakeholders and shapes the            of compliance from the outset, BTPN Syariah
manner in which business activities are conducted.             mandates that all new employees receive
                                                               Code of Conduct training during the Induction
The guidelines and attitudes stated in the Code of             Program, with subsequent annual refresher
Conduct include, among others:                                 programs.
1. Mission, Vision, Company Values, Objectives of
    the Code of Conduct, and Scope of the Code of              The Code of Conduct guidelines at BTPN
    Conduct;                                                   Syariah are presented in both Indonesian and
2. Compliance and Risk Management;                             English languages, ensuring accessibility to all
3. Conflict of Interest;                                       employees, and are readily available on the BTPN
4. Creating a Conducive Work Environment (which                Syariah website.
    includes Fair Treatment of All Employees, Anti-
    Discrimination and Harassment, Safety in the               In aligning business activities with societal norms
    Workplace, Use of Company Facilities, Activities           and fostering a sustainable ecosystem, every
    outside the Company, Use of Social Media, LInk and         bank business plan and initiative prioritizes
    HELP Communication Culture);                               principles of integrity and compliance.
5. Information Management and Security;
6. Relations with Customers and Stakeholders (which            At all levels of the organization, including
                                                                                                                     PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




    includes Relations with Customers, Relations with          members of the Board of Commissioners, Board
    Partners, Relations with Regulators, Bribery and           of Directors, and independent parties from
    Corruption, Giving and Receiving Gifts, Anti-Money         committees under the Board of Commissioners,
    Laundering);                                               adherence to the Code of Conduct is mandatory.
7. Enforcement of the Code of Conduct (which                   These guidelines also regulate the relationships
    includes Roles and Responsibilities, Violations of the     between BTPN Syariah and its customers,
    Code of Conduct).                                          partners, regulators, shareholders, and
                                                               subsidiaries.




                                                                                                                     137
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                                                        the roles and responsibilities of the employees are:
                                                        1.   Study, understand, obey and implement the           All provisions in BTPN Syariah are reviewed
                                                             Code of Conduct.                                    periodically, according to schedule or sooner if
                                                        2.   Implement LINK principles in daily activities in    there is a change process or regulatory provisions
                                                             relation to the relationship between superiors      underlying them.
                                                             and subordinates.
                                                        3.   Report to superiors or through whistleblowing       company policies and regulations
                                                             channels if you suspect a violation or              As a Limited Company, BTPN Syariah has
                                                             attempted violation of the Code of Conduct.         Company Policies and Regulations.

                                                        the roles and responsibilities of superiors are:         Policies are guidelines that regulate every activity
                                                        1.   Provide explanations and ask work team              or process in a bank that reflects the general
                                                             members to read and understand the Code of          management of the Bank's risk appetite for
                                                             Conduct.                                            these activities, along with their processes and
                                                        2.   Ensure that every employee in their work unit       supervision.
                                                             adheres to the Code of Conduct.
                                                        3.   Disseminate the Code of Conduct to                  Company Regulations create legal certainty,
                                                             employees in their work units.                      clarity of rights and obligations for workers and
                                                        4.   Play an active role in developing employees         employers in implementing employment relations
                                                             and resolving violations of the Code of             at the Bank.
                                                             Conduct.
                                                        5.   Report and escalate any suspicions, indications     procedures and products program
                                                             and/or incidents of violations to the               To ensure that the detailed process from the
                                                             competent authorities.                              beginning to the end is administered correctly,
                                                        6.   Follow up on every reported violation of            BTPN Syariah has developed Product Program and
                                                             the Code of Conduct in accordance with              Procedures.
                                                             established procedures.
                                                                                                                 The procedures elaborate the stages of an activity
                                                        BTPN Syariah is unwavering in its commitment             that must be performed, including who, how,
                                                        to uphold the Code of Conduct as a cornerstone           where, when, and the supervision mechanism, by
                                                        of implementing the principles of good corporate         implementing strict four eye-principles, adequate
                                                        governance. This commitment is reinforced through        internal control system, and referring to the
                                                        regular socialization efforts aimed at fostering         prevailing policy.
                                                        a sustainable corporate compliance culture that
                                                        embodied the desired attitudes, actions, and             The Product Programs are the structured
                                                        commitments.                                             regulations as a sharia commercial bank, which
                                                                                                                 elaborate product management in a structured
                                                        Any deviation, abuse, negligence, or violation of the    and systematic manner as well as provide the
                                                        Code of Conduct is taken seriously and may result        details of product type and name, product
                                                        in sanctions, whether civil or criminal, in accordance   characteristics, product benefits, the costs
                                                        with the established policies and procedures at          incurred by the Bank, and the Bank’s risks that
                                                        BTPN Syariah, as well as relevant laws and statutory     are inherent in the products, product analysis, and
                                                        provisions. At certain levels, such infractions may      targets set for the products.
                                                        lead to Termination of Employment Relations, with
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        or without prior warning.                                technical instructions
                                                                                                                 Technical Guidelines are developed, when deemed
                                                        In addition to requiring all employees to sign the       necessary, to detail the steps to perform certain
                                                        Code of Conduct, BTPN Syariah mandates a                 processes that are specified in the standard
                                                        zero-tolerance approach towards fraud across all         operating procedures in BTPN Syariah.
                                                        organizational levels. Full commitment to this stance
                                                        is demonstrated through the signing of the Anti-         governance structure [GRI 102-18]
                                                        Fraud Declaration & Integrity Pact by all employees.     The Governance Structure at BTPN Syariah is
                                                                                                                 guided by the governance provisions for Sharia
                                                        hierarchy of bank provisions                             Commercial Banks and Public Companies, which
                                                        The Hierarchy of Provisions at BTPN Syariah aims         include compliance with the following provisions:
                                                        to organize the Bank's internal regulatory structure     1. Law No.10 of 1998 concerning Amendments to
                                                        properly and ensure consistent implementation. The           Law No.7 of 1992 concerning Banking;
                                                        hierarchy of provisions is prepared referring to the     2. Law No. 40 of 2007 dated August 16, 2007
                                                        provisions relating to GCG for Sharia Commercial             concerning Limited Liability Companies, which
                                                        Banks.                                                       has been partially amended by Law No. 6 of
138
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                                                        implementing good GOVERNANCE
                                                            for sustainable empowerment



     2023 concerning the enactment of Government        8. SEOJK No.32/SEOJK.04/2015 dated 17
     Regulation in Lieu of Law No. 2 of 2022                November 2015 concerning Implementation of
     concerning Job Creation into law;                      Public Company Governance Guidelines;
3.   Law No.21 of 2008 dated 16 July 2008               9. POJK No.16/POJK.03/2022 dated 30 August
     concerning Sharia Banking;                             2022 concerning BUS; And
4.   PBI No.11/33/PBI/2009 dated 7 December             10. POJK No.17 of 2023 dated 14 September 2023
     2009 concerning the Implementation of Good             concerning Implementation of Governance for
     Corporate Governance for Sharia Commercial             Commercial Banks.
     Banks and Sharia Business Units (BUS and
     UUS);                                              A good governance structure is an absolute
5.   SEBI No.12/13/DPbS dated 30 April 2010             requirement for the Bank to identify and manage
     concerning the Implementation of Good              risks and ensure that every opportunity and
     Corporate Governance for BUS and UUS;              strategic plan can be realized in a measurable,
6.   POJK No.33/POJK.04/2014 dated 8 December           monitored and sustainable manner, both now and
     2014 concerning Directors and Board of             in the future.
     Commissioners of Issuers or Public Companies;
7.   POJK No.21/POJK.04/2015 dated 17 November          The governance structure at BTPN Syariah
     2015 concerning Implementation of Public           consists of Main Organs and Supporting Organs
     Company Governance;                                in accordance with Law number 40 of 2007
                                                        concerning Limited Liability Companies.

                                   General Meeting of Shareholders (GMS)




                         Board of            Sharia Supervisory
                                                                       Board of Directors
                       Commissioners               Board


                      Audit Committee                     Risk Management Committee


                       Risk Oversight                        Information Technology
                        Committee                              Steering Committee

                      Nomination and                              Financing Policy
                       Remuneration                                 Committee
                        Committee
                                                              Assets and Liabilities
                         Corporate                             Committee (ALCO)
                        Governance
                     Committee (within
                      the scope of the                        Business Committee
                      financial group)

                                                           Human Capital Committee


                                                        Information Security Management
                                                              Systems Committee
                                                                                                          PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                   Corporate                                               Governance in the Financial
                                                                                     Group
                   Secretary                            Risk
                                    Compliance                          a. Integrated Risk Management
                  and General                        Management         b. Integrated Compliance
                    Counsel                                             c. Integrated Internal Audit




main organs                                             supporting organs
•    General Meeting of Shareholders (GMS)              1. Committees at the level of the Board of
•    Board of Commissioners                                Commissioners
•    Sharia Supervisory Board                              a. Audit Committee
•    Board of Directors                                    b. Risk Oversight Committee
                                                           c. Nomination and Remuneration Committee
                                                           d. Governance in Financial Group Committee
                                                                                                          139
Page 140
                                                        2. Committees at the level of the Board of Directors   dated November 23, 2020, approving the
                                                           a. Assets and Liabilities Committee (ALCO);         establishment of a Sustainability Task Force at
                                                           b. Business Committee                               PT Bank BTPN Syariah Tbk.
                                                           c. Human Capital Committee
                                                           d. Risk Management Committee                        The task force operates with full support from
                                                           e. Information Technology Steering Committee        the Board of Directors, with two members of
                                                           f. Financing Policy Committee                       the board actively participating as mentors.
                                                           g. Information Security Management Systems          Their guidance ensures the Sustainability Task
                                                              Committee                                        Force effectively leads and executes the goals
                                                                                                               and programs outlined in the RAKB, tailored to
                                                        3. Availability of Work Units for business             the specific conditions and capabilities at BTPN
                                                           development, operations, implementation of          Syariah.
                                                           risk management and internal control at BTPN
                                                           Syariah. BTPN Syariah Internal Work Units
                                                           include the Internal Audit Work Unit (SKAI),        duties and responsibilities [GRI 2-13]
                                                           Risk Management Work Unit (SKMR), and the           Guided by POJK Number 51/POJK.03/2017 dated
                                                           Compliance Work Unit (SKK).                         July 18, 2017 concerning the Implementation
                                                                                                               of Sustainable Finance for Financial Services
                                                        4. There are other divisions in BTPN Syariah,          Institutions, Issuers and Public Companies, the
                                                           namely Corporate Secretary & General Counsel,       Board of Directors determined the duties and
                                                           Corporate Information Security, Corporate           responsibilities of the Sustainability Task Force at
                                                           & Marketing Communication, Financing                BTPN Syariah in 2023, including:
                                                           Business (subordinate to Financing Business         • Assisting the Board of Directors in preparing
                                                           Planning & Support, Right Partners & Project           the Sustainable Finance Action Plan (RAKB)
                                                           Implementation, Financing Business Risk, DAYA          and Sustainability Report (LK) which must be
                                                           and Distribution Region 1- 5), Funding & New           approved by the Board of Commissioners;
                                                           Business Team (supervising Retail & Wholesale       • Holding Sustainability Task Force meetings
                                                           Funding, Funding & New Business Planning &             according to the annual plan;
                                                           Support and Business Development), Finance,         • Partaking in sustainable economic
                                                           Treasury & Operation (subordinating Financial          development in the social, environmental,
                                                           Control & Analytics, Treasury & Financial              and governance aspects at the Bank in
                                                           Institution, Operation Development, QA Funding         order to improve the quality of life and the
                                                           & Operations, Transaction Services and Corporate       environment that is beneficial, both for
                                                           Services), Information Technology, and Human           the Bank itself, the local community, and
                                                           Resources.                                             community in general;
                                                                                                               • Supervising and committing to the
                                                        5. The Sustainability Task Force, tasked with             Implementation of Sustainable Finance in the
                                                           ensuring comprehensive internal coordination           business activities that are in accordance with
                                                           and supervision of the implementation of               the Bank's conditions by using the principles
                                                           the Bank's plans in accordance with those              stipulated in POJK Number 51/ POJK.03/2017
                                                           contained in the Sustainable Finance Action            dated July 18, 2017.
                                                           Plan.
                                                                                                               members of the sustainability task force
                                                        sustainability task force [OJK E.1, GRI 2-11]          The composition of the Sustainability Task
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        BTPN Syariah is committed to making a tangible         Force at BTPN Syariah is carefully curated to
                                                        contribution to initiatives aimed at improving         include members from various divisions and
                                                        environmental quality. Our steadfast dedication        employees who exhibit a strong commitment to
                                                        lies in faithfully empowering underprivileged and      upholding environmental, social, and governance
                                                        moderately prosperous customers, thus enhancing        sustainability. This diverse group comprises
                                                        their welfare and quality of life in alignment with    individuals from the Corporate & Marketing
                                                        sustainability objectives.                             Communication Division, the DAYA Division,
                                                                                                               the Financial Planning & Analytics Division,
                                                        In accordance with the Board of Director's             the Corporate Secretary & General Counsel
                                                        commitment outlined in the Sustainable                 Division, Operations Division, Human Capital
                                                        Financial Action Plan (RAKB), the establishment        Division, Risk Management Division, Business
                                                        of a dedicated task force has been officially          Planning, Assurance & Support Division, Business
                                                        initiated. This was formalized through Directors'      Development Division, and Compliance Division.
                                                        Circular Decree Number 013/CIR/DIR/XI/2020


140
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                                                             implementing good GOVERNANCE
                                                                 for sustainable empowerment



Each member brings unique backgrounds                        to the task force's composition, taking into
and expertise to the table, driven by a shared               consideration the evolving organizational structure
mission, vision, and profound passion for                    of the Bank. [GRI 2-12]
advancing the sustainability agenda of the
Bank. The inclusivity of perspectives within                 sustainability task force meeting [GRI 2-16]
the Sustainability Task Force aims to foster                 Throughout 2023, the Sustainability Task Force
a collaborative environment conducive to                     has followed up on the RAKB and carried
generating diverse inputs and innovative ideas,              out supervision of the Bank's commitments
thereby supporting the effective implementation              discussed at the meeting. Throughout 2022, the
of sustainability strategies.                                Sustainability Task Force has held 2 (two) internal
                                                             coordination meetings. In addition, the Task
BTPN Syariah conducts regular evaluations of the             Force also held coordination meetings with the
membership dynamics within the Sustainability                Parent Entity and Singapore Regional SMBG, in
Task Force to uphold and promote the ethos of                connection with sustainability initiatives within the
sustainability throughout the organization. In 2023,         SMBC financial group.
the Board of Directors approved adjustments


2023 Sustainability Task Force Coordination Meeting
 No   Meeting Date         Discussion Topic
                           • Strengthening the Sustainability Task Force PIC;
 1    May 9, 2023
                           • Strengthening the membership of the Sustainability Task Force
 2    November 13, 2023    Kick Off for Preparation of the 2023 Sustainability Report



Sustainability Task Force Coordination Meeting with SMBC Financial Group in 2023
 No   Meeting Date         Discussion Topic
                           Sustainability Meeting Update with SMBC: Sustainability Initiatives towards Zero Emission
 1    May 2, 2023
                           2023

General Meeting of Shareholders                              implementation of the 2023 GMS
The General Meeting of Shareholders (GMS) holds              BTPN Syariah convened its Annual General
the highest authority within a Limited Liability             Meeting of Shareholders (GMS) once in 2023,
Company. This organ possesses rights and authority           precisely on April 12, 2023. The execution of this
distinct from those of the Directors and Commissioners,      meeting was conducted in strict adherence to the
within the bounds established by Company Law and             prescribed procedures and protocols, ensuring
the Articles of Association of BTPN Syariah. The GMS         compliance with the Articles of Association
serves as a platform for shareholders to make crucial        and relevant regulations. In a commitment to
decisions regarding the bank's policies, adhering            uphold equal opportunities for all shareholders
to the provisions of the articles of association and         to exercise their rights, BTPN Syariah facilitated
relevant laws and regulations.                               an electronic GMS (e-GMS) featuring electronic
                                                             voting (e-voting) and electronic power of attorney
Every decision made at the GMS is rooted in the              (e-proxy).
best interests of the bank and is reached through
                                                                                                                       PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




deliberation to achieve consensus, conducted in              The Annual GMS of BTPN Syariah was attended
good faith while considering the bank's interests            by all members of the Board of Commissioners,
and ensuring alignment with applicable laws and              Sharia Supervisory Board, and Directors, both in
regulations, including those in the Capital Market           person and via video teleconference.
sector and the Articles of Association.
                                                             BTPN Syariah remains steadfast in its
In accordance with regulatory provisions, the GMS            commitment to provide equitable treatment to
does not encroach upon the duties, functions,                all shareholders, whether individual or corporate,
and authority of the Board of Commissioners and              who participated or were represented at the 2023
Directors. However, this does not diminish the               Annual GMS. This commitment is underscored
GMS's authority to exercise its rights in accordance         by the provision of comprehensive supporting
with the Articles of Association and applicable              documents for the GMS, easily accessible to
laws and regulations. BTPN Syariah upholds the               enable shareholders to fully exercise their rights.
rights, responsibilities, and inherent obligations of        Key aspects ensuring fairness include:
shareholders in line with the provisions outlined in the     • Accessibility to eASY.KSEI Facilities.
Articles of Association.
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                                                        •       Provision of proxy services available to                    composition of members of the Board of
                                                                Independent Parties free of charge.                         Commissioners [GRI 2-9][GRI 2-10]
                                                        •       Adequate time allotted for shareholders to                  The determination of the Board of Commissioners'
                                                                provide power of attorney.                                  composition at BTPN Syariah is meticulously
                                                        •       Availability of complete, timely, and                       conducted, considering the bank's complexity and
                                                                comprehensive meeting materials to support                  needs. It is based on banking knowledge, expertise,
                                                                informed decision-making.                                   professional experience, and backgrounds aimed at
                                                                                                                            supporting the effective execution of the board's
                                                        Board of Commissioners                                              duties, without any discrimination based on
                                                        The Board of Commissioners at BTPN Syariah is                       gender, ethnicity, race, or religion.
                                                        a vital organizational body appointed and ratified
                                                        by the General Meeting of Shareholders (GMS),                       Following the decisions made during the BTPN
                                                        with consideration of recommendations from                          Syariah Annual General Meeting of Shareholders
                                                        the Nomination and Remuneration Committee.                          (GMS) in 2023, 3 members of the Board of
                                                        Members of the board must meet the Fit and                          Commissioners whose terms had expired were
                                                        Proper Test requirements set forth by the Financial                 reappointed with terms extending until the
                                                        Services Authority (OJK). Their term of office spans                closing of the 2026 Annual GMS, subject to any
                                                        3 (three) years and is subject to reappointment.                    changes that may occur before the end of their
                                                                                                                            term.
                                                        Functioning collectively, the Board of Commissioners
                                                        is responsible for conducting general and/or specific               Furthermore, a new Independent Commissioner
                                                        supervisory functions as outlined in the Articles of                was appointed during the same Annual GMS
                                                        Association. Additionally, they provide guidance and                to bolster the Board of Commissioners' ranks,
                                                        counsel to the Board of Directors in managing the                   serving with a term of office also until the closing
                                                        Bank in accordance with Corporate Governance                        of the 2026 Annual GMS, subject to any potential
                                                        principles. It's important to note that decisions made              changes.
                                                        by the Board of Commissioners are collective and
                                                        cannot be made individually by any member.                          In 2023, changes were made to the Board of
                                                                                                                            Commissioners' composition at BTPN Syariah
                                                        All members of the Board of Commissioners at                        following the resignation of a member whose term
                                                        BTPN Syariah have been carefully selected to fulfill                had expired, effective April 12, 2023. Additionally,
                                                        the requisite number, composition, criteria, and                    a new Independent Commissioner was appointed,
                                                        independence mandated by applicable regulations,                    effective April 17, 2023.
                                                        ensuring their effectiveness in fulfilling their duties
                                                        and responsibilities.

                                                        The composition of the Board of Commissioners before the 2023 Annual GMS is as follows:

                                                                                                                                   Financial Services              Effective Date
                                                            No    Name                      Position                 Gender
                                                                                                                                   Authority Approval              of Office

                                                                                            President/
                                                                                                                                   February 24, 2014
                                                            1     Kemal Azis Stamboel       Independendent           Male                                          May 22, 2014
                                                                                                                                   (KEP-8/D-03/2014)
                                                                                            Commissioner
                                                                                            Independent                            February 24, 2014
                                                            2     Dewie Pelitawati                                   Female                                        May 22, 2014
                                                                                            Commissioner                           (KEP-9/D-03/2014)
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                                                                                                   August 25, 2022                 October 13,
                                                            3     Ongki Wanadjati Dana      Commissioner             Male
                                                                                                                                   (KEP-129/D-03/2022)             2022

                                                                                                                                   July 17, 2019                   September 2,
                                                            4     Yenny Lim                 Commissioner             Female
                                                                                                                                   (KEP-122/D.03/2019)             2019


                                                        The composition of the members of the Board of Commissioners after the closing of 2023 Annual GMS
                                                        and the positions as of December 31, 2023 are as follows:

                                                                                                                                    Financial Services             Effective Date
                                                            No    Name                    Position                   Gender
                                                                                                                                    Authority Approval             of Office

                                                                                          President/Independendent                  Februari 24 , 2014
                                                            1     Kemal Azis Stamboel                                Male                                          May 22, 2014
                                                                                          Commissioner                              (KEP-8/D-03/2014)
                                                                                          Independent                               April 17, 2023
                                                            2     Mulya Effendi Siregar                              Male                                          April 17, 2023
                                                                                          Commissioner                              (KEPR-19/D,03/2023)


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                                                               implementing good GOVERNANCE
                                                                   for sustainable empowerment



                                                                        Financial Services               Effective Date
 No   Name                      Position                    Gender
                                                                        Authority Approval               of Office

                                Independent                             February 24, 2014
 3    Dewie Pelitawati                                      Female                                       May 22, 2014
                                Commissioner                            (KEP-9/D-03/2014)

      Ongki Wanadjati           Commissioner                            August 25, 2022                  October 13,
 4                                                          Male
      Dana                                                              (KEP-129/D-03/2022)              2022


Currently, the Board of Commissioners at BTPN Syariah consists of 4 (four) people, of which 3 (three)
members of the Board of Commissioners are Independent Commissioners. Regarding the diversity of the
composition of the Board of Commissioners, there is 1 (one) member of the Board of Commissioners who
is female.
[GRI 405-1]


All members of the Board of Commissioners at BTPN Syariah have good backgrounds and experience
in the fields of finance, banking and sharia law, accounting, law, compliance, risk management, human
resources, audit and management.

concurrent positions of Board of Commissioners
Until December 31, 2023, the Board of Commissioners at BTPN Syariah did not hold concurrent positions as
members of the Board of Commissioners, Directors and Executive Officers in banking institutions, companies or
other institutions beyond the maximum limit permitted in accordance with the provisions.


Disclosure of Concurrent Positions of the Board of Commissioners as of December 31, 2023
 No     Name                      Term of Office   Concurrent Positions and Commitments
                                                   • Member of the Board of Trustees – WWF Indonesia
 1      Kemal Azis Stamboel       2023-2026        • President Commissioner - PT Digital Solusi Pratama
                                                   • Member of the Board of Trustees – Padjadjaran University
                                                   • Expert Staff to the Board of Directors – Indonesian Banking
                                                     Development Institute (LPPI)
 2      Mulya Effendi Siregar     2023-2026
                                                   • Strategic Advisor – Alami Group
                                                   • Independent Commissioner – PT Delameta Bilano
 3      Dewie Pelitawati          2023-2026        Audit Committee Member – Padjadjaran University
                                                   • Member of the Board of Commissioners – PT BANK BTPN Tbk
        Ongki Wanadjati
 4                                2023-2026        • Independent Commissioner – PT Nusantara Sejahtera Raya Tbk
        Dana
                                                     (Cinema XXI)

independence of the Board of                                    1. The Board of Commissioners is obliged to
Commissioners [GRI 2-15][GRI 2-27]                                 ensure the implementation of GCG principles in
The Board of Commissioners at BTPN Syariah                         every Bank business at all levels or levels of the
carries out its duties and responsibilities                        organization;
independently.
                                                                2. The Board of Commissioners is tasked with
All members of the Board of Commissioners who                      supervising in the interests of the Bank over
                                                                                                                          PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




are Independent Commissioners at BTPN Syariah                      the policies and course of management by
have fulfilled the independence requirements as                    the Board of Directors, providing advice to
proven by having no financial, management, share                   the Board of Directors, and is responsible
ownership and/or family relationships with other                   for such supervision, in accordance with the
members of the Board of Commissioners, members                     Bank's aims and objectives as stipulated in
of the Board of Directors and/or Controlling                       the provisions of statutory regulations, the
Shareholders or other relationships. which can                     Articles of Association and the resolutions of
naturally affect his ability to act independently.                 the GMS;

                                                                3. The Board of Commissioners is obliged to carry
duties and responsibilities of the Board of                        out its duties, authority and responsibilities in
Commissioners [GRI 102-23]                                         good faith and with the principle of prudence;
Referring to the Board of Commissioners Charter
at BTPN Syariah, the duties and responsibilities of             4. In carrying out supervision, the Board of
the Board of Commissioners include:                                Commissioners is obliged to direct, monitor

                                                                                                                          143
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                                                           and evaluate the implementation of                       Council and approval from the OJK. The
                                                           integrated governance, risk management and               GMS can delegate authority to the Board of
                                                           compliance as well as the Bank's strategic               Commissioners to appoint DPS members;
                                                           policies in accordance with the provisions
                                                           of the Legislative Regulations, Articles of           10. In implementing the internal audit function, the
                                                           Association and GMS Resolutions. To carry                 Board of Commissioners is responsible for:
                                                           out these duties and responsibilities, the                a. Ensure that the Board of Directors prepares and
                                                           Board of Commissioners may request the                        maintains an adequate, effective and efficient
                                                           necessary data and information from the                       internal control system;
                                                           Board of Directors;                                       b. Review the effectiveness and efficiency of the
                                                                                                                         internal control system based on information
                                                        5. In carrying out supervision, the Board of                     obtained from SKAI at least once every 1 (one)
                                                           Commissioners is prohibited from participating                year; and
                                                           in decision making on the Bank's operational              c. Appoint an independent quality controller
                                                           activities, except                                            (Quality Assurance) from an external party to
                                                           a. Provision of funds to related parties in                   conduct a review of SKAI's performance by
                                                               accordance with the provisions of the Financial           considering the recommendations of the Audit
                                                               Services Authority Regulation (POJK) regarding            Committee;
                                                               the maximum limit for distribution of funds
                                                               and distribution of large funds for Sharia        11. The Board of Commissioners is obliged
                                                               Commercial Banks or in an amount exceeding            to provide time to carry out duties and
                                                               the amount that will be determined from time          responsibilities optimally in accordance with
                                                               to time by the Board of Commissioners; and            work guidelines and regulations;
                                                           b. Other matters stipulated in the Bank's
                                                               Articles of Association or applicable laws and    12. The Board of Commissioners is obliged
                                                               regulations.                                          to provide time to carry out duties and
                                                                                                                     responsibilities optimally in accordance with
                                                        6. Decision making by the Board of Commissioners             work guidelines and regulations;
                                                           is part of the supervisory duties of the Board of
                                                           Commissioners so that it does not negate the          13. The Board of Commissioners carries out the
                                                           responsibility of the Board of Directors for the          internal audit function of the parent company
                                                           implementation of Bank management;                        so that the internal audit function of the parent
                                                                                                                     company Develops the audit scope and carries
                                                        7. Supervision of Internal and External Audit                out internal audit activities with adequate
                                                           Functions:                                                coverage at the Bank;
                                                           The Board of Commissioners is obliged to supervise
                                                           the Directors' follow-up on audit findings or         14. In implementing risk management, the Board
                                                           examinations and recommendations from the                 of Commissioners must at least
                                                           Bank's internal audit work unit, external auditors,       a. Approve the Company's policy and risk
                                                           OJK supervision results and/or supervision results            management;
                                                           from other authorities and institutions;                  b. Evaluation of the Board of Directors'
                                                                                                                         responsibilities in implementing risk
                                                        8. The Board of Commissioners is obliged to notify               management policies;
                                                           the OJK no later than 5 (five) working days after         c. Evaluate and decide on requests from the
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                           the discovery of:                                             Board of Directors relating to transactions
                                                           a. Violation of statutory provisions in the fields            that require approval from the Board of
                                                              of finance, banking and those related to Bank              Commissioners;
                                                              business activities; and
                                                           b. Circumstances or anticipated circumstances         15. Active supervision of the Company's
                                                              that could endanger the continuity of the              Compliance Function (As explained in the OJK
                                                              Bank's business.                                       Regulations that apply to the Compliance
                                                                                                                     Function), the Board of Commissioners will:
                                                        9. The Board of Commissioners is obliged to                  a. Evaluate the implementation of the Bank's
                                                           propose prospective members of the Sharia                    Compliance Function at least 2 (two) times
                                                           Supervisory Board (“DPS”) to the Board                       a year;
                                                           of Directors by taking into account the                   b. Provide suggestions in order to improve the
                                                           recommendations of the Nomination and                        quality of implementation of the Bank's
                                                           Remuneration Committee and then requesting                   Compliance Function.
                                                           recommendations from the Indonesian Ulema

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                                                        implementing good GOVERNANCE
                                                            for sustainable empowerment



   c. Based on the above evaluation, the Board          and operations of the bank and provided
      of Commissioners will provide advice to           recommendations and advice to the Board of
      the President Director with a copy to             Directors and ensured the implementation of GCG
      the Director in charge of the Compliance          principles and compliance with Sharia Principles.
      Function to improve the quality of the
      Compliance Function;                              Specifically, fulfilling the supervisory duties of the
                                                        Board of Commissioners in 2023 includes aspects,
16. Implementing risk management in the use             including:
    of information technology, the Board of             1. Implementation of Sustainable Finance Actions,
    Commissioners will carry out active supervision         including:
    as follows:                                             a. The Board of Commissioners supports the
    a. Provide guidance, monitor and evaluate the               implementation of sustainable finance in
        Bank's strategic plans and policies regarding           line with POJK Number 51/POJK.03/2017
        the use of Information Technology;                      and POJK 17 of 2023 concerning the
    b. Evaluate the responsibility of the Board                 Implementation of Governance for
        of Directors for implementing the use of                Commercial Banks in the context of
        Information Technology;                                 implementing sustainable financial actions
                                                                to make a real and positive contribution
17. Approval of the Bank's main policies in                     to the stability of the financial system in
    accordance with the policy hierarchy and other              Indonesia. By granting approval to the
    special policies which include:                             Board of Directors' policies, the Board
    a. Financing Policy;                                        of Commissioners agreed to support
    b. Policies and procedures for implementing                 the Government in realizing sustainable
       Anti-Money Laundering and Prevention of                  development that is able to maintain
       Terrorism Financing;                                     economic stability and is inclusive and
    c. Risk Management Policy;                                  prioritizes harmony between economic,
    d. Compliance Policy;                                       social and environmental aspects, as stated
    e. Any other policies that may be required by               in the Sustainable Finance Action Plan;
       applicable regulations from Bank Indonesia,          b. The Board of Commissioners has reviewed
       OJK and other competent authorities.                     and approved the Sustainable Financial
                                                                Action Plan for the 2020-2024 Period to the
duties and responsibilities of the                              OJK
President Commissioner                                      c. The Board of Commissioners has given
Referring to the Board of Commissioners Charter                 approval for the implementation of
at BTPN Syariah, the duties and responsibilities of             sustainable initiatives assessed from
the President Commissioner are as follows:                      environmental, social, economic and
1. The position of each member of the Board                     governance aspects as stated in the 2022
   of Commissioners, including the President                    financial year Sustainability Report which
   Commissioner, is equal;                                      was submitted to stakeholders in 2023;
2. The task of the President Commissioner is                d. The Board of Commissioners together with
   to coordinate the activities of the Board of                 the Board of Directors have communicated
   Commissioners and ensure that each member                    the implementation of the 2023 RAKB
   of the Board of Commissioners can express                    initiatives to Shareholders at the Annual
   their opinions based on sufficient information;              General Meeting of Shareholders in 2023
                                                                                                                 PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




3. The GMS is chaired by a member of the Board
   of Commissioners appointed by the Board of           2. Alignment of Mission and Vision
   Commissioners. In the event that all members            In line with the implementation of Good
   of the Board of Commissioners are absent or             Corporate Governance Principles, the Board of
   unable to attend, the GMS will be chaired by a          Commissioners has reviewed the suitability of
   member of the Board of Directors appointed by           the Vision and Mission with Bank business plans
   the Board of Directors;                                 and initiative every year.
4. Other provisions refer to the Company's
   Articles of Association.                                The alignment of the Bank's Vision and Mission
                                                           and Main Values is deemed to remain relevant
realization of duties and responsibilities of              as stated in the Bank's Business Plan 2023-
the Board of Commissioners in 2023                         2025, 2024-2026 and RAKB 2020-2024 (2024
During 2023, the Board of Commissioners supported          Indicators) and has received approval at the
by a Committee at the same level as the Board of           meeting of the Board of Commissioners and
Commissioners at BTPN Syariah has carried out              Board of Directors on November 22 2023.
supervisory responsibilities for the management            • Vision : To be the best Sharia Bank,
                                                                                                                 145
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                                                               for financial inclusion, making a difference in         Platform, a platform to increase customers
                                                               the lives of millions of Indonesians.                   engagement and at the discretion of the
                                                           •   Mission: Together, we create opportunities              Board of Directors to continue collaboration
                                                               for growth and a more meaningful life.                  with universities and the Government in
                                                               berarti.                                                Independent Campus Learning Program
                                                           •   Core Values: PRISMA                                     (MBKM). The bank opens opportunities
                                                                                                                       for students to play a role in providing
                                                        3. Support to the Government, including                        empowerment through one-on-one
                                                           a. In fulfillment of POJK.17.POJK.03/2021                   assistance to financing customers. The
                                                              which is the Second Amendment to                         purpose of this assistance is intended to
                                                              Financial Services Authority Regulation                  grow the ability of customers and their
                                                              Number 11 POJK.03/2020 concerning                        families to have a better life so as to
                                                              National Economic Stimulus as a                          create a sustainable relationship between
                                                              Countercyclical Policy for the Impact                    customers and the Bank;
                                                              of the Spread of Coronavirus Disease                  e. The Board of Commissioners supports the
                                                              2019, and Financial Services Authority                   Government's direction regarding work
                                                              Regulation Number 48/POJK. 03/2020                       health and safety protocols during the
                                                              of 2020 Amendments to Financial                          pandemic in early 2023, where the Board of
                                                              Services Authority Regulation Number                     Directors has implemented a comprehensive
                                                              11/POJK.03/2020 concerning National                      supervision policy for all employees
                                                              Economic Stimulus as a Countercyclical                   regarding work mechanisms that prioritize
                                                              Policy Impact of the Spread of Coronavirus               work safety at all levels of the organization
                                                              Disease 2019, the Board of Commissioners                 in a coordinated manner through Business
                                                              gave approval to the Directors' Policy to                Continuity Management assisted by Safety
                                                              support the government in continuing                     and Security Unit, until the endemic status
                                                              its policy of providing relaxation of                    is declared at the end of June 2023.
                                                              financing to affected customers through
                                                              bank participation in the 2023 National            4. Review of Company Material Control,
                                                              Economic Selection Program, as stated in              among others
                                                              the Bank's Business Plan.                             The Board of Commissioners has conducted a
                                                           b. In compliance with Minister of Finance                review of the company's material controls which
                                                              Regulation (PMK) Number 71/PMK.08/2020                include operational, financial, compliance and the
                                                              of 2020 concerning Guarantee Procedures               Bank's risk management system, supervision of
                                                              The Government through the Guarantee                  financial performance achievements, integrity
                                                              Business Entity Appointed in the Context              of financial reports, internal control systems and
                                                              of Implementing the National Economic                 non-financial achievements throughout 2023.
                                                              Recovery Program T.E.U. Indonesia,
                                                              Ministry of Finance and PMK Number 28/                That Financial Performance is closed with good
                                                              PMK.08/2022 Amendment to Minister                     results and business development shows a
                                                              of Finance Regulation Number 71/                      positive trend. Achievement of work results is
                                                              PMK.08/2020 concerning Procedures                     marked by the realization of the business plan
                                                              for Government Guarantees through                     in most of the posts in accordance with the
                                                              Appointed Guarantee Business Entities in              targets that have been set			                  .
                                                              the Context of Implementing the National
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                              Economic Recovery Program, the Board of            5. Fulfillment of Commitments to Shareholders,
                                                              Commissioners has provided approval of                including
                                                              the Board of Directors' policy in approving           a. The Board of Commissioners has
                                                              BTPN Syariah's participation in providing                  submitted an accountability report to
                                                              financing for MSMEs during 2023, as stated                 Shareholders at the Annual General
                                                              in the Bank's Business Plan;                               Meeting of Shareholders on April 12 2023;
                                                           c. The Board of Commissioners gave approval              b. The Board of Commissioners gave
                                                              to the Board of Directors' policy to continue              approval to follow up on the Resolution
                                                              developing home renovation products in                     of the Extraordinary GMS held in 2019 by
                                                              collaboration with the Ministry of Public                  transferring the third treasury shares to
                                                              Works and Public Housing (PUPR) in 2023,                   Material Risk Takers with a distribution
                                                              as stated in the Bank's Business Plan;                     date of January 25, 2023;
                                                           d. The Board of Commissioners supports the               c. The Board of Commissioners has
                                                              Bank's efforts through the Daya Digital                    ensured supervision over the fulfillment


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                                                         implementing good GOVERNANCE
                                                             for sustainable empowerment



        of the Board of Directors' duties and                 for:
        responsibilities in management companies,             • Annual Report for the 2022 financial
        including fulfilling obligations to Regulators            year;
        through Information Disclosure regarding              • Sustainability Report for the 2022
        the presentation of the Annual Report,                    financial year;
        Sustainability Report for the 2022 financial          • Bank Business Plan (RBB) and RBB
        year, Interim Financial Reports, Annual and               Revision for the 2024-2026 Period as
        Consolidated Financial Reports through the                well as commitment to monitoring the
        reporting system and to the public through                realization of the RBB in periodic reports
        national newspapers and available on                      to the OJK;
        the Bank Website as required for a public             • Sustainable Financial Action Plan
        company in 2023.                                          (RAKB) 2020-2024 (2024 Indicators) as
   d.   The Board of Commissioners has given                      well as commitment to monitoring the
        approval for the follow-up to the decision                realization of the Bank's Sustainable
        of the Annual GMS regarding the                           Financial Action Plan together with the
        appointment of Public Accountants and                     Board of Directors every year;
        Public Accounting Firm Sidharta Widjaja               • Corporate Plan and Revised Corporate
        and Rekan (an Indonesian partnership                      Plan 2022-2031;
        and member firm of KPMG network of                    • Update on the 2023 Board of
        independent members affiliated with                       Commissioners Charter;
        KPMG International Cooperative as                     • Changes to the Composition
        External Auditors, taking into account the                of Committees at the Board of
        recommendations of the Audit Committee.                   Commissioners level in 2023;
   e.   That the Bank has submitted the Report                • Annual Work Plans of Committees at
        on the Appointment of Public Accountants                  the level of the Board of Commissioners,
        and Public Accounting Firms for the Audit                 including the 2023 Annual Audit Plan
        of Annual Historical Financial Information                submitted at the end of 2022 and the
        on 31 December 2023 to the Sharia Banking                 2024 Work Plan submitted at the end of
        Supervisory Financial Services Authority                  2023;
        with a copy to the Banking Licensing and              • Following up on decisions taken at the
        Information Department;                                   Extraordinary GMS 2019 in the context
                                                                  of the transfer of some Treasury shares
6. Implementation of Good Corporate Governance                    in early 2023 in the context of providing
   Principles, including                                          variable remuneration to members of the
   a. The Board of Commissioners has supervised                   Board of Directors for the Company's
      the implementation of good corporate                        performance
      governance at BTPN Syariah. Following                c. The Board of Commissioners conducted a
      more than a decade of implementing                      study on strengthening the Bank's Organ
      GCG principles at BTPN Syariah, the                     Infrastructure and gave approval to:
      implementation of GCG principles is                     • Board of Commissioners Work Guidelines
      accompanied by quality improvements by                      and Regulations for 2023;
      adopting the latest ASEAN SCORECARDS                    • Performance of Committees at the
      which were published in 2023 and gradually                  Board of Commissioners level in 2023;
      continue to improve the quality over time. In           • Nomination Process for Candidates
                                                                                                               PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




      particular, the factors that have improved                  for New Members of the Board of
      in the last three years are the Bank's                      Commissioners in 2023;
      increasingly focused focus on shareholder               • Changes in the Composition of
      rights, disclosure and transparency as                      Committee Members at the Board of
      well as the responsibilities of the Board of                Commissioners level in 2023
      Directors and Board of Commissioners. In
      addition, the Bank continues to strive to            d. In an effort to improve the quality
      maintain good values for equal treatment                of the implementation of the duties
      of shareholders and optimal role of                     and responsibilities of the Board of
      stakeholders.                                           Commissioners, during 2023, the Board
   b. Business Plan, Sustainable Financial Action             of Commissioners has given approval
      Plan and Follow-up to GMS Decisions                     for the implementation of supervisory
      The Board of Commissioners reviews and                  duties, the mechanism for implementing
      approves the Board of Directors' proposal               corporate meetings of the Board of


                                                                                                               147
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                                                              Commissioners and meetings of the Board               information technology devices to
                                                              of Commissioners with the Board of                    support the implementation of the Bank's
                                                              Directors as well as committee meetings               target completion process in creating
                                                              at the level of the Board of Commissioners,           a digital ecosystem for the unbanked.
                                                              guided by the provisions for implementing             Committees at the level of the Board
                                                              the governance good management and                    of Commissioners have also assisted
                                                              timely fulfillment of evaluation reporting by         the Board of Commissioner to monitor
                                                              the Board of Commissioners;                           Management has followed up on every
                                                                                                                    audit finding and recommendation from
                                                        7. Supervision of Subsidiaries, including the               OJK and external auditors and supervised
                                                           Board of Commissioners supervising                       their completion;
                                                           the Bank's compliance with compliance
                                                           GCG principles and Sharia Principles in             b.   The Board of Commissioners together
                                                           Subsidiaries, implementation of good                     with members of Committees at the
                                                           Risk Management, monitoring Financial                    same level as the Board of Commissioners
                                                           and Non-Financial Performance, quality                   provide direction and supervision regarding
                                                           sharia services, as well as supervision over             the implementation of business plans
                                                           members of the Board of Directors and Bank               and implementation of good governance
                                                           Management who carry out supervisory                     through visits to branch offices and
                                                           duties at the Subsidiary, PT BTPN Syariah                functional offices, guest house, center and
                                                           Ventura in in 2023;                                      customer. To complete the supervision
                                                                                                                    of the visit, the Board of Commissioners
                                                        8. Fulfillment of Commitments regarding the                 submits a Visit evaluation report
                                                           Implementation of Banking Synergy, including             accompanied by recommendations and
                                                           the Board of Commissioners supervising the               input to the Board of Directors;
                                                           fulfillment of duties and responsibilities within
                                                           the Financial Group with PT BANK BTPN Tbk,          c.   In providing the best service for financing
                                                           including receiving the latest information               and funding customers, the Board of
                                                           through the function of the Corporate                    Commissioners recommends that the
                                                           Governance Committee regarding the                       Board of Directors continue to make
                                                           implementation of banking synergy in 2023. The           improvements to the Bank's internal
                                                           Corporate Governance Committee is tasked                 policies and procedures in supporting
                                                           with monitoring to ensure that internal control          the Bank's business activities, including
                                                           is implemented and integrated within the                 Internet Banking and Mobile Service
                                                           financial group in a prudent and transparent             policies.Banking for funding customers
                                                           manner, fulfilling the principles of governance          whose permits will be received in 2022
                                                           as a Conventional Commercial Bank, Sharia                as well as various development program
                                                           Commercial Bank and as a Public Company.                 policies for financing customers;;

                                                        9. Compliance with Sharia Principles                   d.   The Board of Commissioners evaluates the
                                                           In carrying out its supervisory duties, the Board        Bank's compliance function. The monitoring
                                                           of Commissioners periodically coordinates                of which is carried out periodically and
                                                           with the Sharia Supervisory Board to align               submitted to the President Director
                                                           strategic supervision in accordance with Sharia          with a copy to the Compliance Director.
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                           Principles.                                              During 2023, the Compliance culture
                                                                                                                    were implemented well, reflected in the
                                                        10. Directions and Recommendations of the Board             fulfillment of the prudential level ratio that
                                                            of Commissioners, among others                          was well maintained, with no significant
                                                            a. The Board of Commissioners is assisted               fines from regulators, and all compliance
                                                                by a committee at the same level The                risk profile parameters show positive
                                                                Board of Commissioners has formulated,              values, with the Bank understanding the
                                                                reviewed, provided advice on good                   importance of careful attention when it
                                                                internal control measures, monitored                comes to new activities;
                                                                the Bank's risks, ensured the availability
                                                                of human resources who are not only            e.   In terms of strengthening human capital,
                                                                physically resilient but also ensured the           the Board of Commissioners provides
                                                                implementation of good and measurable               advice to ensure that the Board of
                                                                nomination and remuneration policies.               Directors carries out long-term quality
                                                                at the Bank, the availability of capable            development of human resources,

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           honing internal talents, and in terms of                                                             corporate governance, as well as providing
           presenting transparency, the Board of                                                                recommendations to the Board of
           Commissioners has ensured that the                                                                   Directors regarding policy steps deemed
           Board of Directors maintains integrity                                                               necessary to be taken while still paying
           in financial reports, internal control                                                               attention to applicable legal provisions.
           systems and risk management, reporting
           and information disclosure, compliance,




             As per the decision made in 2023 during the General Meeting of Shareholders,
             the Board of Commissioners has been granted power and authority from the
             Shareholders. They have since implemented various actions, such as


          1.      Appointing Public Accountant and Public Accounting Firm Sidharta Widjaja and
                  Rekan (an Indonesian partnership and member firm of KPMG network of independent
                  members affiliated with KPMG International Cooperative) as External Auditor to audit
                  BTPN Syariah's books and records for the financial year ending on 31 December 2023.
                  The Board of Commissioners has also determined the amount of honorarium and other
                  conditions for appointing the Public Accountant and Public Accounting Firm, taking into
                  account recommendations from BTPN Syariah's Audit Committee

          2.      Additionally, they have decided on Remuneration for members of the Board of Directors
                  and members of the Sharia Supervisory Board in 2023 through a Nomination and
                  Remuneration Committee Meeting. The distribution between members of the Board
                  of Directors and members of the Sharia Supervisory Board was also determined,
                  with consideration given to recommendations from the Bank's Nomination and
                  Remuneration Committee when determining the total amount and distribution of
                  Remuneration.



Board of Commissioners Nomination Process [GRI 2-10]
The process flow for appointing and appointing members of the Board of Commissioners as regulated in
the Guidelines and Working Rules of the Nomination and Remuneration Committee at BTPN Syariah is as
follows:

               suggestion                                             selection & recommendation                                                       decision


                                                                                                                                                              Notification and Information
                                       The selection process by the                                                The Board of Commissioners             Disclosure regarding changes in the
  Proposed candidates for             Nomination and Remuneration                                                proposes to the GMS candidates          composition of members of the Board
   members of the Board                                                    OJK approval for applications           for members of the Board of            of Commissioners, to OJK/IDX/ and
                                           Committee includes:
  of Commissioners, from                                                   for candidates for members of        Commissioners, taking into account          other related agencies, including
                                         1. Analyze candidate
   Shareholders/Board of                                                    the Board of Commissioners            the recommendations from the             to the public, and inclusion on the
                                            competencies and
      Commissioners                                                                                               Nomination and Remuneration                        Bank's website
                                            background
                                                                                                                                                                                                 PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                         2. Interview (if required)                                                        Committee




                                                                                                         Submission of
                     Submission of proposals for                                                    recommendations from                   GMS decision regarding the
                     candidates for the Board of               Submission of FnPT                     the Nomination and                 composition of members of the
                   Commissioners, to the Nomination             process to OJK (*)                Remuneration Committee to                 Board of Commissioners
                    and Remuneration Committee                                                    the Board of Commissioners




(*) Submission of FnPT to OJK for members of the Board of Commissioners, can be carried out after the GMS;




                                                                                                                                                                                                 149
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                                                        performance assessment of the Board of Commissioners
                                                        The procedures for implementing the Board of Commissioners Assessment at BTPN Syariah are as stated
                                                        in the Nomination and Remuneration Committee's Charter, taking into account the Articles of Association
                                                        and the Bank's internal policies.

                                                        Performance assessment is carried out by self-assessment every year to assess the performance of the
                                                        Board of Commissioners in a collegial manner. [GRI 102-28]

                                                        criteria for implementing the performance assessment of the Board of Commissioners
                                                        The assessment criteria for the individual performance of each member of the Board of Commissioners
                                                        (individual performance assessment) at BTPN Syariah refers to various considerations, including:
                                                        1. Implementation of Good Corporate Governance (GCG) in every Bank business,
                                                        2. Supervision of the implementation of the duties and responsibilities of the Board of Directors;
                                                        3. Implementation of the Bank's overall strategy;
                                                        4. Oversight of the Bank's overall strategy;
                                                        5. Supervision of Risk Management activities in each area (risk management activities); and
                                                            implementation of good corporate governance principles.

                                                        Sharia Supervisory Board
                                                        The Sharia Supervisory Board at BTPN Syariah is a crucial bank organ, appointed and ratified through the
                                                        GMS. This process involves considering recommendations from both the National Sharia Council (DSN)
                                                        of the Indonesian Ulema Council (MUI) and the Nomination and Remuneration Committee. Additionally,
                                                        members are required to pass the Fit and Proper Test administered by the OJK.

                                                        Operating at a level equivalent to the Board of Commissioners, the Sharia Supervisory Board, known as
                                                        DPS, holds responsibilities such as advising and providing suggestions to the Board of Directors.

                                                        Moreover, its role extends to supervising bank activities to ensure alignment with Sharia Principles. DPS
                                                        functions as an independent body, recommended by DSN MUI, specifically entrusted with overseeing the
                                                        implementation of DSN fatwas within Sharia Financial Institutions.

                                                        All members of the Sharia Supervisory Board at BTPN Syariah are carefully selected to fulfill specified
                                                        criteria regarding number, composition, and independence, as outlined by applicable regulations.

                                                        composition of the Sharia Supervisory Board
                                                        The Sharia Supervisory Board (or DPS) at BTPN Syariah is composed of 2 members, namely 1 Chair
                                                        and one Member. The Chairman of DPS is tasked with coordinating the implementation of DPS duties
                                                        and ensuring that all DPS members have access to necessary information to fulfill their responsibilities
                                                        effectively. Throughout their supervisory tasks, DPS ensures optimal execution of their duties and
                                                        responsibilities.

                                                        Following the decision made during the BTPN Syariah Annual GMS held in 2023, all DPS members, whose
                                                        terms had expired, has been reappointed with term of office. This decision is made with consideration for
                                                        any potential changes that may arise before the end of their term of office.
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        The composition of DPS members at BTPN Syariah as of December 31, 2023 is as follows:
                                                              Name of the Sharia                                   BI/OJK Approval      Date of         Effective
                                                         No                          Position             Gender
                                                              Supervisory Board                                    Date                 Appointment     Date
                                                                                     Chairman of the
                                                                                                                   June 13, 2017
                                                         1.   H. Ikhwan Abidin, MA   Sharia Supervisory   Male                          March 6, 2017   June 13, 2017
                                                                                                                   (SR-25/PB.13/2017)
                                                                                     Board
                                                                                     Member of the
                                                                                                                   May 2, 2017
                                                         2.   H. Muhamad Faiz, MA    Sharia Supervisory   Male                          March 6, 2017   May 2, 2017
                                                                                                                   (SR-23/PB.13/2017)
                                                                                     Board




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                                                                for sustainable empowerment



Concurrent Positions of Sharia Supervisory Board
As of December 31, 2023, the positions and other commitments (concurrent positions) of members of the
Sharia Supervisory Board do not exceed the maximum limit permitted in accordance with the provisions.

Positions and other commitments of the Sharia Supervisory Board per December 31, 2023:
       Name of the Sharia       Term of Office
 No                                               Other positions and commitments
       Supervisory Board        at BTPN Syariah
                                                  •   DPS Chairman – PT Bank Syariah Bukopin
                                                  •   DPS Chairman - PT Bahana Arta Ventura
 1     H. Ikhwan Abidin, MA     2023-2026         •   DPS Chairman – PT Radana Bhaskara Finance
                                                  •   DPS Member – PT Asanusa Asset Management
                                                  •   Postgraduate Lecturer - Institut Ilmu Al Quran
                                                  • DPS Chairman – Sharia Business Unit PT Bank Permata Tbk
                                                  • DPS Chairman – PT Indomobil Finance Indonesia (IMFI) Syariah
                                                  • DPS Member – Sharia Business Unit PT Bank Tabungan Negara
                                                    (Persero) Tbk
                                                  • Deputy Caretaker - PP Darul Rohman
 2     H. Muhamad Faiz, MA      2023-2026
                                                  • Vice Secretary - PP Darul Rohman
                                                  • Vice Chairman - Lembaga Bahtsul Masail at PBNU
                                                  • Plenary Member - DSN MUI
                                                  • Sharia Chief - PBNU
                                                  • Chairman - MUI DKI Jakarta



duties and responsibilities of the Sharia Supervisory Board
Referring to the Charter of the Sharia Supervisory Board at BTPN Syariah, the duties and responsibilities
of the Sharia Supervisory Board include:

1.  Carry out duties and responsibilities in accordance with the principles of good corporate governance;
2.  Providing advice and suggestions to the Board of Directors and supervising the Bank's activities so
    that they comply with Sharia Principles;
3. Assess and ensure compliance with Sharia Principles for operational guidelines and products/services
    issued by the Bank;
4. Supervise the Bank's new product development process to comply with the fatwa of the National
    Sharia Council (DSN) – Indonesian Ulema Council (MUI);
5. Request a fatwa from DSN – MUI for new Bank products for which there is no fatwa;
6. Conduct regular reviews on the fulfillment of Sharia Principles on the mechanisms for collecting funds
    and channeling funds as well as Bank services;
7. Providing socialization of sharia principles to employees to increase employee understanding of sharia
    principles.
8. Request data and information related to sharia aspects through the Compliance Work Unit in the
    context of carrying out their duties;
9. DPS is obliged to submit a DPS Supervision Results Report on a semi-annual basis to OJK and DSN-
    MUI no later than 2 (two) months after the semester period in question ends;
10. In carrying out its duties and responsibilities, DPS also coordinates with the Board of Commissioners
    and Directors;
                                                                                                                   PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




11. DPS is obliged to provide sufficient time to carry out its duties and responsibilities optimally.

realization of the implementation of duties and responsibilities of the Sharia Supervisory
Board in 2023
Throughout 2023, all DPS members at BTPN Syariah have carried out supervisory duties in providing
advice and suggestions to the Board of Directors as expressed through DPS Opinions and Approvals.

Sharia Supervisory Board Opinions and Approvals in 2023

 No.   Number                  DPS Opinions & Approvals 2023
 1.    154/DPS/ODP/I/2023      Ujrah Tiering for Mitra Tepat Working Capital Financing
 2     155/DPS/ODP/I/2023      OJK findings related to Sharia Principles of Financing

 3     156/DPS/ODP/II/2023     Payment Services Using QRIS in Mobile Banking




                                                                                                                    151
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                                                        Sharia Supervisory Board Opinions and Approvals in 2023

                                                        No.        Number                                       DPS Opinions & Approvals 2023
                                                        4          157/DPS/ODP/II/2023                          Financing for non-Muslim customers for religious goods businesses.
                                                        5          158/DPS/ODP/II/2023                          Basic Sharia Banking Training Materials for CO
                                                        6          159/DPS/ODP/III/2023                         Updates to DPS Charter
                                                        7          160/DPS/ODP/III/2023                         Update on Corporate Governance Policy Version 5.1
                                                        8          161/DPS/ODP/IV/2023                          Deposit On Call (DOC) Products
                                                        9          162/DPS/ODP/VI/2023                          Changes to the Tepat Savings Plan Product Agreement
                                                                                                                Submission of Wow Syariah Closing GL Fund Balances to become Social Funds/
                                                        10         163/DPS/ODP/VI/2023
                                                                                                                TBDSP.
                                                        11         164/DPS/ODP/VI/2023                          Financing Policy Update
                                                        12         165/DPS/ODP/VI/2023                          Banking Synergy between PT Bank BTPN Syariah Tbk and PT BANK BTPN Tbk
                                                        13         166/DPS/ODP/VI/2023                          Male Group Financing Product Development Plan
                                                        14         167/DPS/ODP/VII/2023                         Murabahah Price Determination
                                                        15         168/DPS/ODP/X/2023                           BTPNS Banking Synergy with BTPNS Ventura
                                                                                                                Data Exchange Agreement on the Implementation of Anti Fraud, APU PPT and
                                                        16         169/DPS/ODP/XI/2023
                                                                                                                PPSMPM between BTPN Syariah and BTPN
                                                        17         170/DPS/ODP/XI/2023                          Update on MT Tepat Financing PP version 2.0
                                                                                                                Repayment Program for Financing for Customers Who Pass Away & Compensation
                                                        18         171/DPS/ODP/XII/2023
                                                                                                                for Spouses of Deceased Customers
                                                        19         172/DPS/ODP/XII/2023                         Insurance Program Update for TTR Mudharabah Agreement Customers
                                                        20         173/DPS/ODP/XII/2023                         PP Tepat Deposit Update

                                                        independence of the Sharia Supervisory Board
                                                        The Sharia Supervisory Board has carried out its duties and responsibilities independently. All members of
                                                        the Sharia Supervisory Board have no financial, management, share ownership, and/or family relationships
                                                        with other members of the Sharia Supervisory Board, Board of Commissioners, members of the Board of
                                                        Directors, and/or Controlling Shareholders. The Sharia Supervisory Board at BTPN Syariah states that it
                                                        remains independent.


                                                        Sharia Supervisory Board nomination process
                                                        The process flow for appointing and appointing members of the Sharia Supervisory Board as regulated in
                                                        the Nomination and Remuneration Committee Charter at BTPN Syariah is as follows:

                                                                            suggestion                                             selection & recommendation                                                       decision



                                                                                                    The selection process by the                                                The Board of Commissioners                  Notification and Information
                                                               Proposed candidates for                                                                                        proposes to the GMS candidates            Disclosure regarding changes in the
                                                               members of the Board of             Nomination and Remuneration          OJK approval for applications
                                                                                                        Committee includes:             for candidates for members of           for members of the Board of            composition of members of the Board
                                                                Commissioners, Sharia                                                                                        Commissioners, Sharia Supervisory         of Commissioners, Sharia Supervisory
                                                                Supervisory Board and                 1. Analyze candidate               the Board of Commissioners,                                                    Board and Board of Directors to BI/
                                                                                                         competencies and                 Sharia Supervisory Board &         Board and Board if Directors taking
                                                             Directors from Shareholders/                                                                                                                              OJK/IDX/ and other related agencies,
                                                                                                         background                           Board of Directors             into account the recommendations
                                                                  Directors/Board of                                                                                                                                    including to the public, and inclusion
                                                                                                      2. Interview (if required)                                                  from the Nomination and                      on the Bank's website
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                                    Commissioners                                                                                                 Remuneration Committee




                                                                                    Submission of proposal of                                                         Submission of                     GMS decision regarding the
                                                                                    candidates of the Sharia                                                     recommendations from                 composition of members of the
                                                                                                                            Submission of FnPT                     the Nomination and                 Board of Commissioners, Sharia
                                                                                    Supervisory Board to the
                                                                                  Nomination and Remuneration                process to OJK (*)                Remuneration Committee to               Supervisory Board and Board
                                                                                          Committee                                                            the Board of Commissioners                       of directors




                                                        * Submission of FnPT to OJK for members of the Board of Commissioners, Sharia Supervisory Board and Directors can be carried out after the GMS;
                                                          Proposal of FnPT for Sharia Supervisory Board after obtaining recommendation from National Sharia Council




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Sharia Supervisory Board performance assessment
At BTPN Syariah, the evaluation of Sharia Supervisory Board performance adheres to predefined criteria,
aligning with their duties, responsibilities, regulatory mandates, the Bank's Articles of Association, and
internal policies.

The DPS performance assessment is conducted through an annual self-evaluation process, fostering a
collegial approach to evaluating DPS performance.

The primary objective of this self-assessment is to furnish recommendations to the Board of
Commissioners for the re-appointment of DPS members. It also serves as a basis for refining the DPS
remuneration structure and enhancing the overall effectiveness of DPS performance.

Sharia Supervisory Board performance assessment criteria
The assessment criteria for the individual performance of each DPS member (individual performance
assessment) at BTPN Syariah refers to various considerations, including:
1. Supervision of the implementation of the duties and responsibilities of the Board of Directors in
   accordance with Sharia Principles and;
2. Good Corporate Governance in every Bank business.

Board of Directors
The Board of Directors, a crucial governing body of the Bank, is appointed and confirmed during the
General Meeting of Shareholders (GMS), considering recommendations put forth by the Nomination
and Remuneration Committee. Directors are required to successfully undergo the Fit and Proper Test
administered by the OJK. Their term of office at BTPN Syariah spans three years, with the possibility of
reappointment.

Empowered and fully accountable, the Board of Directors is entrusted with the comprehensive
management of the bank, safeguarding its interests both internally and externally, in alignment with the
bank's objectives as delineated in its Articles of Association. Furthermore, they serve as the bank's legal
representatives as stipulated in the Articles of Association.

Each member of the Board of Directors at BTPN Syariah adheres to the prescribed regulations regarding
their number, composition, criteria, and independence, ensuring compliance with applicable standards.

composition of the Board of Directors [GRI 2-9]
The determination of the Board of Directors' composition is meticulously tailored to accommodate
the bank's complexity and requirements. At BTPN Syariah, the composition is meticulously crafted
to encompass a blend of banking and Sharia banking knowledge, professional expertise, and diverse
backgrounds, all aimed at facilitating the effective discharge of the Board's duties, with no discrimination
based on gender, ethnicity, race, or religion.

Following the resolutions of the BTPN Syariah Annual General Meeting of Shareholders (GMS) convened
in 2023, 4 (four) Directors whose terms had expired were reappointed, serving until the conclusion of the
2026 Annual GMS, subject to any alterations that may transpire before the term's conclusion.
                                                                                                               PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




Moreover, during the same Annual GMS, a new Female Director was appointed, reinforcing the Board's
diversity and expertise. This appointment extends until the conclusion of the 2026 Annual GMS, with
provisions for any adjustments that may arise during the tenure.

In 2023, alterations were made to the Board of Directors' composition at BTPN Syariah following the
resignation of a Director whose term had expired and the subsequent appointment of a new Director.
These changes came into effect on April 12, 2023.




                                                                                                               153
Page 154
                                                        The composition of the Board of Directors before the 2023 Annual GMS is as follows:
                                                        Board of Directors                                 BI/OJK Approval       Date of
                                                                                Position         Gender                                                 Effective Date
                                                        Name                                               Date                  Appointment
                                                                                President                  April 3, 2020
                                                        Hadi Wibowo                              Male                            April 16, 2020         April 16, 2020
                                                                                Director                   (KEP-4/D.03/2020)
                                                                                Compliance
                                                                                Director and               August 22, 2017
                                                        Arief Ismail                             Male                            March 6, 2017          August 22, 2017
                                                                                Corporate                  (KEP-69/D.03/2017)
                                                                                Secretary
                                                        M. Gatot Adhi                                      February 24, 2014
                                                                                Director         Male                            May 20, 2014           May 22, 2014
                                                        Prasetyo                                           (KEP-16/D.03/2014)
                                                                                                           May 20, 2020
                                                        Fachmy Achmad           Director         Male                            April 16, 2020         May 27, 2020
                                                                                                           (KEP-58/D.03/2020)
                                                                                                                                 April 16, 2020
                                                        Dwiyono Bayu                                       February 26, 2021
                                                                                Director         Male                            (reappointment         April 21, 2021
                                                        Winantio                                           (KEP-32/D.03/2021)
                                                                                                                                 date April 21, 2021)


                                                        The composition of the members of the Board of Directors after the Closing of 2023 Annual GMS and per
                                                        December 31, 2023 are as follows:

                                                        Board of Directors                                                           Date of
                                                                                  Position        Gender     BI/OJK Approval Date                             Effective Date
                                                        Name                                                                         Appointment
                                                                                  President                  April 3, 2020
                                                        Hadi Wibowo                               Male                               April 16, 2020           April 16, 2020
                                                                                  Director                   (KEP-4/D.03/2020)
                                                                                  Compliance
                                                                                  Director and               August 22, 2017
                                                        Arief Ismail                              Male                               March 6, 2017            August 22, 2017
                                                                                  Corporate                  (KEP-69/D.03/2017)
                                                                                  Secretary
                                                                                                             May 20, 2020
                                                        Fachmy Achmad             Director        Male                               April 16, 2020           May 27, 2020
                                                                                                             (KEP-58/D.03/2020)
                                                                                                                                     April 16, 2020
                                                        Dwiyono Bayu                                         February 26, 2021
                                                                                  Director        Male                               (reappointment           April 21, 2021
                                                        Winantio                                             (KEP-32/D.03/2021)
                                                                                                                                     date April 21, 2021)
                                                                                                             March 10, 2023
                                                        Dewi Nuzulianti           Director        Female                             April 12, 2023           April 12, 2023
                                                                                                             (KEPR-2/D.03/2023)


                                                        The number of the Board of Directors at BTPN Syariah is 5 (five) people, of which 1 (one) is a Female
                                                        Director. [GRI 405-1]

                                                        All members of the BTPN Syariah Board of Directors have fulfilled the number, composition, criteria and
                                                        independence in accordance with applicable regulations.

                                                        positions and other commitments of members of the Board of Directors
                                                                                    Term of Office
                                                        Board of Directors Name                            Other positions and commitments
                                                                                    at BTPN Syariah
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        Hadi Wibowo                 2023-2026              Chairperson of the Social Committee - ASBISINDO
                                                                                                           • Member of the Indonesian Sharia Accounting Standards Board
                                                        Fachmy Achmad               2023-2026                – Indonesian Accountants Association
                                                                                                           • President Commissioner of PT BTPN Syariah Ventura
                                                                                                           • Member - Banking Compliance Director Communication
                                                                                                             Forum (FKDKP)
                                                        Arief Ismail                2023-2026
                                                                                                           • Member – Indonesia Corporate Secretary Association
                                                                                                           • Member – Association of Indonesian Issuers
                                                        Dwiyono Bayu Winantio       2023-2026              Is not a member of any Association
                                                        Dewi Nuzulianti             2023-2026              Is not a member of any Association




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duties and responsibilities of the Board of              d. Carried out by parties who do not hold
Directors [GRI 2-13]                                        structural positions at the Bank, and
Based on the Directors' Work Guidelines and              e. Carried out by parties who do not have
Regulations at BTPN Syariah, the duties and                 the authority to make Bank operational
responsibilities of the Board of Directors include:         decisions
1. The Board of Directors is fully responsible
   for the implementation of the Bank's               10. In managing data and information related to
   management.                                            the Bank, Directors are required to:
                                                          a. Have and provide accurate, relevant and
2. The Board of Directors is obliged to manage               timely data and information, including to
   the Bank in accordance with its authority and             the Board of Commissioners and
   responsibilities as regulated in the Articles          b. Carry out data and information
   of Association and applicable laws and                    management in accordance with good
   regulations.                                              governance at the Bank and statutory
                                                             provisions
3. The Board of Directors is obliged to implement
   the principles of Good Corporate Governance        11. In order to support the effective
   Policy in every Bank business activity at all          implementation of its duties and
   levels of the organization.                            responsibilities, the Board of Directors may
                                                          form committees.
4. The Board of Directors is obliged to follow up
   on all audit findings and recommendations             If a committee is formed, the Board
   from the Internal Audit Work Unit (SKAI),             of Directors is obliged to evaluate the
   Sharia Supervisory Board (DPS), External              performance of the committee at the end of
   Auditor, OJK/BI supervision results and/or            each financial year.
   supervision results from other authorities.
                                                      12. In carrying out the Internal Audit function, the
5. In order to implement the principles of Good           Board of Directors is responsible for:
   Corporate Governance Policy, the Board of              a. Develop an internal control framework to
   Directors is at least obliged to form.                     identify, measure, monitor and control all
   a. Internal Audit Work Unit.                               risks faced by the bank.
   b. Risk Management Work Unit.                          b. Ensure that SKAI obtains information
   c. Risk Management Committee.                              regarding ongoing developments, project
   d. Compliance Work Unit.                                   initiatives, products and operational
                                                              changes as well as risks that have been
6. The Board of Directors is obliged to hold an               identified and anticipated.
   annual GMS and other GMS as regulated                  c. Ensure appropriate corrective action has
   in statutory regulations and the Articles of               been taken.
   Association.
                                                      13. Members of the Board of Directors are not
7. The Board of Directors is obliged to be                authorized to represent the Bank if:
   accountable for fulfilling its obligations to          a. There is a case in court between the Bank
   Shareholders through the GMS.                             and the member of the Board of Directors
                                                             concerned and
                                                                                                             PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




8. The Board of Directors is obliged to disclose          b. The member of the Board of Directors
   to employees regarding the Bank's strategic               concerned has interests that conflict with
   internal policies in the field of personnel;              the interests of the Bank.

9. The Board of Directors are prohibited from         14. In the event that there are circumstances as
   using individual advisors and/or professional          referred to in point (3.13), those entitled to
   services as consultants unless they meet the           represent the Bank are:
   following requirements:                                a. Other members of the Board of Directors
   a. Special projects.                                       who do not have a conflict of interest with
   b. Based on a clear contract, which at least               the Bank.
       includes the scope of work, responsibilities       b. The Board of Commissioners in the event
       and work period as well as costs.                      that all members of the Board of Directors
   c. Consultants are independent parties and                 have a conflict of interest with the Bank or
       have the qualifications to work on special
       projects as referred to above.

                                                                                                             155
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                                                           c. Other parties appointed by the GMS in the           (2024 Indicators) and has received approval
                                                              event that all members of the Board of              at the Board of Directors and Board of
                                                              Directors or Board of Commissioners have a          Commissioners meeting on November 22 2023.
                                                              conflict of interest with the Bank.                 • Mission : Together, we create opportunities
                                                                                                                      for growth and a more meaningful life.
                                                        functions of the President Director                       • Vision : To be the best Sharia Bank, for
                                                        Without prejudice to the rights of the Board                  financial inclusion, making a difference in
                                                        of Directors as regulated in the Articles of                  the lives of millions of Indonesians.
                                                        Association and other applicable provisions, the          • Core Values : PRISMA
                                                        President Director has the authority to:
                                                        1. Coordinate the activities of the Board of           3. Support to the Government, among others
                                                           Directors and ensure that the division of tasks        a. In fulfillment of POJK.17.POJK.03/2021
                                                           between the Directors runs effectively.                   which is the Second Amendment to the
                                                        2. Arrange meeting schedules and determine                   Financial Services Authority Regulation
                                                           agendas that are the responsibility and                   Number 11/POJK.03/2020 concerning
                                                           priorities of the Board of Directors.                     National Economic Stimulus as a
                                                        3. Determine meeting invitations.                            Countercyclical Policy on the Impact
                                                        4. Ensure the adequacy and availability of                   of the Spread of the 2019 Coronavirus
                                                           information required for decision making.                 Disease, and Financial Services Authority
                                                        5. Determine the Board of Directors' decision in             Regulation Number 48/POJK.03/2020 in
                                                           the event of a deadlock                                   2020.

                                                        realization of the implementation of                         Amendments to Financial Services
                                                        duties and responsibilities of the Board of                  Authority Regulation Number 11/
                                                        Directors in 2023                                            POJK.03/2020 concerning National
                                                        1. Fulfillment of Commitments for Implementing               Economic Stimulus as a Countercyclical
                                                           Sustainable Financial Actions, among others               Policy for the Impact of the Spread of
                                                           a. There are representatives of the Board of              the 2019 Coronavirus Disease, the Board
                                                              Directors who carry out direct supervision             of Directors supports the Government by
                                                              over the implementation of sustainable                 continuing the policy of providing financing
                                                              financial actions at BTPN Syariah;                     relaxation to affected customers through
                                                           b. The Board of Directors has prepared,                   the Bank's participation in the Program
                                                              approved and submitted a Sustainable                   National Economic Election in 2023;
                                                              Financial Action Plan for the 2020-2024             b. In compliance with the Minister of Finance
                                                              Period to the OJK;                                     Regulation (PMK) Number 71/PMK.08/2020
                                                           c. The Board of Directors has ensured                     of 2020 concerning Procedures for
                                                              that the implementation of sustainable                 Government Guarantees through Appointed
                                                              initiatives is assessed from environmental,            Guarantee Business Entities in the Context
                                                              social, economic and governance aspects                of Implementing the National Economic
                                                              as stated in the 2022 financial year                   Recovery Program T.E.U. Indonesia,
                                                              Sustainability Report which was submitted              Ministry of Finance and PMK Number 28/
                                                              to stakeholders in 2023;                               PMK.08/2022 Amendment to Regulation
                                                           d. The Board of Directors has communicated                of the Minister of Finance Number 71/
                                                              the implementation of the 2023 RAKB                    PMK.08/2020 concerning Procedures
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                              initiatives to Shareholders at the Annual              for Government Guarantees through
                                                              General Meeting of Shareholders in 2023;               Guarantee Business Entities Appointed in
                                                                                                                     the Context of Implementing the National
                                                        2. Alignment of Mission and Vision                           Economic Recovery Program, the Board of
                                                           In line with the implementation of Good                   Directors has given approval BTPN Syariah's
                                                           Corporate Governance Principles, the Board                participation in providing financing for
                                                           of Directors of BTPN Syariah has reviewed the             MSMEs during 2023;
                                                           suitability of the Mission and Vision with the         c. The Board of Directors has agreed to continue
                                                           Bank's business plans and initiatives every year.         developing home renovation products in
                                                                                                                     collaboration with the Ministry of Public
                                                           That the alignment of the Bank's Mission and              Works and Public Housing (PUPR) in 2023;
                                                           Vision and Main Values is considered to remain         d. The Board of Directors has approved
                                                           relevant as stated in the Bank's Business Plan            the Daya Digital Platform, a platform
                                                           2023-2025, 2024-2026 and RAKB 2020-2024                   to increase customer engagement and


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                                                     implementing good GOVERNANCE
                                                         for sustainable empowerment



   continue collaboration with universities                   Syariah collaborated again and agreed
   and the Government in the Independent                      on the MSIB Batch 6 Program with
   Campus Learning Program (MBKM). The                        an even larger quota, namely 2,024
   bank opens opportunities for students                      students, which will run in the 2024
   to play a role in providing empowerment                    semester.
   through one-on-one assistance to financing          g. Development of collaboration with the
   customers. The purpose of this assistance              Ministry of Education and Culture with the
   is intended to grow the ability of customers           theme "Optimization and Innovation of
   and their families to have a better life so as         Talent for the Company's Future Through
   to create a sustainable relationship between           the Independent Campus Internship
   customers and the Bank;                                Program" on 9-10 October 2023. This
e. In line with the Government's direction                event is a strategic and innovative
   regarding work health and safety                       discussion platform between the company
   protocols during the pandemic in early                 and the Directorate General of Higher
   2023, the Board of Directors has approved              Education - Ministry of Education, Culture,
   comprehensive supervision of all employees             Research and Technology to formulate
   over work mechanisms that prioritize work              collaborations that suit the company's
   safety at all levels of the organization in            needs and desires as well as to explore
   a coordinated manner through Business                  more deeply the integration of the
   Continuity Management assisted by the                  Independent Campus Internship Program
   Safety and Security Unit, until the endemic            into the company ecosystem in order
   status is declared at the end of June 2023;            to produce maximum impact and meet
f. Collaboration with the Ministry of                     the need for quality talent and initiate
   Education, Culture, Research and                       innovation.
   Technology (Kemendikbudristek)                      h. Exploring cooperation with the Coordinating
   • In line with the fulfillment of POJK                 Ministry for Economic Affairs of the Republic
        No.76/ POJK.07/2016 concerning                    of Indonesia regarding the "Exploration
        Increasing Financial Literacy and                 of Collaborative Pre-Employment Card
        Inclusion in the Financial Services               Empowerment Program" in January
        Sector to expand and improve customer             2023, followed by a strategic discussion
        services, especially for financing                "Discussion of Collaborative Exploration of
        customers to gain financial literacy. The         Community Economic Empowerment and
        Board of Directors has given approval             Entrepreneurship Program" on April 13 2023.
        for collaboration with the Ministry of         i. Exploring collaboration between BTPN
        Education and Culture in organizing               Syariah and KNEKS regarding the Free Halal
        the Certified Independent Study and               Certification Companion Training Program
        Internship Program (MSIB), which is               (SEHATI) for Micro and Small Business
        one of the programs of the Independent            Actors on 13 September 2023 which aims
        Learning Campus (MBKM) policy, in                 to implement halal certification companion
        terms of funding internships for 100              training for students and mentors involved
        Batch 3 students in semester 2 of 2022.           in the Bestee Program, especially in Batch-
   • Based on the results of the evaluation               5, semester 2 of 2023l. This collaboration
        regarding the implementation of the               is carried out to improve service and
        Batch 3 internship program in 2022                engagement with BTPN Syariah financing
                                                                                                           PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




        which went well, the MBKM Ministry                customers, especially those in the food
        of Education Buristek re-trusted BTPN             and beverage business type so that their
        Syariah to increase the number of student         products receive official halal certification.
        quotas in Batch 4 in semester 1 of 2023 to     j. Exploring collaboration between BTPN
        539 people, which was then successfully           Syariah and the Ministry of Social Affairs
        fulfilled by 524 students.                        on the topic "Exploring Collaborative
   • In the next batch in semester 2 of 2023,             MSME Empowerment Programs" in
        namely Batch 5, BTPN Syariah succeeded            February 2023.
        in continuing collaboration with MBKM
        Kemendikbudristek to increase the quota           A complete explanation of BTPN Syariah's
        number by 1,510 students which was then           programs and policies can be found in the
        fulfilled by 1,125 students.                      Financial Performance, Business Review and
   • At the end of 2023, the MBKM Ministry                DAYA Program presentation in this 2023
        of Education and Culture and BTPN                 Annual Report.


                                                                                                           157
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                                                        4. Fulfillment of Commitments to Shareholders,          e. The Board of Directors has submitted
                                                           among others                                            Information Disclosure and Reports in a
                                                           a. The Board of Directors has followed up on            timely manner throughout 2023;
                                                              the 2019 Extraordinary GMS Decision by            f. The Board of Directors communicates
                                                              transferring the third treasury shares to            the Consolidated Financial Report, Bank
                                                              Material Risk Takers with a distribution date        Business Plan and Corporate Plan to the
                                                              of January 25 2023;                                  Parent Entity within the Financial Group
                                                           b. The Board of Directors has submitted an              throughout 2023;
                                                              accountability report to Shareholders at the
                                                              Annual General Meeting of Shareholders on       5. Implementation of Good Corporate Governance
                                                              April 12, 2023;                                    Principles, among others:
                                                           c. The Board of Directors has carried out the         a. The Board of Directors has ensured the
                                                              Annual Public Expose on October 26, 2023;             implementation of good GCG principles at
                                                           d. The Board of Directors has followed up on             all organizational levels in the Bank.
                                                              the Decisions of the 2023 Annual General
                                                              Meeting of Shareholders, including:                  To strengthen the implementation of
                                                              • Carry out dividend distribution based on           GCG principles, the Board of Directors
                                                                  the performance of the financial year            has established policies based on the
                                                                  ending 31 December 2022 based on the             implementation of Financial Services
                                                                  approval of the 2023 Annual GMS with a           Authority Regulation (POJK) Number
                                                                  payment date of 12 May 2023.                     17 of 2023 concerning Public Company
                                                                  The distribution of dividends aims               Governance, complementing the
                                                                  to uphold the rights of shareholders             implementation of regulatory provisions
                                                                  and continuously increase the trust              related to good GCG implementation,
                                                                  of shareholders and investors in the             including Bank Indonesia Regulation Number
                                                                  results of the development of a healthy          11/33/PBI/2009 concerning Implementation
                                                                  sharia banking industry in BTPN                  of Good Corporate Governance for Sharia
                                                                  Syariah.                                         Commercial Banks and Sharia Business
                                                              • Carry out the appointment of Public                Units and POJK No 21/POJK.04/2015
                                                                  Accountants and Public Accounting                concerning Implementation of Public
                                                                  Firm Siddharta Widjaja and Rekan                 Company Governance Guidelines.
                                                                  (an Indonesian partnership and
                                                                  member firm of KPMG network of                   In line with the footsteps of implementing
                                                                  independent members affiliated with              GCG principles at BTPN Syariah for
                                                                  KPMG International Cooperative as                more than a decade, the implementation
                                                                  External Auditors, taking into account           of GCG principles is accompanied by
                                                                  the recommendations of the Audit                 quality improvements by adopting the
                                                                  Committee and approval of the Board of           latest ASEAN SCORECARDS which were
                                                                  Commissioners.                                   published in 2023 and gradually continue
                                                              • The Bank has submitted the Report on               to improve the quality from time to time. In
                                                                  the Appointment of Public Accountants            particular, the factors that have improved
                                                                  and Public Accounting Firms for the              in the last three years are the Bank's
                                                                  Audit of Annual Historical Financial             increasingly focused focus on shareholder
                                                                  Information on 31 December 2023 to the           rights, disclosure and transparency as
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                                  Sharia Banking Supervisory Financial             well as the responsibilities of the Board of
                                                                  Services Authority with a copy to the            Directors and Board of Commissioners. In
                                                                  Banking Licensing and Information                addition, the Bank continues to strive to
                                                                  Department;                                      maintain good values for equal treatment
                                                              • Set Aside net profit as mandatory                  of shareholders and optimal role of
                                                                  reserves                                         stakeholders.
                                                              • Report changes to the composition               b. The Board of Directors has implemented
                                                                  of members of the Board of Directors             sustainable finance in line with POJK
                                                                  and Board of Commissioners in 2023 in            Number 51/POJK.03/2017 and POJK 17
                                                                  accordance with provisions                       of 2023 concerning the Implementation
                                                                                                                   of Governance for Commercial Banks in




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                                                    implementing good GOVERNANCE
                                                        for sustainable empowerment



   the context of implementing sustainable                •   Implementation of GCG Self-
   financial actions to make a real and                       Assessment in 2023;
   positive contribution to the stability of           f. The Board of Directors has submitted an
   the financial system in Indonesia. Through             accountability report on the performance of
   the policies of the Board of Directors,                the financial year ending 31 December 2022
   BTPN Syariah continues to support the                  to Shareholders through holding an Annual
   Government in realizing sustainable                    General Meeting of Shareholders on 12 April
   development that is able to maintain                   2023 and an Annual Public Expose on 26
   economic stability and is inclusive and                October 2023;
   prioritizes harmony between economic,               g. The Board of Directors has implemented
   social and environmental aspects.                      POJK 16 of 2022 regarding Banking
c. The Board of Directors has ensured that                synergies in collaboration with BTPN as the
   the Bank's duties and responsibilities and             Parent Entity as outlined in 10 cooperation
   obligations to Regulators are fulfilled,               agreements;
   through Information Disclosure regarding            h. The Board of Directors has followed up on
   the presentation of the Annual Report,                 audit findings and recommendations from
   Sustainability Report, Interim Financial               the Bank's internal audit work unit, external
   Report, Annual and Consolidated Financial              auditors, recommendations from the
   Report through the regulatory and public               Financial Services Authority supervision;
   reporting systems, as well as being available       i. The Board of Directors has ensured that
   on the Bank's Website as required for a                the Bank's soundness level is maintained
   public company and sharia commercial                   and the implementation of a Compliance
   bank;                                                  culture which is reflected in the fulfillment
d. The Board of Directors, supported by a                 of a well-maintained prudential ratio, there
   Committee at the same level as the Board               are no significant fines from regulators and
   of Directors, has conducted a review of the            the compliance risk profile parameters show
   company's material control, which includes             positive values;
   the areas of operations, finance, compliance        j. The Board of Directors prioritizes the
   and the Bank's risk management system,                 implementation of a culture of compliance,
   internal control system, human resource                including the implementation of anti-
   development, business plan development,                money laundering and preventing terrorist
   formulation of strategic initiatives in                financing through (APU/CFT) and anti-
   business competition, maturity and                     fraud;
   technological readiness. information,
   financing policies;                              6. Fulfillment of Commitments for Bank Business
e.   The Board of Directors has conducted              Development and to Customers, among others
   studies and given approval, including:              a. The Board of Directors has optimized
   • Annual Report for the 2022 financial year;           opportunities to make various breakthroughs
   • Sustainability Report for the 2022 financial         by utilizing technology for good and building
      year;                                               the aspirations of the Sharia Digital
   • Bank Business Plan (RBB) and RBB                     Ecosystem for Mass Market through its
      Revision for the 2024-2026 Period as                Subsidiary, PT BTPN Syariah Ventura. This
      well as commitment to monitoring the                aspirational development aims to adapt to
      realization of the RBB in periodic reports          the changing needs of customers, ensure
                                                                                                          PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




      to the OJK;                                         that there is an increase in the welfare of
   • Sustainable Financial Action Plan (RAKB)             pre/moderately prosperous customers, as
      2020-2024 (2024 Indicators) as well as              well as having the opportunity to serve more
      commitment to monitoring the realization            customers in a sustainable manner;
      of the Bank's Sustainable Financial              b. In providing the best service for financing
      Action Plan together with the Board of              customers, the Board of Directors prepares
      Commissioners every year;                           various development program policies,
   • Corporate Plan and Revised Corporate                 ensures the availability of infrastructure
      Plan 2022-2031;                                     development programs, develops service
   • Update on the 2023 Board of Directors                features according to the needs of
      Charter;                                            customers and the surrounding community,
   • Changes to the Composition of                        is equipped with programs for implementing
      Committees at the Board of Directors                financial literacy education programs, new
      level in 2023;                                      footprints, and ongoing assistance and


                                                                                                          159
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                                                              empowerment. carried out by the Bank to              c. Through the Board of Directors' policy to
                                                              present people who think positively in carrying         continue collaboration with universities
                                                              out business continuity and social life.                and the Government in the Independent
                                                                                                                      Campus Learning Program (MBKM),
                                                              Further explanation regarding the customer              opportunities are opened for students
                                                              sharing program can be found in the                     to play a role in providing empowerment
                                                              Business Review in this 2023 Annual Report              activities and one-on-one assistance
                                                           c. In line with the key strategic initiative to            to financing customers spread across
                                                              expand and improve customer service and                 regions. in Indonesia, which directly
                                                              increase customer engagement, especially                increases the skills and business abilities
                                                              for financing customers to obtain halal                 of customers and their families;
                                                              certification, in 2023 the Board of Directors        d. The presence of the Subsidiary, BTPN
                                                              has given approval for collaboration                    Syariah Ventura, which has been formed
                                                              between BTPN Syariah and KNEKS in                       and is expected to accelerate the
                                                              providing training to accompany halal                   realization of a sharia digital ecosystem
                                                              certification for a total of 29 students                more precisely and efficiently through
                                                              interns and 20 mentors who will accompany               collaboration with strategic partners who
                                                              financing customers so they can obtain halal            have the right digital competence and a
                                                              certification by self-declaration.                      shared vision.
                                                           d. In providing the best service for funding
                                                              customers, the Board of Directors has             8. Supervision of Subsidiaries, among others
                                                              given approval to make improvements to               a. The Board of Directors supervises
                                                              internal policies and procedures, including             Subsidiaries regarding the implementation
                                                              improvements to the Internet Banking and                of GCG principles, Sharia Principles and
                                                              Mobile Banking Service features which have              compliance, implementation of Risk
                                                              been active since 2022;                                 Management, monitoring of Financial and
                                                           e. In providing the best service for corporate             Non-Financial Performance, quality sharia
                                                              customers, BTPN Syariah has provided                    services and timely reporting;
                                                              funding distribution to multi-finance                b. Representing BTPN Syariah as controlling
                                                              companies that have similar goals in line               shareholder in BTPN Syariah Ventura,
                                                              with BTPN Syariah's sustainability goals;               • The Board of Directors has given
                                                                                                                         approval to the Decisions taken at the
                                                        7. Fulfillment of Commitments to the Community,                  Annual General Meeting of Shareholders
                                                           among others                                                  and Extraordinary Shareholder Meeting
                                                           a. The Board of Directors approves                            of BTPN Syariah Ventura in 2023;
                                                              development programs for communities                    • The Board of Directors has given
                                                              that have the potential to be further                      approval to strengthen the composition
                                                              developed in terms of entrepreneurship,                    of the Board of Directors and Board
                                                              health and the environment as well as                      of Commissioners at BTPN Syariah
                                                              helping to provide access to new markets                   Ventura through changes to the
                                                              both online and offline through customer                   composition of the Board of Directors
                                                              assistance programs through empowerment                    and Board of Commissioners at the
                                                              training on digital marketing literacy so that             Annual General Meeting of Shareholders
                                                              the products produced by customers can                     and Extraordinary General Meeting of
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                              have high competitiveness with other local                 Shareholders in 2023;
                                                              products in the hope that this can increase             • The Board of Directors supervises
                                                              their income capacity;                                     the fulfillment of the duties and
                                                           b. The Board of Directors has approved the                    responsibilities of Bank Executive
                                                              use of the Poverty Probability Index (PPI                  Officers who receive management and
                                                              issued by Innovation for Poverty Action                    supervision duties at BTPN Syariah
                                                              which is specific to the user country) to                  Ventura;
                                                              measure the social performance of the                   • The Board of Directors has ensured the
                                                              Bank's financing customers. Several things                 conformity of the Bank's Business Plan
                                                              that are measured include improvements                     and Sustainable Financial Action Plan
                                                              in the education of customers' children,                   with the Business Plan and Sustainable
                                                              improvements in toilets, reductions in                     Financial Action Plan of BTPN Syariah
                                                              household carbon emissions as indicated by                 Ventura;
                                                              the shift to the use of firewood for cooking;


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                                                       implementing good GOVERNANCE
                                                           for sustainable empowerment



9. Fulfillment of Commitments to Stakeholders,               infrastructure and data analytic platforms
   among others                                              to support accurate decision making
   a. The Board of Directors has carried                     and reporting, increasing DC and DRC
       out the 2023 Annual Public Expose on                  capabilities and information system security
       the company's financial performance                   capacity.
       as an effort to improve the quality of             f. The Board of Directors approved the
       communication with shareholders and                   completion of the treasury system
       investors;                                            development which aims to improve the
   b. The Board of Directors has implemented                 control process and support liquidity
       information disclosure and submitted                  management;
       regular mandatory and incidental reports
       to Regulators and the Public through            11. Fulfillment of Commitments on the
       Regulatory reporting media and the                  Implementation of Banking Synergies, among
       Company Website in 2023;                            others
                                                           a. The Board of Directors has approved the
10. Fulfillment of Commitments on Strengthening               formation of a Work Unit to supervise
    Bank Infrastructure, among others                         Banking Synergy Monitoring at BTPN
    a. The Board of Directors has conducted a                 Syariah and the Implementation of
       review of the Bank's infrastructure in the             Governance within the financial group in
       form of updating and refining the Bank's               coordination with BTPN and BTPN Syariah
       main policies, operational policies and                Ventura;
       internal procedures by taking into account          b. The Board of Directors carries out
       the review of risk management, compliance,             monitoring of the implementation of
       law and information security and applicable            Banking Synergy through the continuation
       regulations;                                           of the Cooperation Agreement with BTPN
    b. The Board of Directors approved the                    and BTPN Syariah Ventura during 2023
       implementation of Office Network                    c. Representatives of the Board of Directors
       optimization during 2023;                              are present at regular banking synergy
    c. The Board of Directors has approved                    monitoring coordination meetings and
       improvements to the empowerment                        governance coordination meetings with the
       platform that provides customers with                  Parent Entity in 2023
       access to knowledge and access to a                 d. The Board of Directors has communicated
       larger market to improve the quality of                the implementation of banking synergy
       customer empowerment. This digital                     on a semi-annual basis to the Board of
       platform also provides opportunities for               Commissioners in 2023;
       employees and other stakeholders to                 e. The Board of Directors has reported the
       participate in providing real support in               implementation of Banking Synergy during
       various forms to productive pre-financial              2023 to the Regulator;
       inclusion customers;
    d. The Board of Directors agreed to continue       12. Fulfillment of Commitments to Employees,
       implementing Operational Excellence by              among others
       digitizing and automating operational               a. The Board of Directors continues the policy
       processes and other supporting functions,              of strengthening human resources and the
       centralizing processes, exploring and                  organization at all levels during 2023;
                                                                                                             PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




       evaluating the Bank's operational work              b. The Board of Directors has approved policies
       processes so as to create more effective and           for developing the quality of long-term
       efficient processes with better quality. The           human resources, honing internal talents
       automation process includes, among others,             and preparing career paths, providing
       RPA for reconciliation needs, the use of               scholarships and long-term benefits,
       chatbots for the needs of response service             insurance and health facilities in 2023;
       centers or other work units, apart from that,       c. The Board of Directors has approved
       the automation process with H2H will also              the improvement of human resource
       be carried out for registration and insurance          competency and follow-up efforts for its
       claims processes;                                      development, including those related to
    e. The Board of Directors approved                        competency in the field of risk management
       strengthening the Bank's information                   for employees according to their field of
       technology through a policy of developing              duties as regulated in the provisions for
       and modernizing data warehouse                         implementing risk management for sharia


                                                                                                              161
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                                                              commercial banks;                                                                                       system without compromising the timely
                                                           d. The Board of Directors has approved                                                                     fulfillment of key performance initiatives in
                                                              performance bonuses and employee salary                                                                 2023.
                                                              adjustments as well as the provision of a                                                            g. The Board of Directors has established
                                                              long term compensation program for Senior                                                               policies to improve the recruitment
                                                              Employees in 2023;                                                                                      process to fulfill employees better and
                                                           e. The Board of Directors establishes a policy                                                             faster, develop capabilities through talent
                                                              of no employee reductions during 2023;                                                                  management and learning systems and
                                                           f. The Board of Directors has established                                                                  strengthen talents in non-TUR businesses in
                                                              a working mechanism for a hybrid work                                                                   2023;

                                                        Independence of the Board of Directors
                                                        The Board of Directors at BTPN Syariah stated that they remained independent. The President Director
                                                        is from a party who is independent of the Controlling Shareholders (PSP). All members of the Board of
                                                        Directors at BTPN Syariah have no financial, management, share ownership and/or family relationships
                                                        with controlling shareholders, members of the Board of Commissioners and/or members of the Board of
                                                        Directors and financial relationships and/or share ownership relationships with Sharia Commercial Banks.

                                                        Board of Directors nomination process [GRI 102-28]
                                                        The process flow for appointing members of the Board of Directors is as follows:


                                                                         suggestion                                               selection & recommendation                                                      decision



                                                                                                   The selection process by the                                                The Board of Commissioners                Notification and Information
                                                            Proposed candidates for               Nomination and Remuneration                                                proposes to the GMS candidates            Disclosure regarding changes in
                                                            members of the Board of                    Committee includes:             OJK approval for applications            for members of the Board if          the composition of members of the
                                                          Directors from Shareholders/               1. Analyze candidate              for candidates for members of           Directors taking into account         Board of Directors to OJK/IDX and
                                                          Board of Directors/Board of                   competencies and                   the Board of Directors             the recommendations from the             other related agencies, including
                                                                 Commissioners                          background                                                            Nomination and Remuneration             to the public, and inclusion on the
                                                                                                                                                                                                                                Bank's website
                                                                                                     2. Interview (if required)                                                         Committee




                                                                                                                                                                     Submission of
                                                                                  Submission of proposal of                                                     recommendations from                           GMS
                                                                                  candidates of the Board of               Submission of FnPT                     the Nomination and                  GMS decision regarding the
                                                                               Directors to the Nomination and              process to OJK (*)                Remuneration Committee to             composition of members of the
                                                                                  Remuneration Committee                                                      the Board of Commissioners                 Board of Directors




                                                        (*) Submission of FnPT to OJK for members of the Directors can be carried out after the GMS;




                                                        Board of Directors Performance Assessment
                                                        Procedures for Implementing the Board of Directors Performance Assessments
                                                        The procedures for implementing the Board of Directors Assessment at BTPN Syariah are as stated in the
                                                        Nomination and Remuneration Committee's Work Guidelines and Regulations, taking into account the
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        Articles of Association and the Bank's internal policies. Performance assessment is carried out by self-
                                                        assessment every year to assess the performance of the Board of Directors in a collegial manner.

                                                        The purpose of the Self-Assessment on the performance of members of the Board of Directors is
                                                        to serve as a basis for consideration for the Nomination and Remuneration Committee in providing
                                                        recommendations to the Board of Commissioners to re-appoint members of the Board of Directors and
                                                        as a consideration for preparing the remuneration structure for the Board of Directors and increasing the
                                                        effectiveness of the Board of Directors' performance;




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                                                        implementing good GOVERNANCE
                                                            for sustainable empowerment



criteria for implementing the Board of Directors' performance assessment
The assessment criteria for the individual performance of each member of the Board of Directors
(individual performance assessment) at BTPN Syariah refers to various considerations and includes at
least:
1. Implementation of the Bank's overall strategy.
2. Monitoring the Bank's overall strategy.
3. Monitoring risk management in each area (risk management activities) and implementing the
    principles of good corporate governance.

criteria for performance assessment of the Board of Directors in the social and
environmental sectors related to sustainability governance [GRI 2-18]
Aligned with the POJK regulation Number 51/POJK.03/2017 concerning the Implementation of
Sustainable Finance for Financial Services Institutions, Issuers, and Public Companies, and with the
objective of fostering sustainable development conducive to economic stability and inclusivity within
the national economic system, the criteria for assessing the Directors' Performance encompass the
attainment of balance among economic, social, and environmental dimensions.

In support of Sustainability Governance, the Board of Directors at BTPN Syariah has devised policies
aimed at enhancing competency across all levels pertinent to Sustainable Financial Actions. Furthermore,
adjustments have been made to the bank's Internal Policies, including the formulation of environmental
management and sustainability policies, with the Board holding responsibility for ensuring the
implementation of the Sustainable Finance Action Plan.

Adhering to Sharia principles, the Board of Directors has taken measures to refrain from financing
customers engaged in environmentally harmful businesses or activities incompatible with Sharia principles,
as outlined in the BTPN Syariah Policy.

BTPN Syariah's commitment to maintaining bank performance in tandem with economic, social, and
environmental considerations is explicitly outlined in the 2022 Sustainability Report, meticulously prepared
and reviewed by the Board of Directors and subsequently approved by the Board of Commissioners.

Board of Directors performance evaluation
1.   The Board of Directors is obliged to review the management performance carried out by the Board of
     Directors during the financial year and report it once a year.
2.   As part of the performance evaluation, the Board of Directors must ensure that the composition and
     qualifications of the Board of Directors are met.
3.   The Board of Directors Performance Evaluation Report is reported to Shareholders at the GMS and
     included in the Annual Report.
4.   Evaluation of the performance of members of the Board of Directors is carried out by the Nomination
     and Remuneration Committee based on input from the President Director.
5.   The results of the performance evaluation of members of the Board of Directors become guidelines in
     determining the nomination and remuneration of the relevant members of the Board of Directors.
                                                                                                               PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                                                                               163
Page 164
                                                        bank organs capacity development in 2023 [GRI 2-17]
                                                        the board of directors and the board of commissioners
                                                        No    Description                                                   Member                Date                   Location

                                                         1    FGD Finance Direktorat                                        Board of Directors    January 10, 2023       Jakarta
                                                              Workshop BCM Collaboration "Readiness BCM Team                                      February 2-4,
                                                         2                                                                  Board of Directors                           Jakarta
                                                              2023”                                                                               2023
                                                         3    Training ISO27001 Awareness                                   Board of Directors    February 8, 2023       Jakarta
                                                              Workshop of Indonesia Corporate Secretary Association
                                                         4                                                                  Board of Directors    March 14, 2023         Jakarta
                                                              (ICSA)
                                                              Leadership for System Change: Delivering Social Impact
                                                         5                                                                  Board of Directors    March 18-25, 2023      Jakarta
                                                              at Scale (Harvard Kennedy School)
                                                         6    Fintech Policy Forum 2023                                     Board of Directors    May 16, 2023           Jakarta
                                                              Refreshment Mandatory - PIndependent learning
                                                              (APU PPT, Compliance, Anti Fraud Management,
                                                              Handling Consumer Complaints, Consumer Protection,
                                                         7                                                                  Board of Directors    May 25, 2023           Jakarta
                                                              Basic Sharia Banking Training, Information Security
                                                              Awareness, Entertainment & Gifts, Risk Awareness,
                                                              and Code of Conduct)
                                                         8    Economic Outlook Update                                       Board of Directors    June 6, 2023           Jakarta
                                                         9    Introduction Leaders Program                                  Board of Directors    June 14, 2023          Jakarta
                                                         10   Townhall within SMBC Financial Group                          Board of Directors    August 8, 2023         Jakarta
                                                              Get to Know More About the Regulations on the P2SK
                                                         11   Law in the Context of Strengthening the Non-Bank              Board of Directors    August 10, 2023        Jakarta
                                                              Financial Industry (IKNB)
                                                              The Corporate Governance Officer’s Role in Driving
                                                         12                                                                 Board of Directors    October 12, 2023       Jakarta
                                                              Digital Resilience
                                                              Refreshment Executive, Certification for Treasury Dealer                            November 27,
                                                         13                                                                 Board of Directors                           Jakarta
                                                              Competency                                                                          2023
                                                         14   Townhall within SMBC Financial Group                          Board of Directors    December 8, 2023       Jakarta
                                                                                                                            Board of
                                                         15   Fintech Policy Forum 2023                                                           May 16, 2023           Jakarta
                                                                                                                            Commissioners
                                                                                                                            Board of
                                                         16   Economic Outlook Update                                                             June 6, 2023           Jakarta
                                                                                                                            Commissioners
                                                                                                                            Board of
                                                         17   Townhall within SMBC Financial Group                                                August 8, 2023         Jakarta
                                                                                                                            Commissioners
                                                                                                                            Board of              September 12,
                                                         18   Risk Management Refreshment Program for Executives                                                         Jakarta
                                                                                                                            Commissioners         2023
                                                                                                                            Board of              December 7-8,          Denpasar-
                                                         19   Risk Beyond 2023
                                                                                                                            Commissioners         2023                   Bali
                                                                                                                            Board of
                                                         20   Townhall within SMBC Financial Group                                                December 8, 2023       Jakarta
                                                                                                                            Commissioners


                                                        independent party
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                         No    Description                                         Member               Date                      Location
                                                               Level 4 Certificate Refreshment in Banking Risk
                                                          1                                                        Independent Party    October 30, 2023          Jakarta
                                                               Management
                                                          2    Risk Beyond 2023                                    Independent Party    December 7-8, 2023        Denpasar, Bali

                                                        sharia supervisory board
                                                         No   Description                                                Member                  Date                        Location
                                                              Pra-Ijtima'Sanawi Workshop (Annual Meeting) of             Sharia Supervisory
                                                         1                                                                                       September 4, 2023           Jakarta
                                                              Sharia Supervisory Board in Sharia Banks                   Board
                                                              Ijtima' Sanawi (Annual Meeting) of Sharia Supervisory      Sharia Supervisory
                                                         2                                                                                       October 13-14, 2023         Jakarta
                                                              Board                                                      Board




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                                                         implementing good GOVERNANCE
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supporting organs                                        and Regulations Number 02/PedomanKerja/
                                                         CSGC/XI/2023 dated 3 November 2023, include
committees at the level of the board of                  monitoring and evaluating the planning and
commissioners                                            implementation of internal and external audits as
To facilitate the effective execution of duties          well as monitoring the follow-up to the results audit
and responsibilities while adhering to the               in order to assess the adequacy of internal control
principles of good corporate governance, the             including the adequacy of the financial reporting
Board of Commissioners has established several           process and provide an independent professional
committees at its level, including:                      opinion to the Board of Commissioners regarding
1. Audit Committee                                       the implementation of the audit process and the
2. Risk Oversight Committee                              company's internal control and other matters
3. Nomination and Remuneration Committee                 submitted by the Board of Directors to the Board of
                                                         Commissioners, as well as identifying matters that
audit committee                                          require the attention of the Board Commissioner.
The establishment of the Audit Committee at
BTPN Syariah is guided by a comprehensive                More detailed provisions regarding the duties
framework of regulations, including Bank                 and responsibilities of the BTPN Syariah Audit
Indonesia Regulation (PBI) Number 11/33/2009             Committee are contained in Audit Committee
dated December 7, 2009 regarding the                     Charter published on the Bank's Website.
Implementation of Good Corporate Governance
in Sharia Commercial Banks and Sharia Business           risk oversight committee
Units, Bank Indonesia Circular Letter Number             The establishment of the Risk Oversight
12/13/DPbS dated April 30, 2010 regarding the            Committee at BTPN Syariah is guided by a
Implementation of GCG in Sharia Commercial               comprehensive regulatory framework, including
Banks and Sharia Business Units, POJK Number             PBI Number 11/33/2009 dated December 7,
55/POJK.04/2015 dated December 29, 2015                  2009 regarding the Implementation of Good
concerning the Formation and Working Guidelines          Corporate Governance in Sharia Commercial
of the Audit Committee, POJK Number 16/                  Banks and Sharia Business Units, Bank Indonesia
POJK.03/2022 dated August 30, 2022 regarding             Circular Letter Number 12/13/DPbS dated April
Sharia Commercial Banks, POJK Number 17 Year             30, 2010 regarding the Implementation of GCG
2023 dated September 14, 2023 regarding the              in Sharia Commercial Banks and Sharia Business
Implementation of Good Corporate Governance              Units, SEOJK Number 10/SEOJK.03/2014 dated
in Commercial Banks, and other prevailing                June 11, 2014 regarding the Assessment of the
regulations.[GRI 2-27]                                   Soundness Level of Sharia Commercial Banks
                                                         and Sharia Business Units, POJK Number 16/
The composition of the Audit Committee is                POJK.03/2022 dated August 30, 2022 regarding
thoughtfully crafted, considering the bank's             Sharia Commercial Banks, POJK Number 17 Year
specific needs and intricacies, as well as the diverse   2023 dated September 14, 2023 regarding the
expertise, knowledge, professional experience,           Implementation of Good Corporate Governance
and educational backgrounds necessary to                 in Commercial Banks, and other prevailing
support the Board of Commissioners' duties. The          regulations. [GRI 2-27]
determination of the committee's size is tailored
to the company's circumstances, ensuring an              The composition of the Risk Oversight Committee
appropriate balance.                                     is thoughtfully curated to meet the specific needs
                                                                                                                 PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                         and complexity of the bank, encompassing a
In 2023, there was a single change in the                diverse array of expertise, knowledge, professional
composition of the Audit Committee members               experience, and educational backgrounds essential
at BTPN Syariah, stemming from adjustments               for supporting the Board of Commissioners'
in the Board of Commissioners' composition.              duties. The determination of the committee's
The alterations were approved by the Board of            size is tailored to suit the company's unique
Commissioners on July 18, 2023, and promptly             circumstances, ensuring an optimal balance.
disclosed to regulators and made public on the
Bank's website on July 21, 2023, in accordance with      In 2023, there was a single change in the
transparency and disclosure requirements.                composition of the Risk Oversight Committee
                                                         members at BTPN Syariah, prompted by
duties and responsibilities of the audit                 adjustments in the composition of the Board of
committee                                                Commissioners. These changes were duly approved
Tugas dan Tanggung jawab Komite Audit Duties             by the Board of Commissioners on July 18, 2023,
and Responsibilities of the Audit Committee based        and promptly disseminated via the Bank's website
on the latest Audit Committee Work Guidelines            on July 21, 2023, in accordance with transparency
                                                                                                                 165
Page 166
                                                        and disclosure requirements.                          In 2023, there was a single change in the
                                                                                                              composition of the Nomination and Remuneration
                                                        duties and responsibilities of the risk               Committee members at BTPN Syariah, prompted
                                                        oversight committee                                   by adjustments in the Board of Commissioners'
                                                        Duties and Responsibilities of the Risk Oversight     composition. These changes were duly approved
                                                        Committee based on the latest Risk Oversight          by the Board of Commissioners on July 18, 2023,
                                                        Committee Guidelines and Work Rules Number            and promptly communicated through the Bank's
                                                        04/PedomanKerja/RM/XII/2023 dated December            website on July 21, 2023, in accordance with
                                                        8, 2023, include providing independent professional   transparency and disclosure requirements.
                                                        opinions to the Board of Commissioners regarding
                                                        the management of risks in the Bank and other         duties and responsibilities of the nomination
                                                        matters submitted by the Board of Directors to        and remuneration committee
                                                        the Board of Commissioners as well as identifying     Duties and Responsibilities of the Nomination
                                                        matters that require the attention of the Board       and Remuneration Committee based on
                                                        of Commissioners and require the Committee's          the latest Nomination and Remuneration
                                                        assistance.                                           Committee Work Guidelines and Regulations
                                                                                                              Number 03/PedomanKerja/CSGC/XII/2023
                                                        More detailed provisions regarding the duties and     dated December 28, 2023, including providing
                                                        responsibilities of the BTPN Syariah Risk Oversight   independent professional opinions to the Board
                                                        Committee are contained in the Risk Oversight         of Commissioners regarding the nomination and
                                                        Committee Charter published on the Bank's             remuneration policies taken by the Bank and other
                                                        Website.                                              matters submitted by the Board of Directors to
                                                                                                              the Board of Commissioners as well as identifying
                                                        nomination and remuneration committee                 matters that require the attention of the Board of
                                                        The establishment of the Nomination and               Commissioners.
                                                        Remuneration Committee at BTPN Syariah
                                                        adheres to a comprehensive regulatory                 More detailed provisions regarding the duties and
                                                        framework, including PBI Number 11/33/2009            responsibilities of the BTPN Syariah Nomination
                                                        dated December 7, 2009 regarding the                  and Remuneration Committee are contained in the
                                                        Implementation of Good Corporate Governance           Nomination and Remuneration Committee Charter
                                                        in Sharia Commercial Banks and Sharia Business        published on the Bank's Website.
                                                        Units, Bank Indonesia Circular Letter Number
                                                        12/113/DPbS dated April 30, 2010 regarding the        sustainable financial risk management
                                                        Implementation of Good Corporate Governance           [OJK E.3, GRI F52]
                                                        in Sharia Commercial Banks and Sharia Business        Risk management implementation at BTPN
                                                        Units, POJK Number 34/POJK.04/2014 dated              Syariah is primarily guided by POJK Number 65/
                                                        December 8, 2014 regarding the Nomination and         POJK.03/2016 dated 28 December 2016, which
                                                        Remuneration Committee of Listed or Public            outlines four key pillars:
                                                        Companies, POJK Number 16/POJK.03/2022                1. Active oversight by the Board of Commissioners,
                                                        dated August 30, 2022 regarding Sharia                   Directors, and Sharia Supervisory Board.
                                                        Commercial Banks, POJK Number 17 Year                 2. Establishment of robust risk management
                                                        2023 dated September 14, 2023 regarding the              policies, procedures, and risk limits.
                                                        Implementation of Good Corporate Governance           3. Implementation of effective processes for
                                                        in Commercial Banks, and other prevailing                risk identification, measurement, monitoring,
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        regulations.                                             and control, along with comprehensive risk
                                                                                                                 management information systems.
                                                        The composition of the Nomination and                 4. Implementation of a comprehensive internal
                                                        Remuneration Committee is meticulously crafted           control system to ensure adequacy.
                                                        to meet the specific needs and intricacies of
                                                        the bank, encompassing a diverse range of             Additionally, BTPN Syariah's risk management
                                                        expertise, knowledge, professional experience, and    practices are informed by documents from the
                                                        educational backgrounds crucial for supporting the    Basel Committee on Banking Supervision.
                                                        Board of Commissioners' duties. The determination
                                                        of the committee's size is based on thoughtful        Of particular note, BTPN Syariah enhances its
                                                        consideration and aligned with the company's          resilience through compliance with POJK Number
                                                        unique circumstances.                                 51/POJK.03/2017, focusing on sustainable finance
                                                                                                              implementation for financial services institutions,




166
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                                                            implementing good GOVERNANCE
                                                                for sustainable empowerment



issuers, and public companies. A crucial aspect of           exposure within the bank's portfolio, contributing
this strategy involves assessing and understanding           to the development of a sustainable financial
the environmental, social, and governance risk               strategy and an effective control framework.

risk management structure
The implementation structure of BTPN Syariah risk management is as follows::

                                     Information-based decision returns
                                  supported by a comprehensive database of
                                           multiple activity points




                                            S G
   Deploy secure
   and trustworthy                                                                 Properly governed
   environment for all                                                             end-to-end activities
   stakeholder                                                                     relevant to the latest
                                                                                   dynamics


                            Security                             Governance

   Adherence to latest                                                             •   Develop unique risk
   applicable standards     compliance                            Risk                 management culture
   and regulation with                                            Manager              & establish proper risk
   strong collaboration                                                                management process
   with regulators                                                                 •   Integrate risk and
                                                                                       opportunity analysis into



                                           C R
                                                                                       strategy-setting and
                                                                                       planning




Through the risk management system, BTPN Syariah identifies, measures, monitors and controls 10 types
of risk, namely: credit risk, market risk, liquidity risk, operational risk, strategic risk, reputation risk, legal
risk, compliance risk, investment risk, and return risk.

The implementation of social and environmental risk management principles also becomes a concern
of the Bank. One of them is that the products and activities issued must pay attention to social and
environmental issues as stated in the Bank's Products and Activities Policy. In addition, in financing
distribution, the Bank requires the environmental risk considerations. In order to monitor the impact of
deteriorating macroeconomic conditions on portfolio sound, profitability, liquidity, and capital resilience,
BTPN Syariah conducted an integrated stress test.

As part of the best risk management, BTPN Syariah has established the regulations related to Process,
Risk & Control, and Risk Grading Matrix which aim to identify and measure the potential operational risk
in every work unit’s activities. BTPN Syariah is committed to ensuring the continuity of operational and
                                                                                                                      PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




business activities. BTPN Syariah has established a Business Continuity Management and Contingency
Funding Plan in the event of an emergency at the Bank

environmental and social risks in launching new products and providing financing [GRI 2-24]
BTPN Syariah is committed to implementing the approach or principle of prevention, by prioritizing
preventive actions for every potential occurrence of each identified risk. Therefore, BTPN Syariah conducts
the governance and analyzes the risk & loss events that have occurred, using the Operational Risk
Management System (ORMS) as a learning tool so that similar conditions do not recur. [GRI 2-25]




                                                                                                                      167
Page 168
                                                        The risk management is carried out thoroughly, covering all aspects of risk management as required by
                                                        OJK and Bank Indonesia in the banking sector including but not limited to aspects of operational risk. In
                                                        terms of risk management and prevention in this operational area, BTPN Syariah always performs the risk
                                                        mitigation in every new product design and launch. [OJK F.27]

                                                        bank policy in supporting the environment, social and governance in making bank
                                                        products
                                                        The Bank's Product and Activity Policy states that in making Bank Products that will be offered to
                                                        customers, pay attention to at least the following:
                                                        1. Conformity of Bank Products between the needs and capabilities of customers.
                                                        2. Social and environmental issues, by paying attention to efforts to preserve the environment, such as
                                                           managing environmental risks for businesses carried out by customers, including the disposal of waste
                                                           or the obligation to reduce other related pollution.

                                                        bank policy in supporting the environment, social and governance in financing
                                                        distribution
                                                        In terms of financing, BTPN Syariah is steadfast in ensuring that the funding provided does not contribute
                                                        to activities with adverse environmental impacts. This commitment is enshrined in the Bank's financing
                                                        policies and guidelines, which explicitly prohibit financing activities that harm the environment.


                                                        Moreover, the company guidelines for Tepat Sharia Financing emphasize the Bank's dedication to
                                                        prioritizing and harmonizing economic, social, and environmental interests in every financing distribution.
                                                        These policies and procedures serve as the bedrock for implementing Sustainable Finance practices within
                                                        the Bank.

                                                        In alignment with Sharia principles, BTPN Syariah has established an Exclusion List to guide financing
                                                        decisions. This list prohibits financing for businesses that:
                                                        1. Contravene Sharia principles as outlined in the attached SOP for Group Sharia Financing.
                                                        2. Conflict with applicable laws and regulations.
                                                        3. Involve prospective customers listed as suspected terrorists, terrorist organizations, and/or those
                                                            financing the proliferation of weapons of mass destruction.

                                                        Furthermore, to mitigate risks effectively, the Bank's business focus centers on serving productive
                                                        inclusion customers through collateral-free financing. BTPN Syariah prioritizes the principle of preventing
                                                        problematic financing risks through an alternative approach, notably the "know your customer" method.
                                                        This approach involves thorough customer understanding, including regular Assistance meetings facilitated
                                                        by Community Officers (CO) in the field. [OJK F.28]

                                                        By adopting this approach, BTPN Syariah can genuinely understand its customers, ensuring the quality
                                                        of financing while fostering positive changes in their lives. This includes improved financial management,
                                                        increased business profitability, heightened health consciousness, and active participation in environmental
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        protection efforts.




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                                                         implementing good GOVERNANCE
                                                             for sustainable empowerment




internal control system
BTPN Syariah implements an internal control framework with a layered defense approach (Three Lines of
Defense).


                                              Risk Oversight Committee and Audit Committee




                                             Board of Directors




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

                                                                                 Internal Audit Work Unit
   Line Management Control                    Risk Management
                                                                                          (SKAI)

       Quality Assurance
                                                 Compliance
             (QA)


1. First Line of Defense
   Internal control function (Quality Assurance) supports Risk Taking Units to uphold discipline in risk
   control practices.

   BTPN Syariah has established a systematic and quantifiable first line of defense through the CARE
   (Champion of Assurance for Risk Enterprise) Program. This initiative aims to construct a robust risk
   management framework and internal control system. The CARE team is entrusted with identifying,
   comprehending, and monitoring Inherent Risk Indicators, Risk Control Self-Assessment (RCSA), Loss
   Event Data (LED), Risk Appetite, and Risk Tolerance across all bank units. Additionally, CARE ensures
   the adequacy, suitability, and enforcement of policies and procedures, along with monitoring limits and
   authority within work units. They are also responsible for overseeing the availability of Contingency
   Plans for emergency situations. Moreover, CARE actively engages in discussions and knowledge-sharing
   sessions with the Risk Management Unit (RMU) and the Internal Risk Forum to address risk exposures,
   control mechanisms, action plans, and collaborates on enhancing risk indicators, auditor findings, and
   Quality Assurance outcomes.

2. Second Line of Defense
                                                                                                              PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




   The Risk Management Work Unit (SKMR), in conjunction with the Compliance Work Unit (SKK), refines
   and upholds risk management methodologies, ensures the sufficiency of risk mitigation strategies,
   policies, and procedures, establishes risk limits, and facilitates overall risk management coordination.
   SKK ensures alignment of all BTPN Syariah activities with external and internal regulations, including
   adherence to Sharia principles.

3. Third Line of Defense
   The Internal Audit function operates independently to ensure proper management of inherent risks,
   thereby ensuring residual risks align with the Bank's agreed risk tolerance and appetite. The results of
   this oversight are reported to the Board of Directors and Board of Commissioners, and subsequent
   actions on audit findings are monitored to enhance performance and uphold BTPN Syariah's health
   rating.




                                                                                                              169
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                                                        fraud prevention [GRI 205-2]
                                                        BTPN Syariah maintains an unwavering commitment to prevent all forms of irregularities, violations,
                                                        and fraud, whether originating from internal or external sources, to mitigate potential financial losses or
                                                        reputation risks.

                                                        The Bank has established and continuously enhances an effective fraud control system. This system guides
                                                        BTPN Syariah in the implementation of measures for prevention, detection, investigation, reporting, and
                                                        sanctions related to fraud incidents. Additionally, it includes mechanisms for monitoring, evaluating, and
                                                        following up on such incidents.

                                                        In fostering a culture of awareness regarding fraud prevention, BTPN Syariah conducts ongoing Anti-Fraud
                                                        and Whistleblowing Channel awareness initiatives. These efforts include comprehensive training sessions
                                                        delivered through various mediums such as in-class and online training, email and video communications,
                                                        and the display of informative posters within the Bank's premises. Employees are required to understand
                                                        and endorse the Company's Code of Conducts, Integrity Pact, and Anti-Fraud Declaration. Furthermore,
                                                        moral guidance through tausyiah by the Sharia Supervisory Board and Ulama figures is provided to all
                                                        employees. The Bank also extends awareness efforts to customers and third parties (vendors) through
                                                        educational materials during Know Your Customer processes and approval of cooperation agreements. By
                                                        the end of 2023, all BTPN Syariah employees have participated in anti-fraud training.

                                                        BTPN Syariah implements various measures to oversee and manage human resources, including the
                                                        recognition and monitoring of employee character and behavior through the "Know Your Employee"
                                                        approach. This includes rotation systems, transfers, mandatory leaves, and regular coaching and
                                                        counseling sessions. The Bank conducts periodic and surprise audits, providing channels for reporting
                                                        suspected irregularities or fraud violations.

                                                        Furthermore, BTPN Syariah enforces a stringent policy to deter fraud perpetrators, maintaining a zero-
                                                        tolerance stance towards such actions. Any confirmed instances of fraud, regardless of scale, are met with
                                                        severe and decisive sanctions, ranging from administrative penalties to termination of employment and
                                                        reporting to authorities for further legal action.

                                                        whistleblowing system management [GRI 2-26]
                                                        As part of its robust fraud prevention policy and commitment to taking decisive action against fraud,
                                                        BTPN Syariah has established a Whistleblowing System to facilitate the reporting of suspected fraudulent
                                                        activities by employees. This system provides a secure and confidential channel for employees who wish to
                                                        submit reports or information about suspected fraud, ensuring their anonymity and offering guaranteed
                                                        protection for whistleblowers.

                                                        BTPN Syariah offers multiple reporting avenues, including email, QR Code (allowing reporters to make
                                                        reports via a QR Code link), written letters, and telephone, to ensure easy access for all employees
                                                        or reporters. Reports with valid initial evidence of violations are promptly subjected to thorough
                                                        investigations.

                                                        There has been a noticeable decline in the number of reported fraud cases* over the years. In 2021, there
                                                        were 16 cases, followed by 12 cases in 2022, and further reduced to 8 cases in 2023, all of which were
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        diligently addressed. These cases specifically pertain to violations committed by company employees and
                                                        were internally resolved, with several employees found guilty of fraud facing strict sanctions in accordance
                                                        with company regulations. No legal claims from third parties related to these fraud cases have been
                                                        reported. Additionally, there have been no incidents of fraud involving business partners, resulting in no
                                                        terminations of business relationships due to fraudulent activities with partners.

                                                        *violations with a value of over Rp 100,000,000 (one hundred million rupiah)




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                                                            implementing good GOVERNANCE
                                                                for sustainable empowerment



remuneration policy
BTPN Syariah has formulated a comprehensive Remuneration Policy aimed at ensuring that remuneration
practices align with applicable laws and regulations, the Bank's financial performance, individual work
performance, fairness within peer groups both within the bank and across the banking industry, and the
Bank's capabilities. This policy undergoes periodic reviews covering both fixed and variable remuneration
components, with considerations given to fostering effective risk management, maintaining the Bank's
financial stability, projecting its future income potential, and adhering to Sharia principles.

The Bank upholds a meritocratic approach, wherein remuneration for Directors and Employees, including
fixed and variable components, is based on achievement and performance. Each member of the Board
of Directors and employees is assigned individual performance targets as the basis for performance
assessment. Remuneration adjustments are determined based on individual performance evaluations, with
management providing guidance on fixed and variable remuneration adjustments according to individual
performance levels. [GRI 2-19]

The determination of remuneration and other benefits for Bank Organs is subject to shareholder decisions made
during the General Meeting of Shareholders (GMS), taking into account recommendations from the Nomination
and Remuneration Committee. When setting the remuneration for members of the Board of Commissioners, DPS,
and Directors, BTPN Syariah considers the Bank's overall performance, performance evaluations, fairness within
peer groups both within the bank and across the banking industry, and the Company's capabilities. The Company's
performance, a crucial factor in determining the remuneration of members of the Board of Commissioners, DPS,
and Directors, is evaluated based on several criteria, including: [GRI 2-20]
                                                   Suggestions &
                         Study                                                     Decision
                                                 Recommendations


               1. Survey to obtain           1. Based on benchmark        1.  Decision of the Board of
                  benchmark data on             data (external)              Commissioners regarding
                  remuneration for the          and performance              remuneration for
                  Board of Commissioners,       data The Company             members of the Board of
                  DPS and Directors             (internal), Nomination       Commissioners, DPS and
                  in several banks in           and Remuneration             Directors.i.
                  Indonesia. If necessary,      Committee makes           2. GMS approval of the
                  the Committee can             remuneration proposals/      total remuneration of the
                  appoint/cooperate with        recommendations for          Board of Commissioners,
                  Consultants/Independent       each member Board of         DPS and Divisions
                  Parties to obtain more        Commissioners, DPS
                  accurate data..               and Directors to be
               2. The Nomination                submitted to the Board
                  and Remuneration              of Commissioners.
                  Committee conducts
                  a review of the Bank's
                  performance which
                  can also reflect the
                  performance of the
                  Board of Commissioners,
                  DPS and Board of
                  Directors


BTPN Syariah places great emphasis on ensuring the fairness and integrity of its remuneration policies. In
the realm of oversight, the Bank has established a Nomination and Remuneration Committee at the Board
of Commissioners level. This committee is entrusted with providing independent and professional insights
                                                                                                                  PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




to the Board of Commissioners regarding the nomination and remuneration policies implemented by the
Bank. Additionally, at the Board of Directors level, there exists a Human Capital Committee tasked with
formulating policies, strategies, and overseeing the implementation of remuneration practices within the
Bank. In carrying out its duties, these committees have the authority to seek professional and independent
opinions, particularly in benchmarking with peer institutions, to develop HR policies, including remuneration
policies for both Bank Organs and Employees.


The Bank engages external consulting services to gather data on fixed and variable remuneration for specific
positions from various banks with similar business models and operations. These data are obtained through
remuneration surveys conducted by consultants in collaboration with multiple banks.

Moreover, on a consolidated basis, the Human Capital Division collaborates with the Parent Entity to align
various alternative remuneration programs. These proposals are then presented to the Board of Directors
and Board of Commissioners for consideration and decision-making within the Bank.


                                                                                                                   171
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                                                        provision of long-term remuneration at BTPN Syariah
                                                        BTPN Syariah has implemented a robust remuneration program aimed at retaining and incentivizing its
                                                        top management and talents to continually contribute to the company's advancement. This program,
                                                        tailored for the Board of Commissioners, DPS, Directors, and Employees, is meticulously designed
                                                        considering effective risk management, the Bank's financial stability, strengthening of capital adequacy,
                                                        short-term and long-term liquidity requirements, anticipated future income, and adherence to Sharia
                                                        principles.

                                                        Aligned with Financial Services Authority (OJK) Regulation No. 59/POJK.03/2017 on Governance in
                                                        Providing Remuneration for Sharia Commercial Banks and Sharia Business Units, BTPN Syariah has
                                                        established a Remuneration Policy that encompasses fixed and variable remuneration components.

                                                        Fixed remuneration components are determined based on various factors including business scale,
                                                        complexity, peer group comparisons, inflation rate, financial conditions, statutory provisions, and
                                                        disparities in remuneration across different positions.

                                                        On the other hand, variable remuneration components are tied to performance metrics, business scale,
                                                        complexity, peer group comparisons, inflation rate, financial conditions, statutory provisions, and are
                                                        designed to encourage prudent risk-taking practices.

                                                        annual total compensation ratio
                                                        BTPN Syariah has paid attention to the applicable provisions regarding the provision of remuneration,
                                                        both fixed and variable. The Bank also strives for the amount of remuneration to remain competitive and
                                                        in accordance with the Bank's remuneration strategy.

                                                        The following is the ratio of the highest and lowest salaries at BTPN Syariah in 2023:

                                                        highest and lowest salary ratio [GRI 2-21]
                                                        Description                                                                                   Ratio
                                                        Highest to lowest employee salary ratio                                                      88.1 %
                                                        Highest to lowest Director salary ratio                                                       2.4 %
                                                        Highest to Lowest Commissioner salary ratio                                                   2.4 %
                                                        Highest Director salary to highest employee salary ratio                                      2.6 %



                                                        relationships with stakeholders [OJK E.4, GRI 2-29]
                                                        BTPN Syariah recognizes that long-term business sustainability hinges on nurturing harmonious
                                                        relationships with all stakeholders. Guided by this principle, the bank meticulously identifies key
                                                        stakeholder groups that wield substantial influence on business continuity and endeavors to fulfill the
                                                        expectations of each stakeholder within the constraints of available resources.

                                                        The identified stakeholders encompass a diverse range of groups, including Shareholders and Investors,
                                                        Funding Customers, Financing Customers and/or Community, Employees, Work Partners/Suppliers,
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        Government/Regulator, DSN-MUI (Indonesian Ulema Council - Sharia Supervisory Board), Community
                                                        Leaders/Local Officials.

                                                        Below is a table summarizing the management of relationships with stakeholders, according to the results
                                                        of impact mapping, influence and identification of stakeholder groups carried out by BTPN Syariah as of
                                                        December 31, 2023.




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                                                           implementing good GOVERNANCE
                                                               for sustainable empowerment




                   Basis of
List of                                 Topic/Issue         Involvement Method &        Highest Governance
                   Determination/
Stakeholders                            That Arises         Frequency                   Management Function
                   Identification
                                                                                        • Corporate Secretary
                                                                                        • Head of Corporate
                                                            • Providing information
                                                                                          Secretary & General
                                                              on BTPN Syariah
                                                                                          Counsel Division
                                                              achievements
                                                                                        • Head of Financial
                                        • Corporate         • through the GMS,
                                                                                          Control & Analytics
                   • Dependency           governance          Quarterly Financial
Shareholders and                                                                          Division
                   • Influence, and     • Achievement         Reports, Annual
Investors                                                                               • Head of Treasury &
                     Responsibility       of economic         Reports and
                                                                                          Financial Institution
                                          performance         Sustainability Reports
                                                                                          Division
                                                            • Public Expose and
                                                                                        • Head of Corporate
                                                              Analyst Meeting as
                                                                                          & Marketing
                                                              needed
                                                                                          Communication
                                                                                          Division
                                                                                        • Corporate secretary
                                                            • Providing products
                                                                                        • Head of Division
                                                              and services in
                                                                                          at the Operations
                                                              accordance with
                                                                                          Directorate
                                                              applicable regulations
                                                                                        • Head of DAYA Division
                                                            • Providing product and
                   •   Dependency                                                       • Head of Corporate
                                        • Customer            service information
                   •   Responsibility                                                     & Marketing
Funding                                   protection          in a timely, adequate,
                   •   Influence                                                          Communication
Customers                               • Sustainable         clear and accurate
                   •   Geographic                                                         Division
                                          relationship        manner
                       Proximity                                                        • Head of Financing
                                                            • Development of
                                                                                          Division
                                                              quality services for
                                                                                        • Head of Financing
                                                              customer satisfaction
                                                                                          Division
                                                            • Advertising and
                                                                                        • Head of Business Line
                                                              promotional media
                                                                                          Division
                                                                                        • Corporate secretary
                                                                                        • Head of Business Line
                                                            • Intensify involvement       Division
                                                              in community              • Head of Human
                                        • Education and       activities with             Capital Division
                   •   Dependency         culture             programs covering the     • Head of Information
Financing and/     •   Responsibility   • Technology and      fields of: education,       Technology Division
or Community       •   Influence          infrastructure      empowerment, culture      • Head of POWER
Customers          •   Geographic         access              and religion, humanity      Division
                       Proximity        • Welfare and         and the environment       • Head of Corporate
                                          income            • Empowerment                 & Marketing
                                                            • Mandatory Meeting           Communication
                                                            • Meetings as needed          Division
                                                                                        • Head of Human
                                                                                          Capital Division
                                        • Employment        • Objective, transparent,
                                          relations           fair, and equal
                                        • Protection          management
                                          and working       • Building a conducive
                   •   Dependency
                                          conditions          work environment to
                                                                                                                  PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                   •   Responsibility                                                   • Head of Human
Employees                               • Competition         optimize productivity
                   •   Dissent                                                            Capital Division
                                          development       • Career development
                   •   Influence
                                        • Career              talent management
                                          Development         system and
                                          and self-           assessment center
                                          actualization     • Meetings as needed
                                                            • Clear terms of
                                                              cooperation
                   •   Dependency       • Sustainable                                   • Head of related
                                                            • Transparent
Work partners/     •   Responsibility     relationships                                   Division in the
                                                              performance
vendors            •   Dissent          • Economy                                         Operations
                                                              assessment
                   •   Influence        • Fairness                                        Directorate
                                                            • Routine assessment
                                                            • Meetings as needed




                                                                                                                  173
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                                                                           Basis of
                                                        List of                                Topic/Issue           Involvement Method &           Highest Governance
                                                                           Determination/
                                                        Stakeholders                           That Arises           Frequency                      Management Function
                                                                           Identification
                                                                                                                                                    • Corporate secretary
                                                                                                                                                    • Head of Compliance
                                                                                                                     Completeness and                 Division
                                                                                                                     Improvement of Good            • Head of Financial
                                                                                               Compliance
                                                                                                                     Corporate Governance             Control & Analytics
                                                                                               with laws and
                                                                                                                     (GCG)                            Division
                                                                           Dependency          regulations
                                                                                                                     Implementation of GCG          • Head of Corporate
                                                                           Responsibility      Commitment to
                                                                                                                     principles in all work units     & Marketing
                                                        Government/        Dissent             banking regulations
                                                                                                                     Regular meetings to              Communication
                                                        regulators         Influence           Clear, accurate,
                                                                                                                     discuss the Bank's health        Division
                                                                           Geographic          comprehensive
                                                                                                                     level                          • Head of Corporate
                                                                           Proximity           and timely
                                                                                                                     Regular reporting of             Secretary & General
                                                                                               communication and
                                                                                                                     business plans/activities        Counsel Division
                                                                                               reporting
                                                                                                                     and their realization          • Head of Risk
                                                                                                                     Meetings as needed               Management Division
                                                                                                                                                    • Branch Head in
                                                                                                                                                      Business Line
                                                                                               Business                                             • Corporate secretary
                                                                           Dependency          development           Direct visit                   • Head of DAYA Division
                                                        Community
                                                                           Responsibility      Increased welfare     Official Meeting               • Head of Corporate
                                                        Figures/Local
                                                                           Dissent             Employment            Periodic meetings as             & Marketing
                                                        Officials
                                                                           Influence           Opportunity           needed                           Communication
                                                                                               Local progress                                         Division



                                                        Challenges faced, developments and influence on sustainable finance [OJK E.5, GRI 2-22]
                                                        The uneven economic recovery experienced throughout 2023 continues to impact the inclusion community,
                                                        comprising BTPN Syariah's customers, requiring them additional time to recuperate and regain financial
                                                        stability. Concurrently, these communities face the challenge of limited access to formal financial services,
                                                        primarily due to their geographical location in rural, remote, and underdeveloped areas characterized by
                                                        low levels of technological literacy.

                                                        In the face of these adversities, BTPN Syariah remains steadfast in its commitment to empower these
                                                        communities, upholding human values through business operations that adhere to Sharia principles.
                                                        The strategic positioning of branches, centers, and Mitra Usaha Banks in rural areas, coupled with the
                                                        deployment of technology aligned with the inclusive society's needs, constitutes BTPN Syariah's approach
                                                        to addressing these challenges. This strategy involves integrating physical presence with digital capabilities
                                                        as outlined in the Sustainable Finance Action Plan.
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




174
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                                                        implementing good GOVERNANCE
                                                            for sustainable empowerment




The limited financial and technological literacy prevalent in inclusive communities presents both challenges
and opportunities for BTPN Syariah to further its mission of empowerment. To address this, BTPN Syariah
introduces the Bestee Program, designed to provide knowledge and assistance to inclusion customers
through a blend of offline and online resources in collaboration with various stakeholders.

Looking ahead, as BTPN Syariah endeavors to implement long-term sustainable finance practices, the
bank reiterates its commitment to conducting business within a sustainable framework aligned with
Sharia principles. Furthermore, the bank remains faithfully empowering inclusive communities, thereby
fostering a sustainable ecosystem conducive to their growth and development.




                                                                                                               PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                                                                               175
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      PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




176
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            Sustainability Performance Highlights




                 11
                                                    PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




About This Sustaianility
              REPORT


                                                    177
Page 178
                                                          BTPN Syariah consistently publishes comprehensive sustainability reports
                                                         as part of its commitment to information transparency and #niatbaik BTPN
                                                        Syariah's intention to faithfully empower inclusive communities, uphold good
                                                         governance, and create socially impactful outcomes for sustainability goals.




                                                        Boundry and Reporting Period                                Reporting Standards and Assurance
                                                        BTPN Syariah's commitment to delivering                     This report has been prepared in accordance with
                                                        information in the economic, environmental,                 the Global Reporting Initiative standards version
                                                        and social fields is conveyed through annual                2021 (GRI Standard 2021) and financial sector
                                                        sustainability reports. This report marks the 10th          standards. In addition, as a public company,
                                                        year of BTPN Syariah's sustainability reporting,            this report also refers to the Financial Services
                                                        covering information from January 1, 2023, to               Authority criteria No. 51/POJK.03/2017 regarding
                                                        December 31, 2023, and follows the Sustainability           the Implementation of Sustainable Finance for
                                                        Report 2022 published in February 2022. [GRI 2-3]           Financial Institutions, Issuers, and Publicly Listed
                                                                                                                    Companies, and Financial Services Authority
                                                        There are no disclosures carried forward from               Circular Letter No. 16/SEOJK.04/2021 concerning
                                                        previous reports. Additional data and expanded              the Form and Content of Annual Reports of Issuers
                                                        calculations for Electricity and Water are                  or Publicly Listed Companies.
                                                        elaborated further in the Sustainable Loyalty to
                                                        the Environment section. [GRI 2-4]                          The standards applied in this report are marked
                                                                                                                    with numbering in red parentheses. The GRI, FS,
                                                        The reported data and information cover activities          and OJK index lists are provided sequentially in the
                                                        carried out by BTPN Syariah. This sustainability            Appendix section. [OJK G.4]
                                                        report does not include the subsidiaries of BTPN
                                                        Syariah Ventura, which are reported separately.             In preparing the 2023 Annual Report, BTPN
                                                        [GRI 2-2]                                                   Syariah has not included written verification
                                                                                                                    from an Independent Party (Assurance). Beyond
                                                        The financial data presented refers to the Audited          the verification process, BTPN Syariah has also
                                                        Financial Statements prepared in accordance                 validated all sustainability performance data and
                                                        with Indonesian Financial Accounting Standards              information and obtained approval from the Board
                                                        (PSAK). Quantitative data in this report is                 of Directors and Board of Commissioners before
                                                        presented using the comparability principle over            publication. [GRI 2-5, GRI 2-14]
                                                        the past two to three years.

                                                        Report Determination and Materiality Topics [GRI 3-1] [GRI 3-2] [GRI 3-3]
                                                        BTPN Syariah compiles this report based on the GRI sustainability reporting principles, namely:


                                                                                         Content                         Quality
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                                                 •   Stakeholders               •     Clarity
                                                                                     Inclusiveness              •     Comparability
                                                                                 •   Sustainability Context     •     Stability
                                                                                 •   Materiality                •     Accuracy
                                                                                 •   Completeness               •     Reliability
                                                                                                                •     Punctuality




178
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                                                                About this Sustainability Report




Next, these sustainability reporting principles are implemented into four steps in preparing
sustainability reports in accordance with GRI standards, namely:

1. Identifying material aspects and setting boundaries. Identification of sustainability aspects
   (sustainability context) is selected based on their relevance to the characteristics of the
   banking industry and their impact on stakeholders.
2. Prioritizing the aspects identified in the previous step (Priority Step). This report utilizes
   material aspects and issues in two consecutive reporting periods, considering that the priority
   material aspects and issues in 2020 and 2021 are still relevant to the conditions in 2022.
3. Validation of material aspects. To ensure the priority of information conveyed in this report, all
   material aspects (completeness) are validated by the Sustainability Task Force.
4. Conducting a review of the Report after publication to improve the quality of the next year's
   Report (review step). A review of this report will be conducted considering inputs from
   stakeholders, both internal and external (stakeholder inclusiveness).



                                                          disclosure of management
                             Topic      Aspect            approach + indicator


          Step I identification        Step II Prioritization           > Step III Validation




         Sustainability Context            Materiality                     Completeness




                                     Stakeholder Engagement




                                          Step IV Review




            Sustainability Context                               Stakeholder Engagement




Stakeholder engagement, both internal to the Bank and external, plays a highly significant role in the
process of preparing a sustainability report. Therefore, in validating and reviewing this report, we pay
close attention to various inputs from other stakeholders, conveyed through various activities, especially
                                                                                                             PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




those involving specific groups through feedback received from Shareholders' General Meetings, analyst
meetings, media briefings, feedback forms, and so forth.

These steps are taken to ensure that the content of this report is balanced according to the principle
of balance, including both positive and negative information or performance, in accordance with GRI
standard sustainability reporting.

In 2021, we engaged in intensive discussions involving experts to reconsider the material topics we deemed
relevant, in line with stakeholders' needs, and we reused them up to 2023 to ensure ongoing activities and
better impact. We routinely monitor the impacts arising from Company activities that affect the economy,
environment, and society.




                                                                                                             179
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                                                        The list of material topics along with relevant disclosure indices, complete with reporting boundaries, is
                                                        presented in matrices and materiality tables as follows:


                                                                                                                           3          1      1. Economic Performance
                                                            High




                                                                                                                                      2      2. Ease of Banking Access
                                                                                                                                             3. Banking Facilities for
                                                                                                                10         4          6          Communities
                                                                                                                 8         5                 4. Community
                                                                                                                                                 Empowerment
                                                                                                                                             5. Ifnformation Clarity
                                                                                                                           9          7      6. SME Sector Financing
                                                            Medium




                                                                                                                                             7. Education and Training
                                                                                                                                             8. Personnel
                                                                                                                                                 Management/Human
                                                                                                                                                 Resources
                                                                                                                                             9. Diversity and Respect
                                                                                                                                             10. Water Efficiency
                                                            Low




                                                                            Low                      Medium                    High
                                                                     Significance of the Economic, Environmental, and Social Impacts


                                                        There are 10 groups of material topics that meet the criteria for the most materially significant impact
                                                        on sustainability performance at BTPN Syariah. The Bank has also reported disclosures of the selected
                                                        material topics as outlined in the following table:
                                                                                                                                             Internal
                                                                                                                                                           Impacted Area:
                                                        Aspects             Material Topics             Material Reasons                  Impacted Area:
                                                                                                                                                              External
                                                                                                                                             Internal
                                                                            Financial Performance       Significantly impacting
                                                                                                                                                x
                                                                            [GRI 201]                   stakeholders
                                                                            Financing for SME           Significantly impacting
                                                                                                                                                x                x
                                                        Economy             Sector [GRI 201]            stakeholders
                                                                            Banking Facilities for
                                                                                                        Significantly impacting
                                                                            the Community [GRI                                                  x                x
                                                                                                        stakeholders
                                                                            203]
                                                                            Water Efficiency [GRI       Significantly impacting
                                                        Environmental                                                                           x                x
                                                                            303]                        stakeholders
                                                                            Information Clarity
                                                                                                        Significantly impacting
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                                            [GRI 417]                                                           x
                                                                                                        stakeholders

                                                                            Kemudahan Akses             Significantly impacting
                                                                                                                                                x                x
                                                                            Perbankan [GRI 413]         stakeholders
                                                                            Banking Accessibility       Significantly impacting
                                                                                                                                                x
                                                                            [GRI 413]                   stakeholders
                                                        Social
                                                                            Training and Education      Significantly impacting
                                                                                                                                                x
                                                                            [GRI 404]                   stakeholders
                                                                            Diversity and Respect       Significantly impacting
                                                                                                                                                x                x
                                                                            [GRI 405]                   stakeholders
                                                                            Community
                                                                                                        Significantly impacting
                                                                            Empowerment [GRI                                                    x
                                                                                                        stakeholders
                                                                            413]




180
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                                                       About this Sustainability Report




Contact [GRI 2-3]
For further information or if you have any questions about this Report, please contact:
PT Bank BTPN Syariah Tbk
Menara BTPN Lantai 12, CBD Mega Kuningan Jl. Dr. Ide Anak Agung Gde Agung, Kav. 5.5-5.6 Jakarta
Selatan-12950 - Indonesia
Tel.    : 021 - 300 26 400
Fax.    : 021 - 255 67 190 (general)

Situs Web:
www.btpnsyariah.com

Email:
corsec@btpnsyariah.com corporatecommunications@btpnsyariah.com investorrelation@btpnsyariah.com

Instagram:
@btpnsyariah www.instagram.com/btpnsyariah/ @saya.bankirpemberdaya www.instagram.com/saya.
bankirpemberdaya/

Facebook:
@btpnsyariah.id www.facebook.com/btpnsyariah.id

YouTube:
@BTPN Syariah www.youtube.com/BTPNSyariah

LinkedIn:
BTPN Syariah www.linkedin.com/company/btpnsyariah

Tiktok:
www.tiktok.com/@btpnsyariah




                                                                                                  PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                                                                  181
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                                                        POJK     Index
                                                        NO.51/POJK.03/2017                                                    [OJK G.4]



                                                        No.      Index Name                                                                           Page

                                                        A. Sustainability Strategy

                                                          A.1 Explanation of Sustainability Strategy                                                          35

                                                        B. Summary of Sustainability Performance Aspects

                                                          B.1 Economic Aspect                                                                                  12

                                                          B.2 Environmental Aspect                                                                             12

                                                          B.3 Social Aspect                                                                                    13

                                                        C. Company Profile

                                                          C.1 Vision, Mission, and Sustainability Values                                                     23, 46

                                                          C.2 Company Adress                                                                                  50

                                                          C.3 Business Scale

                                                              a. Total assets or asset capitalization and total liabilities                                   56

                                                              b. Number of employees by gender, position, age, education, and employment status          111, 112

                                                              c. Names of shareholders and percentage of share ownership; and                                 50

                                                              d. Operational Regions                                                                         50, 56

                                                          C.4 Products, Services, and Business Activities Conducted                                          50, 54

                                                          C.5 Membership in Associations                                                                      58

                                                          C.6 Significant Changes in Issuers and Publicly Listed Companies                                    57

                                                        D. Explanation of the Board of Directors

                                                          D.1 Explaination of the Board of Directors

                                                              a. Policies to respond to challenges in fulfilling sustainability strategies                    23

                                                              b. Implementation of Sustainable Finance                                                        24

                                                              c. Strategies for achieving targets                                                             23

                                                        E. Sustainability Governance

                                                          E.1 Responsible Party for Implementing Sustainable Finance                                          140

                                                          E.2 Development of Competencies Related to Sustainable Finance                                      114

                                                          E.3 Risk Assessment of Sustainable Finance Implementation                                           166

                                                          E.4 Relationship with Stakeholders                                                                  172
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                          E.5 Issues Regarding the Implementation of Sustainable Finance                                 27, 175

                                                        F. Sustainability Performance

                                                          F.1 Building Sustainable Culture Activities                                                         108
                                                          F.2 Comparison of Production Targets and Performance, Portfolio, Financing Targets, or
                                                                                                                                                              88
                                                          Investments, Revenue and Profit/Loss
                                                          F.3 Comparison of Portfolio Targets and Performance, Financing Targets, or Investments in
                                                                                                                                                              92
                                                          Financial Instruments or Projects Aligned with Sustainable Finance
                                                          Environmental Performance

                                                          General Aspects

                                                          F.4 Environmental Costs                                                                              -

                                                          Material Aspects




182
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                                                               About this Sustainability Report




No.      Index Name                                                                              Page

  F.5 Use of Environmentally Friendly Materials                                                          124

  Energy Aspects

  F.6 Quantity and Intensity of Energy Used                                                              125

  F.7 Efforts and Achievements in Energy Efficiency and Use of Renewable Energy                          124

  Water Aspects

  F.8 Water Use                                                                                          125

  Biodiversity Aspects

  F.10 Biodiversity Conservation Efforts                                                                  -
  Emission Aspects
  F.11 Quantity and Intensity of Emissions Generated by Type                                             125

  F.12 Efforts and Achievements in Emission Reduction                                                    124

  Environmental Complaints Aspects

  F.16 Number and Substance of Environmental Complaints Received and Resolved                            124

  Kinerja Sosial

  F.17 Commitment to Providing Equivalent Services for Products and/or Services to Consumers             97

  Employment Aspects

  F.18 Employment Equality of Opportunity                                                                109

  F.19 Child Labor and Forced Labor                                                                 109, 116

  F.20 Regional Minimum Wage                                                                             115

  F.21 Adequate and Safe Working Environment                                                             109

  F.22 Employee Training and Development                                                            112, 114

  Community Aspects

  F.23 Impact of Operations on Surrounding Communities                                                   63

  F.24 Public Complaint                                                                                  102

  F.25 Environmental Social Responsibility (ESR) Activities                                             63, 69

  Responsibility for Sustainable Product/Service Development

  F.26 Innovation and Development of Sustainable Financial Products/Services                             100
                                                                                                                 PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




  F.27 Products/Services Evaluated for Customer Safety                                                   168

  F.28 Product/Service Impact                                                                       103, 168

  F.29 Number of Products Recalled                                                                       102

  F.30 Customer Satisfaction Survey for Sustainable Financial Products and/or Services                    -

G. Miscellaneous:

  G.2 Feedback Form                                                                                      190
  G.4 List of Disclosures in accordance with Financial Services Authority Regulation No. 51/
  POJK.03/2017 regarding the Implementation of Sustainable Finance for Financial Institutions,      178, 182
  Issuers, and Publicly Listed Companies.




                                                                                                                 183
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                                                        GRI Standard INDEX                                                         [GRI 102-55]




                                                                                                                                             Not Included                 No.Ref.
                                                                                                                                   Non-                                   Standar
                                                         GRI Standards               Disclosure                Location
                                                                                                                                 Inclusion     Reason       Explanation    Sektor
                                                                                                                                  Criteria                                  GRI

                                                        General Disclosure
                                                        GRI 2: Disclosure    2-1    Organization Details           50
                                                                                    Entities included
                                                                             2-2    in sustainability             178
                                                                                    reporting
                                                                                    Reporting period,
                                                                             2-3    frequency, and            50, 178, 181
                                                                                    contact points
                                                                                    Restatement of
                                                                             2-4                                  178
                                                                                    information
                                                                                    Assurance by
                                                                             2-5                                  178
                                                                                    external parties
                                                                                    Activities, value
                                                                                    chains, and
                                                                             2-6                             50, 54, 56, 57
                                                                                    other business
                                                                                    relationships
                                                                                                            56, 111, 112, 118,
                                                                             2-7    Employees
                                                                                                                   119
                                                                                    Non-employee
                                                                             2-8                                   111
                                                                                    workers
                                                                                    Governance
                                                                             2-9    structure and            138, 142, 153
                                                                                    composition
                                                                                    Nominating and
                                                                                    selecting the highest
                                                                             2-10                            142, 149, 162
                                                                                    governance body
                                                                                    agreements
                                                                                    Officers of the
                                                                             2-11   highest governance            140
                                                                                    body
                                                                                    Role of the highest
                                                                                    governance body in
                                                                             2-12                               135, 141
                                                                                    overseeing impact
                                                                                    management
                                                                                    Delegation of
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                                             2-13   responsibilities for        140, 155
                                                                                    managing impact
                                                                                    Role of the highest
                                                                                    governance body
                                                                             2-14                               32, 178
                                                                                    in sustainability
                                                                                    reporting
                                                                             2-15   Conflicts of interest       143, 162
                                                                                    Communicating
                                                                             2-16                                  141
                                                                                    critical issues




184
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                                                               About this Sustainability Report




                                                                                 Not Included                 No.Ref.
                                                                       Non-                                   Standar
 GRI Standards            Disclosure                Location
                                                                     Inclusion     Reason       Explanation    Sektor
                                                                      Criteria                                  GRI

                         Collective knowledge
                  2-17   of the highest                164
                         governance body
                         Evaluation of the
                         performance of the
                  2-18                                 163
                         highest governance
                         body
                  2-19   Remuneration policy           171
                         Processes for
                  2-20   determining                   171
                         remuneration
                         Annual total
                  2-21                                 172
                         compensation ratio
                         Statement on
                         sustainable              36, 46, 87, 88,
                  2-22
                         development                   175
                         strategy
                                                  59, 63, 90, 97,
                  2-23   Policy commitments
                                                  106, 124, 137
                         Embedding policy        63, 90, 97, 106,
                  2-24
                         commitments              124, 137, 167
                         Processes for
                                                 63, 90, 97, 101,
                  2-25   mitigating negative
                                                  106, 124, 167
                         impacts
                         Mechanisms for
                  2-26   obtaining advice and        50, 170
                         improving issues
                         Compliance with
                  2-27                           59, 110, 143, 165
                         laws and regulations
                         Membership in
                  2-28                                  58
                         associations
                         Stakeholder
                  2-29   engagement                    172
                         approach
                         Collective bargaining
                  2-30                                   -
                                                                                                                        PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                         agreements
Material Topics
                         Process for
GRI 3: Material
                  3-1    determining material          178
Topics 2021
                         topics
                         List of material
                  3-2                                  178
                         topics
Economic
Performance
                         Management of
GRI 3: Material
                  3-3    material topics               178
Topics 2021
                         D46:D47




                                                                                                                        185
Page 186
                                                                                                                                  Not Included                 No.Ref.
                                                                                                                                                               Standar
                                                         GRI Standards               Disclosure            Location   Non-Inclusion
                                                                                                                                      Reason     Explanation    Sektor
                                                                                                                        Criteria                                 GRI
                                                        GRI 201:                    Direct economic
                                                        Economic            201-1   value generated and      92
                                                        Performance 2016            distributed
                                                        Indirect Economic Impact

                                                        GRI3: Material              Management of
                                                                            3-3                              178
                                                        Topic 2021                  material topics

                                                                                    Infrastructure
                                                                            203-1   investment and            71
                                                        GRI 203: Indirect
                                                                                    support services
                                                        Economic Impact
                                                        2016                        Significant indirect
                                                                            203-2                            74
                                                                                    economic impact

                                                        Anti-Corruption
                                                                                    Communication
                                                                            205-2   and Anti-Corruption      169
                                                        GRI 205: Anti-              Training
                                                        Corruption 2016             Corruption Cases
                                                                            205-3   and Enforcement of       170
                                                                                    Corruption Cases
                                                        Energy

                                                        GRI 302: Energy             Organizational
                                                                            302-1                            124
                                                        2016                        Energy Consumption

                                                        Water
                                                                                    Management of
                                                                            3-3                              178
                                                        GRI3: Material              material topics
                                                        Topics 2021
                                                                            303-3   Water Withdrawal         125

                                                        GRI 303: Water
                                                                            303-5   Water Consumption        125
                                                        and Effluent 2018
                                                        Waste
                                                                                    Waste generation
                                                                                    and significant
                                                                            306-1                            125
                                                                                    waste-related
                                                                                    impacts
                                                        GRI 306: Waste
                                                                                    Management of
                                                        2020
                                                                            306-2   significant waste-       125
                                                                                    related impacts

                                                                            306-3   Waste generation         126

                                                        Environmental Compliance
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                                                    Number of Non-
                                                        GRI 307:
                                                                                    compliance Incidents
                                                        Environmental       307-1                            124
                                                                                    with Environmental
                                                        Compliance 2016
                                                                                    Regulations/Laws

                                                        Employment

                                                        GRI3: Topic                 Management of
                                                                            3-3                              178
                                                        2021 Material               material topics




186
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                                                                      About this Sustainability Report




                                                                                    Not Included                 No.Ref.
                                                                                                                 Standar
 GRI Standards                Disclosure              Location          Non-Inclusion
                                                                                        Reason     Explanation    Sektor
                                                                          Criteria                                 GRI
                             Recruitment of New
                     401-1   Employees and             118, 119
                             Employee Turnover
GRI 401:
Employment 2016              Benefits provided to
                             full-time employees
                     401-2                                115
                             not provided to part-
                             time employees

Employee Relations
GRI 402:
Employee                     Minimum notification
Relations/           402-1   period related to            118
Management                   operational changes
2016
Employee Relations
                             Occupational
GRI 403:          403-1      health and safety           109
Occupational                 management system
Health and Safety            Worker training on
2018              403-5      occupational health         109
                             and safety
Education and Training

GRI3: Material               Management of
                     3-3                                 178
Topic 2021                   material topics

                             Average training
                     404-1   hours per year per        113, 114
                             employee
GRI 404:
Education and                Programs to enhance
Training 2016                employee skills and
                     404-2                           112, 114, 116
                             transition assistance
                             programs

                             Percentage of
                             employees receiving
                     404-3   regular performance          115
                             reviews and career
                             development
Diversity and Equal Opportunity

GRI3: Material               Management of
                     3-3                                 178
Topic 2021                   material topics

GRI 405: Diversity           Diversity of
                                                     111, 112, 143,
and Equal            405-1   Governance Bodies
                                                                                                                           PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                          147
Opportunity 2016             and Employees




                                                                                                                           187
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                                                                                                                                        Not Included                 No.Ref.
                                                                                                                                                                     Standar
                                                         GRI Standards               Disclosure              Location       Non-Inclusion
                                                                                                                                            Reason     Explanation    Sektor
                                                                                                                              Criteria                                 GRI
                                                        Non-
                                                        Discrimination
                                                                                    Discrimination
                                                        GRI 406: Non-
                                                                                    incidents and
                                                        Discrimination      406-1                             109, 110
                                                                                    corrective actions
                                                        2016
                                                                                    taken
                                                        Child Labor
                                                                                    Operations and
                                                        GRI 408: Child              suppliers at
                                                                            408-1                               109
                                                        Labor 2016                  significant risk of
                                                                                    child labor incidents
                                                        Forced Labor
                                                                                    Operations and
                                                                                    suppliers at
                                                        GRI 409: Forced             significant risk of
                                                                            409-1                               116
                                                        Labor 2016                  forced labor or
                                                                                    compulsory labor
                                                                                    incidents
                                                        Local
                                                        Communities
                                                        GRI3: Material              Management of
                                                                            3-3                                 178
                                                        Topic 2021                  material topics
                                                                                    Operations with
                                                                                    Local Community
                                                        GRI 413: Local              Engagement,
                                                                                                            75, 80, 107,
                                                        Communities         413-1   Impact Assessment,
                                                                                                            108, 112, 115
                                                        2016                        and Community
                                                                                    Development
                                                                                    Programs
                                                        Product Marketing and Labeling
                                                        GRI3: Material              Management of
                                                                            3-3                                 178
                                                        Topic 2021                  material topics
                                                                                    Requirements
                                                                                    for labeling and
                                                                            417-1                                98
                                                                                    product and service
                                                                                    information
                                                                                    Non-compliance
                                                        GRI 417:                    incidents related to
                                                        Marketing and       417-2   product and service     98, 102, 106
                                                        Labeling 2016               information and
                                                                                    labeling
                                                                                    Non-compliance
                                                                                    incidents related
                                                                            417-3                             97, 102
                                                                                    to marketing
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                                                    communications
                                                        Customer Privacy

                                                                                    Complaints based
                                                        GRI 418:
                                                                                    on violations of
                                                        Customer Privacy    418-1                               102
                                                                                    customer privacy and
                                                        2016
                                                                                    customer data loss

                                                        Sector Disclosure




188
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                                                                About this Sustainability Report




                                                                             Not Included                 No.Ref.
                                                                                                          Standar
 GRI Standards              Disclosure            Location       Non-Inclusion
                                                                                 Reason     Explanation    Sektor
                                                                   Criteria                                 GRI
GRI G4 Financial
                   Product Portfolio
Services
                           Special Policies
                           for Implementing
                   FS1     Environmental and          35
                           Social Aspects in
                           Business Activities
                           Procedures for
                           Environmental
                                                  35, 91, 98,
                   FS2     and Social Risk
                                                   104, 166
                           Assessment in
                           Business Activities
                           Employee
                           Competency
                           Enhancement
                           Processes to
                   FS4     Implement                 114
                           Applicable Social
                           and Environmental
                           Regulations/
                           Legislation
                           Percentage of
                           Business Portfolio
                           Divided by Region,
                   FS6                              90, 92
                           Size (e.g., Micro/
                           SME/Large), and
                           Sector
                   Audit
                           Coverage and
                           Frequency of Audits
                           to Assess the
                           Implementation of
                   FS9                                91
                           Environmental and
                           Social Policies and
                           Risk Assessment
                           Procedures
                   Local Communities
                           Access Points in
                           Low-Population
                   FS13    or Economically        61, 66, 100
                           Underserved Areas
                           by Type
                           Access to Financial
                           Services for
                   FS14                           61, 66, 100
                           Marginalized and
                           Underserved Groups
                                                                                                                    PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                   Product Responsibilities
                           Policies Ensuring
                           Fairness in Launched
                   FS15                               97
                           Products and Service
                           Offerings
                           Initiatives to
                           Conduct and
                   FS16    Support Financial          90
                           Literacy or Special
                           Financing Activities




                                                                                                                    189
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                                                        Feedback FORM
                                                        Your Profile
                                                        Name (if willing)		              :
                                                        Name of Institution/Company      :


                                                        Stakeholder Group		              :
                                                        ☐ Customer and Client                                ☐   Business Partners
                                                        ☐ Shareholders                                       ☐   Mass Media
                                                        ☐ Regulator                                          ☐   Community
                                                        ☐ Employees                                          ☐   Others, please specify: ………..

                                                        Please select the most appropriate answer:

                                                        1. This report adequately depicts sustainability     6. Please provide your suggestions/comments on
                                                           aspects for the Company                              this report: ……………………………………………………………
                                                           a. Strongly Agree                                    …………………………………………………………………………….…
                                                           b. Agree                                             …………………………………………………………………………………
                                                           c. Neutral                                           …………………………………………………
                                                           d. Disagree
                                                           e. Strongly Disagree                              7. Please provide your suggestions/comments for
                                                                                                                upcoming reports: ………………………………………………
                                                        2. This report provides both positive and negative      …………………………………………………………………………………
                                                           information about the Company                        …………………………………………………………………………………
                                                           a. Strongly Agree                                    ………………………………
                                                           b. Agree
                                                           c. Neutral
                                                           d. Disagree                                       Thank you. We appreciate every opinion and
                                                           e. Strongly Disagree                              suggestion provided. This feedback is invaluable for
                                                                                                             improving the performance of our sustainability
                                                        3. This report meets your information needs          efforts and the quality of our future reports.
                                                           a. Strongly Agree                                 Please return this form to:
                                                           b. Agree
                                                           c. Neutral                                        Corporate & Marketing Communication Division
                                                           d. Disagree                                       PT Bank BTPN Syariah Tbk
                                                           e. Strongly Disagree                              Menara BTPN Lantai 12, CBD Mega Kuningan
                                                                                                             Jl.Dr.Ide Anak Agung Gde Agung, Kav 5.5-5.6
                                                        4. This report is easy to understand                 Jakarta Selatan – 12950 – Indonesia
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                           a. Strongly Agree
                                                           b. Agree                                          Telephone : 021 - 300 26 400
                                                           c. Neutral                                        Facsimile : 021 - 255 67 190
                                                           d. Disagree                                       Website     : www.btpnsyariah.com
                                                           e. Strongly Disagree                              e-mail      :
                                                                                                             corsec@btpnsyariah.com
                                                        5. This report is engaging                           corporatecommunications@btpnsyariah.com
                                                           a. Strongly Agree                                 investorrelation@btpnsyariah.com
                                                           b. Agree
                                                           c. Neutral
                                                           d. Disagree
                                                           e. Strongly Disagree




190
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                                                              About this Sustainability Report




      PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




191
Page 192
PT Bank BTPN Syariah Tbk | 2023 Sustainability Report




                                                        PT Bank BTPN Syariah Tbk
                                                        Menara BTPN, Lt. 12, CBD Mega Kuningan            021 - 300 26 400
                                                        Jl. Dr. Ide Anak Agung Gde Agung Kav. 5.5 - 5.6   021 - 255 67 190
192                                                     Jakarta Selatan 12950                             www.btpnsyariah.com

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Names mentioned 81 people and organisations named in the text · linked when the evidence is strong

linked org Bank BTPN Syariah Tbk p.1 ×419
linked person Kemal Azis Stamboel p.18 ×3
linked person Hadi Wibowo p.22 ×3
linked person Mulya Effendi Siregar · Independent Commissioner p.32 ×2
linked person Dewie Pelitawati p.32
linked person Ongki Wanadjati Dana p.32
linked person Arief Ismail p.33
linked person Fachmy Achmad p.33
linked person Dewi Nuzulianti · Director p.33 ×2
linked org Bank Mandiri p.78
linked org Astra International p.78
possible person H. Ikhwan Abidin p.28 ×3
possible org BANK BTPN Tbk p.44 ×8
possible org DBS Bank p.53
possible person Prof. Dr. Satrio p.53
possible org PT Bursa Efek Indonesia p.53
unresolved org PT Fitch Rating Indonesia p.10
unresolved org Bank Indonesia p.11 ×11
unresolved org PT Fitch p.26
unresolved org Financial Services Authority p.36 ×10
unresolved org PT Bank Purba Danarta p.43 ×4
unresolved person Haji Abu Jusuf p.43
unresolved org Minister of Justice p.43
unresolved org Minister of Law and Human Rights p.43 ×9
unresolved org Semarang District Court p.43
unresolved org Minister of Finance p.43
unresolved org PT Bank Sahabat Purba Danarta p.43 ×3
unresolved org PT Bank Tabungan Pensiunan Nasional Syariah. p.43 ×7
unresolved person Hadijah p.43 ×2
unresolved org Bank Tabungan Pensiunan Nasional Tbk p.44 ×5
unresolved org Indonesia Stock Exchange p.45 ×2
unresolved org Ministry of Law and Human Rights p.45 ×2
unresolved org PT Bank Pensiunan p.48
unresolved org Nasional Tbk p.48 ×3
unresolved org Bank Tabungan Pensiunan Business p.48
unresolved org Nasional Syariah Tbk p.48
unresolved org PT Bank Tabungan p.48 ×5
unresolved org PT Bank Sahabat p.48 ×3
unresolved org PT Fitch Ratings Indonesia p.49 ×6
unresolved org PT BTPN Syariah Ventura p.49 ×3
unresolved org PT Bank Tabungan Commercial Banks p.49
unresolved org Syariah Tbk p.49 ×7
unresolved org PT Bank Tabungan Pensiunan p.50 ×2
unresolved org Indonesia. Nasional Syariah Tbk p.50
unresolved person DR. Ide Anak Agung Gde Agung p.50
unresolved org PT Bank Purba p.51
unresolved org Pensiunan Nasional Syariah Tbk p.51 ×3
unresolved person H. Abu p.51
unresolved org PT Bank Tabungan Jusuf p.51
unresolved org PT Bank Purba Danarta Meeting p.51
unresolved person Decree Widjaja p.51
unresolved person Notary Indah Indriani p.51 ×2
unresolved person Widjaja p.51
unresolved org PT Bank Sahabat Purba p.51
unresolved person Notary Hadijah p.51
unresolved org PT Bank Tabungan Pensiunan Sahabat Purba Danarta p.51
unresolved person Notary Jose Dima Satria p.51 ×3
unresolved org Minister of Law p.52
unresolved org Tabungan Pensiunan Nasional Syariah Tbk p.52
unresolved person Notary Ashoya Ratam p.52 ×10
unresolved org Data Syariah Tbk p.52
unresolved org Minister of Law and Human p.52 ×3
unresolved person Letter Ashoya Ratam p.52
unresolved org Human Tbk p.52
unresolved org PT Datindo Entrycom p.53
unresolved org Fitch Ratings Indonesia BTPN Syariah Tbk p.53 ×2
unresolved org Siddharta Widjaja & Rekan p.53
unresolved — Gatot Adhi Prasetyo · Director p.57
unresolved org PT Kustodian Sentral Efek p.58
unresolved org Bank Asosiasi Bank Syariah p.58
unresolved person Nusa Tenggara · Member p.59
unresolved org Bank Indonesia's p.59 ×2
unresolved org Ministry of Education p.69
unresolved person H. Fatimah Fasilitator Mentors p.83
unresolved org Ministry of Public Works and Public Housing p.92
unresolved org Bank Indonesia PADG Circular Letter p.101
unresolved org Bank Indonesia Consumer p.101
unresolved org Bank Indonesia Regulation p.101
unresolved org Bank Indonesia Consumer Protection p.101
unresolved org Ministry of Manpower. Since p.108
unresolved org Ministry of Manpower Manpower p.110

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