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Sustainable
Growth for
Green Indonesia
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2 Sustainability Report 2023
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Sustainable Growth for
Green Indonesia
The Company affirms its role as the main driver in achieving sustainable
economic growth amid the dynamics of the housing ecosystem. The
Company continues to strive for innovative solutions that not only drive
development but also integrate the fulfillment of environmental, social,
and economic interests.
"Sustainable Growth" for the Company is not merely a term but an integral
commitment to conduct operations and financial activities with a focus on
long-term positive impacts on the economy, society, and the environment.
Sustainable economic growth, in the Company's view, encompasses
not only achieving financial targets but is also rooted in sustainability
principles, including environmental, social, and governance (ESG).
The Company considers sustainable financial principles and ESG as the
main pillars to achieve sustainable growth. ESG principles are realized
through the development of frameworks, strategies, and ESG roadmaps.
Through the implementation of ESG, the Company can systematically
integrate environmental, social, and governance factors in supporting
environmentally friendly housing initiatives, align financing portfolios
with sustainable business activity categories, and ensure financial
inclusion for a broader community.
PT Bank Tabungan Negara (Persero) Tbk 3
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About the Profile of Bank BTN Inclusive and Sustainable Environmental
Sustainability Report Economic Growth Sustainability
TABLE OF CONTENTS
Theme Description
Sustainability Performance
3
6
03
Inclusive and Sustainable
Highlights
Message from the President Economic Growth
8
Director The Company's Economic Performance
60
in 2023
Sustainability Strategy 16
Credit Distribution 61
Awards During 2023 23
Generated and Distributed Economic
The Company and Sustainable 64
24 Value
Development Goals
BTN Housing Finance Center (HFC) 66
01
About the Sustainability Report
04
Environmental Sustainability
Reporting Formulation Standard 28 Lending Policy Based on ESG Aspects 70
Report Content Determination Process 29 Greenhouse Gas Emissions 71
Material Topics And Boundaries 30 Climate Change Risks and
73
Stakeholder Engagement 33 Opportunities
External Assurance 35 Energy Use 75
Feedback 35 Paper Use 77
Report Contact 35 Water Management 79
Waste Management 80
02
Profile Bank BTN
General Information of the Company 38
The Company’s Vision, Missions, and
41
Values
The Company’s Business Activity 43
Operational Areas and Markets Served 46
Supply Chain 48
Significant Changes 49
Company’s Brief History 50
Organizational Structure 54
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Employee Community Excellent Service for Sustainability
Development Empowerment Customers Governance
05
Employee Development
08
Sustainability Governance
Human Resources management 84 Commitment to Good Governance
150
Employee Diversity 86 Implementation
Employee Learning and Competency Risk Management 163
93
Development Implementation of Principles of
171
Protection of Employee Rights 103 Prudence
Occupation Health and Safety (OHS) 107 Requirements for Environmental and
173
Social Impact Management
Harmonious Industrial Relations 110
Code of Ethics and Business Ethics 174
06
Conflict of Interest 176
Anti-Fraud 177
Community Empowerment Internal Control System 181
Contribution to Community Welfare 114 Handling Complaints 182
Corporate Social Responsibility (CSR) 115
Inclusive and Sustainable Products 119 Independent Assurance Statement 190
Micro, Small and Medium Enterprises Index of GRI, OJK, SASB, and TCFD 195
122
Development Program Feedback Sheet 205
Financial Literacy Program 127
07
Excellent Service for Customers
ESG-Based Financing and Investment
130
Products
Customer Data Security 132
Digitalization Product and Service
140
Innovation
Socio-Economic Compliance 144
PT Bank Tabungan Negara (Persero) Tbk 5
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SUSTAINABILITY PERFORMANCE HIGHLIGHTS
Economic Performance [OJK B.1]
Total Asset Current Year Profit
Billions of Rupiah Billions of Rupiah
371,868 402,148 438,750 2,376 3,045 3,501
2021 2022 2023 2021 2022 2023
4 Product Categories
Quantity of
Products/
Services Sold
Consumer Commercial Banking Sharia
Banking Banking Services Business
Unit
Social Performance [OJK B.3]
Total Number of Employees The Number of Local Suppliers
Person Suppliers
12,045 452
11,859
314
11,192 265
2021 2022 2023 2021 2022 2023
Number of Workplace Accident Case Amount of TJSL Distribution Funds
Case Billions of Rupiah
79.99
61.98
Zero 47.35
2021 2022 2023 2021 2022 2023
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Environmental Performance [OJK B.2]
Scope 1 Emissions Scope 2 Emissions
Tons of CO2 eq Tons of CO2 eq
2023 7,282 2023 8,964
2022 5,637 2022 16,985
2021 20,736 2021 26,432
Scope 3 Emissions
Financed Emissions Purchased Goods Business Travel
Ton CO2 eq Ton CO2 eq Ton CO2 eq
2023 805,615 2023 6,447 2023 285
2022 4,614 2022 276
2021 10,336 2021 688
GOVERNANCE PERFORMANCE
Establishment of the ESG
Committee, Enterprise & ESG Development of ESG Framework,
Risk Management Division, and Strategy, and Roadmap
ESG Department
ESG and Sustainability Ratings
In addition to financial indicators, sustainability criteria that focus on Environment, Social, and Governance (ESG) factors
are increasingly becoming a primary consideration for investors in making investment decisions. Analyses and ratings
conducted by institutions or indices specializing in sustainability are increasingly considered crucial.
22.9 32/100 89 67.58
(Medium) ESG Ranking (%)
ESG Risk Rating (Grade: B+)
Medium Risk Compared Within
34,925 Companies *As of December 2022
Bank BTN is listed in the KEHATI Group Bank BTN is listed in the climate change
Index which includes: care index, namely the IDX LQ45 Low
• SRI KEHATI Carbon Leaders Index.
• ESGQ 45 IDX KEHATI
• ESG SL IDX KEHATI
PT Bank Tabungan Negara (Persero) Tbk 7
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Message from the President Director [GRI 2-22] [OJK D.1]
Nixon L.P. Napitupulu
President Director
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Employee Community Excellent Service for Sustainability Development Empowerment Customers Governance Dear shareholders and stakeholders, We would like to express our gratitude to God Almighty for because of His mercy and grace, PT Bank Tabungan Negara (Persero) Tbk, hereinafter referred to as “the company", has successfully pushed through the year 2023 with a positive and satisfactory performance. In 2023, which is replete with challenges, the company is grateful to be able to release the 2023 Sustainability Report, which is the fifteenth edition since the first report was published back in 2009. We make this report as a form of the company’s accountability and transparency to all our stakeholders. Through this report, we want to provide transparent information regarding the company's activities and performance results related to economic, environmental, social and governance aspects. This report also provides information regarding program achievements, strategies, and sustainability performance during the reporting period. Apart from being a form of accountability for the company's performance, this report is also a form of our contribution in supporting the achievement of the Sustainable Development Goals (SDGs) that have been stipulated based on Presidential Regulation No. 59 of 2017 on Implementation of the Achievement of Sustainable Development Goals. Responding to Sustainability Dynamics [GRI 2-22, 2-23, 2-24] Of late, sustainable development principles have become the focus of various industries, including the banking industry. One of the keys to successful development in the banking sector is the implementation of sustainable finance. Sustainable finance plays an important role in economic development as it puts emphasis on balance between economic, social and environmental aspects. To that end, as a company operating in the banking industry, we are committed to aligning our programs and business activities to support the development of a sustainable financial ecosystem in Indonesia. The company's commitment to building a sustainable financial ecosystem needs to be translated into smart strategic steps. The development of a long-term strategy is highly needed so that the company can answer the need to give innovative solutions and needs to provide benefits to the society and the environment. To answer this challenge, the company has prepared a comprehensive road map covering environmental, social and governance (ESG) aspects. Afterwards, the company integrated the ESG roadmap into the company’s structure by establishing an ESG Committee. This committee has the authority to formulate, determine and evaluate the company’s policies that have an impact on the environment, social and society as part of the embodiment of the ESG roadmap. The ESG Committee also plays a pivotal role in identifying opportunities and managing risks related to ESG aspects. Through this ESG Committee structure, the company can integrate social and environmental responsibility more effectively into its strategic decisions. Thus, the establishment of the ESG Committee becomes a strategic step in supporting the company's vision and commitment to sustainable development. In terms of policies, the company has made sustainable finance and ESG principles the main foundation in its efforts to achieve sustainable growth. BTN's ESG roadmap serves as a guideline for managing environmental impacts, addressing social issues, and maintaining good governance in accordance with banking industry standards. In particular, the implementation of ESG principles is focused on the housing sector which becomes the company's priority sector. PT Bank Tabungan Negara (Persero) Tbk 9
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About the Profile of Bank BTN Inclusive and Sustainable Environmental
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In terms of partnerships, the company reinforces its commitment to building cooperation with companies that are also
committed to ESG issues. This is realized by integrating ESG factors in selecting industrial sectors that are in line with
business and ESG principles. The company made the selection by considering ESG components such as the sector's
position in Indonesia's green taxonomy, ownership of a sustainable finance roadmap, and other external policies related
to ESG. On top of that, the company's Board of Directors and Board of Commissioners have a strong commitment to
implementing high ESG standards for all stakeholders and carrying out inclusive activities related to ESG.
In facing this dynamic, the company has also implemented a variety of technological innovations, including developing
more responsive banking applications, improving digital security systems, and optimizing internal processes to boost
efficiency. This effort is in line with the company's commitment to providing a more modern and secure banking
experience for its customers. By strengthening digitalization, the company is ready to face business challenges and
ensure competitive services in this increasingly digitally connected era.
The company continues to build and implement a digital mortgage ecosystem, which provides digital services covering
four main aspects of living, renting, buying, and selling. The development of the digital mortgage ecosystem is in line
with the company's mission to "become a financial partner for stakeholders in the housing ecosystem by providing
comprehensive solutions and the best services through digital innovation".
With full confidence, our business journey in the last few years remains on track to achieve the company's vision to
"become the Best Mortgage Bank in Southeast Asia by 2025". We are determined to continue adapting to changes in
the dynamics of the banking and property business to provide the best service for the community. This determination
has increasingly encouraged us to consistently implement the concept of sustainable residential development with the
principles of economic, social, and environmental balance.
Supporting Sustainable Growth [GRI 2-22, 2-23, 2-24]
The company is committed to supporting sustainable The company strives to not only adapt to change, but
growth for Indonesia. The "Green Indonesia” concept is also to be an active company in shaping a sustainable
our basis for implementing this initiative. We believe future for the country. The company's commitment
that by implementing the principles of sustainability and to supporting sustainable growth is reflected in an
innovation in all areas, we can make a positive contribution approach that involves all the company's business lines.
to economic, environmental, and social aspects.
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We believe that running a business by considering the a positive impact on welfare and meeting housing needs
balance of the 3P aspects (profit, people, planet) will in Indonesia.
create sustainable values.
The company is optimistic it can maintain sustainable
The company is determined to expand its financing growth amidst macroeconomic challenges and adapt
portfolio to include sustainable and environmentally to business digitalization in 2024. The company has
friendly housing projects. We realize that the company developed four strategic focus areas to be implemented
plays a crucial role in the success of housing development in 2024. The first strategy is a credit business plan that
programs at the national level. The company makes will optimize the portion of the national housing program
every effort to support the government’s programs in with a target of distributing subsidized housing loans
distributing housing finance with the aim of helping (KPR) of 171,200 units. The second strategy is a funding
people have the best quality homes. The housing business plan targeting the acquisition of institutional
sector that continues to recover and the government’s customer payroll to increase retail third party funds
incentives will further encourage the housing sector (DPK), developing the wholesale banking business as
financing business to record a growth until 2024. We a source of growth in obtaining cheap funds or current
continue to use this momentum with various business account saving accounts (CASA) and fee-based income,
initiatives that we continue to take. as well as carrying out wholesale re-composition
funding to reduce the blended cost of funds.
The company's presence contributes to improving the
nation's welfare by providing housing credit that can The third strategy is the development of digital banking
be reached by the lower levels of society and providing by building a digital-based housing ecosystem such
opportunities for those who are less fortunate to realize as the BTN Properti app, BTN Properti for Developers,
their dream of owning their own home. Since 1976 and Smart Residence, eMitra, as well as increasing digital
for more than 47 years, the company has made various transactions through the launch of the BTN Mobile
steps and breakthroughs in providing housing credit, app. The fourth strategy is to become an enabler by
especially for low-income people. This effort is realized centralizing back-end processes to improve operational
through a subsidized housing program implemented efficiency (cash center, accounting and procurement)
across the country. With this commitment, the company and continuing to improve credit processes, especially
continues to play an active role in supporting access to in the commercial and MSME segments.
affordable housing for all levels of society and creating
Support for Sustainable Development Goals [GRI 2-22, 2-23, 2-24]
BTN's journey in achieving sustainable finance The implementation of sustainable finance is also
performance goals is in line with the company's inseparable from the implementation of corporate
efforts for achieving sustainable development targets. social responsibility programs as regulated in Law No.
The company is fully committed to supporting the 40 of 2007 on Limited Liability Companies. Various
Indonesian government's initiatives that seek to meet activities carried out in the CSR programs also support
sustainable development targets at the global level the company to achieve the SDGs. Like the mapping on
stated in the Sustainable Development Goals (SDGs). the SFAP, the company also carries out mapping on the
implementation of its CSR programs.
The company strengthens its sustainability foundation
by reinforcing its commitment to policies aimed at As one of the leading financing institutions in Indonesia,
achieving sustainable and responsible business. As part the company always strives to improve economic
of efforts to improve sustainable financial performance, performance and financial inclusion. In 2023, the
the company has issued a Sustainable Financial Action company succeeded in obtaining a net profit of Rp3.5
Plan (SFAP), which is in accordance with the provisions trillion or 114.64% of the bank's business plan. This
of Financial Services Authority Regulation No. 51/ achievement shows an increase of 15.13% compared to
POJK.03/2017 concerning the Implementation of that 2022, which saw a net profit of Rp3.04 trillion. In
Sustainable Finance for Financial Services Institutions, terms of lending distribution, the company succeeded
Issuers and Public Companies. We issue the SFAP as a in disbursing credit amounting to Rp318.1 trillion, or an
means to communicate and internalize sustainability increase of 6.65% compared to that of the previous year
values to stakeholders. We issue the SFAP to support at Rp298.28 trillion.
the achievement of the company’s performance which is
focused on sustainable development goals.
PT Bank Tabungan Negara (Persero) Tbk 11
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In implementing sustainability principles, the company is a form of real support for the implementation of
fully supports the government's commitment to sustainable finance.
reducing greenhouse gas (GHG) emissions. This
support is in line with the company's commitment to In governance aspect, the company is committed
tackling and preventing climate change. In 2023, the to implementing the principles of good corporate
company conducted calculations of Scope 3 greenhouse governance (GCG) in every aspect of its activities.
gas emissions originating from financing (financed The company routinely holds a series of trainings
emissions) adhere to the Partnership for Carbon and disseminations related to corruption prevention.
Accounting Financials (PCAF) standard, amounting to This effort reflects the company's commitment to
805,615 tons of CO2 eq. implementing GCG to protect itself from the risk of
corruption, collusion, and nepotism. The company
The company realizes that the implementation of is also committed to respecting human rights.
sustainability principles cannot be separated from the Compliance with human rights is the company's focus
implementation of sustainable finance and is related to in carrying out business operations, especially when
the implementation of corporate social responsibility building relationships with various stakeholders. This
(CSR) programs. Both are inherent in the company's commitment is implemented in all the company's
obligations as regulated in Law on Limited Liability interactions with internal stakeholders and the
Company. In 2023, the company distributed CSR funds community in the company's operational areas.
amounting to Rp79.99 billion. This funding allocation
Support and Appreciation
The commitment and contribution of the company's prosperous life. The company also won two awards
employees, along with the support of stakeholders, from The Asian Business Review during The Asian
has resulted in positive performance. Thanks to the Experience Awards 2023 in Singapore. The company
company's positive performance in 2023, the company won two awards in the Indonesia Service Experience
succeeded in winning various national and international of the Year and Indonesia Partner Experience of the
awards. Year categories. This award proves that the company's
efforts to improve performance and business processes
At the international event, the company once again won have been recognized by international institutions. The
the Best Bank for CSR in Indonesia award from Asia various international awards won by the company show
Money. The award is an appreciation for the company's that the transformation carried out is on the right track.
efforts to support the fulfillment of housing needs for This achievement also supports the implementation
low-income families or communities (MBR) for a more of the company's vision to become the Best Mortgage
Bank in Southeast Asia by 2025.
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Meanwhile, at the national awards event, the company and The Best Employee Engagement; Silver award in
succeeded in winning the award as Main Contributor the Best Business Contribution category; and Bronze
to the National Housing Program on the peak night of awards in the categories of The Best Telemarketing and
National Housing Day (Hapernas) 2023 which was held The Best Quality Team.
by Ministry of Public Works and Public Housing. The
award was given for the company's role as the Bank The achievements made in 2023 demonstrate the
Distributing PR Credit to the Most Housing and Tapera company's ability to surmount various challenges that
(People’s Housing Saving) Financing Liquidity Facilities we faced during the reporting period. The awards and
in 2023. The Company has been a contributor and the appreciation we received have become a source of
main mover of the national housing program to reduce motivation for us to continue to innovate and to always
the housing deficit (backlog) in Indonesia, especially uphold the values of sustainability. These awards are the
in housing financing in the low-income community fruits of the hard work of all the company’s personnel,
segment. The company has also won six awards at the support from the government, and participation of other
Best Contact Center Indonesia 2023 event held by stakeholders. Along with support from stakeholders
the Contact Center Association (ICCA). The Company and various other parties, the company will continue to
succeeded in winning Gold Awards in the Categories of integrate sustainable business continuity.
The Best Technology Innovation, The Best Quality Team,
Closing
As a representative of the company, I would like to express my utmost gratitude to everyone who has contributed
and supported the company's efforts in implementing sustainability values. The supports given have helped the
company to develop while maintaining a balance in economic, environmental, and social aspects. We truly appreciate
the dedication and innovation of all the company’s personnel who have tried hard to give maximum contribution and
achieve optimal performance. May this achievement become an inspiration for everyone to continue to make the
most of their potentials and to become the foundation for the company's future growth.
Jakarta, February 2024
Nixon L.P. Napitupulu
President Director
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BOARD OF COMMISSIONERS STATEMENT ON ACCOUNTABILITY
FOR PT BANK TABUNGAN NEGARA (PERSERO) TBK
2023 SUSTAINABILITY REPORT [GRI 2-14] [OJK G.2]
We, as the Board of Commissioners of PT Bank Tabungan Negara (Persero) Tbk have evaluated the content of this
Sustainability Report and confirmed that the report has covered all material sustainability topics for the Company and the
Company's stakeholders. We are responsible for the accuracy of the contents of this Sustainability Report.
Jakarta, February 2024
Chandra M. Hamzah Iqbal Latanro
President/Independent Vice President/Independent
Commissioner Commissioner
Armand B. Arief Sentot A Sentausa Andin Hadiyanto
Independent Commissioner Independent Commissioner Commissioner
Herry Trisaputra Zuna Himawan Arief Sugoto Mohamad Yusuf Permana
Commissioner Commissioner Commissioner
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BOARD OF DIRECTORS STATEMENT ON ACCOUNTABILITY
FOR PT BANK TABUNGAN NEGARA (PERSERO) TBK
2023 SUSTAINABILITY REPORT [GRI 2-14] [OJK G.2]
We, as the Directors of PT Bank Tabungan Negara (Persero) Tbk have evaluated the content of this Sustainability
Report and confirmed that the report has covered all material sustainability topics for the Company and the Company's
stakeholders. We are responsible for the accuracy of the contents of this Sustainability Report.
Jakarta, February 2024
Nixon L.P. Napitupulu Oni Febriarto Rahardjo
President Director Vice President Directo
Hirwandi Gafar Nofry Rony Poetra Eko Waluyo
Director of Consumer Director of Finance Director of Human Capital,
Compliance & Legal
Elisabeth Novie Riswanti Andi Nirwoto Jasmin
Director of Assets Management Director of IT & Digital Director of Distribution & Funding
Setiyo Wibowo Hakim Putratama
Director of Risk Management Director of Institutional Banking
PT Bank Tabungan Negara (Persero) Tbk 15
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SUSTAINABILITY Strategy [OJK A.1, F.1]
Economic development cannot be separated from maintains ethical governance standards in all its
social and environmental consequences that result banking operations. The company's implementation of
from it. To create a national economy that puts harmony sustainable finance has been carried out since 2019
between economic, social, and environmental aspects through the issuance of the Sustainable Finance Action
above everything, appropriate and adequate resource Plan (SFAP), which refers to Regulation of the Financial
management is needed. As a banking actor, the Service Authority No. 51 of 2017 on Sustainable
company is aware of its strategic function and role in Financing of Financial Services Institutions, Issuers and
ensuring that the investment flows it manages can Public Companies.
contribute to the future and have a broad impact on
economic development, environmental conditions, and In 2023, the company developed a series of frameworks,
social aspects. strategies, and roadmaps to encourage sustainable
finance and support the company's ESG performance.
The company continues to be committed to encouraging The company emphasizes its focus on addressing
sustainable finance through the integration of ESG-related issues in the mortgage banking sector
Environmental, Social and Governance (ESG) in with the aim of achieving long-term sustainability and
its operational activities. The company's journey in responsible banking practices.
ESG involves planning how the company manages
environmental impacts, addresses social issues, and
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Development Empowerment Customers Governance
ESG Framework
The Future of Finance
ESG in the
value chain
Sustainable Climate Change People &
Finance & Ecosystems Community
Stakeholder
Inclusiveness
Integrated GRC
Governance Risk Compliance
Integrated GRC
The company has developed an ESG framework called the Future of Finance. The ESG framework provides guidance
for the company in managing and implementing business practices that are oriented towards impact performance and
supporting the achievement of the Sustainable Development Goals (SDGs). This framework becomes the basis for
managing business activities and operations as well as a more comprehensive decision-making process. BTN's ESG
framework consists of 6 (six) components, including:
Sustainable Finance Climate Change and People and Community
1 Management of products and
2 Ecosystems 3 Management of impacts on
services that support the transition Managing climate change risks individuals, communities, and
process towards a low-carbon and their impact on ecosystem wider society in general.
economy and maintain social capacity.
balance in opening equal access to
capital.
Stakeholder Inclusiveness ESG in the Value Chain Integrated Governance, Risk, and
4
4 Prioritizing stakeholder
5 Creating interdependent
6 Compliance (GRC)
inclusivity as the main focus systems to effectively manage Ensuring that sustainability is not
for achieving sustainability sustainability risks and only a cornerstone of business but
goals. opportunities from upstream to also thoroughly integrated into
downstream (value chain). every aspect of governance, risk
management and compliance.
PT Bank Tabungan Negara (Persero) Tbk 17
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ESG Strategy
In implementing the ESG framework, the company has formulated 9 (nine) strategic steps that are implemented
inclusively, as follows:
1 2 3
Implementing sustainable bank Developing sustainable and Integrating ESG components
business operations inclusive bank products and in business risk management
portfolio management frameworks and programs
(enterprise risk management)
4 5 6
Developing an ESG culture program Building a control environment Developing ESG monitoring,
and responsible leaders that is integrated with ESG communication and reporting
components programs
7 8 9
Building ESG data Navigating trends in ESG rules Building partnerships and
management and regulations cooperation
ESG Roadmap
Realizing the Future of Finance by implementing a road map carried out in stages and on target by dividing it into three
phases; namely Action, Advance, and Accelerate.
2026 - 2028
Accelerate
Phase
2025 - 2026
Advance
2023 - 2025 Phase
Action
Phase
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Action Phase (2023—2025)
During this phase, the Company takes steps to integrate ESG principles into its operational activities. The objective is
to strengthen the foundation for implementing ESG principles in every aspect of the Company's operations and to
become an integral part of the Company.
Advance Phase (2025—2026)
The Company increases its commitment to ESG by expanding the scope and impact of the initiatives taken. Bank BTN
focuses on efforts to strengthen social and environmental responsibility, in line with global developments. This step
aims to enhance positive contributions to society and the environment.
Accelerate Phase (2026—2028)
This phase demonstrates the Company's commitment to accelerating the positive impact of implementing ESG
principles on the environment, society, and corporate governance. This is achieved through various concrete steps and
effective and efficient initiatives aligned with the Company's vision. During this phase, the Company implements strong
determination and ambition to realize Sustainable Finance in achieving the Sustainable Development Goals (SDGs).
In proposing the ESG framework, strategy, and roadmap, the Company also considers stakeholder engagement. This
involves benchmarking with companies that have implemented ESG practices both domestically and internationally.
Additionally, the Company conducts an ESG Workshop with 20 participants from internal divisions. The workshop
serves as a supporting validator for the proposed draft of the ESG framework, strategy, and initiatives. The objective is
to establish an ESG framework that aligns with the Company's readiness and ambitions.
BTN has 24 strategic initiatives in its 5-year ESG roadmap with 10 priority initiatives as follows:
1 Implementing the Clean Energy Transition 6 Sustainable Product Offering
Become a Pioneer of green mortgage carbon trading Consistently launching sustainable products, including:
• Target: Enter the carbon trading exchange by green/social bonds and green products (third-party
becoming a seller in green mortgage carbon trading funds)
• Timeline: 2024-2025 • Target: green/social bonds: Rp3 trillion & 5 green
product
• Timeline: 2024 - 2028
2 Sustainable Bank Operational Program 7 Channeling Sustainable Loans
The implementation of sustainable banking operations Enhancing the Bank's role in supporting the distribution
through the efficient use of paper and electricity, adoption of sustainable loans (according to sectors designated by
of Electronic Vehicles (EVs), and utilization of solar panels OJK), SMEs, and green mortgages
• Target: Reducing paper and electricity use: 50% in 5 • Target: Sustainable sectors: minimum 20% of the loan
years, EV vehicles: 50 units; Solar Panels: 20 Branch portfolio; green mortgages: 20%
Offices • Timeline: 2024 - 2028
• Timeline: 2024 - 2028
3 Sustainable Procurement Program 8 Diversity, Equity, and Inclusion Program
Increasing awareness among stakeholders and bank Prioritizing the social aspect within the human resources
partners, and establishing sustainable procurement scope
policies • Target: Hiring people with disabilities: 2% of total
• Target: sustainable practices to 50 core vendors employees and Increasing the representation of
• Timeline: 2024 -2026 women talent in management positions: 30%
• Timeline: 2024 - 2028
4 Climate Risk Stress Test 9 Developing ESG Policies
Conducting climate risk assessments that impact the Regularly aligning internal regulations and policies with
financial condition of the Bank relevant ESG policies according to best practices and
• Target: Climate Risk Stress Testing in accordance with regulations.
OJK regulations and best practices • Target: ESG Policy Review
• Timeline: 2024 • Timeline: 2024 – 2028
5 Developing ESG University 10 Becoming Signatories to Sustainable Finance Commitments
Enhancing the competence, capacity, and capability Actively engaging in international-level ESG networks
of employees related to ESG by developing an ESG and communities
Curriculum and training program • Target: Member of 4 sustainability institutions (domestic
• Target: 75% of employees in strategic positions & international)
• Timeline: 2024 - 2026 • Timeline: 2024 - 2028
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Sustainable Finance Action Plan (SFAP) [OJK E.1, D.1.b]
The company as a State-Owned Enterprise and one of the largest banks in Indonesia is committed to supporting
sustainable development. The company realizes this by providing selective financing, which is in line with the principles
of sustainable finance.
Officials Responsible for Implementing Sustainable Finance
[GRI 2-12, 2-13] [OJK B.3, E.1]
The company applies sustainable finance principles in accordance with Regulation of the Financial Service Authority
Number 51/POJK.03/2017 which came into effect on January 1, 2019 that regulates the implementation of Sustainable
Finance for Financial Services Institutions, Issuers and Public Companies. Since the enactment of this regulation, there
have been changes in the company's organizational structure. The regulation also emphasizes the importance of the
availability of employees, officials and/or work units as work units with the authority to manage and coordinate activities
related to Sustainable Finance. In line with its commitment to comply with these regulations, the company appointed
the Enterprise & ESG Risk Management Work Unit as the Work Unit with the authority to manage and coordinate
sustainable finance activities. Implementation of sustainable finance programs involves various Work Units, including
Corporate Secretary, Subsidized Mortgage, Corporate Banking, SME Banking, Commercial Banking, Procurement &
Fixed Asset Management, Learning Management, Investor Relations & Research, Compliance & Governance, Digital &
Operation Risk Management, Human Capital, dan Digital Banking. [TCFD Gov.a]
Implementation of 2023 SFAP
The implementation of BTN's SFAP in 2023 is formulated into 5 Bank BTN Sustainable Finance Pillars, including:
Sustainable Finance
5 Pillars Human Procedure Social and
of BTN Products Resources and Technology Environmental
Policy Responsibility
Product Human Ensuring that Use of Digital Formulation
development resources policies and application of a series of
and operation capacity in mitigate risks in digital for programs that
that take supporting have been done
Description development of among others
into account Sustainable for the bank’s bank’s products are related to
economic, Finance products and/or and services social affairs
social, and services
environmental
aspects
The SFAP provides strategic direction for the company in developing its financing portfolio for sustainable business
activities as well as changes that the company will make in business processes and risk management. The changes
made are relevant changes in integrating environmental, social and governance (ESG) risk management in the bank’s
business activities.
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The company has implemented a number of SFAP 2023 programs, as follows:
No Name of Program Work Unit Implementing the Program
1 Installation of a dropbox machine (reverse vending machine) from Plasticpay Procurement & Fixed Asset Management
Mini MBA in property developer training/education program and School of Investor Relations & Research
2
Property Developer in collaboration with universities
3 Better awareness to promote digital banking services at BTN Digital Channel
Merdeka Belajar which takes the form of providing early childhood education Corporate Secretary
4
facilities and infrastructure and rehabilitating learning spaces
5 Community-based provision of clean water and healthy sanitation Corporate Secretary
6 Development of a public electric vehicle charging station in the BTN Tower area Procurement & Fixed Asset Management
Distribution of corporate lending to support renewable energy development Corporate Banking
7
projects
Installation of solar panels at the BTN Tower Building and Bandung Branch Procurement & Fixed Asset Management
8
Office
Development of an environmental, social and governance (ESG) roadmap that Enterprise Risk Management
9
is in line with the company's regulations and business strategy
10 Digital services for partners/partners who want to collaborate with BTN Digital Banking
11 Use of electric vehicles for operations Procurement & Fixed Asset Management
Training/dissemination to build awareness regarding ESG for employees using Learning Management
12
online/self learning methods
13 Student internship program Learning Management
Training/dissemination of anti-fraud strategies, anti-money laundering, Learning Management
14 prevention of terrorist financing and anti-bribery management systems
(ABMS)
15 Online training/dissemination for employees Learning Management
Procurement process that pays attention to environmental aspects with end- Procurement & Fixed Asset Management
16
to-end Procurement applications
Document storage process that pays attention to environmental aspects with Procurement & Fixed Asset Management
17
the document management system & record management system application
Providing Investment Credit/Working Capital Credit to companies for Commercial Banking
18
developing projects with environmentally friendly concepts
19 Providing facilities and infrastructure for MSMEs Corporate Secretary
20 Providing green building certification for low-income housing Subsidized Mortgage
Providing scholarships to students (primary-high school/equivalent level) Corporate Secretary
21
and students from low-income families
Education and training for young developers, in collaboration with the Housing Corporate Secretary
22
Finance Center (HFC)
Credit distribution in the field of biological natural resource management and Corporate Banking
23
sustainable land use
24 Greening in housing financed by BTN Corporate Secretary
25 Development of waste banks Corporate Secretary
26 Digital distribution of MSME credit SME Banking
27 Training related to providing lending with sustainable principles for employees Learning Management
28 BTN Santri Developer training/education program Investor Relations & Research
Training and empowering the community to become entrepreneurs through Corporate Secretary
29
BTN Business Camp
Construction of public infrastructure (Edu Green Bank BTN) in subsidized Corporate Secretary
30
housing financed by BTN
31 Tackling slum areas Corporate Secretary
32 Community reading center program Corporate Secretary
33 Illiteracy eradication program Corporate Secretary
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Problems and Challenges in Implementing Sustainable Finance [OJK E.5]
In 2023, the Company faced no problems related in supporting the implementation of sustainable
to implementing sustainable finance. Nevertheless, finance. To overcome those challenges, the company
the company did face a number of challenges and took the initiative to increase internal capacity. One of
in response to these challenges, the company has the steps taken was by organizing ESG awareness which
identified and implemented mitigation efforts. One of was attended by 400 employees of the company.
the main obstacles that the company is currently facing
is a lack of understanding from debtors regarding The company recognizes the importance of awareness
sustainability issues and risks related to ESG in their regarding sustainability throughout its supply chain.
business operations. Therefore, the company has Therefore, the company has organized awareness
organized awareness sessions for 50 MSMEs related to sessions regarding sustainable procurement for
sustainable business to increase their understanding. its suppliers. These steps aim to create a better
understanding of ESG aspects and encourage
The company also faced challenges related to uneven sustainable financial practices in and around the
understanding regarding the integration of ESG aspects company's operations.
Communication of Important Issues in Sustainable Finance [GRI 2-16]
In the context of sustainable finance, every company is expected to have an effective mechanism for monitoring and
addressing important issues that may arise. During the reporting year, the company managed to identify a number
of important issues specifically related to the implementation of SFAP and sustainable financial aspects. The issue
that emerged was the company's awareness of the importance of ESG performance for stakeholders, especially
shareholders, including the net zero emissions target, sustainable financial products, and sustainable procurement. In
response, the company developed an ESG strategy, framework and roadmap that serve as a guide to improving ESG
performance in the future.
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AWARDS DURING 2023
During the year 2023, the Company has achieved several awards, which are detailed in the Company's Annual Report. Below are the
awards that the Company has successfully achieved related to ESG:
July 20, 2023 July 20, 2023
Award: Award:
Very Good in the Employer Excellent in the Learning
Branding & Talent Acquisition & Development (L&D) and
category Knowledge Management
category
Event: Event:
HR Excellence Award 2023 HR Excellence Award 2023
Organizer: Organizer:
SWA SWA
July 20, 2023 October 26, 2023
Award: Award:
Very Good in the Reward Education Category
Management & Talent
Retention Strategy category
Event:
Anugerah CSR 2023
Event:
HR Excellence Award 2023 Organizer:
Republika.co.id
Organizer:
SWA
November 6, 2023 November 29, 2023
Award: Award:
Gold Rank Leadership AA
Acara:
Event:
ESG Disclosure Transparency
ASRRAT 2023 Awards
Organizer: Organizer:
National Center for Corporate Investortrust
Reporting (NCCR)
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the COMPANY AND SUSTAINABLE DEVELOPMENT
GOALS
The Sustainable Development Goals (SDGs) established by the United Nations (UN) in 2015 consist of 17 goals and
169 targets aimed at promoting global sustainability by integrating economic, social, and environmental development.
Indonesia's commitment to achieving the SDGs is manifested through Presidential Regulation No. 59 of 2017. The
company plays a significant role in realizing Goal 11 of the SDGs by contributing through housing ownership financing
products (KPR) to build cities and settlements that are livable, safe, and affordable by 2030. This involvement aligns
with the mandate of Law No. 14 of 2016 concerning Housing and Settlement Areas, which, in turn, not only contributes
to addressing sustainability issues but also enhances the company's resilience to sustainability risks.
Subsidized KPR provided by BTN, Easy Way to Own a House
Subsidized KPR is a home ownership program from the Ministry of Public Works and Public Housing of the Republic
of Indonesia which is aimed at low-income communities with low interest rates and light installments to purchase
landed welfare homes and flats. In this case, the Company is one of the distributors of the program, which is
implemented through Subsidized BTN KPR products. This product is worth choosing for it has several advantages,
including:
• Low down payment starting from 1%;
• Fixed interest rate of 5%;
• Term of up to 20 years;
• Down payment assistance subsidy of Rp4 million *(especially for site house);
• Free of insurance premiums and VAT dan
• Extensive network of cooperation with developers throughout Indonesia.
Make cities and human Ensuring availability and
settlements inclusive, safe, sustainable management of clean
resilient, and sustainable. water and sanitation for all.
Provided for low-income people without discriminating Providing decent housing and equipped with MCK
against ethnicity, religion, race and so on. Its facilities (bathing, washing, latrine). This facility will
development prioritizes inclusive, not exclusive, encourage residents to live a healthy lifestyle so as to
settlement rules. By creating such conditions, it is hoped create a good condition in the health sector, especially
that the Subsidized BTN KPR complex will maintain its public health.
solidarity, security, and resilience so that the complex
and its residents continue to survive and be sustainable.
BTN Subsidized
KPR
Helping to reduce housing backlog as this program
works with developers throughout Indonesia. The terms
of ownership are also easy: free of insurance premiums
Providing houses with a source of lighting in the form and VAT, subsidized down payment of Rp4 million –
of electrical energy at affordable subscription prices especially for landed houses; light down payment, from
because the rates are adjusted to the ability of the 1%; fixed opening rate of 5%; and a term of up to 20
occupants as low-income people. years.
Ensuring energy access that is Narrowing down gap Within the
affordable, reliable, sustainable, country and between countries
and modern for all
In addition to achieving the SDGs through KPR products, the Company also supports the achievement of SDGs directly
or indirectly by implementing Social and Environmental Responsibility (TJSL) activities. All of these 2023 activities are
fully summarized in each material topic in the 2023 Sustainability Report in which the outline is illustrated in the table
below:
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SDGs Company Contribution
No Poverty • The Company has a Micro, Small and Medium Enterprise DevelopmentProgram through BTN Micro and
Small Business Credit (KUMK), People'sBusiness Credit (KUR), UMK Funding Program, BTN Linkage Credit;
• Strengthening the independence and entrepreneurship of students through the BTN Santri Developer
program.
Zero Hunger • The Company distributes credit to key economic sectors including Agriculture, Livestock, and Fisheries.
Good Health and • Organizing a webinar on the theme "Wellness in the Workplace" with the aim of enhancing knowledge,
Well-Being awareness, and encouraging actions to protect employees' mental health;
• Promoting work-life balance with the inauguration of the BTNers Club.
Quality Education • Business development training for prospective developers through BTN Santri Developer training;
• Organizing training for employees with a total training of 62.52 hours for male employees and 60.73 hours
for female employees.
Gender Equality • The Company opens wide opportunities for women to work and develop their careers;
• SRIKANDI BUMN Goes to Campus program to support the empowerment and leadership of women.
Clean Water and • Through various housing finance programs, the Company provides access/availability of clean water and
Sanitation sanitation that is available to all homeowners. Provision of clean water and sanitation is also one of the
Company's TJSL programs, especially during the dry season.
Affordable and • Through various housing financing programs, the Company provides affordable energy sources for Low
Clean Energy Income Communities (MBR).
Decent Work and • The Company facilitates revolving funds for MSME development in Indonesia through the MSE Funding
Economic Growth Program;
• Supporting the growth of SMEs by organizing workshops and digital UMKM exhibitions in Jepara, Central
Java, and UMKM Bazaar at Sarinah, Jakarta.
• Facilitating SMEs to penetrate the global market by enabling one of the SME partners to attend the China
ASEAN EXPO 2023.
Industry, • Providing access for small-scale businesses to financial services through the Micro, Small and Medium
Innovation, and Enterprises Development Program through BTN Micro and Small Business Credit (KUMK), People's Business
Infrastructure Credit (KUR), UMK Funding Program, BTN Linkage Credit.
Reduced • Upholding equality and a safe working environment through the implementation of the Respectful Workplace
Inequalities Policy and the principles of Diversity, Equity, and Inclusion;
• The Company’s presence throughout Indonesia creates jobs and helps local residents to be able to meet
their needs. In this way, the income gap between residents, which has so far been a global problem, can be
narrowed.
Sustainable Cities • Providing housing loan (KPR) products and supporting the One Million Houses Program for low-income
and Communities people to have a safe and affordable place to live.
Responsible • The Company employs an e-Procurement application that saves paper.
Consumption and
Production
Climate Action • Supporting the "Gotong Royong Boyong Pohon" (Community Collaboration in Planting Trees) movement;
• The Company implements a Green Office concept at the Head Office Building and participates in Earth Hour
to increase energy awareness.
Life Below Water • Committed to actively participating in efforts to sustainably preserve marine and ocean resources for
sustainable development.
Life on Land • Supporting the "Gotong Royong Boyong Pohon" (Community Collaboration in Planting Trees) movement;
• The Company requires the fulfillment of the AMDAL in housing development;
• The Company carries out environmental conservation by planting mangroves and trees around housing
which is financed by the Company.
Peace, Justice, • Completion of the Integrity Pact by all employees according to the values of the Code of Conduct.
and Strong
Institution
Partnership for • The Company is a member of the Task Force on Climate-related Financial Disclosures.
the Goals
PT Bank Tabungan Negara (Persero) Tbk 25
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01
About the
Sustainability Report
Sustainability
Report
2023
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About the Profile of Bank BTN Inclusive and Sustainable Environmental
Sustainability Report Economic Growth Sustainability
The Company has published a sustainability report Based on the regulation, a sustainability report is a
annually since 2009. The 2023 Sustainability Report is report announced to the public that contains economic,
the 15th report with the previous report published on financial, social, and environmental performance of
February 22, 2023. This report unveils the Company’s a financial service institution, an issuer, and a public
performance that includes Head Offices and Branch company in running a sustainable business. Therefore,
Offices throughout Indonesia within a period of one year the form of the Company's sustainability report refers
from 1 January to 31 December 2023 as stated in the to the Circular of Financial Services Authority Number
Consolidated Financial Statements as of December 31, 16/SEOJK.04/2021 on the Form and Content of Annual
2023. [GRI 2-2] [GRI 2-3] Reports of Issuers or Public Companies. Through this
circular, all public companies or issuers are required
The Company's consistency in preparing sustainability to include a report on Social and Environmental
reports reflects its commitment and compliance Responsibility in the Annual Report or in a separate
with various regulations, including Regulation of the report, such as the Sustainability Report.
Financial Services Authority Regulation (POJK) Number
51/POJK.03/2017 on Implementation of Sustainable The Company has ensured that the data and information
Finance for Financial Services Institutions, Issuers, in this report are presented accurately to meet the
and Public Companies. Article 10 of Regulation of principles of good reporting. However, if there is a
Financial Service Authority Number 51/POJK.03 of change in data or information in the previous report, for
2017 explicitly states that "financial service institutions, example, due to differences in measurement methods,
issuers and public companies are required to formulate we will mark *restated. [GRI 2-4]
a sustainability report." In this context, the Company
has issued reports voluntarily since 2009 long before
regulations were enacted.
Reporting Formulation Standard [GRI 2-23]
Regulation of the Financial Service Authority Number 51/
POJK/03/2017 on Implementation of Sustainable Finance
for Financial Service Institutions, Issuers, and Public
Companies and Circular of the Financial Services Authority
Number 16/SEOJK.04/2021 on Report Form and Content of
Annual Report of Issuer or Public Company.
Task Force on Climate
Global Reporting Initiative related Financial Sustainability Accounting
(GRI) Standard Disclosures (TCFD) Standard Board (SASB)
Through this Sustainability Report, the Company conveys economic, financial, social, and environmental performance
and their impacts prepared in accordance with several reporting policies, standards, and initiatives. This is a manifestation
of the Company's commitment to supporting measures to achieve the Sustainable Development Goals (SDGs) that
have been adopted by Indonesia to become Indonesia's SDGs (http://sdgsindonesia.or.id/).
The Company publishes the Sustainability Report in two languages: Indonesian and English. Financial data in this
report has been audited by a Public Accounting Firm for the purpose of the Company's Annual Report. The financial
data submitted uses Rupiah nominations, unless otherwise indicated. Meanwhile, the quantitative data in this report
is presented using the principle of comparability for a minimum of two years, so that report users can analyze the
Company's performance trends. Apart from the print edition, the report can be viewed and downloaded through the
Company's official website: www.btn.co.id.
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REPORT CONTENT DETERMINATION PROCESS [GRI 3-1, 3-2, 3-3]
In preparing the Sustainability Report, the process of determining the contents of the report is part of an important
series carried out by the Company. Referring to the GRI Standard Guidelines, the Company carries out four steps in
determining report content, namely:
1 Identification 2 Priority 3 Validation 4 Review
Identifying topics that Making Priorities of Conducting validation Conducting review of
are material/important topics that has been of topics that are reports that are after
and determining identified in the deemed important published in order
boundaries. previous steps. to improve quality of
reports in the following
years.
The Company carries out the process of determining the content of the Sustainability Report by taking into account the
application of the reporting principles compiled by GRI in the GRI Standard Guidelines, including:
1. Stakeholder Inclusiveness
Identifying stakeholder groups and including the expectations and interests of each group related to the Company's
business activities.
2. Sustainability Context
Disclosing the performance and impact of the Company in the context of sustainability that includes economic,
social and environmental aspects.
3. Materiality
Disclose economic, social, and environmental impacts that are relevant to the impacts of the Company's business
activities, as well as significant in the evaluation and decision-making of stakeholders.
4. Completeness
Disclosing all material aspects of sustainability and their relevant boundaries so that stakeholders can evaluate the
Company's sustainability performance in the reporting period.
The following is a flowchart of the process for determining the content of the Company's Sustainability Report,
including the four steps for determining report content and the principles of Sustainability Reporting according to the
GRI Standard Guidelines.
STEP 1 STEP 2 STEP 3
Identification . PRIORITY VALIDATION
Sustainability Context Materiality Completeness
Stakeholder Engagement
STEP 4
Review
Sustainability Context Review Stakeholder Engagement
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Review of report content is the useful next process to ensure compliance with the eight quality principles of sustainability
reports recommended by GRI, including:
1 Accuracy
5 Completeness
The information presented must be accurate and detailed so The report must provide sufficient information to enable an
that it can be used by stakeholders to assess the Company’s assessment of the Company's impact during the reporting
performance. period
2 Balance 6 Sustainability
Context
The Company’s performance presented must have both positive The information presented should report the impact within the
and negative aspects so that it can be assessed rationally and broader context of sustainable development.
comprehensively.
7 Timeliness
3 Clarity
The report must be published regularly so that stakeholders
The information presented must be easy to understand and can make timely decisions based on available information.
open for stakeholders to access.
4 Comparability 8 Reliability
The information presented must be consistent and can be used The report must contain and use the information and processes
by stakeholders to assess performance changes that have used in preparing the report, which can be checked and reflects
occurred to the Company within a certain period of time by the quality and materiality of the information presented.
including data and information for several years prior to the
reporting period used.
MATERIAL TOPICS AND BOUNDARIES [GRI 3-1, 3-2, 3-3]
The material topics, as determined by the Company, are matters that have significant impact on stakeholder decisions. In
2023, the Company reassessed the relevant material topics through a materiality analysis process involving stakeholders,
such as investor concerns. This approach serves as the Company's method to identify the actual and potential, negative and
positive impacts of the Company on the economy, environment, and society, including impacts on human rights, across all
Company activities and relationships.
Based on the analysis results, there are 24 sustainability issues deemed material to be included in this sustainability report.
Based on the significance level to stakeholders and the economic, social, and environmental impacts, the 24 sustainability
issues are then prioritized in a materiality matrix.
The Company's commitment to national and international issues related to climate change and sustainable development
remains the foundation for consideration, reference, and motivation to continually enhance the role and contribution to
achieving sustainability performance, including economic, social, and environmental aspects. This aligns with the primary
concerns of stakeholders, which are the Company's main focus in conducting its business. [GRI 3-1]
The Company has mapped out the material topics along with explanations regarding the materiality approach in the
sustainability matrix below:
Affecting the assessment and decision-
4 10 12 13 1 2 3 5
14 15 16 17 8 9
making of stakeholders
6 7
20 21 22 23 11 18 19
High
24
Medium
Low
Significant Impact on the Economy, Social, and Environment
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No Materiality No Materiality
1 Economic Performance 13 Child Labor
2 Market Presence 14 Procurement Practice
3 Indirect Economic Impact 15 Non-discrimination
4 Anti-Corruption 16 Forced Labor
5 Product Portfolio 17 Presence of Unions
6 Employment 18 Greenhouse Gas Emissions
7 Education and Training 19 Energy
8 Diversity and Equal Opportunity 20 Water
9 Local Communities 21 Waste
10 Socioeconomic Compliance 22 Material
11 Customer Privacy 23 Occupational Health and Safety
12 Marketing and Labeling 24 Environmental Compliance
The relevant sustainability topics are mapped into three priority levels: high, medium, and low. The material topics
covered in this report remain consistent with those of the 2022 Sustainability Report. Sustainability topics categorized
as high to moderate are presented as material topics within this report, with the topics delineated in the following list:
[GRI 3-1, 3-2, 3-3]
Topic Boundaries
Material Topics Why this topic is important Within the Company/ Outside the Company/External
Internal Stakeholders Stakeholders
Economic Topics
Economic Describing achievement and the Employees, shareholders, Customers, Investors, Government and
Performance Company’s performance during the labor unions Financial Service Authority, Developer
reporting year. Partners/Suppliers, Community
Organizations/Social Organizations/
NGO, Media, Business Organizations
Market Presence Describing the Company’s Employees and labor Government and Financial Service
commitment about minimum wage unions Authority
of employees so they can meet their
life needs.
Indirect Economic Describing the Company’s Employees Work Partners / Suppliers
Impacts commitment about benefits of the
Company for the communities.
Procurement Practice Describing the Company’s Employees and Customers, Investors, Government
commitment about the presence of shareholders and Financial Service Authority, and
local suppliers. Media
Product Portfolio Describing the Company’s Employees, shareholders, Customers, Investors, Government
commitment about the importance labor unions and Financial Service Authority,
of clarity and completeness of Developer Partners, Work Partners
information regarding products / Suppliers, Media, and Business
owned and offered to consumers. Organizations
Anti-Corruption Describing the Company’s Employees, shareholders, Customers, Investors, Government
commitment in running business labor unions and Financial Service Authority,
transparently and in refraining from Developer Partners, Work Partners/
illegal practices such as corruption Suppliers, Media, Business
that bring negative impacts for the Organizations
level of trust from customers to the
bank.
Environmental Topics
Greenhouse Gas Describing the Company’s concern Employee Investors, Government and
Emission about greenhouse gas emission Financial Service Authority, Work
produced from operational Partners/Suppliers, Media
activities.
Materials Describing the Company's concern Employee Work Partners/ Suppliers
for material (paper) management
which in the manufacturing process
requires tree trunks as raw material.
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Topic Boundaries
Material Topics Why this topic is important Within the Company/ Outside the Company/External
Internal Stakeholders Stakeholders
Energy Describing the Company’s concern Employee Developer Partners, Work Partners/
towards energy management Suppliers
amidst its increasingly limited
availability.
Water Describing the Company's concern Employee Developer Partners, Work Partners/
for water resources management Suppliers
amidst its increasingly limited
availability.
Effluent and Waste Describing the Company's concern Employee Developer Partners, Work Partners/
in managing wastewater so it does Suppliers
not pollute the environment.
Environmental Describing the Company’s Employee and Investors, Government and Financial
Compliance commitment to various Shareholders Service Authority, Work Partners /
environmental regulations so its Suppliers, Media
operations do not have a negative
impact on the environment.
Social Topics
Employment Describing the Company's Employees, labor unions Customers, Government and Financial
commitment to the importance of Service Authority, Work Partners/
managing employees/HR. Suppliers
Occupational Health Describing the Company’s Employees, labor unions Customers, Government and Financial
and Safety commitment in providing workplace Service Authority, Developer Partners,
that is safe and comfortable. Work Partners, Suppliers, Business
Organizations
Training and Describing the Company’s Employees and labor Customers, Work Partner / Suppliers,
Education commitment in the effort improve unions Community Organizations/Social
competence of employees. Organizations, NGOs
Diversity and Equal Describing the Company’s Employees and labor Customers, Government and Financial
Opportunity commitment in equal opportunities unions Service Authority
for employee to develop without
discrimination in gender.
Non-discrimination Describing the Company's Employees, shareholders, Customer, Investor, Government
commitment to respecting labor unions and Financial Service Authority,
similarities among people. Developing Partners, Work Partners
/ Suppliers, Media, Business
Organizations
Freedom of Describing the Company's Labor union Government and Financial Service
Association and commitment to giving employees Authority, Work Partners / Suppliers
Collective Bargaining the freedom to assemble Media
and organize, including the
establishment of a trade union or
similar institution.
Forced Labor or Describing the Company’s Employees, shareholders, Government and Financial Service
Mandatory Work commitment for working hours, labor union Authority, Work Partners / Suppliers
remuneration, and other matters so Media
there is no coercion at work.
Local Communities Describing the Company’s Employees Community organizations/
commitment towards the Social Organizations /NGOs
involvement of communities around
in various programs/activities.
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Topic Boundaries
Material Topics Why this topic is important Within the Company/ Outside the Company/External
Internal Stakeholders Stakeholders
Marketing and Describing the Company's Employees Customers, Investors,
Labeling commitment to obeying good Government and Financial Service
marketing practices, and the Authority
provision of information products
for customers / consumers.
Customer Privacy Describing the Company’s Employees, Shareholders, Customers, Investors, Government
commitment in maintaining Labor Unions and Financial Service Authority, and
customer data confidentiality. Media
Socio-economic Describing the Company's Employees, Shareholders, Customers, Investors, Government
Compliance commitment to obeying socio- Labor Unions and Financial Service Authority,
economic regulations, such as Developer Partners, Work Partners /
employment, compete healthily and Suppliers, Community organizations/
non-discriminatory. Social Organizations / NGOs, Media,
and Business Organizations
STAKEHOLDER ENGAGEMENT [GRI 2-29] [OJK E.4]
The Company has a number of stakeholders in running the business Their presence influences the Company's efforts to
realize the success of strategy implementation and achievement of goals. Meanwhile, stakeholders in this report have
a position as entities or individuals who are affected by the company's activities, products, and services.
The involvement of key stakeholders in discussing critical issues faced by the Company is carried out after undergoing
an identification process. This process is conducted through stakeholder mapping methodology. Through this approach,
the Company can accurately categorize stakeholders who have significant connections with the company, including
the forms of relationships established, topics to be addressed, and appropriate communication strategies. This step is
aimed at achieving the targets set by the Company through effective communication efforts. Complete details regarding
the stakeholder list are presented in the following table. [GRI 2-29]
Stakeholders Engagement Method Frequency Priority Topic
Shareholders Annual GMS Once a year Achievement of the
Company’s targets, Economic
Performance Presentation Quarterly
Performance, Market Presence,
Extraordinary GMS May be convened anytime Anti-Corruption, ESG
Roadmap Development, and
Decarbonization
Customers Customer Satisfaction Survey Twice a year Service and service quality for
consumers, Product Portfolio,
Communication Media for Once a month
Customer Privacy
Customers
Customer Call Center Services Every time when needed
The Company’s website and May accessed anytime
frontline information
Direct visit May accessed anytime
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Stakeholders Engagement Method Frequency Priority Topic
Developer Partner Property Awards Every year Home sales opportunity
Gathering Every time when needed Success of One Million Houses
Program
Capacity Building Every time when needed Transparency
Employees Employee Engagement Survey Once a year Employee satisfaction level
Internal Bulletin Once a month Related strategies and policies
employment
SmartShare May accessed anytime Discussion and exchange
forums about works, quizzes,
exchange of information,
Diversity and Equal
Opportunity, Training, and
Education
Innovation Award Once a year Accelerating business process
Work Partners / Suppliers Work Contract When needed Procurement process
Investment Partner When needed Business cooperation
Seminars and workshops When needed Development of merchants
company
Labor Union Discussion on Collective Labor Once a year Harmonious work relations,
Agreement as well as fulfillment of rights
and obligations of employees
Government and Financial Reporting of GCG Once a year Fulfillment of disclosure of
Service Authority implementation of the related report and information
Company’s Sharia implementation of the
Business Units Company’s Sharia Business
Units
GCG Self-Assessment Twice a year Fulfillment of disclosure
and assessment of the
implementation of GCG at the
Company
CGC Compliance Report Once a year Fulfillment of disclosure of
GCG implementation at the
Company
Reporting of TJSL activities to Four times in a year Facilities in disclosure of
Ministry of SOE information on related reports
of TJSL implementation at the
Company
Reporting on Supervision Twice a year Disclosure of information
Results of the Sharia Supervisory related to compliance with
Board of the Company's Sharia sharia principles in the
Business Units operations of Bank BTN
Syariah
Business Organizations Meetings and activities, be When needed Improvement of the
it national, regional, and Company’s governance
international scale
Community organizations/ Strategic cooperation to carry When needed Optimizing the Company’s
social organizations/NGOs out corporate responsibility TJSL program, Local
programs, both in the social and Community, Indirect Economic
environmental fields Impact
Media Press release and press When needed Provision of the Company’s
conference related business information
that needs to be known by the
public
34 Sustainability Report 2023
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Development Empowerment Customers Governance
External Assurance [GRI 2-5] [OJK G.1]
The Company has undergone a series of external assurance processes for this sustainability report in line with GRI
recommendations. These processes are deemed essential for the company, as they are conducted by independent third
parties with high credibility, thereby enhancing the credibility and quality of the report. The selection of an external
assurer is based on the approval of the Board of Directors, represented by the Corporate Secretary, and ensures there
are no conflicts of interest with any party.
The Company has entrusted CBC Global Indonesia to carry out the quality assurance process in the 2023 Sustainability
Report. CBC Global Indonesia is a quality assurance agency that has been certified to international quality assurance
standards AA1000AS v3 standard with license number 000-310. The results of the quality assurance report are
attached on page 190. [GRI 2-5] [OJK G.1]
The Board of Commissioners and Directors have carried out a review to ensure that all material topics have been
included in the report and approved and signed this report that can be found on pages 14 and 15. [GRI 2-14]
FEEDBACK [OJK G.2] [OJK G.3]
The Company provides a feedback sheet at the end of this report to build two-way communication with readers and
users of the Company's Sustainability Report. Through the sheet, it is hoped that readers and users of this report can
provide suggestions, feedback, opinions, etc, that can improve reporting quality in the future. Feedback received by the
Company will be processed either by the Corporate Secretary Division or through the Information & Documentation
Officer (PPID) to the relevant Division for follow-up. However, during the year 2023, the Company did not receive any
responses from stakeholders regarding the previous year's sustainability report.
REPORT CONTACT [GRI 2-3]
This report is addressed to all stakeholders and can be used as a basis for evaluating the Company's performance.
Stakeholders can also evaluate the process of fulfilling the Company's obligations in the environmental, economic
and social fields in the business activities carried out. The Company provides the widest possible access to information
regarding the Sustainability Report to all stakeholders, investors, and anyone else by contacting:
PT Bank Tabungan Negara (Persero) Tbk
Corporate Secretary Division Head
20th Floor BTN Tower
Jalan Gajah Mada No. 1
Central Jakarta, 10130
Phone : (021) 6336789 ext. 2003
Facsimile : (021) 6336719
Email : csd@btn.co.id
PT Bank Tabungan Negara (Persero) Tbk 35
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Page 37
02
Profile of Bank BTN
Sustainability
Report
2023
Page 38
About the Profile
ProfileofBank
BankBTN
BTN Inclusive and Sustainable Environmental
Enviromental
Sustainability Report Economic Growth Sustainability
General Address of the Head Office [GRI 2-1] [OJK C.2]
Information of Menara Bank BTN
the Company Jl. Gajah Mada No. 1 Jakarta 10130,
Indonesia
Company Name [GRI 2-1] [OJK C.2] 62-21 6336789
62-21 6346704
PT Bank Tabungan Negara (Persero) Tbk www.btn.co.id
Establishment Date Number of Employees Legal Form [GRI 2-1]
12,045
9 February Limited Liability Company
1950 employees (LLC)/Public Company/ State-
owned Enterprises (SOE)
Business Sector
Commercial bank, but also Shareholding [GRI 2-1] [OJK C.3]
providing banking services
based on sharia principles.
9.65%
Activities, Brands, Products and Services
[GRI 2-6] [OJK C.4]
Based on Article 3 of the bank's Articles 30.35%
60%
of Association, the scope of the company's
activities is to provide commercial banking
services in accordance with the prevailing
laws and regulations, including those
based on sharia principles.
Government of the Republic of Indonesia
Domestic public
Foreign public
Name Change and Effective Date of the
Company’s Name Change
The company was founded under the name
"Postspaarbank" in 1897 and the name was Listing on the Indonesian Stock Exchange
changed into "Tyokin Kyoku" or "Kantor
17
Tabungan" in 1942. The name was changed December
into "Kantor Taboengan Pos" in 1945 following
2009
the independence of the Republic of Indonesia.
On February 9 1950, the Government of the
Republic of Indonesia once again changed
the name to "Bank Tabungan
Pos". Effective on June 22 1963, Share Code Stock Exchange
BBTN
the company changed its name to
The Indonesian
"Bank Tabungan Negara." In 1992 it
officially became a persero (limited
Stock Exchange
corporation).
38 Sustainability Report 2023
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Legal Basis of Establishment
• Emergency Law No. 9 of 1950 Dated 9
February 1950 on Amendments to the
Postspaarbank Law (Staatblad 1934
No. 653, 1937 No. 176 and 197, and
1941 No. 295) (State Gazette of the
Republic of Indonesia No. 12 of 1950).
Authorized Capital
• Government Regulation in Lieu of Law
No. 4 of 1963 dated 22 June 1963 on Rp10,239,216,000,000,-
Amendments and Supplements to (ten trillion two hundred thirty-nine
Law No. 36 of 1953 on Bank Tabungan billion two hundred and sixteen million
Negara (State Gazette No. 86 of 1953). rupiah) divided into:
1. (one) Dwiwarna Series A share whose
• Government Regulation No. 24 of 1992 nominal value of each share is worth
dated 29 April 1992 on Adjustment Rp500 (five hundred rupiah); anc
of the Legal Form of Bank Tabungan
Negara to Become Limited Corporation 2. 20,478,431,999 (twenty billion
(Persero). four hundred seventy eight million four
hundred thirty one thousand nine hundred
• Deed of establishment of the bank as ninety nine rupiah) Series B
Limited Corporation No. 136 dated 31 shares with a nominal value
July 1992 made before Notary Muhani of each share of Rp500 (five
Salim, S.H., in Jakarta. hundred rupiah).
Issued and Fully Deposited Capital
Rp7,017,222,206,500 (seven trillion seventeen billion two hundred
twenty-two million two hundred six thousand five hundred rupiah).
It is data as of December 31, 2022. In connection with the implementation of the company's
corporate action in the form of capital Increase by Granting Securities Subscription Rights
First (PMHMETD) with the final period for allotment of additional shares on January 10,
2023.
PT Bank Tabungan Negara (Persero) Tbk 39
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About the Profile
ProfileofBank
BankBTN
BTN Inclusive and Sustainable Environmental
Enviromental
Sustainability Report Economic Growth Sustainability
Company Scale [GRI 2-6] [OJK C.3]
Description Unit 2023 2022 2021
Total Asset Millions Rupiah 438,749,736 402,148,312 371,868,311
Total Equity Millions Rupiah 30,479,152 25,909,354 21,406,647
Total Liability Millions Rupiah 381,164,489 376,238,958 327,693,592
Temporary Syirkah Fund
Millions Rupiah 27,106,095 24,862,275 22,768,072
Millions Rupiah
Number of Employees Persons 12,045 11,859 11,192
Number of conventional
Offices 3,553 3,550 3,658
networks
Number of sharia networks Offices 109 110 109
Number of products/ Category 4 (four): 4 (four): 4 (four):
services provided Product/Service 1. Home Ownership 1. Home Ownership 1. Home Ownership
Credit (HOC) and Credit (HOC) and Credit (HOC) and
Consumer Banking Consumer Banking Consumer Banking
2. Residential and 2. Residential and 2. Residential and
Commercial Banking Commercial Banking Commercial Banking
3. Sharia Banking 3. Sharia Banking 3. Sharia Banking
4. Treasury & Asset 4. Treasury & Asset 4. Treasury & Asset
Management Management Management
Largest shareholder Percent Indonesian Indonesian Indonesian
Government-60% Government-60% Government-60%
40 Sustainability Report 2023
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Employee Community Excellent Service for Sustainability
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The Company’s Vision, Missions, and Values
[GRI 2-23] [OJK C.1]
Vision
“To become the Best Mortgage
Bank in Southeast Asia by 2025"
• To actively support the government in advancing the
Mission
welfare of the Indonesian people through home ownership;
• To realize the life that millions of Indonesians dream of by
providing decent housing;
• To become One of the Home of Indonesia's Best Talent;
• To increase shareholder value by focusing on sustainable
profitability growth as a blue-chip company with solid risk
management principles; and
• To become a financial partner for stakeholders in the
housing ecosystem by providing comprehensive solutions
and the best services through digital innovation.
Review of Vision and Mission by the BoC and the BoD
The company periodically reviews its vision and mission by considering changes in internal and external environmental
conditions. The results of the vision and mission review by the Board of Commissioners and the Board of Directors
carried out in 2021 and the recommendations from McKinsey stated that the formulation of the new vision and mission
was in accordance with changes in internal and external environmental conditions. The new vision and mission have
been established in the company's Corporate Plan 2021—2025 and have been outlined in the bank's Business Plan
2022—2025.
PT Bank Tabungan Negara (Persero) Tbk 41
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About the Profile
ProfileofBank
BankBTN
BTN Inclusive and Sustainable Environmental
Enviromental
Sustainability Report Economic Growth Sustainability
The Company’s Culture [GRI 2-23]
Harmonis(Harmonious) Loyal
Caring for each other and Having dedication and putting
respecting differences. the interests of the nation and
state above everything.
Kompeten(Competent) Adaptif(Adaptive)
Continuing to learn and Continuing to innovate
develop capabilities. and be enthusiastic in
driving or facing changes.
Amanah(Trustworthy) Kolaboratif(Collaborative)
Upholding the trust given. Building cooperation with
synergy.
18 (eighteen) AKHLAK Behavior Guidelines for BTN Personnel
Amanah Loyal
• Fulfilling promises and commitments • Maintaining the good name of fellow employees,
• Being responsible for tasks, decisions and actions leaders, SOEs and the state
taken • Having willingness to make sacrifices to achieve
• Adhering to moral and ethical values greater goals
• Obeying the leadership as long as it does not conflict
Kompeten with law and ethics
• Upgrading self-competence to answer ever- Adaptif
changing challenges • Quickly adapting to make improvement
• Helping others to learn • Continuously making improvements following
• Completing tasks with the best quality technological developments
• Taking actions proactively
Harmonis Kolaboratif
• Respecting everyone regardless of their background • Giving opportunities for various parties to contribute
• Helping others • Being open to work together to produce added value
• Building a conducive work environment • Mobilizing the utilization of various resources for
common goals
42 Sustainability Report 2023
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The Company’s Business Activity [GRI 2-6] [OJK C.4]
The scope of the bank's business based on Article 3 Paragraph 2 of the company's Articles of Association which has
been amended several times, which was most recently based on Deed of Statement of Decisions of the Annual General
Meeting of Shareholders No.08 dated 08 April 2021 and was made before Ashoya Ratam, S.H., M.Kn., notary in Jakarta,
is carrying out general banking activities in accordance with the prevailing laws and regulations, including carrying out
banking activities based on sharia principles.
The company carries out business fields that include the following matters:
• Collecting funds from the public in the form of • Providing financing and/or carrying out other
savings, which include current accounts, time activities, including carrying out activities based on
deposits, certificates of deposit, savings and/or sharia principles in accordance with the provisions
other equivalent forms; stipulated by Bank Indonesia;
• Providing loans; • Carrying out factoring, providing credit card service,
• Issuing a debt acknowledgment letter; and providing trustee service;
• Buying, selling, or guaranteeing at one's own risk or • Carrying out activities in foreign currency by fulfilling
for the benefit and at the behest of one’s customer: the provisions set by the authorities;
• Bills of exchange include those accepted by the • Carrying out capital investment activities in banks or
company as a bank whose validity period is no other companies in the financial sector;
longer than the custom in the trading of the note • Carrying out temporary capital investment
in question; activities to overcome the consequences of credit
• Debt acknowledgment letters and other trade failure, including financing failure based on sharia
papers whose validity period is no longer than principles with the condition that the investment
the customary practice in trading the papers in must be withdrawn in accordance with the provisions
question; stipulated by Bank Indonesia;
• State Treasury Papers and Government • Acting as the founder of the pension fund and
Guarantee Letters; administrator of the pension fund in accordance with
• Bank Indonesia Certificate (SBI); the provisions of the laws and regulations;
• Bonds; • Providing financial services, commercial banking
• Term trading letters in accordance with laws and and other investment banking services;
regulations; and • Carrying out business activities based on sharia
• Other securities instruments with maturities in principles, in accordance with the provisions
accordance with laws and regulations stipulated by the competent authority and laws and
• Transferring money, both for own interests and for regulations; and
customers' interests; • Carrying out other activities commonly carried out
• Placing funds with, borrowing funds from, or by banks as long as they do not conflict with laws
lending funds to other banks, be it by using letters, and regulations.
telecommunication facilities, or by money orders,
checks, or other means; All business activities according to the Articles of
• Receiving payments from bills on securities and Association have been carried out by the company. The
carrying out calculations with or between third company not only carries out main business activities,
parties; but also supports business activities to support main
• Providing a place to store goods and securities; business activities. This is part of the measures to
• Carrying out custody activities for the benefit of optimize existing resources as long as it does not
another party based on a contract; conflict with laws and regulations.
• Placing funds from customers to other customers in
the form of securities that are not listed on the Stock
Exchange;
PT Bank Tabungan Negara (Persero) Tbk 43
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About the Profile of Bank BTN Inclusive and Sustainable Environmental
Sustainability Report Economic Growth Sustainability
Development of the Company’s Products and Services
PRODUCT
Conventional Banking
Consumer Banking Commercial Banking
Consumer Lending Product Commercial Lending Product
• Housing Lending • Work Capital Lending
• Non housing Lending • Investment
• •
Consumer Saving Product Commercial Savings Product
• Consumer Saving • Institutional Term Deposits
• BTN Retail Deposits • Commercial Current Account
Sharia Banking
Sharia Business Unit
Sharia Financing Product Sharia Saving Product
• Consumer Financing • Sharia Current Account
• Commercial Financing • Sharia Saving
• Sharia Deposits
44 Sustainability Report 2023
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Employee Community Excellent Service for Sustainability
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SERVICE
Sharia Banking
Conventional Banking
• Consumer Card • BTN Syariah Visa Debit Card
• Wealth Management • Money Transfer
• ATM Electronic Channel • BTN Cash Management
• Cash Deposit Machine (CDM) • BTN iB Payment Point
• Non-Cash ATM • BTN iB Payroll
• SMS Banking • Receipt of Hajj Travel Expenses
• Mobile Banking • BTN iB Online Education Development
• Internet Banking Contribution
• Virtual Account • BTN iB Operational Development
• Electronic Data Capture (EDC) Program
• Cash Management • BTN iB Bank Guarantee
• Branchless Banking • BTN iB Safe Deposit Box
• BTN Properti Portal
• Other Banking Services:
- Garansi Bank BTN
- SKBDN or Local L/C
- BTN Virtual Account
- Transfer Management
- Payment Management
- BTN Payroll Service
• LinkAja
• Online Onboarding Open Account
• SMS Notification
• BTN Merchant
• BTN Agent
• Smart Residence
• Money Transfer
• Money Changer
• RTGS
• SDB
• Custodian
• Trustee
PT Bank Tabungan Negara (Persero) Tbk 45
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About the Profile
ProfileofBank
BankBTN
BTN Inclusive and Sustainable Environmental
Enviromental
Sustainability Report Economic Growth Sustainability
Operational Areas and Markets Served
[GRI 2-1] [GRI 2-6] [OJK C.3]
Kalimantan
Sumatera
Until the end of 2023, the company had operated in Indonesia
with its head office located in Jakarta and an office network
spread across 38 (thirty-eight) provinces in the country.
Java
Note 2023 2022 2021
I. CONVENTIONAL NETWORK
Regional Office 6 6 6 Bali and Nusa Tenggara
Branch Office 81 80 79
Sub-Branch Office 541 539 545
Cash Office Equivalent Service
2,922 2,922 2,922
Office
Functional Office 3 3 55 Based on Regulation of the Financial
Mobile Cash Car - - 51
Services Authority (OJK) Number
12/POJK.03/2021 dated 30 July
Note 2023 2022 2021 2021 on Commercial Banks, there is a
simplification of network recording with
II. SHARIA NETWORK
the OJK Regulator. The categorization
Sharia Branch Office 34 30 29 of bank offices under branch offices
Sharia Sub-Branch Office 75 74 68 is simplified into sub-branch offices
and functional offices. To that end,
Sharia Functional Office - 6 12
the company equalizes the status of
Cash Car 5 2 - cash offices to sub-branch offices and
payment points to functional offices.
Note 2023 2022 2021
III. NETWORK
ATM and CRM 2,209 2,129 1,982
46 Sustainability Report 2023
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Sulawesi
Maluku and Papua
Bali and Nusa Maluku and
Sumatera Java Kalimantan Sulawesi
Tenggara Papua
Regional Office 1 4 - 1 - -
Branch Office 12 48 7 8 3 3
Sub-Branch
774 1,981 327 156 154 71
Office
Sharia Branch
9 18 3 3 1 -
Office
Sharia Sub-
18 51 3 2 1 -
Branch Office
ATM and CRM 241 1,503 94 103 50 24
PT Bank Tabungan Negara (Persero) Tbk 47
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About the Profile of Bank BTN Inclusive and Sustainable Environmental
Sustainability Report Economic Growth Sustainability
Supply Chain [GRI 2-6] [OJK B.1]
Involvement and support from all the company's stakeholders is one of the key factors in achieving success and
sustainability. One of them is support from suppliers who ensure the availability of resources, goods, and services to
support activities, specifically in providing the company's daily operations, including providing information technology,
office stationery, furniture, souvenirs, consulting services, etc.
The company's procurement of goods and/or services is carried out in an integrated manner using an electronic system
(e-Procurement). The use of this system is part of the company's efforts to reduce GHG emissions by saving paper in
daily operations.
The company always supports local and national economy through Special Policy Guidelines for the Implementation
of Procurement of Goods and/or Services KK.9-H dated 30 June 2022 realized by implementing the principle of using
domestic production while still complying with the provisions of the prevailing laws and regulations. The company
collaborates with local suppliers, which are suppliers who are geographically domiciled in the country. If the needs for
goods and services cannot be met by local suppliers, or for certain reasons/considerations, the company will collaborate
with overseas/foreign suppliers, which are geographically domiciled outside Indonesia.
The company's commitment to prioritizing local suppliers is based on the Circular of Minister of SOE No. SE-10/
MBU/08/2020 dated 26 August 2020 on Promoting the Role of Micro, Small and Medium Enterprises in Procurement
of Goods and Services in State-Owned Enterprises. This commitment is also in line with the Regulation of the Minister
of State-Owned Enterprises of the Republic of Indonesia Number PER-08/MBU/12/2019 on General Guidelines for
Implementing the Procurement of Goods and Services for State-Owned Enterprises. Meanwhile, in managing outsourcing,
the company complies with Regulation of Bank Indonesia Regulation No. 13/25/2011 Dated 9 December 2011 regarding
Transfer of Part of the Work to Other Parties, without outsourcing core activities to other parties. [GRI 3-3]
The number of procurements of goods and/or services carried out by the company in 2023 was 847 procurements with
a total of 452 suppliers of goods and services recorded. The number of suppliers increased compared to that in 2022
at 314 suppliers. Of the total 452 suppliers registered as the company's supplier partners, 100% are Indonesia’s local
suppliers. The company has not carried out a social impact assessment in the supply chain. [GRI 204-1, 414-2]
The percentage of transaction value for the procurement of goods and services from the company's suppliers is as
follows: [GRI 204-1]
Segment 2023 2022 2021
Local Supplier 100% 100% 100%
Overseas Supplier 0% 0% 0%
Total 100% 100% 100%
The amount of expenditure directed to local suppliers as well as the company's total expenditure in the last 3 years are
as follows:
Expenditure (Rp Billion)
2023 2022
1,864 1,160
To support sustainable procurement of goods and/or services and consider the ESG aspects, the company has
implemented several requirements as follows: [GRI 414-1] [FS5]
1. Protecting the environment, both inside and outside the work location and limit damage and influence/disruption
to the community and its property as a result of pollution, noise and other damage;
2. Documents on Environmental Management Scheme and Environmental Monitoring Scheme;
3. Environmental Impact Analysis (EIA);
4. Study/document regarding quality/good criteria for environmental damage;
5. Environmental permit documents;
6. Water disposal study document;
7. Document stating they have implemented an Occupational Health and Safety (OHS) Management System that is
integrated with the company's management system or have OHS management system certification; and
8. Document stating they have implemented protection for child and female workers; and
9. Providing insurance to employees who have high risks.
48 Sustainability Report 2023
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To improve suppliers’ capabilities, the company carries out regular monitoring and evaluation that includes the following
aspects:
1. Quality
2. Delivery
3. Responsiveness
4. Flexibility
5. Price
The company consistently initiates the dissemination of environmental, social, and governance performance
improvements throughout its supply chain. During the reporting period, the company engaged with suppliers in the
"Synergy & Collaboration" event. The topics discussed included Digital Market for Small and Medium Enterprises
Digital Market (PaDi UMKM), increasing the use of domestic products (P3DN), and anti-corruption measures.
Significant Changes [GRI 2-6] [OJK C.6]
During the reporting year, there was a change in the composition of shareholders, with domestic public ownership
increasing to 30.35% and foreign public ownership to 9.65%. Additionally, there was an increase in the number of
suppliers in the company's supply chain. However, there were no significant changes regarding supplier locations and
supply chain structures in 2023.
External Initiatives
The company actively participated in external initiatives as a form of implementing sustainable finance and responding
to climate change. The company follows various guidelines developed by external parties that apply nationally
and internationally. Apart from that, the company has also prepared a Sustainable Financial Action Plan (SFAP) in
accordance with Regulation of the Financial Service Authority No. 51/POJK.03/2017 concerning the Implementation of
Sustainable Finance for Financial Services Institutions, Issuers and Public Companies. [TCFD Risk.b]
Association Membership [GRI 2-28] [OJK C.5]
The company joins various associations/associations in the banking industry, including its status as a SOE. Organizations
or associations are important for the company to share issues and policies related to the banking industry, including the
impact and opportunities for banking industry for short, medium and long term goals. In 2023, the company joined the
following associations/associations:
Association Name Position in the Association
Association of State-Owned Banks (Himpunan Bank-Bank Milik Negara/Himbara) Member
Association of Indonesian Bankers (Ikatan Bankir Indonesia/IBI) Secretary General
World Saving Bank Institution (WSBI) Member
Association of National Commercial Banks (Perhimpunan Bank-Bank Umum Nasional/Perbanas) Deputy General Chairperson 1
Public Relations Forum for State-Owned Enterprises (Forum Humas BUMN) Member
Association of Indonesian Issuers (Asosiasi Emiten Indonesia) Member
External Loss Data Consortium (Konsorsium Data Kerugian Eksternal/KDKE) Member
Certified Wealth Manager’s Association (CWMA) Member
Indonesian Payment Systems Association (Asosiasi Sistem Pembayaran Indonesia/ASPI) Member
Associate Cambiste Internationale (ACI) Indonesia (Forexindo) Member
Banking Compliance Director Communication Forum (Forum Komunikasi Direktur Kepatuhan
Member
Perbankan/FKDKP)
Indonesian Banking Dispute Resolution Alternative Institute (Lembaga Alternatif Penyelesaian
Member
Sengketa Perbankan Indonesia/LAPSPI)
Association of Bank Internal Auditor (Ikatan Auditor Intern Bank) Member
Indonesian Internal Audit Association (Perhimpunan Audit Internal Indonesia) Member
The Institute of Internal Auditor (IIA)-lndonesia Chapter Member
Task Force on Climate Related Financial Disclosures Member
United Nation Environment Programme Finance Initiative (UNEP FI) Member
Initiatives for Sustainable Finance in Indonesia (IKBI) Member
PT Bank Tabungan Negara (Persero) Tbk 49
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About the Profile of Bank BTN Inclusive and Sustainable Environmental
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Company’s Brief History
PT Bank Tabungan Negara (Persero) Tbk, hereinafter referred to as "the Company" is a state-owned enterprise (BUMN)
in the form of a limited liability company and operates in the banking financial services sector. The company is committed
to becoming a bank that serves and supports housing sector financing through three main products, including personal
banking, business banking, and sharia banking. The company’s origin began with the establishment of Postpaarbank
during the Dutch government era in 1897. Afterwards, Postpaarbank was taken over during the Japanese occupation
in 1942 and changed its name to Tyokin Kyoku or Kantor Tabungan (Savings Office). This continued in 1945, when the
Indonesian government took over Tyokin Kyoku and established the Kantor Taboengan Pos. After the independence era
in 1950, the Government of the Republic of Indonesia changed the name of Tyokin Kyoku to Bank Tabungan Pos based
on Emergency Law No. 9 of 1950 of February 9 1950. Afterwards, based on Government Regulation in Lieu of Law No.
4 In 1963, the company changed its name to Bank Tabungan Negara which has remained until today.
In line with the government's program to promote housing programs for the people, the government in 1974 appointed
the company as the only institution that distributed Home Ownership Credit (HOC). The first realization of HOC
distribution was carried out in 1976 at Tanah Mas Housing Complex in Semarang City. On April 29 1989, the company
began operating as a state-owned commercial bank. The company's status was changed to a state-owned limited
liability company based on Government Regulation No. 24 of 1992. The bank establishment document establishing
as a limited corporation was made before notary Muhani Salim, S.H., in Deed No. 136 dated 31 July 1992, which was
validated by Minister of Justice through Decision No. C2-6587.HT.01.01.TH.92 Dated 12 August 1992, and announced in
State Gazette No. 73 Dated 11 September 1992 Supplement No. 6A.
Based on Decision of the Board of Directors of Bank Indonesia No. 27/55/KEP/DIR on 23 September 1994, the company
obtained an operating license as a foreign exchange bank. In 2002, the company was designated as a commercial bank
that focuses on home financing. The company has obtained approval from Bank Indonesia to carry out general banking
activities based on sharia principles through letter No. 6/1350/DPbS Dated 15 December 2004. The company began
carrying out its activities based on sharia principles on February 14, 2005 with the start of operations of the first sharia
branch in Jakarta-Harmoni.
In 2009, the company carried out the first HOC securitization in Indonesia. The company carried out asset securitization
through recording the Collective Investment Contract - Asset Backed Securities (CIC-ABS) transaction and on
December 17 2009 it carried out an Initial Public Offering (IPO) and listing on the Indonesian Stock Exchange. In 2015,
the company played an important role in assisting the government program, namely the "Program Sejuta Rumah untuk
Rakyat” (the Million Houses for the People Program). The company was appointed as one of the banks that supports
this program through mortgage financing.
In 2017, the transformation process towards digital banking within the company continued. The company continues
to accelerate transformation in the digital era in all banking services, one of which is by opening smart branches
which are equipped with various services to facilitate customer needs in obtaining banking information, carrying out
communications, transactions, registration and opening accounts.
The company reinforced its position as the 5th largest bank and became a Housing Market Maker in 2019. In 2022, the
company held a Rights Issue or issuance of new shares for the second time after 2012. The issuance of new shares was
one of the company's efforts to increase credit expansion while simultaneously strengthening capital to oversee its
mission to become the Best Mortgage Bank in South East Asia.
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Note on Name Change
The name “PT Bank Tabungan Negara (Persero) Tbk” has quite a long history.
1897 - 1950
It was founded under the name
"Postspaarbank" in 1897 during the
Dutch East Indies government and
changed its name to "Tyokin Kyoku" or
"Kantor Tabungan" in 1942 during the
Japanese government era. The name was
1950
changed into "Kantor Taboengan Pos" in
1945 following the independence of the On February 9 1950, the
Republic of Indonesia. Government of the Republic of
Indonesia changed the name to
"Bank Tabungan Pos".
1963
June 22, 1963, Effectively changed its
name to "Bank Tabungan Negara";
2009—present
December 17 2009, the company
officially conducted an Initial Public
Offering (IPO) on the Indonesia Stock
Exchange. The legal status of the bank
is a public company with the name "PT
Bank Tabungan Negara (Persero) Tbk"
The company continues to expand its business and business area coverage all the time, especially after becoming
a public company with the stock code BBTN. The company has managed to reach market share in 38 (thirty eight)
provinces in Indonesia as of December 31, 2023. In conducting its business operations, apart in the head office, the
company has 6 regional offices 81 branch offices (including 34 sharia branch offices), 541 sub-branch offices (including
75 sharia sub-branch offices), 3 functional offices, 2,922 sharia cash offices, 4 sharia cash vehicles , 3,789 e-channels
(ATM and CRM).
PT Bank Tabungan Negara (Persero) Tbk 51
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ProfileofBank
BankBTN
BTN Inclusive and Sustainable Environmental
Enviromental
Sustainability Report Economic Growth Sustainability
MILESTONES
1897 The company was taken over by
the Japanese government and
1945 The Government of the
Republic of Indonesia took
The company was changed its name to Tyokin All Taboengan Post offices over Tyokin Kyoku and
founded under the name Kyoku. were occupied by the Dutch established the Taboengan
"Postpaarbank" during the and halted operations. Post Office.
Dutch East Indies government.
1942 1946
1989 It received loan from IBRD/
World Bank amounting to US$
266,550,000 signed by the
1976 It was assigned to carry out
financing public housing from
The first time it issued Realization of BTN HOC for Minister of Finance.
Government of the Republic of
bonds and began to conduct the first time in Tanah Mas
Indonesia.
commercial banking activities. Housing, Semarang City.
1986 1974
1992 It obtained a license to operate
2001 With an online/real system
based on IBM AS400,
as a foreign exchange bank. information technology was
It effectively became a limited Recapitalized by the
implemented in all branch
corporation. Government of the Republic of
offices.
Indonesia with a value of Rp13.6
1994 trillion.
2002
2020 It became a Housing Market
Maker and strengthened its
2018
Development of a digital
The development of various
digital-based products and
services was carried out, one
It renewed the vision to ecosystem to support business
position as the 5th largest of which is the opening of the
become the Best Mortgage as the leading housing finance
bank. Jakarta’s Harmoni Smart
Bank in Southeast Asia by
2019 2017
bank in Indonesia was carried Branch.
2025. out.
2021 The company carried out corporate action in the form
of Capital Increase by Providing Pre-emptive Rights II
2023
It carried out transformation to (PMHMETD) in issuing Pre-emptive Rights (HMETD) or
achieve sustainable growth. Rights Issue.
2022
52 Sustainability Report 2023
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Development Empowerment Customers Governance
1949 The Government of the Republic
of Indonesia reopened the 1953It was designated as a legal
It changed its name to Bank
Tabungan Negara and was
Change of name to "Bank Taboengan Post Office under managed under Minister of
the name Bank Tabungan Pos entity under Ministry of Central Bank Affairs.
Tabungan Pos" by the
Republik Indonesia. Transportation and permitted to
Government of the Republic of
1950 1963
open a branch office.
Indonesia.
1971
BTN collaborated with Perum
Bank Tunggal was split again
and Bank Tabungan Negara,
1965It was established as a single
Integration of State
Commercial Banks and Bank
abbreviated as BTN, was Tabungan Negara into the
Pos and Giro to provide the bank with the name Bank Central Bank
reopened.
National Savings (Tabanas) Negara Indonesia, which consists
1968 June 4, 1965
and Term Insurance Savings of Bank Tabungan Negara, Bank
(Taska) programs. Indonesia, Bank Koperasi Tani dan
Nelayan, Bank Umum Negara,
BNI 1946, and Bank Dagang
Negara.
2005 It obtained ISO 9001-
2000 certification for
2009
HOC securitization through The company carried out a
Establishment of a sharia upper medium term credit the first Collective Investment rights issue.
business unit and opening the services with a 1-5-1 Contract for Asset-Backed
first sharia branch office in service pattern. Securities (CIC-ABS) in
2008 2012
Jakarta Harmoni.
Indonesia. The company
conducted an Initial Public
Offering (IPO) and listed
on the Indonesian Stock
Exchange (Go Public).
2016 The company participated in
2014 The company carried out
transformation towards
The company continued its making the Million Houses for
The company and SMF signed leading housing bank and
transformation agenda called the People Program a success.
the largest securitization. world class banking.
the"Digital Banking Periods".
2015 2013
Navigating ESG with the development
of BTN's ESG framework, strategy,
and roadmap for Bank BTN's ESG Becoming an ESG Champion.
initiatives, as well as establishing an
ESG Committee and ESG Department.
2024
PT Bank Tabungan Negara (Persero) Tbk 53
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Organizational Structure
As of December 31, 2023, the Company's Organizational
Structure is as follows:
Rapat Umum Pemegang Saham
Dewan
Pengawas
Direktur Utama
Syariah
Wakil Direktur Utama
Direktur Direktur Direktur
Direktur Direktur
Distribution & Institutional Asset
Consumer IT & Digital
Funding Banking Management
SEVP
Wholesale
Banking Digital Banking
Marketing IT Strategic
Wealth Institutional Corporate Commercial Asset
SME Banking Communication Planning &
Management Funding Banking Management
Development
Consumer
Non subsidized Financial
Commercial Collection,
Mortgage & Retail Funding Institution &
Banking Recovery & Asset IT Operations
Personal Lending Capital Market
Sales 1
Consumer
Sales & Collection, Data
Subsidized Wholesale
Distribution Recovery & Asset Management &
Mortgage Transaction
Strategy Sales 2 Analytics
Procurement
Personal Banking Regional Offices & Fixed Asset IT Security
Management
• Branch Offices
Sharia
• Priority Banking
Business
• Sharia Branch Office
Asset & Liability IT Steering Risk Management Human Capital
Committee Committee Committee Committee
Committee Board Business Support Shared Service Command Line Coordination Line
54 Sustainability Report 2023
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Dewan
Komisaris
Direktur
Direktur Direktur Risk Human Capital,
Finance Management Compliance &
Legal
Audit
SEVP Committee
SEVP Compliance &
Operations Legal
Remuneration
& Nomination
Committee
Retail Credit Human Capital Internal
Credit Operation Treasury Legal Audit
Risk Strategy Risk Monitoring
Committee
Operation Corporate Wholesale Human Capital Compliance & Corporate
& Business Strategy & Credit Risk Management Governance Secretary
Support Planning
Customer Care Finance & Enterprise Risk Learning Policy &
Accounting Management Management Procedure
Investor Transformation
Human Capital
Relations & & Partnership
Business Partner
Research Management
Transformation
Credit Policy Credit Business
Steering ESG Committee
Committee Committee Committee
Committee
PT Bank Tabungan Negara (Persero) Tbk 55
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Sustainability Report Economic Growth Sustainability
According to the approval decision of the Board of Commissioners and the Board of
Directors in December 2023, in line with the IT & Digital Risk and ESG roadmap, the
formation of the Enterprise & ESG Risk Management Division and Digital & Operations
Risk Management Division is required, which will be implemented in January 2024. The
detailed organizational structure is as follows: General Meeting of
Shareholders (GMS)
Sharia
Supervisory
President Director
Board
Deputy President
Director
Director of Director of Director
Director of Direc
Distribution Institutional of Assets
Consumer D
and Funding Banking Management
SEVP SEVP
Wholesale Digital Business
Banking
Marketing I
Wealth Large Institutional Corporate Commercial Asset Digital Banking
SME Banking Communication P
Management Funding Banking Management Development D
Consumer
Non subsidized Mid-Size
Commercial Collection,
Mortgage & Retail Funding Institutional Digital Banking IT
Banking Recovery & Asset
Personal Lending Funding Sales
Sales 1
Consumer
Sales & Financial
Subsidized Collection,
Distribution Institution & Ma
Mortgage Recovery & Asset
Strategy Capital Market
Sales 2
Wholesale Procurement
Personal Banking Regional Offices Transaction & Fixed Asset
Management
• Branch Offices
Sharia
• Priority Banking
Business
• Sharia Branch Office
Asset & Liability IT Steering Risk Management Human Capital
Committee Committee Committee Committee
Committee Board Business Support Shared Service Command Line Coordination Line
56 Sustainability Report 2023
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Development Empowerment Customers Governance
Board of
Commissioners
Director
ctor of IT & Director of Director Risk Human Capital,
Digital Finance Management Compliance &
Legal
Audit
SEVP Committee
SEVP Compliance &
Operations Legal
Remuneration
& Nomination
Committee
IT Strategic Retail Credit Human Capital Internal
Planning & Credit Operation Treasury Legal Audit
Risk Strategy Risk Monitoring
Development
Committee
Corporate Wholesale Human Capital Compliance & Corporate
Central
T Operations Strategy & Credit Risk Management Governance Secretary
Operation
Planning
Data Enterprise
Digital Finance & Learning Policy &
anagement & & ESG Risk
Operation Accounting Management Procedure
Analytics Management
Investor Digital & Human Capital
IT Security Customer Care Relations & Operations Risk Business
Research Management Partner
Transformation
& Partnership
Management
Transformation
Credit Policy Credit Business
Steering ESG Committee
Committee Committee Committee
Committee
PT Bank Tabungan Negara (Persero) Tbk 57
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03
Inclusive and
Sustainable
Economic
Growth
Sustainability
Report
2023
Page 60
About the Profile of Bank BTN Inclusive and Sustainable Environmental
Sustainability Report Economic Growth Sustainability
The Company's Economic Performance in 2023 [GRI 3-3]
The national economic growth remains stable amid the slowing global economic pace. Data from the Central Statistics
Agency (BPS) shows a year-on-year economic growth of 4.94% in the third quarter of 2023, slightly decelerating from
the previous quarter's growth of 5.17%.
This condition indicates that Indonesia's economic recovery trend continues, remaining stable. The improving national
economy positively correlates with the banking sector's performance. The banking industry plays a crucial role in the
economy as an intermediary institution channeling public funds into productive asset investments, thereby driving
productivity in the real sector, capital accumulation, and aggregate output growth.
The Company continues to contribute by leveraging these challenges as an opportunity for recovery, strengthening,
and economic growth. The Company once again recorded impressive performance and contributions in the property
sector, particularly in housing finance, with a positive performance as a major contributor to the distribution of Home
Ownership Loans (KPR) in Indonesia. The Company's portfolio in 2023 touched the figure of Rp318.12 trillion with a
market share of 40%. Throughout the year 2023, the company has financed 878,727 housing loans (KPR).
In support of the government's efforts to realize decent and affordable housing, the Company ensures subsidy allocations
for subsidized housing finance programs through the distribution of subsidized KPR to low-income communities
(MBR). Out of the total KPR distributed by the Company, 130,830 units are subsidized KPR with a disbursement value of
Rp20.11 trillion. With this achievement, the Company became the dominant player in subsidized KPR with a portfolio of
40% of the total market. In fulfilling its role as a KPR distributor, the Company is not limited to financing housing alone
but also through the implementation of programs that facilitate potential consumers to access and obtain KPR facilities.
The Company's efforts and consistency in implementing economic performance have yielded impressive results. The
net profit for the current year reached Rp3.5 trillion, or 114.64% of the target. [OJK F.2]
Comparison of Bank’s Business Targets and 2023 Financial Realization [OJK F.2]
Realization in 2023 Target in 2023
Description Attainment
(Rp Billion) (Rp Billion)
Financial Position
Assets 438,750 430,948 102.07%
Loans Provided* 318,106 329,828 96.45%
Liabilities 408,270 401,402 101.71%
Deposits from Customers 322,501 321,316 100.36%
Giro Transfers** 142,809 134,507 106.17%
Savings** 38,999 43,933 88.77%
Deposits** 140,693 142,876 98.47%
Equity 30,479 29,546 103.16%
Profit (Loss)
Interest Income 28,281 27,729 101.99%
Operational Income Other 3,891 3,246 119.87%
Than Interest
Profit Before Tax 4,380 3,904 112.19%
Net Profit 3,501 3,054 114.64%
Financial Ratio (%)
Capital Adequacy Ratio (CAR) 20.07% 19.30% 0.77%
Gross Non-Performing Loan 3.01% 3.45% (0.44%)
(NPL)
Return on Assets (ROA) 1.07% 0.95% 0.12%
Return on Equity (ROE) 13.86% 12.16% 1.70%
*) Including sharia financing
**) Does not include syirkah
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BTN Achieves Award as the Main Contributor to
the National Housing Program
On August 25, National Housing Day (Hapernas) is commemorated. In 2023, the theme of Hapernas,
as carried by the Ministry of Public Works and Public Housing (PUPR), is "Continuing Collaboration to
Realize Decent, Sustainable, and Affordable Housing for All." On the peak night of Hapernas 2023,
the Ministry of PUPR appreciated BTN for being a major contributor to the national housing program
to reduce the housing backlog in Indonesia, especially in the low-income community (MBR) segment.
The Ministry of PUPR awarded BTN for its role as the Bank Distributing the Most FLPP and Tapera
Mortgages in 2023. As part of the Hapernas 2023 activities, Bank BTN also organized a simultaneous
mass signing of BTN Home Ownership Loans (KPR BTN). Since the government launched the
subsidized mortgage program, Bank BTN has disbursed more than 3.96 million units and experienced
annual increases. In the future, Bank BTN will continue to strive to improve public access to decent
and affordable housing.
Credit Distribution
During 2023, the Company has disbursed loans amounting to Rp318.11 trillion. This amount has increased by Rp19.83
trillion, or equivalent to 6.65%, compared to the previous year which amounted to Rp298.28 trillion. This achievement
fulfills 96.45% of the 2023 RBB amounting to Rp329.83 trillion. The realization of this achievement is contributed by the
absorption of housing loans, both subsidized and non-subsidized.
The Company facilitates loan disbursement as a commitment to support the "One Million Homes Program" as an effort
to reduce the housing deficit. The volume of the Company's consumer loan disbursement is recorded at 199,030units of
houses. This value increased by 9,730 units, or equivalent to 5.14%,, compared to the year 2022, which reached 189,300
units of houses. The increase is attributed to the rise in non-subsidized housing loans by 4,242 units, or equivalent to
13.25%, and non-housing loans by 7,223 units, or equivalent to 46.33%, compared to the year 2022.
PT Bank Tabungan Negara (Persero) Tbk 61
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Consumer Credit Product Disbursement Volume
2023 2022 Increase (Decrease)
Type of Consumer Credit
(Unit) (Unit) (Unit) (%)
Housing Loans
Subsidized KPR 130,830 136,530 (5,700) (4.17)
Non-subsidized KPR 36,261 32,019 4,242 13.25
Other Housing Loans 9,127 5,162 3,965 76.81
Total Housing Loans 176,218 173,711 2,507 1.44
Non-housing Loans 22,812 15,589 7,223 46.33
Consumer Credit
199,030 189,300 9,730 5.14
Disbursement Volume
The Company recorded an increase in the disbursement of consumer credit products as of December 31, 2023,
amounting to Rp42,46 trillion. This value increased by Rp661.87 billion, or equivalent to 1.58%, compared to the year
2022 which reached Rp41.79 trillion. The increase is attributed to the growth of housing loans by Rp5.33 trillion or
equivalent to 15.99%..
Value for Distribution of Consumer Credit Products
2023 2022 Increase (Decrease)
Type of Consumer Credit
(Rp Million) (Rp Million) (Rp Million) (%)
Housing Loans
Subsidized KPR 20,114,620 19,940,663 173,957 0.87
Non-subsidized KPR 16,191,657 12,066,105 4,125,552 34.19
Other Housing Loans 2,375,231 1,343,041 1,032,190 76.85
Total Housing Loans 38,681,508 33,349,809 5,331,699 15.99
Non-housing Loans 3,775,959 8,445,786 (4,669,827) (55.29)
Total Value of Consumer
42,457,467 41,795,959 661,872 1.58
Credit Distribution
The company also facilitated the disbursement of sharia consumer loans, totaling 276,508 housing units in 2023. This
figure increased by 35,101 units, or approximately 14.54%, compared to 2022, which recorded 241,407 housing units.
The increase was attributed to a rise in Subsidized Home Ownership Credit by 31,896 units, or approximately 16.80%,
and non-residential loans by 254 units, or approximately 8.49%, compared to 2022.
Table of Sharia Consumer Credit Disbursement Volume
Type of Sharia Consumer 2023 2022 Increase (Decrease)
Credit (Unit) (Unit) (Unit) (%)
Housing Loans
Subsidized KPR 221,749 189,853 31,896 16.80%
Non-subsidized KPR 50,544 47,387 3,157 6.66%
Total Housing Loans 272,293 237,240 35,053 23.46%
Non-KPR Loans 968 1,174 (206) (17.55%)
Non-housing Loans 3,247 2,993 254 8.49%
Sharia Consumer Credit
276,508 241,407 35,101 14.54%
Disbursement Volume
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The company recorded an increase in Sharia consumer credit disbursement as of December 31, 2023, amounting to
Rp34.77 trillion. This value increased by Rp5.59 trillion, or equivalent to 19.16%, compared to 2022, which reached
Rp29.18 trillion. The increase stemmed from the growth of housing loans amounting to Rp5.58 trillion or approximately
37.24%.
Value for Distribution of Sharia Consumer Credit Products
Type of Sharia Consumer 2023 2022 Increase (Decrease)
Credit (Rp Million) (Rp Million) (Rp Million) (%)
Housing Loans
Subsidized KPR 22,961,992 19,039,362 3,922,630 20.60%
Non-subsidized KPR 11,604,082 9,948,479 1,655,603 16.64%
Total Housing Loans 34,566,074 28,987,841 5,578,233 37.24%
Non-KPR Loans 38,217 48,070 (9,853) (20.50%)
Non-housing Loans 168,816 145,092 23,724 16.35%
Sharia Consumer Credit
34,773,107 29,181,003 5,592,104 19.16%
Disbursement Volume
Financial performance
The Company conducts financial reporting in a transparent and comprehensive manner, which is set forth in the 2023
Annual Report. The Company recorded an outstanding financial performance in 2022. The outcomes of activities and
programs outlined in the report demonstrate strong financial performance as shown in the table below:
2023 2022 2021
Description
(Rp Billion) (Rp Billion) (Rp Billion)
Total Assets 438,750 402,148 371,868
Bank Credit / Financing 318,106 298,282 274,835
Third Party Funds *) 322,501 321,937 296,023
Total Liabilities 381,164 376,239 327,694
Total Equity 30,497 25,909 21,407
Net Profit 3,501 3,045 2,376
Financial Ratio (%)
Rasio Kecukupan Modal (CAR) 20.14 20.17 19.14
Gross Non-Performing Loan (NPL) 3.01 3.38 3.70
Return on Asset (ROA) 1.05 1.02 0.81
Return on Equity (ROE) 13.54 16.42 13.64
Net Interest Margin (NIM) 3.71 4.40 3.99
Operating Costs to Operating
86.36 86.00 89.28
Income (BOPO)
Loan to Deposit Ratio (LDR) 95.36 92.65 92.86
*) includes deposits with other banks and temporary syirkah funds
PT Bank Tabungan Negara (Persero) Tbk 63
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Generated and Distributed Economic Value
During 2023, the Company managed its finances independently and did not receive financial assistance from the
government. Additionally, the Company did not generate any revenue from opportunities and/or financial implications
due to climate change. [GRI 201-2, 201-4]
The Company generated economic value and successfully delivered positive impacts to stakeholders and economic
growth in Indonesia. The direct economic value generated represents the revenue derived from the Company's
business activities. Subsequently, the Company distributes economic value through salaries and benefits to employees,
tax payments to the government, and to the community through various activities as part of its Corporate Social
Responsibility (CSR). The Company presents the direct economic value generated and distributed as shown in the table
below. [GRI 3-3]
Generated and Distributed Economic Value [GRI 201-1] [OJK-B.1]
2023 2022 2021
Description
(Rp Billion) (Rp Billion) (Rp Billion)
Generated Economic Value
Interest Income 24,722 23,233 23,414
Profit Sharing Income under Sharia 3,559 2,674 2,381
Other Operating Income 3,891 2,275 2,517
Non-Operating Income (160) 61 (44)
Total Economic Value Generated 32,012 28,243 28,268
Distributed Economic Value
Interest Expenses and Bonuses (13,203) (9,867) (11,671)
Profit-Sharing Expenses and Bonuses (1,648) (1,043) (1,133)
Other Operating Expenses *) (5,034) (5,249) (5,064)
Employee Salaries and Benefits (3,983) (4,190) (3,782)
Procurement of Goods and Services (2,239) (1,042) (415)
Dividend Payment to Shareholders (609) (237) -
Expenditures for the Government (3,143) (2,465) (2,442)
Expenditures for Community Social (79) (61) (47)
Investment **)
Total Economic Value Distributed (29,938) (24,154) (24,554)
Amount of Retained Economic Value 2,074 4,089 3,714
*) Other operating expenses excluding employee salaries and benefits
**) Distribution of TJSL Program Funds
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Contribution to the State
The Company is committed to conducting fair business practices and complying with applicable regulations. One of
the implementations of this commitment is through the payment of taxes and dividends as a form of responsibility and
contribution to national economic development.
The Company contributed Rp3.1 trillion to the state through various types of tax payments made in the year 2023.
The Company's Contribution to the Government
2023 2022 2021
Tax Type
(Rp Billion) (Rp Billion) (Rp Billion)
Income Tax (Corporate Income Tax) 1,020,952 1,001,840 820,461
Individual PPh 21 531,783 414,720 323,992
Value Added Tax (VAT) 24,307 18,032 17,121
Sales tax on luxury goods (PPnBM) - 12 7
Land and Building Tax 365 5,103 17,252
Other Taxes 1,566,439 935,028 1,263,881
Total 3,143,845 2,374,730 2,442,714
Economic Benefit Distribution
The Company has gained the trust of the government to channel funds to expand housing financing access for the public,
particularly low-income communities (MBR). Through the "One Million Homes for the People" program initiated by the
Jokowi-Jusuf Kalla Administration, the Company takes on the role of an agent of development within the community
to contribute to solving the longstanding housing deficit issue in Indonesia. This problem arises because the demand
for decent housing (housing demand) from the public continues to increase each year, but it is inversely proportional
to the availability of decent housing (housing supply). Additionally, the issue becomes more complex as the number of
housing developers is limited, and land prices increase annually. As a result, it becomes increasingly challenging for
the public, especially those in the low-income category (MBR), to own homes.
The Company provides credit and financing that impacts various industries, particularly the housing sector. In addition
to the housing sector, other sectors related to housing financing have also seen an increase. Financing for MBR houses
is prioritized through Mortgage Credit (KPR), which is predominantly funded by the Company. The number of houses
successfully built is as follows:
Achievements of the One Million Houses for the People Program
Number of Houses Built
Year
(Units)
2015 699,770
2016 805,169
2017 904,758
2018 1,132,621
2019 1,257,852
2020 965,217
2021 632,373
2022 875,832
2023 878,727
4 Pillars of Property Development
PT Bank Tabungan Negara (Persero) Tbk 65
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ENVIRON
LAND
l
Financing Strategy ita & Land Identification Techniques
2
p M
Tax Strategy Ca ENT Land Development Analysis
Financial management Land Control and Acquisition
1
Strategies
4
Licensing Aspect Project Management
Property Legal Aspect
3 Sales and Marketing Strategy
Le
ill
g
Agreements with Third Parties Financial Strategy
Sk
a
l
People & Organization Strategy
Negotiation Skills
Risk Management
BTN Housing Finance Center (HFC)
In supporting the growth of the housing industry in Indonesia, the Company established the Housing Finance Center
(HFC), which was officially inaugurated on October 16, 2014. Currently, HFC has a secretariat located on Jl. HOS
Cokroaminoto, Menteng District, Central Jakarta, and also has a property training center located at BTN KCP UGM
Yogyakarta.
Vision, Mission and Pillars of the HFC Program
Vision Mission
To become a leading center for research, Provide superior, innovative and integrated
education and consultancy on housing finance services in research, education and consulting
related to housing finance for clients
The subject matter at the HFC program leads to 4 (four) main pillar elements in the property sector which include:
Land and Environment Capital Legal Skill
On how to obtain and
On expertise or the
manage sources of funding
Relating to how to acquire On licensing and legality of ability to initiate building,
in the construction of
or control land on which a housing projects and land developing, and marketing
housing projects and
housing project will be built. certification housing projects.
strategies for obtaining
them.
HFC Functions
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Development Empowerment Customers Governance
Through HFC, the Company strives to support the provision of housing supply and cultivate new developers in the
housing sector. This is realized through three functions of HFC derived into three business pillars, namely:
1. Learning 2. Advisory 3. Research
Housing finance education Property and housing financing Center for housing information and
center through various forms of consultation center that collaborates research through various scientific
implementing the Housing Finance with academics, practitioners, studies on the market, business
Center's flagship work program in government, and community actors, developments in the house
seminars, workshops, and short members to assist stakeholders price index, economic developments,
courses both online and offline in in investing, purchasing property supply and demand, housing
collaboration with well-known assets, formulating regulatory industry trends through new
universities in Indonesia, Islamic policies for the government, and research, implementation research
boarding schools and other engaging in collaboration, training, and other relevant research
agencies/ guidance. It also serves as an in the property sphere.
stakeholders. advisor to alumni or participants
in the Housing Finance Center
training program, ensuring their
commitment to pursuing the
Company's business opportunities
in the field of property development
and development in the property
sector.
The derived agenda from the three main activities is as follows:
HFC’s Main Activities
Learning Seminars Meetings held to discuss the property sector by presenting one or more discussion topics with
function their respective working papers.
Workshops Property literacy activities in the form of basic-level property training/education to increase
awareness in the property sector for potential developers and to understand the prospects for
housing business development.
Talk Shows Interactive dialogue to discuss topics in the property sector by bringing in relevant speakers.
This activity is facilitated by a moderator, allowing the speakers to engage in a conversation by
expressing their opinions.
Short Courses Business developer training within a specific timeframe that provides briefing, education, and
short-term training to prospective developers and the community about the scope of housing
development in Indonesia. This activity is carried out in collaboration with higher education
institutions:
Advisory ABCG/BCG The ABCG/BCG collaboration program (Academic, Business, Community, and Government)
collaboration is a collaborative scheme involving academics from various universities, businesses (Bank
program BTN), communities (non-governmental organizations), and government entities (Ministry of
(Academics, Public Works and Housing, Ministry of Agrarian and Spatial Planning/National Land Agency,
Business, Local Governments) to assist informal Low-Income Communities (MBR) in acquiring home
Community and ownership in Kendal Regency. The program provides housing facilities for the community,
Government) including part-time teachers, street vendors, factory workers, and informal employees.
Research BTN HPI (House The BTN House Price Index is able to display data on the housing price index changes, both at
Price Index) the national, regional, provincial, and district/city levels. The data is displayed based on the
realization of housing loans with the same quality and characteristics, both nationally and in
specific regions, including the real transaction prices of Non-subsidized mortgage loans (KPR).
The data range covers various types of houses, ranging from 21—36, 37—45, and 46—70,
as well as indices for several districts/cities. The data is reported quarterly with a monthly
breakdown, and the calculations are done using a matched sales approach.
Publication of the Publication of national scientific papers containing Banking and Economic policy themes as
National Economic organized by BI, OJK and ISEI.
Forum
Implemented Researching or studying the multiplier effect of the impact of the Covid-19 pandemic, housing
Research ecosystems, digital branches, customer satisfaction surveys, profiling customer NPLs, studies
on the economic impact of placing PEN Funds and Bank BTN's market share.
Research Fellowship Collaborate with researchers from university/campus academics/ practitioners.
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04
Environmental
Sustainability
Sustainability
Report
2023
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Sustainability Report Economic Growth Sustainability
One of the pillars of the company's environmental, social and governance (ESG) framework is the management of
climate change risks and their impact on the ecosystem (climate change and ecosystem). To that end, the company
has designed various programs to mitigate the risks of climate change. This step is also a form of the company's
contribution in supporting the government's commitment to achieving carbon neutrality (net zero emissions/NZE) by
2060 and to achieving the 13th Sustainable Development Goals (SDGs) of tackling climate change. [GRI 3-3]
Lending Policy Based on ESG Aspects
In implementing ESG, the Portfolio Guideline is in Furthermore, the determination of priority industrial sectors
accordance with Technical Instructions No. PT.8-H.3 is re-evaluated with a focus on and prioritization of ESG
dated 1 October 2023. PT.8-H.3 dated 1 October 2023. components, thereby creating alignment between economic,
Issuance of Portfolio Guidance is one of the tools in social, and environmental aspects. This is in accordance with
implementing credit risk management used to control regulatory provisions such as Financial Services Authority
lending concentration risk. As part of efforts to implement Regulation (POJK), Financial Services Authority Circular
effective credit risk management, the bank also needs to Letter (SEOJK), Sustainable Finance Roadmap in Indonesia,
diversify in providing wholesale lending. This is done Indonesian Green Taxonomy Report, Law No. 16 of 2016
by providing wholesale lending to industrial sectors concerning the Ratification of the Paris Agreement, as well
other than the property sector, considering the level of as the National Medium-Term Development Plan (RPJMN).
demand and supply of wholesale lending, wholesale
credit risk, and ESG aspects in industrial sectors, as well In the Portfolio Guidelines, the company has determined 15
as prudential principles and sound credit management. (fifteen) industrial sectors that can be used as guidelines
for granting credit by considering ESG aspects, prudential
The determination of priority industrial sectors is based principles and sound credit management, namely:
on classifications used by regulators, such as Indonesian 1. Property-Residential
banking statistics, Gross Domestic Product (GDP), and 2. Infrastructure and Utilities
national banking financing portfolios. The selection 3. Health Services
of sectors is conducted through a qualitative and 4. Financial Institutions (Commercial Banks, Securities,
quantitative scoring system, grouped into 4 categories: Insurance)
Attractive, Neutral, Selective, and Restrictive. Industrial 5. Multifinance
sectors proposed as priorities are those in the Attractive, 6. Transportation & Logistics
Neutral, and Selective groups. 7. Agribusiness
8. Information and Technology
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9. Telecommunication • Including ecolabelling regulations or the use of
10. Education Service environmentally friendly materials that have been
11. Oil and Gas certified by the Indonesian Ecolabelling Institute
12. Retail (LEI) in middle class construction financing;
13. Service • Ensuring that the house or construction being built
14. Pulp & Paper meets the greenship homes criteria compiled by the
15. Consumer Goods (Food & Beverage, Household Green Building Council Indonesia (GBCI);
Goods, and Personal Care) • Arranging requirements for developers to plant
trees in every house or provide large allocations
In addition to the portfolio guidelines, one way to for social and environmental related facilities and
ensure that the credit provided is not used for projects infrastructure. This policy refers to the company's
or activities that are detrimental to the environment is commitment to efforts to realize biodiversity; and
to have environmental requirements documents such [OJK F.9, F.10]
as an Environmental Impact Analysis. The company also • Formulating an exclusion list that lists activities and
considers it important to have competency development practices that the bank does not want to carry out,
activities for developers or partners related to financing including activities that have a negative impact on
schemes and their potential impact on the environment. humans and the planet.
[FS5] [FS10]
Apart from fulfilling environmental responsibilities
A sustainability risk management policy has been through implementing regulations, the company
developed to ensure that lending is provided in also strives to preserve the environment through
accordance with social and environmental aspects. The conservation programs and activities. To support this
requirements that have been set consist of: [GRI 3-3] program, the company does not have operational offices
[FS1] [FS2] located in conservation areas or those with protected
biodiversity.[GRI 3-3] [OJK F.9, F.10]
• Environmental Feasibility Efforts or Environmental
Management Efforts (UKL/UPL) and/or The company's consistency in always complying with the
Requirements for Environmental Impact Analysis prevailing environmental regulations and provisions is
(AMDAL), Flood Peil Permit (permit to carry out the proven by zero violations of environmental laws and
construction of a building in a certain area), and regulations that resulted in fines or non-monetary
other permits; sanctions in 2023. [GRI 2-27, 3-3, 307-1] [F.16].
• Undertaking direct field visits or observations to
verify that the location of the residential land to be
built is not green land or disputed land;
Greenhouse Gas Emissions
BTN's ESG Framework, GHG emission management is included in the Climate Change and Ecosystems pillar. The
company has set a minimum emission reduction target of 30% in its operational activities for the next five years. Efforts
to fulfill this target are carried out with various initiatives, such as adopting solar panels as an energy source, using
electric vehicles as much as 20% or at least 50 of the total company fleet, and other programs. Until the year 2023, the
Company has operated 29 electric vehicles, consisting of 21 electric motorcycles and 8 electric cars. Additionally, the
Company has installed 3 solar panels at its office. [GRI 3-3]
Setting this target is the company's commitment to support the government's commitment to be carbon neutral (Net
Zero Emission/NZE) by 2060 and meet the Enhanced Nationally Determined Contributions target of 43.20%. By
referring to this commitment, the company views GHG emission tracking as important to calculate emissions originating
from global warming potential (GWP) gas sources such as CO2, N2O, CH4, CFC. This calculation will later be displayed
in units of tons of CO2 equivalent or CO2 eq. [GRI 3-3]
The Company's emission calculations are based on an operational control approach utilizing the methodology
outlined in the 2006 IPCC Guidelines, updated in 2019, and referencing the ISO 14064 Greenhouse Gases standard.
The electricity emission factors rely on those published by the Directorate General of Electricity, Ministry of Energy
and Mineral Resources (DJK-ESDM) in 2020. On the other hand, the emission factors for oil-based fuels (BBM) are
based on those published by the Institute of Oil and Natural Gas (Lemigas), ESDM, in 2021. The calculated emissions
exclusively include CO2 gas, multiplied by a GWP factor of 1, and do not encompass biogenic CO2 emissions. [GRI 305-
1, 305-2, 305-3] [F.11] [TCFD Metrics.b]
The company's Scope 1 emissions come from the use of fuel for transportation and the use of fuel for generators.
Meanwhile, Scope 2 emissions come from the use of electrical energy from state-owned electricity company PT PLN.
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The following represents the overall calculation of greenhouse gas emissions (GRK) generated by the Company: [GRI
305-1, 305-2] [OJK F.11] [TCFD Metrics.b]
Description Unit 2023 2022 2021
Scope 1 (Direct) ton CO2 eq 7,282 5,637 20,736
Scope 2 (Indirect) ton CO2 eq 8,964 16,985 26,432
Based on the table above, emissions from Scope 1 and 2 have decreased by 6,376 tons of CO2 eq. [GRI 3-3] [OJK F.11]
GHG Emissions from Financing Activities
In 2023, the Company embarked on its first year of calculating Scope 3 emissions in the financed emissions category.
Financed emissions represent the emissions generated from financial services, investments, and loans provided by
financial service institutions. The calculation and reporting of financed emissions adhere to The Partnership for Carbon
Accounting Financials (PCAF) standards. The Company calculated financed emissions per sector such as construction,
energy, transportation, Industrial Process and Production Use (IPPU), and others. [GRI 305-3] [TCFD Metrics.a]
Financed Emissions per Business Sector [GRI 305-3]
Business Sector Outstanding Financed Emissions
(Rp Billion) (ton CO2 eq)
Construction 7,608 42,926
Energy 7,580 676,848
Transportation 5,051 39,187
IPPU 3,717 19,842
Others 718 26,811
Total 24,675 805,615
This calculation is an initial calculation of several of the company's largest financings and will be further supplemented in future periods.
Furthermore, the Company reported other Scope 3 emissions, including categories such as business travel and
purchased goods such as paper. [GRI 305-3]
Description Unit 2023 2022 2021
Scope 3: Business
ton CO2 eq 7,282 5,637 20,736
Travel
Scope 3: Purchased
ton CO2 eq 8,964 16,985 26,432
Goods
The Company also calculates emissions from emission reduction activities originating from tree planting, based on the
average carbon absorption per tree. In 2023, the tree planting activities resulted in an emission absorption of 3,499
tons of CO2 eq. The Company has set the baseline year of 2019 for the reduction of Scope 1 and Scope 2 GHG emissions.
Regarding persistent organic pollutants (POP), volatile organic compounds (VOC), particulate matter (PM), and other
significant air pollutants are not relevant to the Company's activities. Furthermore, the Company has not yet calculated
ozone-depleting substances (ODS). [GRI 305-1, 305-2, 305-3, 305-5, 305-6, 305-7] [F.12] [TCFD Metrics.a, Metric.c]
GHG intensity [GRI 305-4]
GHG emissions intensity indicates the amount of GHG emissions per unit of activity, output, or other specific metrics.
Energy consumption intensity is calculated using the total GHG emissions (Scope 1 and Scope 2) produced by the
company, divided by the number of employees translated into tons of CO2/number of employees. GHG intensity only
includes CO2 gas .
Denominator 2023 2022 2021
BTN Employee 1.51 ton CO2 eq/ employee 1.91 ton CO2 eq/employee 5.14 ton CO2 eq/employee
Office Unit 4.44 ton CO2 eq/office unit 6.18 ton CO2 eq/office unit 15.27 ton CO2 eq/office unit
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Climate Change Risks and Opportunities
Climate change can have a significant impact on the banking sector. One of impacts is the increased risk of debt
repayment failure by debtors whose business sectors are directly affected by climate change such as agriculture, forestry
and tourism. To that end, the company must determine certain conditions related to the environment before distributing
credit so as not to provide funds to developers who will use them for projects or activities that are detrimental to the
environment. This is essential for the company to avoid risks related to financing projects or activities that hurt the
environment.
The company has carried out mapping of risks and opportunities caused by climate change in accordance with the
Recommendations of the Task Force on Climate-related Financial Disclosures. The company has also identified the
financial impacts resulting from the risks and opportunities of climate change. [TCFD Gov.b]
The following are the risks and opportunities of climate change mapped by the company. [GRI 201-2] [FS10, FS11] [TCFD
Stratg.a,b] [TCFD Risk.a, b, c]
Description Risk 1 Risk 2 Risk 3
Type of Risk Reputation Technology Market
Risk Trigger Regulation and supervision Failure in new technology Inability to attract funds and/or investors due to
of climate-related risks in investments. uncertain risks related to climate.
the financial sector.
Risk Explanation Reputational risk is the Technology risk where there Risks related to a drop in competitiveness, a
presence of demands is the possibility of failure drop in potential green bond buyers.
from the public, media, in high-cost digital banking
and the government for technology investments.
not complying with the
prevailing regulations.
Major Financial Increased indirect Increased capital Drop in competitiveness and potential bond
Impact (operating) costs. expenditure. buyers, and the possibility of withdrawal of
funds by investors.
Description Risk 4 Risk 5 Risk 6
Type of Risk Acute Physical Chronic Physical Regulations that Emerge
Risk Trigger Worsen severity and higher Rising sea levels. Regulation and supervision of climate-related
frequency of extreme risks in the financial sector.
weather events such as
hurricanes and floods.
Risk Explanation Acute physical/systemic Risks related to extreme One of the Indonesian government's efforts to
risks are caused by active weather changes such achieve the emission contribution targets set
volcanic eruptions, frequent as long dry seasons or nationally is through Presidential Regulation
cases of earthquakes, floods, prolonged rainy seasons. Number 98 of 2021 on the Implementation
tornadoes and landslides. of Carbon Economic Value for Achieving
Nationally Determined Contribution Targets and
Controlling Greenhouse Gas Emissions in the
National Development.
Major Financial Decreased income due Increased lending risk. Increased lending risk.
Impact to reduced production
capacity/debtor income.
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Description Opportunity 1 Opportunity 2 Opportunity 3
Type of Market Energy Source Goods and Service
Opportunity
Opportunity Improved ranking by Use of energy sources with Development of low-emission goods and
Trigger sustainability/ESG index. lower emissions. services.
Major Financial Increased capital Reduction of indirect Increased revenue resulting from increased
Impact expenditure. (operational) costs. demand for products and services.
Opportunity The company has developed The company has The company continues to strive and ensure that
Explanation a framework, a strategy and implemented a green office the existing IT system is well planned and can
a roadmap to strengthen and started using electric adapt to the needs and direction of business
ESG implementation which vehicles in operational development (IT as business enabler) in terms
can have a positive impact activities. of product and service development as well as
on BTN's ESG rating. digitalization of business processes.
Description Opportunity 4 Opportunity 5
Type of Goods and Service Goods and Service
Opportunity
Opportunity Changes in customer preferences. Development of low-emission goods and
Trigger services.
Opportunity Issuance of financing instruments that support ESG aspects Home Ownership Credit (KPR) products that
Explanation in the forms of sustainability loans and sustainability-linked care about the environment and climate change
loans. will attract debtors and improve the company's
reputation.
Major Financial Increased revenue resulting from increased demand for Increased revenue resulting from increased
Impact products and services. demand for products and services.
Gotong Royong
Boyong Pohon Campaign
BTN reinforces its commitment to play an active role in improving the quality of life of the community
and supporting economic growth by considering aspects of education, health and environmental
preservation. In line with this commitment, BTN participated in the Gotong Royong Boyong Pohon
campaign, which was initiated by Ministry of State-Owned Enterprises. This commitment reflects the
company's seriousness in maintaining environmental sustainability and making concrete contributions
to overcoming the impacts of climate change. In addition, this commitment is also in line with SDGs
Goal 13 of Addressing Climate Change, and Goal 15 of Protecting Land Ecosystems. [OJK F.1]
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Energy Use
Energy is an essential need in carrying out the company's operational activities, especially in the form of electricity and
fuel. Various operational activities rely on electricity supplies, such as lighting and powering office facilities, including
elevators, air conditioning and photocopiers. The use of fuel is also inevitable in operational activities, especially for
operational vehicles and generators that are used as a backup electricity source. Although the company is aware that
energy use in its operations has an impact on the environment, it needs to be acknowledged that this impact is not as
big as energy use in other business sectors. [GRI 3-3]
In the field of energy management, the company has various strategies and derivative programs to reduce energy
use. The energy management program is focused on the BTN Tower Building by covering the efficient use of electrical
equipment such as water heaters, air conditioners (chillers) and elevators. So far, the significant energy use in the BTN
Tower Building is to operate the elevators and air conditioning. [GRI 3-3] [F.7]
The energy management programs carried out are as follows: [GRI 3-3]
a. Regulation of the use of electrical equipment such as turning off lights, elevators and cooling units using a Building
Automation System (BAS) that makes it easier to organize operational equipment to make it more efficient;
b. Lighting arrangement based on zones or divisions, making it easier to turn off unused spaces;
c. Promotion of energy savings by turning off electrical equipment that is not in use (turning off lights when not in
use, unplugging electrical equipment that is not in use, and placing advisory posters in toilets regarding water
conservation);
d. Use of solar water heaters to supply water in the directors' toilets; and
e. Setting operating schedules for air conditioning units and elevators according to operational needs The operating
schedule for air conditioners and elevators is as follows:
Air Conditioning Operation Schedule Number of Air Conditioners in Operation
At 06.00 Western Indonesian Time, the cooler operates 2 units
At 06.30 Western Indonesian Time, the cooler operates. 3 units
At 07.00 Western Indonesian Time, the cooler operates. 4 units
At 07.30 Western Indonesian Time, the cooler operates. 5 units
At 14.00 Western Indonesian Time, the cooler stops operating. 1 unit
At 16.00 Western Indonesian Time, the cooler stops operating 1 unit
At 17.00 Western Indonesian Time, the cooler stops operating 2 units
At 19.00 Western Indonesian Time, the cooler stops operating 1 unit
Elevator Operation Schedule Number of Elevators in Operation
At 06.00 Western Indonesian Time, all elevators are operational All elevators
At 18.00 Western Indonesian Time, elevators stop operating 2 units
At 20.00 Western Indonesian Time, elevators stop operating 2 units
At 22.00 Western Indonesian Time, elevators stop operating 2 units
On Saturdays/Sundays, only elevators in the low zone, the high
1 unit
zone and parking areas operate
f. Replacement of TL and essential type lamps with LED lamps;
g. Modernization of 10 elevators with the latest model control and mechanical systems that are more efficient in
consuming electricity as well as replacing damaged AC units or procuring new AC units with an inverter type;
h. Advertising media uses a videotron LED system; and
i. Using water from the Regional Drinking Water Company as the main water source in the BTN Tower Building.
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Green Office at the Head Office
The company always supports and contributes to (IPAL) with an input of 260 m3/day. The IPAL
environmental preservation and social welfare. produces a water discharge of 220 m3/day as
Even though it does not have a direct impact on the regulated in the Waste Water Disposal Permit on
environment, environmental management is one of the July 19, 2018;
objectives of the Company's SFAP, namely "developing e. Carrying out a plastic waste free campaign in the
sustainable banking operations through implementing office by reducing the use of plastic bottled mineral
green office concepts and sustainable procurement". water and disposable cutlery in activities and
meetings―both internal and external meetings―
As a concrete action to support environmental protection, and encouraging awareness of bringing personal
the company has implemented its commitments that drinking bottles;
apply in the head office area, including: [OJK F.1] f. Encouraging employees to use public transportation
a. Providing temporary waste storages with a capacity to get to the office Based on the government’s policy,
of 5 m3. The collected waste is transported to the all state-owned operational vehicles must use non-
final disposal site; subsidized fuel with high octane value so that it is
b. Using four units of infiltration wells with a capacity of more environmentally friendly. Based on Memo
48 m3 each; No. 1836/M/PGSD/GS/XI/2013 on November
c. Making efforts to save energy, including: 6, 2013, the Procurement and General Services
- Using a water heater using renewable energy Division issued an appeal to all regional offices,
(solar panels); branch offices, and sharia branch offices regarding
- Limiting water use by regulating water discharge the prohibition on the use of RON 88 (premium)
for several purposes, such as toilets, ablution gasoline for operational vehicles; and
areas, and others; g. Supporting and participating in celebrating Earth
- Automatic settings for electrical equipment Hour since 2020.
with BAS technology used for lights and air
conditioning units; In implementing the green office concept, the company
d. Preventing environmental pollution with several has a basis in the form of the prevailing rules and
efforts on a regular basis such as: regulations, including: [GRI 3-3]
- Choosing environmentally friendly technology • Law Number 32 of 2009 on Environmental Protection
for room temperature control freon (air and Management (Law No. 32 of 2009);
conditioner) types R32, R134A, and R410; • Law No. 17 of 2019 concerning Water Resources;
- Providing a temporary storage area for hazardous • Law No. 18 of 2008 on Waste Management;
and toxic waste (TPS LB3) with a capacity of 104.5 • Government Regulation No. 101 of 2014 on
kg; Management of Hazardous and Toxic Waste; and
- Providing a building wastewater treatment plant • Government Regulation No. 74 on Management of
Hazardous and Toxic Materials.
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The company also provides support and contributions to the Indonesian government that has agreed on a global action
plan in the form of Sustainable Development Goals (SDGs) together with leaders of other countries. The company
makes the SDGs goals in the environmental aspect the basis for preserving the environment, including the 6th goal
(clean water and decent sanitation), the 7th goal (clean and affordable Energy), the 13th goal (climate management and
change), and goal 15 (terrestrial ecosystem).
The company also records comprehensive electrical energy usage and fuel consumption for all of the company's
operational vehicles. This recording is carried out to measure the efficiency and effectiveness of saving energy use.
To date, the company is still completely dependent on electricity supply from state-owned electricity company PT
PLN (Persero). However, the company has operated solar panels at the BTN offices and operates electric vehicles in
operations. [GRI 302-1, 302-2]
3 29
electric
solar panels are
vehicles as
installed at the
operational
BTN office
vehicles
Based on the table below, electrical energy use in 2023 decreased by 50% and fuel use also decreased by 12% compared
to that in 2022. The Company has not yet conducted calculations regarding the reduction in energy required for the sold
products and services. [GRI 302-4, 302-5]
Energy usage during the reporting year is as follows: [GRI 3-3, 302-1, 302-2] [F.6]
Energy Source (GJ)
Electricity 108,630 68,829 34,276 BBM 160,355 93,403 82,321
2021 2022 2023 2021 2022 2023
The intensity of energy use is expressed in units per employee and per branch office as follows: [GRI 302-3]
Denominator 2023 2022 2021
BTN Employee 9.68 GJ/employee 13.68 GJ/employee 24.03 GJ/employee
Offices 31.84 GJ/office unit 44.33 GJ/office unit 71.41 GJ/office unit
Paper Use
Paper is the material most frequently used in the company's operational activities. Several examples of main activities
that use paper are correspondence, making memos, printing company reports, registration, printing customer books,
and recording transactions. Paper is also used as proof of transactions via ATM machines. The company is aware that
high use of paper can have a negative impact on the environment, such as cutting down trees and increasing waste,
especially if used paper waste management is not carried out properly. [GRI 3-3, 306-1]
Digital banking is the answer and opportunity for the company to face the challenge of reducing paper use to preserve
the environment. One of the realizations of digital banking is by implementing document digitization initiatives that can
reduce paper use, as follows: [GRI 3-3, 306-2] [OJK F.1]
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a. No longer using facsimile; correspondence carried out through electronic mail (email);
b. Paperless: disposition and distribution of mail using the iFlow app;
c. Smart Branch: not using deposit slips and maximizing digitalization;
d. BTN Properti.co.id: making it easy for people to buy a house, find a house, and enjoy three-dimensional (3D) features
through the support of the latest digital technology, which in its implementation, the company does not need a lot
of paper; and
e. Rumah Murah BTN: giving convenience and comfort for the public to find assets through the support of the latest
digital technology and in its application the company does not need a lot of paper.
For the sake of efficient use of paper in operational activities, the company utilizes the IFlow application to carry out
cross-division and/or cross-branch correspondence with structured implementation. On top of that, the use of this app
can increase efficiency in the flow of mail distribution, provide convenience in monitoring and verifying documents or
letters that have been sent, and reduce the use of paper for printing for operational purposes.
The company also provides support in increasing the efficiency of paper use by using wastepaper for internal memos
and destroying important documents that are no longer used with a paper shredder. Paper that is not included in the
category of important documents will be handed over to third parties for reuse, including recycling. The company
has not yet adopted environmentally friendly materials. The company does not use recycled paper, does not accept
recycled material inputs, and does not utilize products derived from reclamation. [GRI 3-3, 301-1, 301-2, 301-3, 306-
2] [F.5]
The Company's paper usage is shown in the following table: [GRI 301-1]
Paper Use (Sheet)
30,476,875 30,445,843 25,592,000
2021 2022 2023
Apart from calculating paper usage, the company also calculates the usage of other non-energy consumables, including
the usage of refrigerants used in adding AC freon. [GRI 305-6]
Refrigerant Use (Kg)
6,544 2,144 1,780
2021 2022 2023
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Water Management
Water is one of the important needs for the company. Water is used for domestic office purposes such as
ablutions, cleaning toilets, watering plants, filling fountains, and others. Most of the water needs are met
by the Regional Drinking Water Company, while the other part is taken from deep water wells.
The company is aware of the environmental risks associated with water, including pollution, scarcity, and
risk of flooding. Floods can affect the bank's operations and customers, so the company also pays special
attention and carries out initiative efforts in water management. The company's waste management
refers to Law No. 17 of 2019 on Water Resources. [GRI 3-3]
The company's commitment to saving water use is carried out with the following water management steps: [GRI 3-3]
a. Using Regional Drinking Water Company water as the main source in accordance with regional regulations regarding
groundwater use;
b. Building two absorption wells with a capacity of 48 m³ each, so that the total rainwater absorption capacity reaches
96 m³;
c. Regulation of water discharge for water use (toilets, ablution places, etc.);
d. Wastewater has been processed through a sewage treatment plan so that it is not harmful to the environment and
has received a Waste Water Disposal Permit from the relevant agency. The wastewater treatment plant in the BTN
Tower building has a capacity of 260m3/day. The installation output is 220m3/day, in accordance with the Waste
Water Disposal Permit issued on July 19, 2018;
e. Utilization of STP processed water to collect rainwater for watering plants, filling fountain pools, and washing cars.
In addition to the various efforts above, the company also makes efforts to save water by regulating water discharge in
the BTN Tower Building with a clean water usage balance as follows:
Office Toilet
183m3/day
Guest Toilet
10m3/day
Prayer Room STP Capacity General Channel
20m3/day 260m3/day 220m3/day
Building Cleaning
Water from
Drinking Water Company 24m3/day
274m3/day
GWT Canteen
274.1m3/day Grease Trap
5m3/day
Fountain
Groundwater Evaporate
Reserve 2.1m3/day
0.1m3/day
Chiller
Evaporate
10m3/day
Watering the Seeping into the
garden 10m3/day Ground
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The Company implements efficiency measures by referring to the value of water usage payments to the Regional
Drinking Water Company and carrying out the monitoring via flow meters. With this water management, the company's
water usage in the reporting year is as follows: [GRI 3-3, 303-1, 303-3] [F.8]
Water Use [GRI 303-1, 303-5] [F.8]
Water Source Unit 2023 2022 2021
Water from Third Parties
PDAM m3 284,419 606,967 1,401,731
Ground Water
Deep Well m3 7,095 63,662 138,114
Total m3 291,514 670,629 1,539,845
Through various savings efforts, the company's water usage has shown a decline. Based on the table above, the volume
of water use in 2023 dropped by 379,115 m3 compared to 2022 with water use of 670,629 m3. [GRI 3-3]
Waste Management
Waste is leftover material from the production process carried out by humans. Waste is divided into two forms, namely
solid and liquid waste which can be classified into Hazardous and Toxic Waste (B3) and non-Hazardous and Toxic
Waste (non-B3). Several types of solid waste produced from the company's operations include office waste, unused
electronic equipment, used lamps, used batteries, and used furniture. Meanwhile, liquid waste comes from used oil from
operational vehicles and generators, as well as domestic wastewater from toilets and cafes. The company understands
that improper waste management can have a polluting impact on the environment. Therefore, good waste management
efforts are a priority to minimize negative impacts on the surrounding ecosystem. [GRI 3-3, 306-1]
The company's waste management refers to Law No. 18 of 2008 on Waste Management, Government Regulation No.
101 of 2014 on Management of Hazardous and Toxic Waste, and Government Regulation No. 74 on Management of
Hazardous and Toxic Materials. Reducing waste production is one of the company's concrete steps in waste management.
To realize this step, the company issued an appeal to avoid the use of disposable eating and drinking utensils. The
company also provides adequate trash cans on each office floor to simplify the waste management process. For
hazardous and toxic waste, the company provides a temporary storage area for hazardous and toxic waste (TPS LB3)
with a capacity of 104.5 kg. [GRI 3-3, 306-2]
SAs a form of compliance with environmental laws and regulations, the company ensures that the management of waste
produced is in accordance with the provisions of the prevailing laws and regulations. Based on Government Regulation
Number 101 of 2014 on Management of Hazardous and Toxic Waste, the company hands over the management of
Hazardous and Toxic Waste to third parties who have permits from Ministry of the Environment and the Ministry of
Transportation. The company also recycles organic waste such as leaves into compost. [GRI 3-3, 306-2, 306-4]
The following is a recapitulation table of the volume of waste produced according to its type:
[GRI 3-3, 306-3, 306-4, 306-5] [F.13] [F.14]
No Type of Waste Treatment 2023 2022 2021
Building Waste Produced 130,529 Kg 119,009 Kg 90,170 Kg
Food waste, drinks, moved to a temporary
0 0 0
1 paper and cardboard waste storage area
disposed to licensed
Yes Yes Yes
third parties
Used oil Produced 0 10.19 Kg 0
moved to a temporary
0 10.19 Kg 0
2 waste storage area
disposed to licensed
Yes Yes Yes
third parties
Used Accu/Battery Produced 0 8 units 8 units
moved to a temporary
0 0 0
3 waste storage area
disposed to licensed
Yes Yes Yes
third parties
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No Type of Waste Treatment 2023 2022 2021
Lamps Produced 287 units 732 units 729 units
moved to a temporary
287 units 732 units 729 units
4 waste storage area
IT lights, PLCs, ballasts disposed to licensed
yes Yes Yes
and cables third parties
IT lights, PLCs, ballasts Produced 0 2.52 kg 20 kg
and cables
moved to a temporary
0 2.52 kg 0 kg
5 waste storage area
disposed to licensed
Yes Yes Yes
third parties
In managing wastewater at the head office, the company refers to Regulation of the Governor of the Special Capital
Region of Jakarta Province No. 122 of 2005 on Domestic Wastewater Management in the Special Capital Region of
Jakarta Province. For this reason, the company ensures that the quality standards for wastewater discharged into water
bodies are safe for the local water body ecosystem by routinely measuring waste water quality at the head office every
three months. The following is a recapitulation table of the volume of water discharge produced by the company during
the reporting period. [GRI 303-2, 303-4, 306-2]
Tujuan Pembuangan Air Satuan 2023 2022
Surface Water m 3
826.77 651.84
Ground Water m3 275.00 357.00
Third-party Water m3 48,585.00 44,100.00
Total m3 49,686.77 45,108.84
Description 2023 2022
Water disposal Fresh water (≤1,000 mg/L Total
48,860.00 44,457.00
based on effluent Dissolved Solids)
classification
Other water (>1,000 mg/L Total
826.77 651.84
Dissolved Solids)
Total water discharge (m3) 49,686.77 45,108.84
To ensure that environmental management can be carried out optimally, the company incurs costs which include
the costs of environmental conservation, STP management, waste management and tree planting. In 2023, the costs
incurred for environmental preservation was Rp154,100,000, the costs for STP management was Rp90,000,000, the
costs for waste management was Rp64,100,000, and the costs for planting trees was Rp968,059,000. [F.4]
With waste management that has been established during the operational process in 2023, there will be no spills,
whether from chemicals, oil, fuel or other chemical substances that affect the quality of the surrounding environment
and public health. The company also does not receive complaints or reports regarding incidents of non-compliance with
rules and regulations regarding the disposal of wastewater or effluent. [GRI 303-4] [F.15]
Furthermore, to ensure the company's compliance with efforts to maintain social and environmental issues, Bank
BTN routinely submits separate reports twice a year on the company's plans and initiatives. These reports are the
Implementation Report of Environmental Management Plan (RKL) and Environmental Monitoring Plan (RPL), which are
prepared in accordance with Minister of State for the Environment Decision No. 45 of 2005 concerning Guidelines for
the Preparation of Environmental Management Plan (RKL) and Environmental Monitoring Plan (RPL) Implementation
Reports, as well as applicable regulations.
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Employee
Development
Sustainability
Report
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Human Resource Management
The company has a strategy to realize one of its visions to become the home of Indonesia's best talent by implementing
short and medium term human resource (HR) development work programs that are aligned with the company's
corporate plan for 2021 - 2025, including:
1. Ability To Attract Top Talent
To become one of the top-of-mind of employers for external candidates from leading companies and universities
in Indonesia.
2. Ability To Retain Top Talents
To be able to retain top talents to work and develop with BTN.
3. Talents’ Capability Readiness
To have the capability to achieve the bank's current and future strategic goals.
4. Employee Productivity
To have employee productivity that is above the average of well-known organizations.
To achieve these aspirations, strategic initiatives have been prepared as follows:
1. Becoming the first choice for the best talent to work;
2. Strengthening HR capabilities,productivity and competitiveness by committing to employee development programs
that are integrated and aligned with current and future business needs; and
3. Focus on creating value and being a business partner.
These strategies are implemented by the company through the implementation of a number of strategic human capital
initiatives, including:
1. Aligning remuneration systems and incentive programs to attract, retain, and motivate employees;
2. Implementing a multi-power strategy and running an orientation program for new employees for internal transfers;
3. Activating the four pillars of EVP of Learning, Growing, Contributing and Engagement in encouraging better
branding of BTN;
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4. Implementing succession management to ensure the fulfillment of key/critical positions and closing generation
gaps;
5. Detailing dual career paths (specialist and generalist career paths) for critical positions that are in line with BTN’s
strategic objectives;
6. Implementation of predictive and productivity-based workforce planning;
7. Implementation a systematic productivity measurement methodology and matrix for business and support
segments;
8. Implementation of an integrated performance management principles and governance and applying multi-source
performance assessments to ensure overall objectivity; and
9. Sharpening learning strategies, applying guidance consistently, and carrying out interventions to support a learning
culture.
“One of Home of Indonesia’s best Talent”
BTN can attract and retain the best Indonesian talent who have superior capabilities with a high level of productivity to
achieve the bank's strategic goals and business targets.
Ability to attract Ability to retain Talents’ Eamployee
top talents top talents Capability Readiness Productivity
Becoming the first choice for the best talent to work Strengthening HR capabilities, productivity, and competitiveness
Focus on creating values and being a business partner
Employee Value Proporsition Remuneration Performance Management
Activating the four pillars of EVP of
Learning, Growing, Contributing and
Engagement in encouraging better Implementing a systematic
branding of BTN productivity measurement
methodology and matrix for the
Recruitment & Onboarding business and support segment
Implementing multisource Implementation of an integrated
strategies and running onboarding performance management principles and
programs for new recruits and governance and applying multi-source Workforce Planning
internal movements performance assessments to ensure
Remuneration overall objectivity
Implementation of predictive
Aligning remuneration systems and and productivity-based
incentive programs to attract, retain, workforce planning
and motivate employees
Talent Management Learning and Development
Implementing succession management to ensure
the fulfillment of key/critical positions and closing
generation gaps
Sharpening learning strategies, implementing coaching
consistently, and investing to support a learning culture
Detailing dual career paths (specialist and generalist
career paths) for critical positions that are in line with
BTN’s strategic objectives
Organisational Alignment
Developing HCBP capabilities to align HC strategy with business and answering the bank's needs
Refining the HC organizational structure and designing a grading system that is aligned with business needs
Further improvements to boost operational excellence and HR management practices
Digital HR & Corporate Culture
Promoting the internalization of AKHLAK and the four pillars of BTN culture by optimizing the Change Agent Network
Implementing an integrated HCIS to support operational excellence, data-based decision making, and
providing a seamless employee experience
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Employee Diversity [GRI 2-7, 2-8] [GRI 405-1] [OJK F.18]
Diversity and equality for every employee is one of the basic principles of employment which is upheld by the company in
accordance with the implementation of Law No. 13 of 2003 on Employment. This principle is implemented in regulations
related to human rights that are stated in General Policy No. KU.3 dated 30 December 2022 on Human Resources (Human
Capital) and Collective Work Agreements. Based on these regulations, the application of the principle of equality by
the company starts from the employee recruitment process, training and competency development programs, career
development, and providing remuneration and employee welfare. The company ensures that all stages are carried out
without any differences in treatment based on gender, religion, ethnicity, and race. [GRI 3-3, 2-23] [OJK F.18]
Employee data presented in this report comes from the Human Capital Management Division Work Unit database, the
accuracy of which can be accounted for. Complete information on employees is presented in the following tables: [GRI
2-7, 2-8]
Employee Demographics by Gender [GRI 2-7]
2023 2022 2021
Gender
Total (%) Total (%) Total (%)
Male 6,288 52.20 6,261 52.80 6,049 54.05
Female 5,757 47.80 5,598 47.20 5,143 45.95
Total 12,045 100.00 11,859 100.00 11,192 100.00
Employee Demographics by Age Group and Gender [GRI 2-7]
2023 2022 2021
Age Range
M F Total (%) L F Total (%) L F Total (%)
≥51 720 231 951 7.90 682 254 936 7.89 561 248 809 7.23
31-50 3,284 2,536 5,820 48.32 3,088 2,429 5,517 46.52 2,858 2,271 5,129 45.83
≤30 2,284 2,990 5,274 43.79 2,491 2,915 5,406 45.59 2,630 2,624 5,254 46.94
Total 6,288 5,757 12,045 100.00 6,261 5,598 11,859 100.00 6,049 5,143 11,192 100.00
* M= Male/F = Female
Employee Demographics by Position Level and Gender
2023 2022 2021
Position Level
M F Total (%) M F Total (%) M F Total (%)
Level 22 2 - 2 0.02 - 1 1 0.01 2 2 4 0.04
Level 19 till 21 134 24 158 1.31 116 19 135 1.14 108 21 129 1.15
Level 15 till 18 1,061 376 1,437 11.93 921 349 1,270 10.71 923 346 1,269 11.34
Level 13 till 14 1,762 1,149 2,911 24.17 1,724 1,080 2,804 23.64 1,507 812 2,319 20.72
Level 11 till 12 2,574 3,129 5,703 47.35 2,565 2,945 5,510 46.46 2,719 2,760 5,479 48.95
Level 8 till 10 755 1,079 1,834 15.23 935 1,204 2,139 18.04 790 1,202 1,992 17.80
Total 6,288 5,757 12,045 100.00 6,261 5,598 11,859 100.00 6,049 5,143 11,192 100.00
* M= Male/F = Female
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Employee Demographics by Education Level and Gender
2023 2022 2021
Education Level
M F Total (%) M F Total (%) M F Total (%)
Postgraduate 367 168 535 4.44 348 159 507 4.28 313 130 443 3.96
Bachelor 5,254 4,627 9,881 82.03 5,154 4,353 9,507 80.17 4,848 3,768 8,616 76.98
Baccalaureate 539 734 1,273 10.57 604 796 1,399 11.80 679 882 1,561 13.95
SLTA 128 228 356 2.96 156 290 446 3.76 209 363 572 5.11
Total 6,288 5,757 12,045 100.00 6,261 5,598 11,859 100.00 6,049 5,143 11,192 100.00
* M= Male/F = Female
Employee Demographics by Employment Status and Working Area
2023
Employment
Head Office Regional Office Branch Office Total
Status
M F Total % M F Total % M F Total % M F Total %
Permanent 2,051 1,045 3,096 93.19 383 163 546 98.56 3,550 4,078 7,628 92.95 5,984 5,286 11,270 93.56
Contract 114 112 226 6.80 8 - 8 1.44 182 359 471 7.05 304 471 775 6.43
Total 2,165 1,157 3,322 100.00 391 163 554 100.00 3,732 4,437 8,169 100.00 6,288 5,757 12,045 100.00
* M= Male/F = Female
2022
Employment
Head Office Regional Office Branch Office Total
Status
M F Total % M F Total % M F Total % M F Total %
Permanent 1,944 865 2,814 89.28 386 169 555 97.03 3,484 3,858 7,342 90.25 5,819 4,892 10,711 90.32
Contract 141 197 338 10.72 5 12 17 2.97 296 497 793 9.75 442 706 1,148 9.68
Total 2,090 1,062 3,152 100.00 391 181 172 100.00 3,780 4,355 8,135 100.00 6,261 5,598 11,859 100.00
* M= Male/F = Female
2021
Employment
Head Office Regional Office Branch Office Total
Status
M F Total % M F Total % M F Total % M F Total %
Permanent 1,945 820 2,765 96.11 223 73 296 97.05 3,734 4,016 7,750 96.75 5,902 4,909 10,811 96.60
Contract 68 44 112 3.89 7 2 9 2.95 72 188 260 3.25 147 234 381 3.40
Total 2,013 864 2,877 100.00 230 75 305 100.00 3,806 4,204 8,010 100.00 6,049 5,143 11,192 100.00
* M= Male/F = Female
Employee Demographics by Employment Status and Gender, including Outsourced Employees
Employment 2023 2022 2021
Status M F Total % M F Total % M F Total %
Permanent 5,984 5,286 11,270 55.98 5,819 4,892 10,711 53.43 5,902 4,909 10,811 54.76
Contract 304 471 775 3.85 442 706 1,148 5.73 147 234 381 1.93
Number Without
Outsourced 6,288 5,757 12,045 59.83 6,261 5,598 11,859 59.16 6,049 5,143 11,192 -
Employees
Outsourced
6,930 1,157 8,087 40.17 7,093 1,094 8,187 40.84 7,479 1,071 8,550 43.31
Employees
Number With
Outsourced 13,218 6,914 20,132 100.00 13,354 6,692 20,046 100.00 13,528 6,214 19,742 100.00
Employees
* M= Male/F = Female
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Employee Demographics by Years of Service and Gender
Range Years of 2023 2022 2021
Service M F Total (%) M F Total (%) M F Total (%)
>30 50 58 108 0.90 63 63 127 1.07 90 69 159 1.42
25-30 642 179 821 6.82 533 218 751 6.33 350 225 575 5.14
20-25 129 21 150 1.25 332 43 375 3.16 561 78 639 5.71
15-20 112 231 343 2.85 109 232 341 2.88 9 166 175 1.56
10-15 1,046 1,345 2,391 19.85 749 1,008 1,757 14.82 578 644 1,222 10.92
5-10 2,672 1,758 4,430 36.78 2,377 1,653 4,030 33.98 2,181 1,773 3,954 35.33
0-5 1,637 2,165 3,802 31.56 2,097 2,381 4,478 37.76 2,280 2,188 4,468 39.92
Jumlah 6,288 5,757 12,045 100.00 6,261 5,598 11,859 100.00 6,049 5,143 11,192 100.00
* M= Male/F = Female
There are several points of note from the date presented above. First, the ratio of the number of male and female
employees is quite balanced, reflecting zero sex discrimination in the employee recruitment process. Second, there are
no employees under the specified age limit. Meaning that there are no cases of child labor in the company's operational
activities. Third, the company determines that there is no difference in the ratio of basic salary and remuneration for
male and female employees, which is a form of application of the principles of equality and anti-discrimination. The
company ensures that all employees work according to the set time and provides overtime compensation according to
position level to employees who work beyond working hours. [GRI 3-3, 405-1, 406-1, 408-1, 409-1] [OJK F.19]
Respectful Workplace Policy
In Special Policy No. KK.3-C dated 31 October 2023 on Personnel Regulations and Administration, the company regulates
a safe work environment, respects and protects human dignity, prioritizes mutual respect, is free from discrimination,
exclusion or restrictions, bullying and harassment, as well as various other forms of violence, both mental and physical
for all employees and related parties to create an inclusive, conducive and productive work environment to encourage
company sustainability and uphold human rights. These arrangements at least include preventing:
1. Discrimination
The company adopts the principles of diversity and gender inclusion. Every discrimination, marginalization, restriction
and/or exclusion that is directly or indirectly made on the basis of religion, ethnicity, race, ethnicity, group, class,
social status, including marital status, economic status, gender, language, political choice , and disabilities, which
have the impact or aim of reducing or eliminating the recognition, implementation or use of human rights and basic
freedoms, resulting in inequality of opportunity or differential treatment of a person or group of people in banking
activities and in social interactions in the work environment.
2. Violence
It is every action/deed and behavior that includes threats or intimations to take action, carry out coercion, or carry
out arbitrary confiscation of other people in the workplace that appears either publicly or privately which can cause
loss/damage or physical suffering, psychological, sexual and economic.
3. Abuse
It is any attitude, words, actions/deeds/behavior, or gestures both in the workplace and various communication
media that are not in accordance with the provisions of laws and regulations regarding human rights that aim to
intimidate and have a negative impact on physical, psychological/mental aspects or sexual or economic aspects
that makes a person feel intimidated, humiliated, offended, humiliated or humiliated and results in difficulties in
carrying out their duties or causes employees to feel that they are working in an unfavorable climate that can also
cause risks to security, health and safety.
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Mutual respect in the workplace (Respectful Workplace Policy) that aims to ensure that all personnel (the Board of
Commissioners, Board of Directors and employees) create a work environment that is free from discrimination, violence
and harassment in order to create an environment that is inclusive, respects differences and equality, and upholds
human rights to promote the performance, growth and sustainability of the bank, by:
1. Recognizing and respecting differences in a diverse work environment with various ethnic backgrounds, races,
nationalities, skin colors, ages, religions, genders, disabilities, viewpoints or other individual characteristics and
points of view to boost a productive work environment.
2. Ensure that every employee is not treated differently because of their characteristics and has equal and fair access
to facilities and infrastructure; and
3. Creating and building a work environment that respects each other and does not involve discrimination, violence,
and harassment in any form.
All of these policies have had a positive impact with no incidents or reports related to discrimination and forced labor.
[GRI 3-3, 405-1, 406-1, 408-1, 409-1] [OJK F.19]
General Banking Staff training by
applying the principles of Diversity,
Equity, and Inclusion
In 2023, the Company organized
General Banking Staff Trainings for
242 participants divided into three
batches. These training programs were
attended by participants from various
backgrounds, including new graduates
and/or individuals who already
have work experience. The Company
also provides equal opportunities
for individuals with disabilities to
participate in the General Banking Staff training program. This endeavor is in line with the principles
of diversity, equity, and inclusion that state that every individual has the same right to contribute to the
sustainability and progress of the Company.
Diversity in the Composition of the Board of Commissioners and the Board of
Directors [GRI 2-9]
Diversity in the composition of the Board of Commissioners and the Board of Directors is a crucial aspect in building
the company’s management that is inclusive and oriented towards sustainable results. Selection of top governance
members based on criteria such as age, gender, education, work experience and expertise not only create broader
representation, but also enriches diverse perspectives in strategic decision making.
Even though the background of members of the Board of Commissioners and the Board of Directors do not come from
underrepresented social groups, they always listen to the aspirations and strive to be an extension of underrepresented
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groups. Based on diversity, the composition of the Company's Board of Commissioners and the Board of Directors is
reflected in the table below:
Composition of Diversity of the Board of Commissioners [GRI 405-1]
Name Position Age Gender Education Work Experience Expertise
Chandra M. President/ 56 Years Male Bachelor of Law Having work Legal Affairs
Hamzah Independent Old experience
Commissioner in the legal field
Iqbal Latanro Vice President 65 Years Male • Master of Science Having experience Economy
Commissioner/ Old (MSi.) in Business in banking
Independent Management
Commissioner • Bachelor of Economics
Andin Commissioner 58 Years Male • Doctor of Philosophy Having experience Economy
Hadiyanto Old (Ph.D.) in government
• Bachelor of Economics
Majoring in
Development
Ahdi Jumhari Independent 69 Years Male • Master of Science in Having experience Accounting,
Luddin * Commissioner Old Policy Economics in banking Economics
• Bachelor of Economics
Majoring in
Accounting
Sentot A. Independent 66 Years Male • Master in Business Having experience Economy
Sentausa Commissioner Old Administration in banking
• Bachelor of Statistics
from Padjadjaran
University
Armand B. Independent 71 Years Male • Master in Business Having experience Business
Arief Commissioner Old Administration in banking Administration
• Master in Business
Administration
Herry Commissioner 56 Years Male • Doctor of Civil Having experience Civil
Trisaputra Old Engineering in civil engineering Engineering
Zuna • Bachelor of
Management
Himawan Commissioner 60 Years Male • Bachelor of Civil Having experience Civil
Arief Sugoto Old Engineering in property sector Engineering
• Master of Civil
Engineering
• Doctor of
Management and
Business
M. Yusuf Commissioner 48 Years Male • Bachelor of Economics Having experience Economy
Permana Old in trade
*) Term of office ends on August 12, 2023 due to death.
Diversity of the Composition of the Board of Directors [GRI 405-1]
Name Position Age Gender Education Work Experience Expertise
Nixon L.P. President 54 Years Male Bachelor of Economics Having experience Economy
Napitupulu Director Old in banking
Oni Febriarto Deputy President 52 Years Male • Master of Having experience Engineering,
Rahardjo Director Old Management in banking Management
• Bachelor of
Engineering
Hirwandi Gafar Director of 55 Years Male Bachelor of Civil Having experience Civil
Consumer and Old Engineering in banking Engineering
Commercial
Lending
Nofry Rony Poetra Director of 55 Years Male • MBA in Business Having experience Economy
Finance, Planning Old • Bachelor of Economics in banking
and Treasury
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Name Position Age Gender Education Work Experience Expertise
Eko Waluyo Director of 52 Years Male • Master of Economics Having experience Economy
Human Capital, Old • Bachelor of Economics in banking
Compliance and
Legal
Elisabeth Novie Director of 56 Years Female Bachelor of Civil Law Having experience Legal Affairs
Riswanti Wholesale Old in banking
Risk and Asset
Management
Andi Nirwoto Director of 53 Years Male • Master of Finance Having experience Engineering,
Operation, IT, and Old • Bachelor of in banking Finance
Digital Banking Engineering
Jasmin Director of 59 Years Male • Master of Having experience Accounting,
Distribution and Old International Business in banking Business
Retail Funding • Bachelor of Economics
Setiyo Wibowo Director of Risk 46 Years Male • MBA in Finance & Bachelor of Engineering,
Management and Old Banking Electrical Finance
Transformation • Bachelor of Engineering
Engineering
Hakim Putratama Director of 47 Years Male • Bachelor of Bachelor of International
Institutional Old International Relations Electrical Business
Banking • Masters International Engineering
Business
SRIKANDI BUMN Goes to Campus Program
The company has demonstrated its commitment to supporting women's empowerment and leadership
by implementing the SRIKANDI BUMN Goes to Campus program at Trisakti University, Jakarta on
August 14, 2023. This program, which was attended by 327 participants, not only included a guidance
session with the Board of Directors, but was also enlivened by a talk show session and a leadership
sharing session. This initiative reflects the company's efforts to encourage sustainable development
regardless of gender or background, as well as disseminating the principles of sustainability. In
particular, this activity is also an opportunity to share experiences in encouraging equal opportunities
for development. Through this program, the company seeks to create synergy in optimizing the
potentials and abilities of women, giving them a significant role in facing daily work challenges, and
strengthening the positive impact of diversity within the company.
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Recruitment of New Employees and Employee Turnover [GRI 401-1]
The employee recruitment process carried out by the company is done through both internal and external channels
of the company. Internal channels refer to the recruitment and selection of employees who meet the criteria and are
willing to occupy certain positions. Meanwhile, external recruitment can involve prospective employees with pre-
graduate, fresh graduate, and experienced & professional hire status. The company gives priority to local employees in
the recruitment process, namely employees who are Indonesian citizens, meaning that all employees (100%), including
senior management or upper management of the company, are local residents. The company has recruitment initiatives
targeted at vulnerable groups such as women, minority groups, indigenous communities, and people with disabilities. In
Special Policy No. KK.3-A dated October 31, 2023 on the Human Capital Cycle, the selection process carried out by the
company at least includes the following stages: [GRI 3-3, 202-2]
1. Application Screening
The registration/application process is carried out using a clear method easy for
candidates to understand and follow, thereby speeding up the recruitment process.
Matters that must be fulfilled in the registration/application process are:
3. Verification of the authenticity
1. Fulfillment of requirements 2. Completeness of documents of application data
2. Candidate Assessment
It consists of several types that can be used but are not limited to:
• Speed dating interview, conducting interviews in a short time;
• Paper Based Test, asking a number of written questions to candidates in the
form of psychometric, scholastic questions, certain knowledge and ability tests;
• Skills-based approach, candidates are asked to show/demonstrate certain
abilities/knowledge/skills to validate the candidate's abilities/knowledge/
skills;
• Gamification, selection in the form of a game simulation to increase candidate engagement towards certain
values required by the Bank;
• Competency/Hackathon, competition related to expertise in certain fields required by the bank;
• Job Audition, candidate working on a project determined by the bank;
• Case Study, candidate complete case studies based on the candidate's abilities; and
• Pre-Employee Screening, profile screening based on Know Your Employee principles to mitigate operational
risks.
The company has a special mechanism for new employees to be appointed as permanent employees. For those who
qualify and are appointed as permanent employees, these employees will receive remuneration in accordance with the
prevailing employment regulations. The company also gives opportunities for people with disabilities to participate in
the new employee recruitment program. This program is a program from Ministry of SOE through the Indonesian Human
Capital Forum (FHCI). In 2023, there were 4 (four) employees with disabilities who successfully passed the recruitment
program. The following is data regarding new employees obtained through the Human Capital Management Work Unit.
New Employee Composition by Age Group and Gender [GRI 401-1]
2023 2022 2021
Age Range
M F Total M F Total M F Total
≥51 1 2 3 2 1 3 2 3 5
31-50 22 8 30 44 10 54 23 11 34
≤30 237 425 662 368 649 1,017 121 217 338
Jumlah 260 435 695 414 660 1,074 146 231 377
* M= Male/F = Female
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Employee Composition by Working Area and Gender [GRI 401-1]
2023 2022 2021
Working Area
M F Total M F Total M F Total
Head Office 70 75 145 135 194 329 67 42 109
Regional Office 8 1 9 3 10 13 7 2 9
Branch Office 182 359 541 276 456 732 72 187 259
Total 260 435 695 414 660 1,074 146 231 377
* M= Male/F = Female
Apart from increasing due to the recruitment program, the number of company employees decreased due to employees
who no longer work for various reasons, such as retirement, resignation, contract expiry, death, and so on. The company
manages the end of employment relationships based Special Policy No. KK.3-A dated 31 October 2023 on the Human
Capital Cycle.
Employee Turnover Rate [GRI 401-1]
Note 2023 2022 2021
Number of New Employees 695 1,074 377
Number of Employee Turnover 187 246 206
Number of Employees at the Beginning of the Year 11,745 11,192 11,224
Number of Employees at the End of the Year 12,045 11,859 11,192
Turnover Rate 1.55% 2.07% 1.53%
Employee Composition by Age Group and Gender [GRI 401-1]
2023 2022 2021
Age Range
M F Total M F Total M F Total
≥51 5 2 7 4 2 6 2 3 5
31—50 43 55 98 27 52 79 40 54 94
≤30 25 57 82 75 86 161 45 62 107
Jumlah 73 114 187 106 140 246 87 119 206
* M= Male/F = Female
Employee Turnover by Working Area and Gender [GRI 401-1]
2023 2022 2021
Working Area
M F Total M F Total M F Total
Head Office 21 21 42 34 22 56 26 10 36
Regional Office 3 2 5 4 - 4 - 1 1
Branch Office 49 91 140 68 118 186 61 108 169
Total 73 114 187 106 140 246 87 119 206
* M= Male/F = Female
EMPLOYEE LEARNING AND COMPETENCY
DEVELOPMENT
Developing hard skill and soft skill competencies is part of the Human Capital cycle guidelines in managing Human
Resources in accordance with Special Policy No.KK.3-A dated 31 October 2023 on the Human Capital Cycle. Every
employee is obliged to develop their competencies so they can do their job well and prepare themselves to be able
to face changes and/or to be appointed in a higher position. By adhering to the principle of equality, the company
consistently provides every employee, both men and women, with equal opportunities to learn and develop their
respective levels of competence. [GRI 3-3]
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The company has established a structured learning and development program to improve employees’ competency.
The competency development program design includes aspects of knowledge, skills and attitudes. By making the
company a "learning organization", it encourages all employees to continue to develop their competencies so that
they are able to carry out their duties optimally, are ready to face changes and new challenges, and are prepared to fill
higher positions. Based on the learning and development policy, the company applies the concept of analysis, design,
development, implementation and evaluation (ADDIE) in developing employee competencies. In line with this, learning
and development management is aligned with work and business needs through a 70:20:10 approach, meaning that
70% of the learning composition comes from practice, 20% from learning from others, and 10% from formal learning.
Capability Improvement and ESG
Education for Employees
The company is fully committed to improving ESG capabilities and skills for its employees. This belief
underlies the view that improving employee capability will have a direct impact on the company's
performance in achieving sustainability. Through the Quick Wins program, the concrete step taken by
the company was to implement a continuing education program involving 140 employees in 2023. This
program was designed to provide employees with an in-depth understanding of environmental, social
and governance issues, enabling them to play an active role in supporting the company's sustainability
goals. With this stop, the company not only shows its responsibility towards the environment and
society, but also invests in human resources development to achieve long-term positive change.
The following are details of enhancing ESG capabilities and education in 2023:
• Education and development of data privacy awareness capabilities for 31 employees;
• Education and development of security awareness crime, enterprise risk management and cyber
security capabilities for 41 employees; and
• Implementation of risk management for as many as 68 employees.
To meet competency and expertise needs, the company carries out sustainable human resources development programs
through various methods such as education, training, special assignments, and transfer and promotion programs. The
following is a table showing the amount of human resources development based on position level during the period of
January-December 2023:
Competency Development by Position Level
[GRI 2-17, 404-2] [OJK E.2, F.22] [FS4]
In 2023, members of the company's Board of Directors participated in various competency improvement programs in
the forms of training, workshops, conferences and seminars related to ESG aspects, as described in the following table.
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Trainings attended by the Board of Commissioners
Type of Training and Development
Name Position Time and Place Organizer
Materials Competence / Training
Chandra M. President/ GRC Masterclass Program 2023 “ESG September 27, 2023
BSE BUMN
Hamzah Independent for Boards – Governance of ESG” Virtual
Commissioner
GRC Masterclass Program 2023
"Methodology and Environmental and October 25, 2023 Virtual BSE BUMN
Social Management Systems"
Iqbal Latanro Vice President GRC Masterclass Program 2023 “ESG September 27, 2023
BSE BUMN
Commissioner/ for Boards – Governance of ESG” Virtual
Independent
GRC Masterclass Program 2023
Commissioner
"Methodology and Environmental and October 25, 2023 Virtual BSE BUMN
Social Management Systems"
Armand B. Independent GRC Masterclass Program 2023 “ESG September 27, 2023
BSE BUMN
Arief Commissioner for Boards – Governance of ESG” Virtual
GRC Masterclass Program 2023
"Methodology and Environmental and October 25, 2023 Virtual BSE BUMN
Social Management Systems"
Sentot A. Independent GRC Masterclass Program 2023 “ESG September 27, 2023
BSE BUMN
Sentausa Commissioner for Boards – Governance of ESG” Virtual
GRC Masterclass Program 2023
"Methodology and Environmental and October 25, 2023 Virtual BSE BUMN
Social Management Systems"
Andin Commissioner GRC Masterclass Program 2023 “ESG September 27, 2023
BSE BUMN
Hadiyanto for Boards – Governance of ESG” Virtual
GRC Masterclass Program 2023
"Methodology and Environmental and October 25, 2023 Virtual BSE BUMN
Social Management Systems"
Herry Commissioner GRC Masterclass Program 2023 “ESG September 27, 2023
BSE BUMN
Trisaputra for Boards – Governance of ESG” Virtual
Zuna
Webinar OJK "Managing
Environmental,Social and Governance October 19, 2023 Virtual OJK
Risk and Opportunities"
GRC Masterclass Program 2023
"Methodology and Environmental and October 25, 2023 Virtual BSE BUMN
Social Management Systems"
Himawan Commissioner GRC Masterclass Program 2023 “ESG September 27, 2023
BSE BUMN
Arief Sugoto for Boards – Governance of ESG” Virtual
GRC Masterclass Program 2023
"Methodology and Environmental and October 25, 2023 Virtual BSE BUMN
Social Management Systems"
Mohamad Commissioner GRC Masterclass Program 2023 “ESG September 27, 2023
BSE BUMN
Yusuf for Boards – Governance of ESG” Virtual
Permana
GRC Masterclass Program 2023
"Methodology and Environmental and October 25, 2023 Virtual BSE BUMN
Social Management Systems"
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Throughout the year of 2023, members of the Company's Board of Directors participated in various competency
improvement programs in the forms of training, workshops, conferences and seminars related to ESG aspects, as
described in the following table.
Trainings attended by the Board of Directors
Type of Training and Development Time and Venue
Name Position Organizer
Materials Competence / Training Program
Nixon L.P. President Director ASEAN Global Leadership Program
September 18 until
Napitupulu (AGLP) - SRW&Co “Leading
September 22, 2023 in SRW&Co
Innovation in Global Economic
Chicago, USA
Recovery”
Oni Febriarto Vice President Director Strategic
Risk Management Class For
Rahardjo April 12, 2023 in Jakarta Development
Executive
Group
GRC Masterclass Program 2023
September 27, 2023 in BUMN School of
“ESG for Boards – Governance of
Jakarta Excellence
ESG”
Andi Nirwoto Director of Operation, IT, Level 5 Risk Management Mahesa Prima
May 22, 2023 in Jakarta
and Digital Banking Certification Refreshment Solusindo
International
IMD Executive Education "Digital November 14-25, 2023
Management
Transformation for Boards" in Switzerland
Development
Eko Waluyo Director of Human Level 5 Risk Management Mahesa Prima
March 31, 2023 in Jakarta
Capital, Compliance and Certification Refreshment Solusindo
Legal
September 22, 2023 in
Certified Anti Fraud Professional Asia Anti Fraud
Jakarta
GRC Masterclass Program 2023
September 27, 2023 in BUMN School of
“ESG for Boards – Governance of
Jakarta Excellence
ESG”
GRC Masterclass Program 2023
October 25, 2023 in BUMN School Of
"Methodology and Environmental
Jakarta Excellence
and Social Management Systems"
Deepening of the ASEAN CG
April 18, 2023 in Jakarta IICD
Scorecard IICD
Dissemination of Prevention of
Crime in the Financial Services
December 4, 2023 in
Sector to Financial Services Business OJK
Jakarta
Actors in the Banking Sector in
Jakarta Special Capital Region
Setiyo Director of Risk BCG’s Strategy Advantage
Boston Consulting
Wibowo Management and Roundtable: Building Resilience in July 28, 2023 in Jakarta
Indonesia
Transformation Times of Uncertainty
Nofry Rony Director of Finance, Level 5 Risk Management Mahesa Prima
March 31, 2023 in Jakarta
Poetra Planning and Treasury Certification Refreshment Solusindo
June 27, 2023 in
Global ESG Corporate Access BNP Paribas
Singapore
GRC Masterclass Program 2023 September 27, 2023 in BUMN School of
“ESG for Boards Governance of ESG” Jakarta Excellence
Hakim Director of Institutional December 12 until
Executive Education HBS “Strategy,
Putratama Banking December 15, 2023 di Harvard Business
Building, and Sustaining Competitive
Boston, Massachusetts, School
Advantage”
USA
Risk Management Class For
April 12, 2023 in Jakarta LPII
Executive
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ESG Workshop
ESG projects are sustainability projects
that must be achieved by the company
in running business. By managing a
business that is more environmentally
friendly, implementing good
governance, and having social or
ESG responsibility that is in line with
business strategy, the company can
realize its vision and mission as the
Best Mortgage Bank in Southeast Asia
2025. As part of the ESG Project, the
company held a workshop related to
ESG topics with the theme "The Future of Finance” on June 15, 2023. This internalization workshop
aims to boost the understanding of employees in their respective work units regarding ESG, promote
the real implementation of the ESG program as part of an environmental and social-based culture, as
well as optimize the ESG program and its derivatives within the company.
The program was carried out in a hybrid manner—online and offline—by inviting KPMG Global
partners, as well as by inviting Director of Risk Management and Director of Human Capital, Compliance
and Legal as a form of active involvement of top management in the implementation of ESG at the
Company.
In 2023, the company's employees participated in various competency improvement programs in the forms of training,
workshops, conferences and seminars related to ESG aspects, as described in the following table.
Trainings Attended by Employees
No. Training Name Time Method
Classroom / Virtual
1. BTN Workshop ESG June 15, 2023
Classroom
Classroom / Virtual
2. Green Financing & Renewable Energy October 5, 2023
Classroom
Classroom / Virtual
3. Training on Environmental Impact Analysis (Amdal) November 12, 2023
Classroom
Classroom / Virtual
4. Greenship Associate Training November 3-4, 2023
Classroom
Classroom / Virtual
5. Enhancing Business Ecosystem for SBH June 9-10, 2023
Classroom
Classroom / Virtual
6. Anti-Corruption Instructor Assessment 2023 April 11-12, 2023
Classroom
Classroom / Virtual
7. Effective Sales and Credit Process SME July 3-7, 2023
Classroom
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No. Training Name Time Method
Classroom / Virtual
8. BTN IT Security January 27-31, 2023
Classroom
Classroom / Virtual
9. Anti-Fraud & Legal (CAFP) Certification September 21-22, 2023
Classroom
Classroom / Virtual
10. Anti-Fraud Manager (CAFM) Certification September 4-6, 2023
Classroom
Classroom / Virtual
11. Fraud Examiner Certification August 7-11, 2023
Classroom
Implementation of the Anti-Money Laundering Program
Classroom / Virtual
12. and Prevention of Terrorism Financing and Funding for the August 24-25, 2023
Classroom
Proliferation of Weapons of Mass Destruction 2023
Classroom / Virtual
13. Webinar on Security Awareness Cyber Crime July 14, 2023
Classroom
Classroom / Virtual
14. Identifying Fraud Crisis Points February 20-21, 2023
Classroom
Classroom / Virtual
15. Cybercrime Prevention and Handling Workshop July 13, 2023
Classroom
Classroom / Virtual
16. GRC Masterclass "ESG for Auditors" July 13, 2023
Classroom
Classroom / Virtual
17. ESGM Implementation Training March 2-4, 2023
Classroom
Classroom / Virtual
18 Seminar on Sustainable Finance Forum 2023 December 4-8, 2023
Classroom
Webinar Organized by the Financial Service Authority called Classroom / Virtual
19 October 19, 2023
“Managing ESG Risk and Opportunities” Classroom
Classroom / Virtual
20. ESG Workshop organized by BTN June 15, 2023
Classroom
Classroom / Virtual
21. Business Ecosystem Development for BFS July 7-8, 2023
Classroom
Classroom / Virtual
22. Awareness Training ISO 9001:2015 May 5-8, 2023
Classroom
Classroom / Virtual
23. Certified Ethical Hacker (CEH) September 11-15, 2023
Classroom
Classroom / Virtual
24. Identification of Suspicious Financial Transactions July 17-18, 2023
Classroom
Internalization of the Anti-Money Laundering Program
Classroom / Virtual
25. and Prevention of Terrorism Financing and Funding for the August 25, 2023
Classroom
Proliferation of Weapons of Mass Destruction Program
Internalization of the management of the Anti-Money
Laundering Program and Prevention of Terrorism Financing and Classroom / Virtual
26. September 25, 2023
Funding for the Proliferation of Weapons of Mass Destruction Classroom
Program
Classroom / Virtual
27. ASEAN CG Scorecard In-depth Training April 18, 2023
Classroom
Increasing Understanding of Gratification organized by the Classroom / Virtual
28. October 12-14, 2023
Corruption Eradication Commission (KPK) Classroom
Classroom / Virtual
29. Security & Hacking Technique Web & Mobile January 19-26, 2023
Classroom
Classroom / Virtual
30. BARa Risk Forum Seminar "ERM & Cyber Security” July 26, 2023
Classroom
Anti-Money Laundering and Prevention of Terrorism Financing Classroom / Virtual
31. April 22, 2023
Webinar "Awareness of Money Laundering Crime Modes" Classroom
Webinar II Anti-Money Laundering and Prevention of Terrorism Classroom / Virtual
32. June 21, 2023
Financing in 2023 Classroom
Classroom / Virtual
33. OJK Webinar - Gratification Prevention Strategy May 19, 2023
Classroom
Certification for Securities Marketing Intermediary
34. September 18-19, 2023 Onsite
Representative (Responsible Marketing)
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Competency Development Costs
In 2023, the company allocated a budget for employee competency development. An increase of 10% was recorded
compared to the budget in 2022. The company applied a blended learning method that combines online learning,
virtual classes, and independent learning. This aims to improve the efficiency of implementing educational programs
without sacrificing the effectiveness of each program. This effort is directed at continuing to increase added value for
employees, including by fulfilling the required competencies. Details of the overall employee competency development
budget is presented in the following table:
Competency Development Costs
Growth
(In million rupiah)
In currency
2023 2022 In percentage (%)
(In million rupiah)
95,928 86,945 8,983 10%
Number and Average Hours of Employee Training by Gender [GRI 404-1]
2023 2022 2021
Note
Male Female Male Female Male Female
Number of Employees 6,288 5,757 6,396 5,727 6,032 5,137
Number of Education and
17,342 14,086 15,842 13,607 14,722 12,803
Training Participants
Number of Education and
393,096 349,610 342,379 313,909 304,201 233,646
Training Hours
Average Education and
22.67 24.82 21.61 23.07 20.66 18.25
Training Hours per Participant
Average Education and
62.52 60.73 53.53 54.81 50.43 45.48
Training Hours per Person
Total Number of Education
31,428 29,449 27,525
and Training Participants
Total Number of Education
742,706 656,288 537,847
and Training Hours
Number and Average Hours of Employee Training by Position Level [GRI 404-1]
2023 2022 2021
Total Total Total
Position Level Average Average Average
Total Number Total Number Total Number
Training Training Training
Participant of Training Participant of Training Participant of Training
Hours Hours Hours
Hours Hours Hours
Level 22 13 290 22 13 250 19 7 88 12.57
Level 19 till 21 599 13,874 23 438 5,626 13 325 5,862 18.04
Level 15 till 18 5,792 111,066 19 4,424 79,743 18 3,987 103,898 26.06
Level 13 till 14 9,061 317,128 35 9,088 183,582 20 6,253 132,258 21.15
Level 11 till 12 12,395 234,147 19 11,961 310,976 26 13,142 240,114 18.27
Level 8 till 10 3,568 66,201 19 3,449 75,048 22 3,803 55,544 14.61
The company's efforts to create excellent human resources do not stop at education and training programs, but also
facilitate selected permanent employees to continue their education to a higher level. These endeavors are made based
on General Policy on Human Resources (Human Capital) KU.3 concerning Learning and Development Management
that aims to enhance employee competency to create a workforce that is skilled, tough and responsive in accordance
with the needs and developments in the banking world. Education and training are not only provided to employees who
are still employed but are also intended for those who are about to retire. With this training, the company plays a role
in helping prepare employees who will enter retirement so that they have the readiness and skills needed to remain
productive during retirement. [GRI 404-2]
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ESG Webinar for Internals - Becoming ESG Champion:
BTN Blueprint for Sustainable Future
On December 1 2023, the company held a webinar aimed
at all internal employees, especially managerial positions,
along with Director of Risk Management and Director of
Human Capital, Compliance & Legal and invited KPMG
Global as a partner. The webinar has the theme "Becoming
ESG Champion: BTN Blueprint for Sustainable Future”. The
webinar aims to increase awareness of the implementation of
ESG in the Company by presenting BTN's strategic initiatives.
ESG is one of the 8th strategic initiatives of the company's 10
strategic initiatives in 2024.
Participation in the 28th Climate Conference (COP-28)
Company representatives from the ESG Department,
Enterprise Risk Management Division (ERMD) also
attended the 28th World Climate Conference or COP28
in Dubai, United Arab Emirates from December 4 to
December 8, 2023.
COP28, or the 28th United Nations (UN)
Climate Change Conference, is an annual
UN meeting held to discuss global climate issues marking an
important step in the international ongoing efforts to tackle climate change. In
line with the challenges faced at previous conferences, COP28 is expected to
reduce emissions and develop strategies for all countries attending.
The company's participation in COP28 activities is in an effort to increase insight
regarding ESG, to seek innovation breakthroughs related to climate, and to obtain information
regarding the latest technology that may be adopted in the company's business.
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Career Development
The company provides various paths in managing employee career development. Each career path offers different
levels of advancement and opportunities. Career path mapping is carried out based on an evaluation of the talents
and potential of each employee. Each employee is identified in a potential matrix formulated y considering aspects of
performance and potential, as shown below:
7 NEED TO
High
8 POTENTIAL 9 STAR
DEVELOP
PERFORMANCE
Medium
4 SLOW
5 AVERAGE 6 POTENTIAL
STARTER
2 SLOW 3 NEED TO
Low
1 UNFIT
STARTER DEVELOP
Low Medium High
POTENTIAL
In addition to potential mapping, the company also implements a Job Posting program, which is a process of openly
searching for candidates for certain positions. The aim of this process is to provide extensive opportunities for employees
to develop their respective careers.
ANNOUNCEMENT SELECTION DECISION PLACEMENT
The company will give The company carries out a The Board of Directors will Selected employees are
an announcement to all selection process based on decide on the employee assigned for these positions.
employees regarding suitability of position criteria selected from the selection
vacancies for certain with the applicant. Selection results to fill the position.
positions, accompanied by is on-desk or face-to-face
the criteria for the desired (interviews, simulations, etc.)
candidates.
When filling key positions, BTN involves a process of preparing successors for strategic positions in the organization.
This process is based on nomination and selection of potential employees, with the following steps:
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Monitoring and Evaluation Development program
• Monitoring • Communication related to
• Evaluation development programs to
successors
• Implementing development
programs
Identifying Successors
• Determining the criteria for success
in the target position
• Determining the suitability of
the profile and readiness of the
successor
• Selecting and appointing successors
Integration with other HC
Integration with
Start >> Identifying key Positions other HC Processes Processes such as:
• Learning and development
• Criteria for Key Positions • Performance management
• Method of identifying and finalizing key • Employee mobility
positions
The company has a program to accelerate career development known as the Talent Acceleration Program (TAP). This
program aims to fill key positions at the BOD-1, BOD-2, and BOD-3 levels. This program is implemented through
two frameworks: the fast-track program and the BTN Millennials Program. The fast-track program is intended for all
employees under 40 years of age. Meanwhile, the BTN Millennials Program is intended for new graduate employees
under 26 years of age, as well as employees under 30 years of age with strong motivation to become future leaders
and play an active role in the company.
The TAP program has a focus that includes aspects of leadership, increased exposure, experience, and technical
competency. The transfer of employees from one position to another in the company is implemented using a "dual
path" approach, which includes meeting the company's needs for positions with certain skills (functional) and positions
with a managerial character. Employees have the opportunity to undergo both transfer paths, both to managerial and
functional positions. The determination between managerial and functional is determined by the company's needs,
employee competencies and capabilities, and the aspirations of the individuals concerned.
Functional Lvl… Team Leader Lvl…
Functional Lvl 4 Team Leader 2
Functional Lvl 3 Team Leader Lvl 1
Functional Lvl 2
Functional Lvl 1
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Employee Community Excellent Service for Sustainability Development Empowerment Customers Governance The company conducts employee performance reviews and assessments based on General Human Resources Policy (Human Capital) KU.3 on Career Management, including policies related to employee career planning and development within the company. In determining assessment indicators, the company does not discriminate based on gender, but rather focuses on employee competency and potential. The results of the performance assessment will be one of the factors considered when the company formulates policies regarding the career development of certain employees. The company has prepared a career path structure as a step to create opportunities for growth and motivation for employees to develop. This career path is formed based on position categories, job families, and individual career planning structures which are determined based on the employee's core competencies (core, leadership, and job family) as well as the learning curriculum. In 2023, the company conducted performance assessments on all company employees (100%) at all levels of position, regardless of gender. [GRI 404-3] Protection of Employee Rights The company is fully committed to protecting employee rights. Fulfillment of employee rights is considered to be able to encourage employee satisfaction which can directly improve the company's performance in achieving sustainability. The company continues to carry out routine negotiations with the Worker Union to prepare and agree on a Collective Labor Agreement (LCA) which is valid for two years with a maximum extension option of one year. The company has registered the CLA with Ministry of Manpower and Transmigration of the Republic of Indonesia, as the institution authorized to ensure business actors' compliance with employment issues, in accordance with Decision of the Director General of Industrial Relations Development and Social Security for Workers Number Kep. 4/ HI.00.01/00.0000.220825025/B/ IX/2022 dated 16 September 2022. The CLA currently in effect is the CLA for the 2022-2024 period. [GRI 2-30] [OJK F.19] The Collective Labor Agreement (CLA) does not yet include Regulation of Minister of Manpower Regulation No. 28 of 2014 on Procedures for Making and Ratifying Company Regulations and Making and Registration of Collective Work Agreements However, the company ensures that all employees have their rights protected in the CLA and are members of the Labor Union. The company is also committed to preventing opportunities for forced labor to occur within the company. This commitment is regulated in detail through the General Human Resources Policy (Human Capital) KU.3 on Working Days and Hours. Specifically, this policy regulates the bank's operational days and hours so that employees can attend, work and rest according to a predetermined schedule. If a situation occurs where an employee works beyond the specified working hours, the company will provide compensation in the form of overtime pay to the employee. The amount of overtime incentives is given in accordance with the provisions regulated in General Human Resources Policy (Human Capital) KU.3 on Compensation and Benefits Management. [GRI 409-1] In building positive working relationships, the company always maintains two-way communication with employees. This communication includes conveying information related to changes in organizational structure and additional business units to employees, as well as aspects related to personnel management. All this information can be accessed via LApS, an internal app that regulates various regulations of the company. Employee Remuneration For the company, fulfilling remuneration is giving awards to employees that must be carried out fairly without any discriminatory practices based on gender, ethnicity, race, religion, skin color and other forms of diversity. The company guarantees that there is no difference in the ratio of basic salary and remuneration received by female and male employees at the same position level. Remuneration is completely based on performance achievements and responsibilities of the position held. To ensure this, the company has a remuneration and employee welfare system regulated in Special Policy 3-B dated 31 October 2023 on Remuneration. This rule refers to Regulation of the Financial Services Authority Regulation No. 45/POJK.03/2015 on the Implementation of Governance in Providing Remuneration for Commercial Banks and Circular of the Financial Services Authority Number 40/SEOJK.03/2016 on the Implementation of Governance in Providing Remuneration for Commercial Banks. [GRI 3-3, 405-2] The company implements a remuneration system to motivate and retain the best employees and aims to meet the need for quality human capital. To support the company's strategies and promote optimal and sustainable performance, the company implements performance and risk-based remuneration that refers to employee performance. In line with this, the implementation of the wage structure and scale is adjusted to the prevailing regulations. Remuneration determined by considering the performance of each individual employee (based on performance), the performance of the work unit, and the performance of the company as a whole. All of these considerations will be adjusted to the company's PT Bank Tabungan Negara (Persero) Tbk 103
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financial capacity in the process of determining the final amount of remuneration.
As a form of implementing the remuneration policy, the company provides salaries, annual salary adjustments, holiday
allowances, annual leave pay, and long leave pay given for each 3 (three) year work period. Health facilities are also
provided by the company for employees and their family members. These facilities cover coverage for inpatient care,
outpatient care after hospitalization, childbirth costs, dental care, general check-ups, purchasing of glasses, and others.
The company also upholds the principle of gender equality in which the average overall salary between men and
women, and when compared to the median salary of male employees with female employees, is 1:1, showing gender
equality in income. This demonstrates the company's commitment to providing wages based on gender.
Composition of Salary for Male and Female Employees
Gender Total Total Salary Average Salary Median Salary
Male 6,288 93,496,731,817 14,869,073 9,526,241
Female 5,757 59,465,181,119 10,329,196 8,206,352
Total 12,045 152,961,912,936 25,198,269 17,732,593
Remuneration provided by the company is variable, the amount of which depends on certain conditions. Variable
remuneration is a manifestation of the company's attention to fulfilling employees' basic needs. Some examples of
remuneration provided include location allowances, position allowances intended for certain positions, overtime pay,
clothing allowances for all employees, sales incentive bonuses, and annual bonuses. The company also gives attention
to housing and transportation needs by providing special credit facilities for employees.
The company provides remuneration components and facilities that are adjusted to employment status, and ensures
that the rights received by contract employees are in accordance with the applicable standards. [GRI 401-2]
Permanent Contract
Remuneration and Facilities Components
Employee Employee
Basic Salary
Holiday Allowance
Leave Allowance -
Clothing Allowance
Benefits (position, housing, vehicle, skills, fuel, location, taxes) -
Performance Bonus
Housing Loans -
Pension -
BPJS
Regular Health Facilities
only BPJS
Medical Assistance
Kesehatan
Funeral assistance
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The company remains committed to ensuring fairness in providing remuneration. Since 2018, the company has made
various improvements related to remuneration policies, including adjusting salaries to the P75 percentile to boost
competitiveness, increasing benefits such as better employee transfer facilities, credit, health services and overtime; as
well as implementing a variable compensation system for sales personnel. The company is also committed to providing
salaries for entry level employees above the local minimum wage, in addition to carrying out the government mandate
contained in Regulation of Minister of Manpower and Transmigration of the Republic of Indonesia Number 7 of 2013 on
Minimum Wages by adjusting employee salaries consistently. [GRI 202-1] [OJK F.20]
Maternity leave
Maternity leave is a right granted by the company to all employees to undergo or accompany childbirth. This has
been regulated in the General Policy of Human Resources (Human Capital) KU.3 on Industrial Relations Management.
Maternity leave can be requested by female employees for 1.5 (one and a half) months before and after the childbirth
process, or during the three months of delivery. For male employees who will accompany their wife's childbirth, they
are entitled to five days of paternity leave. The company also provides female permanent employees with miscarriage
leave for 45 days, starting from the time the miscarriage occurs. [GRI 401-3]
Maternity Leave of Employees
2023 2022 2021
Description
M F M F M F
Number of employees entitled to
4,506 3,520 4,431 3,489 4,198 3,287
maternity leave
Number of employees who take
514 564 576 613 616 581
maternity leave
Employees who return after taking
506 472 573 533 616 581
maternity leave
* M= Male/F = Female
Retirement Preparation Period (RPP) Program
Retirement Preparation Period Program (MPP) is the manifestation of the company's attention to the welfare of
employees who are about to be in the retirement period. This program is implemented for 12 months with various
special skills training programs to prepare employees for life after retirement. The training and consultation program
is designed comprehensively with a spiritual quotient (SQ), emotional quotient (EQ), and intelligence quotient (IQ)
approach useful for creating conditions for a person's retirement that can bring happiness, health, and prosperity. This
program is aimed at permanent employees who have reached the age of 55 years as part of appreciation for permanent
employees for their contribution to the company. [GRI 404-2]
The training that is part of the RPP Program is carried out using certain methods to ensure the benefits provided are
effective and optimal. These methods include:
1. Experimental Learning
This approach underscores understanding and appreciation from the simulation experience and interacting with
other participants to produce stimulus and enlightenment to make changes in attitudes and behavior in a more
effective and productive direction.
2. Quantum Learning
This approach focuses on the aspirations of the participants and two-way communication coupled with a comfortable
and enjoyable training situation, bringing about changes in the attitudes and behavior of the participants that will
influence the realization of optimal positive changes.
3. Technical Method
Several approaches to the technical methods used include presentations (lectures), games (games/role play/
stimulation), discussions, independent assignments, case studies, and multimedia presentations.
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Pension benefits are rights given by the company to permanent employees who have reached the normal retirement
age of 56 years and permanent employees in the positions of teller staff, customer service staff and secretaries who
are 36 years old. These rights are managed through a pension benefit program consisting of the Manfaat Pasti Program
and the Iuran Pasti Program. In the Manfaat Pasti Program, employees still receive benefits according to a formula
determined by the Pension Fund. Meanwhile, in the Iuran Pasti Program, employees still receive pension benefits
from the accumulated contribution balance amounting to 2.5% of individual salary, 7.5% from the company, and the
development results. The company implements this pension benefit program as a right for permanent employees and
the highest amount of pension benefit that can be received is 80% of the basic pension income. These rules follow
Special Policy No. 3-2 dated March 24 2023 concerning BTN Pension Fund Regulations.
The company also gives attention to employees who are about to retire by preparing and providing special incentives.
This is stated in General Human Resources Policy (Human Capital) KU.3 on Management of Termination of Employment
Relations. Based on this policy, employees who are entitled to pension benefits are permanent employees who have
reached the age of 56 years. The following are the retirement benefits provided:
• The Manfaat Pasti Program in the form of pension benefits in the amount of a formula determined by the Pension
Fund;
• The Iuran Pasti Program in the form of pension benefits from the accumulated balance of permanent employee
contributions amounting to 2.5% from the employee concerned, 7.5% from the company, and the development
result.
• Referring to the Board of Directors' Decision that regulates the PT Bank Tabungan Negara (Persero) Tbk (Dapen
BTN) Pension Fund Regulations, the amount of pension benefits is a maximum of 80% of the basic pension income.
[GRI 201-3]
Handling Employee Complaints
The Company understands that one of the most important aspects to maintain a conducive and healthy work environment
is the harmonious and open relationship between employees and the management. This understanding has prompted
the company to design a digital personnel platform called Intelligence BTN Employee Service (iBES/HCIS) with the
aim of providing easy access for employees to all information and personnel matters. The company also provides a
whistleblowing system (WBS) facility, which is managed by an independent third party as part of efforts to maintain
and ensure the maintenance of an anti-fraud culture within the company. Through Technical Instructions No. 7-B.2
dated 31 October 2023 on Management of the Whistleblowing System, the company also utilizes the WBS as a means
of managing complaints or complaints from employees regarding issues regarding employment practices and human
rights.
Through Technical Instructions No. 7-B.2 dated 31 October 2023 on Whistleblowing System Management, included in
the mechanism for handling employee complaints are:
• The WBS process and mechanism is the responsibility of the President Director and WBS Manager consisting of the
WBS Committee and WBS Monitoring Committee;
• The WBS Committee consists of a collection of several divisions and WBS management units, while the WBS
Monitoring Committee consists of the President Commissioner and other commissioners in the company;
• Unless the reported party is a member of the Board of Directors and a person who has a special relationship with
the board of directors and/or members of the WBS committee, the report can be submitted to the WBS Monitoring
Committee; and
• If the reported party is a member of the Board of Commissioners and someone who has a special relationship with
the commissioner, then the report can be submitted to the President Director.
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Occupational Health and Safety (OHS)
Creating a safe and healthy work environment for employees is one of the company's commitments in realizing the
home of Indonesia's best talent. This commitment is realized by the company by providing all employees with the right
to protection at work, as stated in occupational health and safety (OHS). The company always makes optimal efforts to
maintain zero work accidents and zero work-related illnesses. Safety and health in the workplace have a positive impact
on boosting employees’ productivity and trust in the company, ultimately contributing to the company's success. [GRI
3-3] [OJK F.21]
The company's obligation to provide welfare, safety and health protection, both mental and physical to the workforce,
is regulated in Law No. 13 of 2003 on Employment. In line with these regulations, the company has established policies
regarding the occupational health and safety management system (OHSMS), which is stated in: [GRI 403-1]
a. Technical Guidance No. 9-AG.1 dated 29 September 2023 on Guidelines for Implementing Occupational Health
and Safety Management System (OHSMS), and
b. Special Policy No. 9-AG. dated 29 September 2023 on Occupational Safety and Health and Safety Management
System (OHSMS).
Referring to Regulation of Minister of Health the Republic of Indonesia Minister of Health Regulation No. 48 of 2016,
the implementation of OHS in office environments begins with the establishment and development of an office OHSMS
and implementing office OHS standards. Aspects that need to be regulated in office OHSMS include establishing OHS
policies, OHS planning, implementing OHS plans, monitoring and evaluating OHS as well as reviewing and improving
OHSMS performance.
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Wellness in the Workplace
[GRI 403-4]
Wellness is a concept that includes
physical, mental, emotional, and social
aspects of a person's survival. This
concept puts emphasis on balance and
harmony in various aspects of life in
order to achieve a better quality of life.
Wellness entails efforts to maintain
and improve physical health, manage
stress, care for mental health, maintain
positive social relationships, and care
for the body and mind.
In commemoration of World Mental Health Day which falls on October 10 2023, the company held a
webinar with the theme "Wellness in the Workplace". This webinar aims to provide employees with an
understanding of how to manage various emotions well and efforts to maintain a balance of wellness
in the work environment.
The company also organized a Mental Health Talk on October 17, 2023 with the aim of increasing
knowledge, awareness, and encouraging action to protect employee mental health. The event was
opened by Director of Human Capital, Compliance & Legal, Mr. Eko Waluyo and attended by dr.
Agus Ali Fauzia PGD, Pall, Med as a speaker. The event was
attended by all the company’s employees in a hybrid manner
(offline and online).
Organizing a series of activities related to wellness topics is
in line with the quick wins implemented by the company in
implementing ESG to improve employee comfort in carrying
out their duties, so that they can provide optimal contributions
to the company.
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In accordance with OHSMS principles, the company implements various programs related to employee safety and
health as follows: [GRI 403-1]
Employee Health Management Program
The company has taken several steps to improve the quality of employee health, including by providing various health
facilities whose quality and practice permits are guaranteed. The company also collaborates with third parties for
various health services that cannot be provided internally. Various health facilities and services that can be accessed by
employees include: [GRI 403-1, 403-3, 403-6]
a. Periodic medical check-up facilities and treatment services with the aim of identifying and treating certain diseases
that are currently endemic;
b. Services to improve the quality of employees’ health, including guaranteed reimbursement for inpatient hospital
costs, outpatient costs, childbirth costs, dental care costs, replacement glasses, hearing aid costs, laboratory
examinations and other medical costs;
c. Polyclinic and doctor facilities that can be visited by employees and their families any time;
d. Educational seminars on anti-drugs, AIDS, and other topics related to health in the work environment; and [GRI
403-5]
e. BPJS Kesehatan insurance services for employees and their families.
Employee Safety Management Program [GRI 403-5]
a. All operational offices are equipped with work safety devices, such as light fire extinguishers (APAR), smoke
detectors, diesel pumps and emergency stairs to ensure the safety of the office and the employees. The provision of
these devices is guided by the standards set by the government through Regulation of Minister of Public Works No.
26/PRT/M/2008 on Technical Requirements for Fire Protection Systems in Buildings and the Environment;
b. The company periodically carries out routine inspections, maintenance, and replacement of all work safety devices.
This program aims to monitor and control the level of appropriateness of work safety devices in the company's
offices;
c. All operators of work safety equipment (for example: lifting and transport aircraft) have certificates issued by the
Jakarta Provincial Manpower and Transmigration Service;
d. The company installs fire situation plans and fire safety procedures for all rooms and floors of the building. This
facility does not only function as a means of warning employees in an emergency, but also a means of educating
employees regarding handling fires;
e. Organizing training and simulations of emergency situations due to disasters and fires at the offices; and
f. Employees are certified by the training "Development and Certification of General Occupational Safety and Health
Experts" organized by BPJS Kesehatan (the Healthcare and Social Security Agency).
Occupational Health and Safety Management System (OHSMS) Standard
Operating Procedure (SOP)
Definition of OHSMS,, according to Regulation of Minister of Health Republic of Indonesia Minister of Health Regulation
No. 48 of 2016 on Office Occupational Safety and Health Standards is "part of the overall office building management
system in controlling risks related to work activities in order to create a safe, efficient and productive workplace". The
implementation of OHSMS aims to enhance the effectiveness of occupational safety and health protection through a
series of work procedures that are more planned, measurable, structured, and integrated, with the aim of preventing
accidents or illnesses caused by work.
The company implements OHSMS and special OHS policies that cover all employees (100%) and employees who
carry out activities within the company's operational areas, in accordance with the Human Capital Management Division
Work Unit database. In line with this, the preparation and installation of standard operating procedures (SOP) is an
effort made by the company to ensure the health and safety of employees and interested parties in the company's
operational areas, including providing training on healthy and safe work methods. [GRI 403-1, 403-7, 403-8]
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In 2020, the company implemented General OHS Expert (GOHSE) certification for several employees. Employees
who have received GOHSE certification have the main task of ensuring the implementation of OHSMS and office OHS
standards in the company. Their duties also include identifying hazards by applying the principle of hierarchy of control,
carrying out risk assessments, and carrying out investigations if incidents occur in the company's operational areas
so that they will not happen again. The GOHSE certification is a program from the Ministry of Manpower to prepare
OHS experts within the company. Some of the occupational safety and health certification materials that have been
implemented include: [GRI 403-2, 403-4, 403-5]
a. Facilities and infrastructure supporting building operations, for example lifts, generators, air conditioning and
lighting;
b. Regular medical check-ups for employees;
c. Work support equipment that should not have an effect on health; and
d. Periodic employee rotation so that they are not psychologically disturbed.
Several other policies that have been implemented relating to OHS include:
a. Prohibition of the abuse of narcotics, psychotropic substances and addictive substances;
b. Prevention of the spread of infectious diseases; and
c. Management of partners/third parties related to OHS.
The company always makes every effort to create a safe and comfortable work environment for all employees, one
of which by consistently complying with all the prevaling regulations and standards. The company always encourages
every employee to actively participate in creating a safe and comfortable work environment, which is implemented by
providing them with consultation facilities, reporting risks and hazards in the work environment, and communicating
relevant information regarding the implementation of OHSMS and OHS standards. The company's consistent
implementation of OHSMS has brought positive results as reflected in zero work accident incidents and zero cases of
employees suffering from work-related illnesses. [GRI 403-2, 403-4, 403-9, 403-10]
Harmonious Industrial Relations
The company upholds the rights and freedom of employees to associate and assemble, in accordance with the policies
of the Indonesian government which has ratified 19 Conventions of the International Labor Organization (ILO). Based
on the regulations derived from the ratification results, the company provides space for employees to negotiate and
participate in seeking remediation, with the hope of fostering and maintaining harmonious relations between the
company and employees.
The company also complies with Article 28E Paragraph (3) of the 1945 Constitution of the Republic of Indonesia that
states that freedom of association, assembly and expression is part of human rights; Law Number 21 of 2000 on Trade
Unions that states that in realizing freedom of association, employees have the right to form and develop trade unions;
and International Labor Organization (ILO) Convention Number 87 of 1948 on Freedom of Association and Protection
of the Right to Organize. [GRI 3-3]
The company's form of compliance with all these regulations is implemented by the establishment of a labor union
on June 24, 1999 called BTN Labor Union and has been registered with the Jakarta Capital Region Department of
Manpower with Number Kep-2241/W.26/K.2/1000. The company also ensures that the role of existing labor unions
operates in accordance with the government's mandate outlined in the Republic of Indonesia Minister of Manpower
Regulation No. 28 of 2014 concerning Procedures for the Formulation and Approval of Company Regulations as well
as the Formulation and Registration of Collective Labor Agreements. The company grants freedom of association to all
employees that include: [GRI 407-1]
a. Freedom to become a member of the BTN Workers Union;
b. Freedom to express aspirations through the Bank Labor Union; and
c. Freedom to gather in BTN Labor Union activities.
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Community Day
To promote the principle of work-life balance,
the company organized BTNers Connect event
on October 4-6, 2023 at BTN Tower Lobby. The
main agenda for this event is the inauguration
of the BTNers Club, which will later become
a unifying forum for all official communities
at BTN. The event was opened by Director
of Human Capital, Legal & Compliance, Eko
Waluyo and closed with the inauguration of
the BTNers Club by the President Director
Nixon LP Napitupulu.
A total of 26 communities participated in
enlivening this event by decorating their
booths and presenting various interesting
performances with their own uniqueness. Each
community invites BTNers to join according to
the interests and hobbies of each employee. Through this program, the company not only creates a
balanced work environment, but also provides opportunities for BTN employees to explore and join
various communities according to their interests and hobbies. BTNers Connect and BTNers Club are
not just events, b ut are also a means to strengthen relations between employees and promote the
formation of diverse communities in the company's work environment.
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Contribution to Community Welfare
The company has taken significant steps by affirming its commitment to managing impacts on people and communities,
as well as society at large. The focus on this aspect shows the company's strong commitment to managing the impact
of its business activities on the welfare and development of society. By establishing people and community as one of
the components in the ESG Roadmap, the company seeks not only to create economic value, but also to make a positive
contribution to social development and welfare of communities around the company. This endeavor is in line with
global societal trends that increasingly underscore the importance of sustainability and corporate social responsibility
in carrying out business operations.
The company continues to strengthen its commitment to social and environmental responsibility through integration with
the Sustainable Development Goals (SDGs) and the implementation of the Corporate Social Responsibility program.
As a form of implementation of Regulation of Minister of SOE No. PER-1/MBU/03/2023 on Special Assignments and
Social and Environmental Responsibility Programs for State-Owned Enterprises, the company has developed initiatives
that focus on sustainable development goals and concern for the environment.
MSME Go Digital
On October 10 2023, the company organized MSME Go Digital Workshop and Exhibition in
Jepara, Central Java. The event was attended by more than 250 MSME players in Jepara and
the surrounding areas. In supporting the growth of MSMEs, the company invites MSME players
to continue developing their businesses so they can adapt well. As a token of the support, the
company has launched various programs, including establishing MSME Process Centers in
various areas such as Medan, Brebes, Palembang, Palopo, and other cities. The company also
facilitates MSMEs to make global market penetration. These steps demonstrate the company's
commitment to supporting and expanding opportunities for MSMEs in Indonesia.
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CORPORATE SOCIAL RESPONSIBILITY (CSR)
[GRI 203-1, 203-2, 413-1] [OJK F.23, F.25, F.3]
Through the CSR program, the company aims to bring a positive impact on human life and the environment. The
company's CSRL program is directed at empowering communities, improving the quality of life, and maintaining the
sustainability of the surrounding ecosystem. In the company’s Work Plan and Budget, CSR is one of the important pillars
that drives the company to innovate and develop together with society. Therefore, by orienting towards the ISO 26000
standard, the company has designed a series of concrete programs to support the creation of community welfare,
while providing a positive impact for the company itself. With these steps in place, the company continues to realize its
strategic role in supporting sustainable development and creating positive value for all stakeholders. [GRI 3-3]
In 2023, the company realized the CSR program funds amounting to Rp79.99 billion.
Realization of the CSR Program
2023 2022 2021
SDG
Total (Rp) Total (Rp) Total (Rp)
Social Pillar
10,505,377,274 5,679,495,611 4,285,803,895
14,798,413,813 12,719,690,723 5,734,024,385
12,348,435,325 9,409,466,565 9,922,685,070
12,635,697,919 4,894,798,719 6,162,622,395
- 30,000,000 176,808,900
Economic Pillar
50,000,000 971,740,516 200,000,000
4,361,935,431 3,461,216,148 1,664,860,903
2,270,000,000 6,455,431,482 537,884,912
5,734,719,287 4,241,653,236 496,550,800
943,694,328 604,739,600 430,752,100
270,000,000 660,166,447 76,750,000
14,993,831,355 9,963,739,700 15,799,392,798
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2023 2022 2021
SDG
Total (Rp) Total (Rp) Total (Rp)
- - -
- 800,571,140 211,350,000
- 367,500,000 789,351,100
1,184,084,000 1,725,839,800 770,459,408
Legal and Governance Pillar
- - 100,000,000
Total 79,996,188,732 61,986,049,687 47,359,296,666
Highlights of CSR Programs in 2023
Social Pillar
Growing together with the community is one of the company's main goals which is pursued by
holding a series of activities that contribute to improving the quality of social, cultural, religious,
and social welfare life. This endeavor is in accordance with the achievements of SDG 1, 2, 3, 4
and 5.
BTN Organizes Ramadhan Berfaedah Event
President Director of BTN Nixon LP Napitupulu, along
with BTN President Commissioner Chandra M Hamzah,
symbolically provides educational assistance to outstanding
students of Power Experts (TAD) employees during an event
called Ramadan Berfaedah in Jakarta, Wednesday (12/4 ).
Gerak Srikandi BTN Berbagi
At the event called the Gerakan Amal dan Kreasi (Gerak)
Srikandi, the company's President Director, Nixon LP
Napitupulu, accompanied by Director of Assets Management
Elisabeth Novie Riswanti, distributes packages of 6,000
basic necessities to employees of Power Experts (TAD) and
representatives of the community around BTN Tower in Jakarta
, Monday (17/4).
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Economic Pillar
To achieve quality and sustainable social economic growth, the company implements special
programs to increase job opportunities and business opportunities that are expected to grow
income and reduce poverty levels in society in accordance with SDG 7, 8, 9, 10, and 17.
Millennial Developer Public Lecture
President Director of the company Nixon LP Napitupulu
delivers a Public Lecture before 1,200 BTN Millennial
Developer Training participants held at Syiah Kuala
University (USK) Audiotoriu, in Banda Aceh, Friday
(13/10/2023). BTN invites students to become property
entrepreneurs or developers who have great business
potential.
BTN Santri Developer Training
The goal of this training is to provide education about the
world of property business to Islamic boarding school alumni
assisted by Islamic organization Nahdlatul Ulama. The event
is opened with the symbolic giving of CSR assistance in
the form of educational facilities and infrastructure by the
President Director and the Finance Director of the Company
to the Caretakers of Edi Mancoro Islamic Boarding School in
Semarang regency, Central Java, Saturday (28/10)
Environmental Pillar
Environmental preservation remains the company’s top priority. To that end, the company carries
out natural resources and environmental management activities that also aim to improve
environmental awareness in society. This endeavor indirectly supports the achievement of SDG
6, 11, 12, 13, 14, and 15.
BTN Revitalizes Parks in Residential Areas
BTN President Director Nixon LP Napitupulu symbolically
hands over 1,000 Tabebuya tree seedlings to the General
Chair of the Human Settlement and Housing Development
Association (HIMPERRA) and CEO of Delta Group Property
Endang Kawidjaja, witnessed by Minister of SOE Erick Thohir
during the 10,000 unit BTN House Ownership Credit Mass
Agreement ceremony in Puri Delta Tigaraksa Housing,
Tangerang, Banten, Tuesday, August 8, 2023.
On that occasion, Minister of SOE, along with the President
Director and President Commissioner of the company, Chandra
M Hamzah, Acting Governor of Banten Al Muktabar, Director
General of Housing of Ministry of Public Works and Public
Housing Iwan Suprijanto, Director General of Public Works and
Housing Infrastructure Financing of Ministry of Public Works and
Public Housing Herry Trisaputra Zuna and the Commissioner of
BP Tapera (Public Housing Savings Management Agency) Adi
Setianto take part in the tree-planting activity.
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The Micro and Small Enterprise Funding Program is productive working capital. The fund distribution process
another component of the company's CSR Program. is decided based on business sector and geographic
With the focus on increasing business competency, area. During the reporting year, the company provided
this program aims to promote the independence and loans amounting to Rp17.21 billion for the MSE Funding
economic empowerment of assisted micro and small Program to 171 fostered partners managed by BTN and
businesses, which can improve the welfare of the to be distributed through cooperation schemes with
people in their communities. The company provides third parties.
funds through the MSE Funding Program to partners
with small scale businesses that need investment and
CHINA ASEAN EXPO
To support the government's program to bring MSMEs into
the global market, the company contributes actively by
facilitating one of its MSME partners Rumah BUMN BTN
KC Yogyakarta to attend the China ASEAN EXPO 2023
at the Nanning International Conference and Exhibition
on September 16-19, 2023. The event was Indonesia's
commitment to trade and investment cooperation with
China and ASEAN countries, in line with the results of the
agreement at the 7th ASEAN China Summit in October
2003 within the China-ASEAN Free Trade Area (CAFTA)
economic trade framework.
Number of Foster Partners (Business Activities) and Funds Disbursed
Note 2023 2022 2021
Number of Foser Partners 170 378 256
Amount of Fund Distribution
9,211 18,386 10,994
(Rp million)
*) Excluding the distribution of cooperation schemes with third parties amounting to Rp8 billion
Realization of MSE Funding Program Distribution Based on Business Type [SASB FN-CB-410a.1]
2023 2022 2021
No Business Sector Amount Amount Amount
% % %
(Rp million) (Rp million) (Rp million)
1 Industry 170 1.85 904 4.92 55 0.50
2 Trade 6,539 71.27 12,706 69.07 7,644 69.53
3 Agriculture 95 1.04 50 0.27 85 0.77
4 Plantation 550 6.00 25 0.14 - -
5 Animal Husbandry 95 1.04 410 2.23 475 4.32
6 Fishery 100 1.09 108 0.59 70 0.64
7 Service 1,622 17.70 4,184 22.78 2,665 24.24
8 Creative Industry - - - - - -
Total 9,162 100.00 18,386 100.00 10,994 100.00
*)Excluding the distribution of cooperation schemes with third parties amounting to Rp8 billion
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Realization of MSE Funding Program Distribution by Region
2023 2022 2021
N0 Region Amount Amount Amount
% % %
(Rp million) (Rp million) (Rp million)
1 Sumatera 935 10.20 3,070 16.72 1,352 12.30
Jakarta Capital Special 788 8.60 2,576 14.03 1,190 10.83
2
Region
3 Yogyakarta Special Region 115 1.26 281 1.53 270 2.46
4 West Java and Banten 1,882 20.63 4,595 25.02 2,568 23.36
5 Central Java 1,002 10.94 1,864 10.15 1,050 9.55
6 East Java 980 10.70 2,290 12.47 2,405 21.88
7 Bali 60 0.65 105 0.57 50 0.45
8 East Nusa Tenggara 880 9.60 146 0.79 305 2.77
9 West Nusa Tenggara 525 5.73 313 1.70 160 1.46
10 Kalimantan 780 8.51 1,321 7.19 634 5.77
11 Sulawesi 970 10.59 1,159 6.20 680 6.19
12 Maluku 245 2.67 642 3.50 225 2.05
13 Papua - - 25 0.14 105 0.96
Total 9,162 100.00 18,386 100.00 10,994 100.00
*) Excluding the distribution of cooperation schemes with third parties amounting to Rp8 billion
INCLUSIVE AND SUSTAINABLE PRODUCTS
The company supports the government’s efforts to increase public access to banking and financial services through its
commitment to providing inclusive and sustainable products. The company implements financial literacy and inclusion
programs in accordance with recommendations from Bank Indonesia and the Financial Services Authority (OJK) that
specifically focus on improving financial services and facilitating access to banking services for wider groups of society.
The company also provides various products that can help low-income people.
The following are the company's products that support the financial literacy program:
Inclusive Home Ownership Credit
1. Subsidized BTN Home Ownership Credit
BTN Subsidized Home Ownership Credit is a home ownership program offered by Ministry of Public Works and
Public Housing of the Republic of Indonesia for low-income people with low interest rates and low installments for
the purchase of landed public houses and public flats.
The following is the distribution value of Subsidized BTN Home Ownership Credit:
Distribution Value (Rp million)
2023 2022 2021
20,115 19,941 15,149
Following up on Circular of Directorate General of Public Works Infrastructure Financing of Ministry of Public
Works and Public Housing of the Republic of Indonesia No. PW.01.03-Dp/07 dated January 6, 2022 regarding
Segmentation of Utilization of Housing Financing Liquidity Facilities, Savings-Based Housing Financing Assistance,
and Public Housing Savings, the provisions for segmentation of the subsidized Home Ownership Credit process for
Fiscal Year 2022 are as follows:
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Product Debtor Income
Note Provision
Name Segmentation Limitations
Home Housing Financing Fixed Not married < 1. The maximum value of the Home Ownership Credit is the
Ownership Liquidity Facility Income—Non Rp6,000,000 selling price of the landed house or flat minus the down
Credit for is a support for Government payment prepared by low-income people. Through this
Housing housing financing Employee Married until program, low-income people are also entitled to receive
Financing liquidity facilities Rp8,000,000 a down payment assistance subsidy of Rp4 million (for the
Liquidity for landed houses islands of Java, Sumatra, Kalimantan and Sulawesi) and
Facilities or flats for low- Rp10 million (for Papua) from the government.
income people. 2. The mortgage interest rate paid by the debtor is 5% per
annum and includes premiums for life insurance, fire
insurance, and credit insurance. The interest rate as referred
to in point (1) is fixed during the credit period (fixed rate)
using the annual interest calculation method (annuity).
3. The source of funding for the Housing Financing Liquidity
Facility program is 75% from the government and 25%
from the company. The company collaborates with PT
Sarana Multigriya Finansial in providing funding sources
for the Housing Financing Liquidity Facility program.
4. The Home Ownership Credit period is agreed upon by the
company and the low-income people which is also adjusted
to the ability to pay the installments of the prospective
debtor or a maximum of twenty years.
Home Savings-Based Non-Fixed Not married < 1. Every low-income person who meets the requirements
Ownership Housing Financing Income Rp6,000,000 for the Savings-Based Housing Financing Assistance
Credit - Assistance program receives down payment assistance (Savings-
Savings- (BP2BT) is a Not married Based Housing Financing Assistance Fund) of a maximum
Based government up to of Rp40 million from the government.
Housing assistance Rp8,000,000 2. The value of the Home Ownership Credit is equal to the
Financing program provided (Papua and selling price of the landed/flat house or the planned cost
Assistance to low-income West Papua budget for the self-supporting house minus Savings-
people who only) Based Housing Financing Assistance Funds and the down
already have payment prepared by low-income people.
savings in order 3. The interest rate for Home Ownership Loans paid by
to fulfill part of debtors uses a commercial rate of 10% fixed interest for
the down payment ten years or 9.5% fixed interest for five years using the
for purchasing a graduated payment mortgage calculation method.
house through 4. The funding source for the Savings-Based Housing
credit. Financing Assistance program comes 100% from the
implementing bank.
5. The Home Ownership Credit period is agreed upon by
the company and the low-income people which is also
adjusted to the ability to pay the installments of the
prospective debtor or a maximum of twenty years.
KPR Tapera KPR Tapera is Fixed Income— Not married or 1. The maximum value of the Home Ownership Credit is the
(Public a credit facility Government Married up to selling price of the landed house or flat minus the down
Housing provided by the Employee Rp8,000,000 payment prepared by low-income who have joined as
Savings) company to Tapera Tapera participants for at least 12 (twelve) months.
participants among 2. The mortgage interest rate paid by the debtor is 5%
low-income per annum and includes premiums for life insurance,
people for the fire insurance, and credit insurance. The interest rate as
purchase of landed referred to in point (1) is fixed during the credit period
houses or low-cost (fixed rate) using the annual interest calculation method
flats. (annuity).
3. The source of funding for Tapera KPR comes from Tapera
participant contribution savings.
4. The Home Ownership Credit period is agreed upon by
the company and the low-income people which is also
adjusted to the ability to pay the installments of the
prospective debtor or a maximum of thirty years.
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Product Debtor Income
Note Provision
Name Segmentation Limitations
KPR Tapera KPR Tapera is Fixed Income— Not married or 1. Home Ownership Credit distribution is distributed to low-
a credit facility Government Married income people who have joined as Tapera participants for
provided by the Employee up to at least 12 (twelve) months with a maximum credit of
company to Tapera Rp8,000,000 Rp60 million and specifically for Papua and West Papua a
participants among maximum of Rp75 million.
low-income Not married or 2. The interest rate on Home Ownership Loans paid by
people for the Married debtors is 5% per year which is fixed for the term of the
renovation of the up to credit (fixed rate) using the annual interest calculation
first house. Rp10,000,000 method (annuity).
(Papua and 3. The source of funding for KPR Tapera comes from Tapera
West participant contribution savings.
Papua) 4. The Home Ownership Credit period is agreed upon by
the company and the low-income people which is also
adjusted to the ability to pay the installments of the
prospective debtor or a maximum of five years.
2. Micro BTN KPR
With a credit limit of Rp75 million, Micro Home Ownership Credit
can be used to purchase, renovate, and build houses for low-income
people and informal sector workers who have irregular incomes. This
program includes insurance, loans, and micro savings.
The Micro Home Ownership Credit Program is the company’s initiative for low-income individuals with income
between Rp1.8 million and Rp2.8 million per month, who are not included in the group of subsidized Home Ownership
Credit recipients. The company offers quite low credit interest of 6―7 percent per year, or Rp900―956 thousand per
month, through this program. This program allows debtors to adjust the ceiling so that installments can be made
monthly, daily, or weekly according to the debtor's capabilities.
Micro Home Ownership Credit down payments are relatively low at only 1 percent for the purchase of the first home
or 10 percent for renovations. Individuals who want to build a house on their private land can also use this Micro
Home Ownership Credit program. If an individual has selected land to build on, this scheme will help them complete
the land certification process before building.
The company sets several requirements that must be met by prospective Micro Home Ownership Credit debtors,
among others:
1. Having an Indonesian citizenship;
2. Being at least 21 years or married;
3. Being 65 years at a maximum;
4. Submitting a copy of savings account statements for the last 3 (three) months;
5. For those who work in the informal sector, having been members of a community, an association, and a cooperative
for at least one year.
6. Obtaining a letter of recommendation from the community, an association and a cooperative that oversees it;
7. Having savings at BTN and saving on average per month the amount of BTN Micro KPR installments for a
minimum of 3 (three) months; and.
8. Having a good loan history.
As an initial stage, this program is offered to informal sector workers who are members of the Noodle and Meatball
Traders Association (Apmiso), Garut Barber Brotherhood, Bluebird Taxi Drivers, and Application-Based Motorcycle
Taxi Drivers (Gojek and Grab). Through this program, employees are indirectly encouraged to always set aside a
portion of their salary to invest in assets that will be useful in the future.
In the future, this program will also provide the same opportunity for other individuals who work in the informal
sector such as fishermen, vegetable traders, and craftsmen to realize their dream of owning their own home.
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MICRO, SMALL AND MEDIUM ENTERPRISES
DEVELOPMENT PROGRAM [FS6] [SASB FN-CB-240a.2]
The company provides access to capital to the entire community, in particular to facilitate the development of MSME
credit in all viable economic sectors, as well as financing investment and/or working capital to run and develop their
businesses. The company also helps MSME customers become more productive, competitive and have a global
perspective by providing them with business capital. As a development agent, the company finances MSMEs through:
[SASB FN-CB-240a.1]
Micro, Small and Medium Enterprises (KUMKM) Lending
The company Micro, Small, and Medium Enterprises Lending is aimed at customers who have micro and small businesses
that can be used to finance working capital and/or investment. BTN Micro, Small, and Medium Enterprises Lending has
a maximum ceiling of up to Rp5 billion.
MSME BAZAAR IN SARINAH
In support of participation in the MSME Bazaar
for Indonesia, the Company,, along with
Angkasa Pura 1, was appointed by Ministry of
SOE as the organizer of the MSME Bazaar at the
Sarinah Building which was held on February
16 - February 19 2023. This event was attended
by 81 MSMEs from the fashion, culinary, craft
and beauty product categories that presented
various mainstay products which becamse the
attraction and characteristics of each region
where the MSMEs originate.
The following is The company Micro, Small, and Medium Enterprises Lending distribution portfolio:
Portfolio (Rp million)
2023 2022 2021
3,431,071 3,505,937 2,415,339
The Company’s Micro, Small, and Medium Enterprises Lending Distribution by Economic Sector
[FS6] [FS7] [SASB FN-CB-410a.1]
Amount of Fund Distribution (Rp million)
Economic Sector
2023 2022 2021
Agriculture, Hunting, and Forestry 12,700 47,250 7,700
Fishery - 770 -
Mining and Excavation 360 180 -
Processing Industry 27,809 54,662 16,499
Electricity, Gas and Water 22,063 29,973 25,783
Construction 2,465,069 2,716,379 1,596,449
Wholesale and Retail Trade 582,679 389,701 207,242
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Amount of Fund Distribution (Rp million)
Economic Sector
2023 2022 2021
Accommodation and F&B 30,175 5,155 8,624
Transportation, Warehousing and Communications 32,381 46,134 7,100
Real Estate, Rental Business, and Corporate Services 85,942 117,216 499,173
Education Services 1,500 1,000 -
Health Services and Social Activities - - -
Community, Social, Cultural, Entertainment and Other 124,528 68,761 36,305
Personal Services
Activities With Unclear Scope 45,864 28,756 10,464
Total 3,431,071 3,505,937 2,415,339
Distribution of the Company’s Micro, Small, and Medium Enterprises Lending by Province [FS6] [FS7]
Amount of Fund Distribution (Rp million)
Province
2023 2022 2021
Nanggroe Aceh Darussalam - - 2,040
North Sumatera 110,036 127,769 85,338
West Sumatera 35,333 46,216 35,276
Riau 36,113 61,717 27,698
Jambi 75,955 61,541 48,783
South Sumatera 85,007 97,350 64,859
Bengkulu 28,955 24,406 22,208
Lampung 59,467 45,423 35,737
Riau Islands 42,869 69,414 48,255
Bangka Belitung 29,874 30,899 29,165
Jakarta Capital Special Region 489,751 503,663 397,002
West Java 748,559 757,397 497,667
Central Java 275,130 269,626 197,276
Special Region of Yogyakarta 38,428 38,545 16,601
East Java 411,762 496,018 293,855
Banten 360,785 321,310 187,826
Bali 49,555 58,305 26,154
West Nusa Tenggara 40,670 43,517 44,962
East Nusa Tenggara 29,245 23,048 17,134
North Kalimantan 9,225 3,375 14,960
West Kalimantan 32,507 39,570 18,250
Central Kalimantan 20,087 18,522 10,489
South Kalimantan 77,177 92,267 79,624
East Kalimantan 47,323 51,139 25,779
North Sulawesi 30,546 24,965 17,693
West Sulawesi 10,172 2,137 -
Central Sulawesi 37,041 28,638 18,914
South Sulawesi 132,119 88,959 66,111
Southeast Sulawesi 53,022 30,310 26,330
Gorontalo 12,967 3,696 6,297
Maluku 913 4,290 350
North Maluku 15,206 23,835 35,689
Papua 5,274 18,070 17,019
Total 3,431,071 3,505,978 2,415,339
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People's Business Credit (PBR)
Since 2020, the company has supported the government’s policies to increase business capital capabilities to accelerate
real sector development. In particular, the company pushes for the empowerment of MSMEs through the distribution of
micro PBR and small-scale PBR with priority to the construction, housing and supporting sectors. PBR provides lending
or working capital financing and/or investment to individual debtors, business entities, or business groups who are
productive and viable, or do not have additional collateral.
In 2023, the company provided micro PBR and small-scale PBR to 8,214 debtors with a total ceiling of Rp1.8 trillion. The
following is the overall portfolio of PBR distribution:
Portfolio (Rp million)
2023 2022 2021
1,807,673 599,832 290,949
Distribution of the Company’s PBR [FS8]
2023 Realization 2022 Realization
BTN PBR Ceiling Ceiling
Debtor Debtor
(Rp Million) (Rp Million)
Micro 249,906 3,965 49,974 843
Small-Scale 1,557,767 4,249 549,858 1,598
Total 1,807,673 8,214 599,832 2,441
Distribution of People's Business Credit by Economic Sector [FS6] [FS7] [SASB FN-CB-410a.1]
Amount Distributed
2023 2022 2021
Economic Sector
Ceiling (Rp Ceiling (Rp Ceiling (Rp
Debtor Debtor Debtor
million) million) million)
Agriculture, Hunting, and Forestry 39,298 118 9,706 42 3,145 19
Fishery 6,560 36 3,370 18 1,003 10
Mining and Excavation - - 1 1,000 2
Processing Industry 37,124 204 17,465 76 5,333 22
Electricity, Gas and Water 6,100 37 2,469 12 1,775 9
Construction 511,569 1,097 167,151 372 104,752 235
Wholesale and Retail Trade 811,480 4,592 271,605 1,307 105,106 476
Accommodation and F&B 147,147 926 40,193 197 14,595 58
Transportation, Warehousing and
17,862 64 8,500 27 3,630 12
Communications
Real Estate, Rental Business, and
30,976 123 14,970 53 3,987 13
Corporate Services
Financial Intermediaries - - - - - -
Education Services 4,750 26 1,040 3 - -
Health Services and Social Activities - - - - - -
Community, Social, Cultural,
Entertainment and Other Personal 112,124 586 40,717 210 30,785 121
Services
International Agencies and Other
- - - - - -
Extra International Agencies
Individual Services Serving
- - - - - -
Households
Activities With Unclear Scope 81,284 402 22,297 123 15,839 94
Total 1,807,673 8,214 599,832 2,441 290,949 1,071
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Distribution of People's Business Credit by Province [FS6] [FS7]
Amount Distributed
2023 2022 2021
Province
Ceiling Ceiling Ceiling
Debtor Debtor Debtor
(Rp million) (Rp million) (Rp million)
Bali 26,200 141 7,820 34 2,490 8
Bangka Belitung 26,387 80 7,125 27 3,900 8
Banten 147,576 907 53,622 284 30,331 147
Bengkulu 19,293 67 9,630 27 3,360 14
Special Region of Yogyakarta 31,116 176 8,657 45 4,765 31
Jakarta Capital Special Region 165,798 921 70,480 277 48,593 149
Gorontalo 11,416 92 3,130 30 855 4
Jambi 53,880 114 13,910 30 7,056 18
West Java 422,064 1,879 120,645 462 57,650 187
Central Java 148,096 731 50,736 277 20,860 98
East Java 230,475 1,093 66,665 268 19,499 93
West Kalimantan 19,649 56 8,120 19 755 4
South Kalimantan 53,781 164 13,286 52 8,535 33
Central Kalimantan 9,526 46 5,475 15 2,432 8
East Kalimantan 17,364 110 12,198 50 5,583 22
North Kalimantan 9,690 82 5,630 38 2,650 17
Riau Islands 36,322 133 11,130 48 4,760 17
Lampung 17,775 110 7,724 25 4,145 10
Maluku 13,023 78 6,342 61 2,037 13
North Maluku 12,610 85 8,008 27 3,206 25
Nanggroe Aceh Darussalam - - - - - -
West Nusa Tenggara 16,180 78 6,855 36 7,380 26
East Nusa Tenggara 8,796 42 8,565 29 4,338 13
Papua 16,212 121 4,275 28 350 1
Riau 63,280 130 12,250 26 8,360 19
West Sulawesi 14,066 52 2,601 7 - -
South Sulawesi 40,980 217 20,000 55 8,185 23
Central Sulawesi 11,860 38 7,250 24 6,405 17
Southeast Sulawesi 15,500 44 4,515 14 2,000 4
North Sulawesi 9,349 56 2,725 11 1,640 8
West Sumatera 21,860 55 8,461 27 3,830 17
South Sumatera 40,980 109 15,408 34 9,250 20
North Sumatera 63,641 207 16,595 54 5,750 17
Total 1,807,673 8,214 599,832 2,441 290,949 1,071
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Micro and Small Business Funding Program
Micro and Small Business Funding Program is a financing credit offered by the company for small businesses that do
not meet banking requirements (non-bankable). This product is offered to help increase the capacity and independence
of small business actors.
The MSE Funding Program distribution portfolio for the last three years is as follows:
Portfolio (Rp million)
2023 2022 2021
17,206 18,386 10,994
BTN Lending Linkage
BTN Linkage Credit is a financing credit facility provided by the company specifically to linkage institutions (People's
Credit Agency [BPR] or cooperatives) to be lent to micro, small and medium enterprises (MSMEs) who do not meet
banking requirements but have productive businesses and meet the MSME criteria.
BTN Linkage Credit distribution portfolio for the last three years is as follows:
Portfolio (Rp million)
2023 2022 2021
2,128 35,650 99,833
The company also has several financial inclusion products under the sharia business unit as follows:
Portfolio (Rp million)
Products Description Target
2023 2022 2021
Tabungan Ku iB Savings product with a wadi'ah (deposit) General
agreement and attractive bonuses. This Public
product is issued jointly by banks in 13,532 10,451 7,321
Indonesia to foster a culture of saving and
improve people's welfare.
BTN Simpel iB A special savings product for students Students
Saving under 17 years of age who do not yet have under 17
6,489 4,738 3,188
an ID card with a very light initial deposit years of age
and attractive bonuses.
BTN Agent [FS16]
BTN Agent is present as the company's support for the Officeless Financial Services program within Financial Inclusion
(Laku Pandai) launched by the Financial Service Authority. This mission is also in line with the Indonesian government's
goals set out in the National Strategy for Financial Inclusion (NSFI) in June 2012. It is also hoped that expanding access
to formal financial services will protect the public from burdensome lending practices.
The BTN Agent Laku Pandai service is aimed at people who do not have access to financial services or are not familiar
with banks (unbanked) to learn about banking and its products. This service can help people in remote areas, both
old and new customers so that they can reach various banking transaction needs. BTN Agent provide convenience
because banking transactions can be done anytime and anywhere, whether opening a savings account, paying bills,
cash deposits, cash withdrawals, transfers, balance info, mini statements, changing PINs, and purchases. Through BTN
Agent, the company also encourages community empowerment within the banking business by providing business
opportunities for people to become agents.
The general requirements to become a BTN Agent are:
1. Registration can be done through the nearest BTN branch office and sub-branch office;
2. Becoming a BTN customer to accommodate deposits, pay commissions, and fees;
3. Having a business that has been running for at least one year;
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4. Having valid business permits (at least a certificate from the local neighboring units);
5. Not being included in the national blacklist at Bank Indonesia; and
6. Passed due diligence by the organizing bank
Until 2023, there were 2,255 BTN
agents spread throughout Indonesia.
FINANCIAL LITERACY PROGRAM [FS16]
BTN continues to take steps to increase public knowledge about finance. This effort aims to anticipate less effective
financial management by individuals and groups due to a lack of knowledge about finance. Ineffective financial
management has the potential to lead to inappropriate use of products and services, especially for people in remote
areas with low economic conditions and difficult access to financial resources.
Against this backdrop, the company seeks to provide education to this group to enhance customer financial knowledge.
Increasing customers' ability to use more sophisticated products and services will also contribute to increasing the
number of users of the company's products and services.
In 2023, Simpanan Pelajar (SimPel) was one of the products with the best usage performance. SimPel is a student
savings account with easy account opening and transaction requirements, with the aim of increasing financial knowledge
and awareness of saving as well as the inclusion of school-age children in banking services.
Proportion of Account Ownership [SASB FN-CB-240a.4]
Note 2023 2022
Total savings product accounts 7,099,737 7,284,386
SimPel Account
Total Account 795,592 743,308
Percentage of total account 11.20% 10.20%
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Excellent Service
for Customers
Sustainability
Report
2023
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About the Profile of Bank BTN Inclusive and Sustainable Environmental
Sustainability Report Economic Growth Sustainability
As a bank with core business products in the housing sector, the company strives to promote a housing finance ecosystem
that applies sustainability principles. The company realizes that green mortgages are a strategic first step in achieving
this goal. To accelerate this transformation, the company has established a close partnership with the Green Building
Council Indonesia. This collaboration not only helps expand the understanding of sustainability practices among
employees, but also enhances their capabilities, especially in the context of green buildings. With these steps, the
company aims to not only be a leader in the housing sector, but also be at the forefront of efforts to realize sustainable
positive impacts in the environmental and social fields
ESG-Based Financing and Investment Products
The company is aware of the ever-growing stakeholders’ expectations, especially in meeting sustainable finance.
To that end, the company strategically integrates ESG considerations into its investment decisions and transactions.
By implementing this policy, the company can get financial benefits, while also contributing positively to the social
and environmental context in each of its operational areas. A number of ESG-based products that the company has
innovated include:
ESG-Based Products
1. The company has an ESG-based Green Bond Portfolio in 2023, including:
• Sukuk Green Bonds (INDOIS) 06/23/50
• Sukuk Green Bonds (INDOIS) 08/20/24
2. The company as a mutual fund sales agent has collaborated with investment manager
Batavia Properindo Asset Management in selling mutual fund products with an ESG
theme, one of which is Batavia Global ESG Sharia Equity USD.
Subsidized Home CSR Program-Social Product
Ownership Credit-Social Outstanding
Product Outstanding
In 2023, the company distributed micro and
small business funding worth Rp17.21 billion
to 171 fostered partners in the trade, fishery,
plantation, agriculture, and livestock services
sectors, and distributed through cooperation
schemes with third parties. The company's
investment in the CSR program reached
Rp79.99 billion.
The company remains committed to providing
adequate housing for the community. As an
embodiment of this commitment, two BTN
subsidized Home Ownership Credit products,
namely Home Ownership Credit of Housing
Financing Liquidity Facility and Tapera Home
Ownership Credit, have distributed subsidized
housing financing for up to 878,727 units with
a value of Rp25.6 trillion in 2023. Among
this figure, subsidized financing of 92,448
units worth Rp13 trillion was absorbed by the
millennial group that increases every year.
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Wholesale Funding and Lending
The company continues to remain committed to expanding access to affordable housing financing for the
community, especially from the middle to lower income group. Through private sector investment and financing, the
company, along with the Japan International Cooperation Agency (JICA), signed a loan agreement of 7 billion yen.
In addition, the company, along with 45 banks, participated in providing a Sustainability-Linked Syndicated Term
Loan Facility for infrastructure development.
The company has also provided lending worth Rp3.36 trillion in the form of construction lending, investment
lending, working capital lending, corporate lending, and short-term lending on the basis of corporate credit
distribution. Several examples of lending distribution that have been carried out by the company are as follows:
1. Distribution of corporate lending
to support the operational needs 2. Distribution of corporate lending
to support renewable energy
of the biological natural resources development projects in the form
management sector and sustainable of solar power plants.
land use.
3. The distribution of corporate credit
to support the acceleration of 4. Distribution of corporate
lending to support drinking
infrastructure development in the water supply system (SPAM)
non-coal electricity sector and its projects.
derivatives.
MSMEs Loan Outstanding
SME lending distribution in the production and non-production sectors reached Rp4.16 trillion
with 13,128 debtors throughout the reporting period. Sectors financed by the company include
agriculture, fisheries, forestry, processing industry, electricity, water and gas, construction, trade,
real estate, educational services, health services and social activities, community services, social
culture, entertainment, and other individual businesses.
Electric Vehicle Loan Disbursement
The disbursement of electric vehicle loans facilitates the public
in owning electric vehicles with low installments, unconditional
discounts, 0% down payment, long tenures, as well as no
commission and administrative fees. In 2023, the Company
facilitated financing for electric vehicle purchases, amounting
to 18 units totaling Rp334,100,000.
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Customer Data Security
The company has information technology (IT) governance that regulates the implementation of information technology
starting from management, planning, development, infrastructure operations, and security of information technology
systems. The company has carried out regular reviews of this governance by including it in the general IT, data, and
digital management policy. This policy regulates IT governance at a high level.
Furthermore, there are special policies—derivatives of general policies—that regulate technical matters and technical
instructions that regulate matters in more detail than special policies. At least, the company has 5 (five) specific policies
related to IT and 2 (two) technical instructions that have been reviewed in 2023 and have been adapted to the company's
policy and procedure architecture, namely:
1. KK.5-A Special Policy on IT Standard Operational Procedures;
2. KK.5-B Special Policy on IT Security;
3. KK.5-D Special Policy on IT Standardization;
4. KK.8-E Special Policy on IT, Digital & Cyber Risk Management Procedures;
5. KK.9-D Special Policy on Board of Directors Committee Governance Procedures;
6. PT.5-A.1 Technical Instructions on IT Standard Operational Procedures; and
7. PT.5-D.1 Technical Instructions on IT Standardization.
The company considers the implementation of information technology important to support business operations.
Taking into account that IT implementation policies have a broad scope, the company categorizes IT implementation
into three domains, namely "Change the Bank" which plays a role in planning and developing IT systems, "Run
The Bank" to carry out IT operations and ensure the reliability of infrastructure and systems used by the Company
and customers, and "Secure the Bank" which plays a role in maintaining the security of the company's systems and
applications so that they are safe and under control from IT security attacks. [GRI 3-3]
Along with the development of information technology and the increasing need for digitalization which makes it easier
for customers to carry out banking transactions, one of the biggest challenges arises in the "secure the bank" domain.
The company has an initiative to improve security of digitizing services by mitigating against cyber-attacks. Digitalization
of services is vulnerable to cyberattacks by shifting customer service preferences from conventional channels (branch/
onsite) to digital channels. The company is aware of this and continues to adapt in implementing digital services based
on the security of three main pillars, including:
1. People
a. The company has regularly provided education and increased digital security awareness to all employees,
customers and third parties who collaborate with the company. Various media are used to convey education
about security awareness, such as social media, email, podcasts and desktop wallpapers on employee work
devices.
b. The company always improves professionalism and competence of employees as customer partners with various
cyber security training and certification.
2. Process
The company has a Security Operation Center (SOC), which monitors information security to detect cyber-attacks
and handle incidents. The company has also established a Computer Security Incident Response Team (CSIRT)
function to respond to cyber incidents and implement incident recovery strategies. In performing the SOC and CSIRT
functions, the company has used the latest technology such as Security Incident and Event Management (SIEM),
Cyber Threat Intelligence, and other technologies, as well as collaborating with regulators to strengthen these
functions. In increasing customer and stakeholder confidence in maintaining information security, the company has
succeeded in obtaining ISO 27001:2013 Information Security Management System Certification on July 11, 2023.
3. Technology
The company has implemented the latest security technology such as security monitoring tools, endpoint security,
application security, cloud-based security, data loss prevention (DLP), next generation firewall (NGFW), patching
and hardening automation, as well as secure customer data encryption. The company has also carried out technology
security testing through penetration testing and vulnerability assessments periodically at least once per year.
In maintaining customer privacy and security, the company considers two main principles. First, all customer data
obtained from the service process contains confidential information. Second, technological advances increase the use
of data through applications that increase cybercrime potentials. To prevent data leaks, the company has developed
an internal storage system that is strictly protected. In addition to providing a security system, the company is also
committed that there will be no use of data outside the customer's consent or the prevailing law. [OJK F.27]
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The IT Risk Management Department is responsible for ensuring the security of customer data with a focus on
managing information technology (IT), as well as digital and cyber risks. This department ensures the provision of
safe and reliable technology services by managing risk management for every technology solution developed by the
company.
The company's commitment to the privacy and security of customer data is also a form of compliance with the
following regulations: [GRI 418-1]
1. Law No. 10 of 1998 on Amendment to Law No. 7 of 1992 on Banking;
2. Regulation of the Financial Service Authority Number 1/POJK.07/2013 on Consumer Protection in the Financial
Services Sector;
3. Circular of the Financial Service Authority No. 14/SEOJK.07/2014 on Confidentiality and Security of Consumer Data
and/or Personal Information;
4. Regulation of Bank Indonesia No. 2/19/PBI/2000 on Requirements and Procedures for Granting Bank Confidential
Written Orders or Permits Regarding Customer Confidentiality.
5. Law No. 27 of 2022 on Personal Data Protection;
6. Special Policy No. KK.9-M Dated 28 February 2023 on Data Governance Guidelines; and
7. Special Policy No. KK.9-Z Dated 31 August 2023 on Customer and Community Protection.
By considering the regulations above, the company has issued Special Policy on Information Technology Security No.
KK.5-B Dated 28 June 2022. SP.5-B Dated 28 June 2022. This policy describes a number of aspects to ensure that all
information continues to meet the principles of confidentiality, integrity and availability in an effective and efficient
manner to ensure business success. The company hopes that this policy will be able to enhance data protection efforts
needed to maintain smooth operations and create better, safer, smoother, and audited operational activities to maintain
the company's reputation. [SASB FN-CB-230a.2]
The company also makes additional efforts to protect customer data. This includes training users on IT security, installing
software that has been authorized (approved) and updated regularly, and implementing password management or
standardization to ensure that protected data remains secure. In addition, regulation evaluation is carried out to ensure
that the company's data security architecture is adequate and effective in protecting customer data. The effectiveness
and the success of this effort is proven by zero complaints regarding customer data security violations such as loss,
theft, and dissemination of customer data throughout 2023. [GRI 418-1] [SASB FN-CB-230a.2, FN-CB-230a.1]
In 2023, the company provided training to improve employee abilities and capabilities related to data privacy and cyber
security, such as:
Name of Training Date
Leadership Training September 9, 2023
Digital Leadership February 27, 2023
Indonesia Privacy and Security Summi October 24-25, 2023
Certified Ethical Hacker (CEH) September 11-15, 2023
Comp Tia Security+ October 2-6, 2023
Certified in the Governance of Enterprise IT (CGEIT) October 2-5, 2023
Linux System Administrator Cisco CCNA October 23-26, 2023
Cisco CCNA Basic Penetration Testing October 30-31, 2023
E-learning security awareness in Dreams August 1-7, 2023
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Increasing Awareness and Capability in
Protecting Customer Privacy
To boost capacity and protect customer privacy, the company has launched initiatives that include
education and capability development related to data privacy awareness, security awareness
and crime prevention, cyber security, enterprise risk management, and implementation of risk
management. These steps aim not only to empower individuals to protect customer privacy, but
also to ensure security and continuity of company operations in facing increasingly complex
security and risk challenges in this digital era.
31 people 41 people 68 people
Data privacy awareness Security awareness & crime Risk management application
prevention, enterprise risk
management, and cyber security
Several program initiatives carried out by the company as a form of awareness of information technology security are
as follows:
Recognize the Potentials for Data Theft via Email (Phishing Email)
Recognize the potential for phishing emails
Email is one of the official
media for exchanging data W
wahyu dharmawan<Wahyu.dharmawan@btn-co.id>
To Indah Amalia
Check the sender's email address.
and information. Therefore,
using a secure work email
is crucial to maintain Data HC Juli.exe Be cautious when downloading
the confidentiality of the attachments.
company’s information and
privacy. CAUTION : This email originated from outside the organization. Do not
click links or open attachments unless you recognize the sender and
A warning appears indicating that
know the content is safe
the email was sent from outside
BTN.
Dear Indah,
Please download the attachment and run this report immediately.
Urgent messages to make you
Afterwards, update the data for all employees in the following link.
Please get it done today before 1pm.
panic.
Remember! http://hcportal.btn.co.id?rid=yevwdcf
Click or tap to follow link.
Hover your mouse cursor over the
Recognize the signs! https://hcportal.btn.co.id
Regards,
link before opening it.
Wahyu
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Phishing Attacks
Definition
• Phishing attack is a cyber-attack carried out by people or groups by deceiving victims to
steal or collect important information. Information that is often targeted includes account
names (usernames) and keywords (passwords), credit card numbers and PINs, telephone
numbers and addresses.
• It is done using internet or mobile telecommunications media such as email, messages
(chat) and SMS.
• Important information that is stolen is used to gain profit.
Impact
• Loss of reputation and customer trust
• Loss of income and business opportunities
• Loss of data, credentials, and important information
Humans are the
• Disruption of operational activities
weakest part in the
• Lawsuits and fines
information system
• Oversight from regulators
security chain
Safe Use of Email
Pay attention to the warning in the yellow box that informs you
Use work email only for work matters. that the email was sent from an address outside the BTN Bank
domain (@btn.co.id).
Check and validate the sender's email address carefully and Be careful when downloading attachments and hover your
ensure that it comes from the person you expect. mouse over the link to confirm the link address.
Make sure to lock all outgoing attachments and send keywords Think critically, do not panic, and stay calm if there is an
with separate media and email. urgent message.
Do not share personal and company information with parties Do not reply or forward the email to anyone. Immediately
who do not comply with their authority. delete the email.
If you have already clicked on the link and sent data,
immediately report it to
gsoc@btn.co.id.
STOP AND THINK BEFORE YOU CLICK AND SHARE THE INFORMATION!
If you find anything suspicious, immediately report it to the IT Security Division at gsoc@btn.co.id.
In addition to the awareness program carried out, the company also identifies data security risks through:
1. Policy in record security management;
2. Retention of sensitive information;
3. Identification of important notes;
4. Storage of important notes;
5. Storage of business source documents;
6. Storage of application transaction data;
7. Destruction of information;
8. Storage of sensitive information; and
9. Storage of breach information and security issues
As a form of compliance, the company maintains the confidentiality and security of personal information through:
1. Retention of Personal Information
Retention of Personal Information at the bank should be deleted when the information is no longer necessary to
carry out business functions and is no longer required to fulfill legal or regulatory requirements.
2. Disclosure of Personal Data
Personal data can only be provided to other parties if there is authorization/approval from the data owner or
upon orders from an authorized official in accordance with the provisions of the prevailing laws and regulations.
Disclosure of personal data by the company can only be carried out in accordance with the prevailing laws and
regulations.
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Customer Complaints Mechanism
The company realizes that resolving consumer complaints quickly and accurately is part of service excellence. To that
end, the Company has established Special Policy No. KK.9-K Dated 29 November 2022 on Customer Complaints.
Guided by these regulations, the company opens customer complaint channels in all bank work units. Customers can
access it anytime and anywhere, regardless of the office where the customer first registered. Customer complaints in
verbal and written form can be submitted through various media channels, including:
A. B. C.
Complaints can be Complaints via the Contact Center at Complaints through the
submitted directly to BTN telephone number 150286 or 1500286 Financial Services Authority,
through regional offices, and BTN email: btncontactcenter@btn. Bank Indonesia and other
branch offices, sub-branch co.id (Complaints outside this, namely institutions.
offices, divisions at the head via Live Chat, electronic media/social
office and board of directors. media; will be directed via BTN email
or contact center).
Complaint Flow
The following is the flow of handling customer complaints
at BTN
1. Customers File Complaints
Customers file complaints
2. Verification of Customer Data
BTN verifies customer data in
3. Customer Gets Complaint
Number
via the channels provided accordance with the established BTN receives and records
by BTN. procedures. and provides complaint ticket
numbers to customers.
4. Follow-up Process by BTN
BTN will follow up and
5. Complaint Process
Resolved
6. The Customer is Dissatisfied
and Proceeds LAPS SJK
resolve customer complaints If the customer agrees with Customers who do not agree
within the specified time. the results of the settlement, with the settlement results can
the complaint is considered continue the process at the
resolved. Alternative Financial Services
Sector Dispute Resolution
Institution (LAPS SJK)
Customer Complaint Data
2023 2022
Number of Number of
Complaint Category Completed In Process Completed In Process
Complaints Complaints
Total % Total % Total % Total %
Data Collection 318 302 94.97 16 5.03 93 93 100,00 - 0.00
Data Distribution 224 221 98.66 3 1.34 184 184 100,00 - 0.00
Cooperation Product 812 666 82.02 146 17.98 5 4 80,00 1 20.00
Payment System 61,262 59,948 97.86 1,314 2.14 51,804 51,770 99.93 34 0.07
Total 62,616 61,137 97.64 1,479 2.36 52,530 52,481 99.91 49 0.09
Note:
• Fund Collection Category: savings, deposits, current accounts, etc.
• Fund Distribution Category: subsidized lending, non-subsidized lending, working capital lending, etc.
• Collaboration Product Category: bancassurance, mutual funds, ORI, etc
• Other Product Category: officer services, bank guarantees, facility provision, etc.
• Payment System Category: ATM, mobile banking, internet banking, etc.
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Customer and Community Protection
The company has Special Policy No.KK.9-Z dated 31 3. Protection of customer assets;
August 2023 on Customer and Community Protection. 4. Protection of customer data and/or information;
The company protects customers and the public 5. Information on handling and resolving complaints
by providing clear and transparent information on submitted by customers; and
the products and/or services offered, including the 6. Mechanism for using customer data and/or personal
consequences and risks that will be received if customers information.
and the public use or utilize the company's products
and/or services. With this policy, customers and the In carrying out responsible product and/or service
public can be protected from financial losses and legal marketing, the company takes the following steps:
aspects in every use of the company's products and/or 1. Refraining from offering products and/or services
services. that are detrimental or have the potential to harm
customers;
To protect customers and the public, the company has 2. Paying attention to the suitability between customer
several basic principles that it implements, including: needs and capabilities and the products and/or
1. Adequate education; services offered;
2. Openness and transparency of information; 3. Refraining from using personal communication
3. Fair treatment and responsible business conduct; facilities for products offered without the customer's
4. Protection of assets, privacy, and customer data; consent;
5. Effective and efficient complaint handling and 4. Discontinuing the offer if the customer withdraws
dispute resolution; and consent through personal communication means;
6. Healthy competition. 5. Regularly updating the communication facilities
used so that they are always accessible; and
The product and/or service life cycle (product life cycle) 6. Refraining from offering products and/or services
issued by the company to customers and the public that are bundling and incur costs without the
considers the following aspects: customer's knowledge or without providing
1. Equality of access to every customer; information to the customer.
2. Special services to people with disabilities and the
elderly;
Personal Data Protection
Personal data protection is the practice of managing personal data by implementing an appropriate level of protection
to maintain data security, prioritizing transparency in the management of personal data, and clearly establishing the
company's obligations that must be carried out and the rights that personal data subjects have. This practice has been
implemented by the company to increase customer trust and to maintain compliance with Law No. 27 of 2022 on
Personal Data Protection.
The company has a Personal Data Protection Officer who is in the Compliance Work Unit, which is responsible for
managing personal data protection governance and ensuring compliance with personal data protection in accordance
with the prevailing regulations.
The company's personal data protection and management practices are stated in policies related to personal data
management that include data collection, use, sharing and retention. The following is a list of the policy documents in
question:
• Special Policy KK 9-Z on Customer and Community Protection, Chapter III, Letter E regarding Personal Data
Protection.
• Special Policy KK 5-B on Information Security.
• Special Policy KK 9-J regarding Archival Management Procedures.
• Technical Instructions PT 9-J1 on Technical Instructions on the Implementation of Archives Management.
In performing the company's obligations as the party that manages personal data, the company has carried out the
following:
1. Commitment to collect and process user data limited to stated purposes: The company prioritizes the concept
of "data minimization" to collect and process personal data and sets out the purposes of the processing in written
form as one of the supporting information that needs to be approved by the subject of personal data. This is stated
in Special Policy KK 9-Z on Customer and Community Protection, Chapter III, Letter E regarding Personal Data
Protection.
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2. Commitment to implementing leading data protection standards: The company has implemented a data protection
mechanism in accordance with the data protection standards contained in Special Policy KK 5-B on Information
Security. The company has also adopted information security standards in accordance with ISO 27001.
3. Commitment to notifying data subjects in a timely manner in the event of policy changes or data breaches: The
company has a policy to provide notifications to customers regarding changes to provisions and/or data leaks,
which are regulated in Special Policy KK 9-Z on Customer and Community Protection, Chapter III, Letter E regarding
Personal Data Protection and ITSD cyber incident handling Playbook.
4. Commitment to obtaining user data through lawful and transparent means with explicit consent from the data
subject where necessary: The company has a commitment related to legally valid and transparent Data processing
as regulated in Special Policy KK 9-Z on Customer and Community Protection, Chapter III, Letter E regarding
Personal Data Protection, and has implemented an explicit consent collection process from personal data subjects,
both individuals and corporations, for the purposes of managing data that has been submitted to the data subject,
including for activities carried out by third parties.
5. Commitment to requiring third parties with whom we share data to comply with the company’s policies: In
collaborating with third parties, the company has implemented third party risk management and has security
standards that need to be possessed by the third parties, in which these standards are in accordance with the
company's provisions as stated in Special Policy KK 5-B on Information Security.
Customers as personal data subjects have the following rights:
1. Obtaining information about clarity of identity, basis of legal interest, purpose of request and use of personal data,
and accountability of the party requesting personal data;
2. Complete, update, and/or correct errors and/or inaccuracies in personal data about him/her in accordance with the
purposes of processing personal data;
3. Gaining access and obtaining a copy of personal data about himself in accordance with the provisions of laws and
regulations;
4. Ending processing, deleting and/or destroying personal data about him/her in accordance with the prevailing
provisions;
5. Withdrawing consent to the processing of personal data about him/her that has been given to the bank;
6. Raising objections to decision-making actions that are only based on automatic processing, including profiling,
which give rise to legal consequences or have a significant impact on the customer;
7. Complaining and receiving compensation for violations of the processing of personal data about him in accordance
with the provisions of laws and regulations
8. Using and sending personal data about himself to other banks, as long as the systems used can communicate with
each other securely in accordance with the principles of personal data protection based on Law on Personal Data
Protection.
The company has channels to handle customer concerns related to the rights of personal data subjects, namely through
BTN Mobile Banking, BTN Call (contact center) and customer service at the company's outlets. The following is division
of channels related to the rights of personal data subjects:
• The Obtaining information related to customer personal data can be done by using BTN Mobile Banking and
customer service;
• Making changes and corrections to customer personal data can be done by going through customer service; and
• Stopping data processing and delete the data, one can do it through customer service.
To increase awareness of the importance of personal data protection, the company has conducted regular training for
all employees through:
• The company's internal learning portal, which was held in July 2023.
• Sessions on internalization of personal data protection provisions, which was held on December 7, 2023.
On top of that, the company has also initiated an assessment of the implementation of personal data protection on a
regular basis which is carried out internally by the company with the assistance of a third party that is appointed. During
the reporting year, the company's Internal Audit Work Unit carried out audits of system and application security aspects
through mandatory or thematic IT audit activities according to planning in the Annual Audit Plan.
There was no leakage of customer data or leakage of customer personal information during the reporting period, which
is proof of the company's commitment to maintaining privacy and protection of customer data. Apart from that, there
were no similar complaints from the authorities or from those responsible for the banking industry. [GRI 418-1]
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Customer Satisfaction
Customer satisfaction is one of the priority aspects for the company. From year to year, the company always strives
to increase customer satisfaction by providing the best and most equal products and services to all customers. The
company has established the best policies and service standards that are expected to maintain and further increase
customer trust. [OJK F.17]
Several steps the company takes to achieve customer satisfaction include:
1. Offering products and services in accordance with the established quality standards;
2. Providing the best service to all customers and following up on every customer complaint fairly without
discrimination;
3. Promoting services that are healthy, fair, honest, not misleading, and generally accepted by norms in society;
4. Implementing fair trade in accordance with the company’s policies, including: [FS15]
a. Special Policy No. 2-L dated October 3, 2023, concerning Retail Funding Service Services;
b. Technical Instructions PT.2-C.1 Dated 26 July 2022 concerning Foreign Exchange Transfer Service Tariffs; and.
5. Ensuring that all employees support the company in its efforts to achieve customer satisfaction and trust.
Just as in providing information about the existing products and services, the company also provides clear information
about new products and innovations, enabling customers to make choices with a sense of security. Information related to
products and services provided to customers such as names and types, main features, benefits, risks, procedures, costs,
and other relevant information. Additionally, marketing communications have adhered to the regulations applicable to
each promoted product and service. Therefore, during the reporting year, there were no negative impacts on the products
and services issued by the Company, and as a result, there are no records of products and services being withdrawn or
canceled for any reason. Additionally, there were no incidents of non-compliance related to product information and
labeling. Furthermore, there were no reports of violations related to the Company's marketing communications during
the year 2023. [GRI 3-3, 417-1, 417-2, 417-3] [OJK F.27, F.28, F.29]
The company also provides customer education programs through product and service outreach, including:
a. BTN Zone
Spread across many universities, BTN Zone is a system and service that is integrated with the company's digital
solution concept to improve the comfort and ease of digital transactions. Educational activities are carried out by
providing internet access to students, introducing and studying the company's banking products, and providing
training on technology. Several universities that have been covered by BTN Zone include Diponegoro University,
Syiah Kuala University, Jenderal Soedirman University, Yogyakarta State University, and Bandung Institute of
Technology.
b. The Company’s Digital App
This app, which can be downloaded by customers via Google Play and the App Store (Apple), aims to make credit
card payments, insurance, transfers, and e-commerce bill payments easier and also to function as recharging virtual
payment services such as GoPay and GrabPay.
The company's efforts to maintain and increase customer satisfaction have brought satisfactory results. In 2023, the
company managed to receive various awards from external parties.
The efforts made by the Company to enhance customer satisfaction have yielded satisfactory results. This achievement
can be seen through various assessments from external parties. Some of the achievements include: [OJK F.30]
1. KPR BTN - Gold Champion
2. Performa Terbaik Mobile Banking 2022-2023
3. The Best Mortgage Innovation
4. The 2nd Highest Digital Index - Sharia Business Unit Mortgage Loan
5. The Best Bank Saving Account (KBMI) 6. The 3rd Best Mobile Banking Conventional Bank (KBMI) 3
7. Best Campaign - Banking & Finance
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Digitalization Product and Service Innovation [OJK F.26]
BTN Mobile
In 2023, the company launched BTN Mobile super app. This SuperApp is an improvement on the previous mobile
banking service. BTN Mobile is present as an integrated app that offers various service features in one app. BTN Mobile
is connected to the BTN Bank ecosystem so users can access various other digital solutions such as BTN Properti, virtual
branches, e-mitra and inexpensive homes.
By simply using one device, customers can easily carry out various banking services directly, anytime, anywhere.
Features available in BTN Mobile include:
• QRIS BTN Mobile;
• Cardless account;
• Auto Debit System;
• Auto Transfer;
• Opening Account; and
• BTN KITA (appropriate digital credit).
Transactions Using BTN Mobile
Note Unit 2023 2022
Number of
Transactions
Transaction 414,881,411 174,393,454
(Financial and
Non-financial)
Transaction
Rp million 57,542,089 37,323,436
Nominal
Registered User User 2,690,546 2,231,320
Number of
Acquisition 1,138,653 796,798
Acquisition
It can be downloaded on Android
Transaction Using QRIS and iOS based smartphones
Note Unit 2023** 2022*** BTN Mobile functions as a
banking solution with a practical,
Number of secure, and convenient super app
Persons 15,602 43,324
Merchants
concept.
Number of The installation process is easy,
Transaction 4,133,130 492,509
Transactions* simple, and can be active on the
Amount of same day
Rp million 355,612 36,238 Features that are useful in daily
Transactions
activities such as purchasing
* The QRIS transactions presented include QRIS issuers and acquirers.
** Only from the company's QRIS transactions.
cellphone credit, electricity tokens,
*** Comprising the company's QRIS transactions and LinkAja's QRIS transactions. making Gopay top-ups, and so on
BTN Smart Residence
It is a platform to connect residents and managers in the process of paying bills, fees, exchanging information, and even
complaints or concerns.
Web-Based Mobile Based (Android and iOS)
For Residence Admin/Management Manager For Residents/End Users
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Benefits of BTN Smart Residence include
Benefits for Residence
Managers Benefits for Residents
Easy Practical bill payments
Facilitating the process of Bill payment transactions can be done
reconciling bills managed by anytime and anywhere.
managers .
Media for submitting complaints
Profitable Filing complaints to the residence
Economic benefits for residence manager quickly.
developers/managers .
Paying housing maintenance fees
Communication Channel Making payments for property
Conveying information or news management, parking fees, and other
updates related to the residence housing maintenance costs.
Features in BTN Smart Residence include
Residence and Tenant Information Complaint
Bill Management
Managementt Management Management
The residence manager The residence manager The residence manager Residence managers
can organize residents can input each can disseminate the can find out complaints
by cluster/tower. resident's bill. latest information that are reported by
block/floor, and unit regarding residences. residents.
number.
Transactions in the BTN Smart Residence App
Description Unit 2023 2022 2021
Registered User Persons 8,915 5,605 2,252
Number of Transaction 16,973 16,053 3,740
Transactions
Transaction Volume Rp million 7,458 2,762 288
BTN Smart Residence Mobile Interface
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BTN Properti
It is a platform that offers a wide selection of properties owned by developers who have collaborated with the company
throughout Indonesia.
BTN Properti's superior features include
Lending Online Lending Credit Application
Search 4D Tour Service
Simulation Application Tracking
Consumers Consumers Consumers can Consumers can Consumers can
can search can calculate submit credit monitor the status visit the show
for properties their lending applications of their credit unit virtually with
based on area, application to online. application. 4-dimensional
developer’s name, find out the features.
or housing’s name. installment
amount.
Number of Registered Users on the BTN Properti Platform
2023 2022 2021
515,339 309,429 181,873
BTN Internet Banking
Banking services for individual customers to obtain financial information and self-manage banking transactions via
the internet.
BTN Internet Banking Interface
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Retail Internet Banking Transactions (Financial and Non-Financial Transactions)
Note Unit 2023 2022
Number of Transactions (Financial and Non-financial) Transaction 1,009,499 994,134
Transaction Nominal Rp million 26,820,753 17,340,267
Registered User User 1,338,412 1,167,073
Number of Acquisition Acquisition 329,414 491,934
Reducing Carbon Footprint Through Digital Applications
In line with our commitment to providing excellent service to customers, the Company also utilizes various digital
applications to reduce paper usage. These efforts reflect our commitment to reducing carbon footprint and implementing
Sustainable Finance. Several digital applications used by the Company include:
• eProc (e-Procurement), Used for procurement process management, where vendors must be registered in this
application for direct appointments and selections.
• iFlow, Document workflow management application facilitating information access across all divisions and branch
offices, covering distribution and disposition processes for letters or other documents.
• iLoan, Used in customer loan origination processes.
• iWealth, Supports the development of Bank's product business, especially bancassurance, mutual funds, and ORI/
SUKRI.
• Smart Collection, Mobile application for collection officers to conduct customer surveys and billing activities.
• B-Gate, Employee attendance application, including management activities during work from home, non-duty
leave, and others.
• Digital Room for E-Learning Modules (DREAM), Enables employees to follow online learning modules.
• iRecruitment, Web-based application used for the Company's recruitment process.
• New BTN Mobile , Latest mobile banking development with more comprehensive payment and purchase features
and user-friendly interface.
• Operational Risk Tools (ORMIS), Integrated system for managing operational risks, including RCSA, LED, and KRI.
• PPDigital: Integrated system comprising internal policies accessible to all employees.
• Smart Branch, Implementation of Smart Branch to maximize digitalization and reduce paper form usage.
• E-Form, Form application used in various company operations, including KPR submissions through BTN Properti.
BTN Cash Management
It is a service for institutional customers to carry out various types of financial and banking transactions accessed via
the internet network. Transactions can be made online and directly (real-time) without restrictions on place and time,
easily and safely.
Features of BTN Cash Management include:
• Account information;; • Liquidity Management;
• Funds transfer; • MPN payment management; dan
• Payment; • Pertamina services.
• Purchase;
Corporate Internet Banking Transactions (CMS)
Note Unit 2023 2022
Number of Transactions (Financial and Non-financial) Transaction 4,060,849 2,206,654
Transaction Nominal Rp million 164,172,574 88,204,540
Registered User User 14,663 11,922
Number of Acquisition Acquisition 3,034 2,361
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BTN CRM (Cash Recycle Machine)
ATM machine service that can accept cash deposits and cash withdrawals, making transactions easy, fast, and direct
(real-time).
The company is committed to providing equal quality service to all customers. To fulfill this commitment, the company
pays special attention to clients with certain conditions, such as people with disabilities. The company not only provides
physical facilities and infrastructure, but also provides assistance for clients with special conditions. For example, the
company provides ATMs and special lanes equipped with Braille for blind customers. The company also provides a
special route for customers who use wheelchairs. [FS14]
Socio-Economic Compliance [GRI 419-1]
Socio-economic compliance is an integral part of the company's responsibilities. The company is dedicated to respecting
and complying with ethical standards and legal regulations to ensure that its business operations run responsibly.
Compliance can not only protect the company's business and prevent possible legal consequences or other non-
monetary sanctions, but also strengthen the trust of stakeholders.
To ensure compliance in the social sector, the company has a Special Policy KK.9-AG dated 29 September 2023 on the
Occupational Health and Safety (OHS) Management System. With this policy, the company is committed to:
1. Preventing and reducing work accidents and work-related diseases by involving the management, bank employees,
and/or labor unions;
2. Creating a safe, comfortable and efficient workplace to boost productivity;
3. Supporting the creation of added value for the bank; and
4. Increasing independence, responsibility, and professionalism.
To ensure compliance in the social sector, the company is committed to complying with labor regulations and occupational
health and safety (OHS) standards. Several related policies include, among others, employing employees for a certain
period of time, refraining from employing forced labor or underage workers, treating employees and customers equally,
and creating a safe and comfortable work environment in accordance with OHS principles. Meanwhile, compliance in
the economic sector is demonstrated through fair competition, anti-monopoly, anti-corruption and provision of decent
wages. [GRI 3-3] [SASB FN-CB-510a.1]
The company's compliance commitment is proven by the absence of fines or non-monetary sanctions in the social and
economic fields during the reporting period. The company also has no cases submitted to Indonesia’s dispute resolution
mechanism. These mechanisms include disputes about labor, product legality, and various other types of disputes. [GRI
2-27, 419-1]
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Complaint Management [GRI 413-2] [OJK F.24]
The company is fully aware of the importance of open communication to build trust from stakeholders. The company
puts emphasis on providing accessible and responsive channels that make it easier for every stakeholder, including local
communities, to submit input, suggestions or complaints regarding the company's business operations. This complaint
channel functions as a means of dialog that enables the company to resolve problems quickly and collaboratively. By
maintaining a firm commitment to these efforts, the company hopes to build trust, strengthen relationships, and ensure
that diverse stakeholder perspectives are recognized and addressed quickly and appropriately. During the reporting
period, the company did not receive any complaints regarding its operational activities or the resulting negative impacts.
[F.24]
Complaints Complaints
Year Complaints Received
Followed-up Resolved
2023 0 0 0
2022 0 0 0
2021 0 0 0
BTN Service Roadmap 2023-2025
To support the achievement of Bank BTN's vision to become the "Best Mortgage Bank in Southeast Asia 2025", the
company has prepared a service vision "to deliver a reliable, uniquely differentiated and convenient service beyond
customer expectations" along with 19 key initiatives supporting the formulated service vision aligned with the sales
& service culture pillar. Based on this, a service roadmap is needed and will become a guideline in achieving BTN's
service vision.
The process of preparing the 2023-2025 BTN Service Roadmap begins with conducting a survey to obtain the Voice of
Customer (VoC) by measuring the Customer Experience Index (CEI). Furthermore, to follow up on the BTN 2023-2025
Service Roadmap strategy that has been completed, the Customer Care Division (CCD) carries out activities in the form
of workshops attended by all levels of Directors, SEVP levels, Heads of relevant Divisions from product and channel
owners, Head of Regional Office 1 and 2, and a team of consultants. This program is implemented as a means for
dissemination and a forum for discussing and obtaining direction and approval from all levels of the Board of Directors
regarding the Service Roadmap Concept that has been prepared.
Through this workshop, the Service Mission was approved as an elaboration of the Service Vision. BTN Service Mission is:
1. To foster a culture of integrated services within the organization by implementing a solution-centric approach to
achieve exceptional service excellence;
2. To foster consistent service standards across all service channels and customer touchpoints to ensure a seamless
and exceptional experience in every interaction;
3. To become a trusted financial partner and housing advisor by providing distinctive services that draw on the
authenticity of the organization;
4. To provide the best service experience that focuses on customer expectations by serving them like family with
distinct hospitality.
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Apart from the Service Vision and Mission, BTN's Service Values have also been approved, including:
Reliable
Uniquely differentiated
Convenient Services
Fostering Assurance Meaningful Inspire Light-hearted Yearning
This values This values This values This values This values This values
component implies component component component component component
BTN's commitment describes BTN's describes BTN's shows BTN's shows the serious shows ambition
to building commitment to commitment to commitment commitment and and strong
relationships and provide certainty, providing services, to inspiring generosity of internal
Meaning
providing comfort a sense of security interactions and more than just BTN personnel in motivation
in services that are and trust reliably experiences that its financial creating comfort to provide
in line with the to all customers. are meaningful, solutions, but throughout excellent service
family concept. personalized also by becoming the customer's standards and
and impactful, a positive financial journey exceed customer
and in line with catalyst for the through sincere expectations.
customer needs improvement and and warm service.
and aspirations. progress of the
entire banking
ecosystem.
Fostering Long- Assuring Reliable Meaningful Inspiration for Light-hearted Yearn for
term Relationship Support Personalization Achieving the Atmosphere Excellence
Point Details
Dream
Fostering Assuring Solution- Meaningful Inspiration for Light-hearted Yearn for
Incremental Centric Services Experience Your Home Assistance Customer
Service Excellence Satisfaction
Fostering Digital Assuring Ethical Meaningful Long- Inspiration for Light-hearted Yearn for
Transformation Practices term Impact Excellence Approach Integration
The term "FAMILY" was chosen as a service value as it describes services that are reliable (fostering and assurance),
uniquely differentiated (meaningful and inspiring), and convenient (lighthearted and yearning) and as a hope for BTN’s
services that will always involve customers like members of the family.
As a foundation to support the Service Mission and increase customer acquisition and loyalty, the company establishes
core values. BTN's Core Values are defined as solution-centric, which will always be an added value provided to BTN
customers in the form of basic advisory to new customers, advanced advisory to existing & churning customers.
In accordance with the Service Blueprint which was prepared to show improvements that will become new standards in
all service channels, these improvements focus on the People, Process and Physical Evidence aspects. The following is
the implementation plan for the 2023-2025 BTN Service Roadmap, which is divided into:
1. Quick Win
• Solution-Centric Response Mechanism
• Service-focused Squad
• FinEase Acceleration
• BTN Care
2. Mid-Term
• Service Competency Enhacement Program (S-CEP)
• BTN Mobile Advancement
• CRM Empowerment
• BTN Housing & Mortgage Advisory
3. Long-Term
• Hackathon
• BTN Heritage
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Based on the Service Programs Prioritization that has been determined and presented at the 2023-2025 BTN Service
Roadmap Workshop, it has been approved that 4 (four) Service Programs included in Quick Win will be implemented
in the 2023-2025 Bank Service Roadmap Pilot Project, including :
1. Solution-Centric Response Mechanism
Implementing service recovery procedures if BTN provides services below specified standards and developing a
service recovery room for customers who file hard complaints.
2. Service-focused Squad
Establishment of a Service Focused Squad as a supporting role to assist customer activities without going through
CS and Teller, apart from forming a service organization to implement service standards and create a learning
culture and environment.
3. FinEase Acceleration
Acceleration of the account opening process, improvements to consumer credit contract service standards,
standardization of branch office premises (relayouts, queuing machines, and Loan Services uniforms), and script
development.
4. BTN Care
Ensuring that facilities for the disabled, elderly, pregnant/nursing mothers, and children are available, such as
hand rails, wheelchairs, walking aids, priority seats, kids corners, lactation rooms, and others.
The Pilot Project was approved to be implemented in 5 (five) Branch Offices (Conventional and Sharia), including
Bekasi Branch Office, Tangerang Branch Office, Karawang Branch Office, Bandung Sharia Branch Office, Yogyakarta
Sharia Branch Office.
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08
Sustainability
Governance
Sustainability
Report
2023
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Commitment to Good Governance Implementation
The Company is committed to implementing the • Financial Services Authority Regulation No. 31/
principles of good corporate governance (GCG) POJK.04/2015 concerning the Disclosure of Material
throughout its entire operational lines. GCG serves Information or Facts by Issuers or Public Companies;
as the fundamental guide for the Company's • Financial Services Authority Regulation No. 5/
management, alongside legal regulations and business POJK.03/2016 concerning Bank Business Plans;
ethics. As an entity that prioritizes professionalism, the • Financial Services Authority Regulation No. 37/
Company adopts GCG not only based on compliance POJK.03/2019 concerning Transparency and
with applicable laws and regulations but also as a Publication of Bank Reports;
manifestation of awareness of the benefits of GCG in • Financial Services Authority Circular Letter No. 14/
enhancing performance, excellence, and sustainable SEOJK.03/2015 concerning the Implementation
competitiveness. of Integrated Risk Management for Financial
Conglomerates;
In facing the competition within the banking industry, the • Financial Services Authority Circular Letter No. 15/
Company actively endeavors to strengthen its position SEOJK.03/2015 concerning the Implementation of
by implementing GCG optimally. The implementation of Integrated Governance for Financial Conglomerates;
GCG brings various benefits to the Company, including • Financial Services Authority Circular Letter No.
creating a balance in corporate control to reduce the 32/SEOJK.04/2015 concerning Guidelines for
risk of fraud and minimizing the possibility of errors in Corporate Governance of Public Companies;
company management. • Financial Services Authority Circular Letter No.
25/SEOJK.03/2016 concerning General Banking
The ability to meet the expectations of various Business Plans;
stakeholders is a valuable asset for the Company to • Financial Services Authority Circular Letter No.
continue growing and sustaining itself in the future. As a 43/SEOJK.03/2016 concerning Transparency and
financial service institution, the Company is confident in Publication of Conventional Commercial Bank
overcoming challenges and demands from both internal Reports;
and external stakeholders through the appropriate • Financial Services Authority Circular Letter No.
implementation of GCG in accordance with applicable 13/SEOJK.03/2017 concerning Governance
regulations and existing best practice standards. Implementation for Commercial Banks;
• Minister of State-Owned Enterprises Regulation No.
In applying GCG, the Company refers to various PER-2/MBU/03/2023 concerning Guidelines for
provisions, regulations, and relevant legislation, as Governance and Significant Corporate Activities of
well as guidelines on GCG published by national and State-Owned Enterprises; and
international institutions. The reference basis for the • Company Articles of Association.
Company's GCG implementation involves:
• Republic of Indonesia Law No. 10 of 1998 concerning Furthermore, the Company adopts various best
Amendments to Law No. 7 of 1992 concerning governance standards applicable at regional and
Banking; international levels, continuously enhancing the scope
• Law No. 40 of 2007 concerning Limited Liability of GCG implementation, including:
Companies; 1. Corporate governance principles developed by
• Financial Services Authority Regulation No. 17/ the Organization for Economic Cooperation and
POJK.03/2014 concerning the Implementation Development (OECD);
of Integrated Risk Management for Financial 2. ASEAN Corporate Governance Scorecard issued by
Conglomerates; the ASEAN Capital Market Forum (ACMF);
• Financial Services Authority Regulation No. 18/ 3. Indonesian Corporate Governance Guidelines
POJK.03/2014 concerning the Implementation of developed by the National Governance Policy
Integrated Governance for Financial Conglomerates; Committee (KNKG/Komite Nasional Kebijakan
• Financial Services Authority Regulation No. 33/ Governance);
POJK.04/2014 concerning the Board of Directors 4. Indonesian Banking Corporate Governance
and Board of Commissioners of Issuers or Public Guidelines developed by the National Governance
Companies; Policy Committee (KNKG); and
• Financial Services Authority Regulation No. 8/ 5. Principles for Enhancing Corporate Governance
POJK.04/2015 concerning Issuers' or Public published by the Basel Committee on Banking
Companies' Websites; Supervision.
• Financial Services Authority Regulation No. 21/
POJK.04/2015 concerning the Implementation of The implementation of GCG is increasingly gaining
Guidelines for Corporate Governance of Public significant importance and has become a necessity
Companies; to achieve the goal of "Moving Beyond Corporate
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Governance to True Business Value." the Company has shifted its governance implementation paradigm from the
previous compliance-driven focus to a value-driven orientation in all business processes. Evidence that the enhancement
of corporate value can be achieved alongside the improvement of sustainable governance practices is evident from the
Company's business performance and governance assessments. Since 2014, both the Corporate Governance Perception
Index (CGPI) and the ASEAN Corporate Governance Scorecard (ACGS) have consistently increased in alignment with
the Company's growth.
Principles of Governance
The Company is acutely aware that the sustainability of an entity's business cannot solely be measured by financial
performance and profit growth but also through internal company management, including effective GCG implementation.
The fundamental principle of the Company is to apply GCG principles with the objective and belief that this will ensure
the creation of a comprehensive business balance. Thus, all forms of interests, both business and social, individual and
group, internal and external, in the short and long term, including the interests of shareholders and other stakeholders,
will reach an optimal balance.
The implementation of GCG principles is crucial for the Company to become more resilient and capable of withstanding
increasingly intense competition. the Company actively strives to align with the best GCG practices at the national,
regional, and international levels, making adjustments as needed to meet the Company's requirements.
The implementation of GCG principles within the Company aims, among other things, to:
1. Support the Company's vision, namely "Becoming the Best Mortgage Bank in Southeast Asia by 2025";
2. Support the Company's mission, which includes:
a. Actively supporting the government in advancing the welfare of the Indonesian society through homeownership;
b. Realizing the dreams of millions of Indonesian citizens by providing decent housing;
c. Becoming One of Home of Indonesia's Best Talent;
d. Enhancing shareholder value by focusing on sustainable profitability growth as a blue-chip company with robust
risk management principles; and
e. Becoming a financial partner for stakeholders in the housing ecosystem by providing comprehensive solutions
and the best services through digital innovation.
3. Providing benefits and added value for shareholders and stakeholders;
4. Maintaining and enhancing long-term business sustainability and competitiveness; and
5. Building investor confidence in the Company.
In carrying out all business processes and operational activities, the Company applies principles of good corporate
governance at every level or organizational tier, referring to Financial Services Authority Regulation No. 30/
POJK.05/2014. Some of the good corporate governance principles implemented by the Company include:
1. Transparency
Transparency refers to openness in decision-making processes, as well as the disclosure and provision of relevant
information about the Company.
2. Accountability,
Accountability involves the clarity of the functions and implementation of responsibilities of the corporate organs,
ensuring that the Company's performance runs transparently, fairly, effectively, and efficiently;
3. Responsibility
Responsibility is the alignment of company management with legal regulations in the financing field, ethical values,
and the standards, principles, and practices of conducting healthy financing business;
4. Independency
Independence entails the condition in which the Company is managed independently and professionally, free from
conflicts of interest and influence or pressure from any party inconsistent with legal regulations in the financing
field and ethical values, as well as the standards, principles, and practices of conducting healthy financing business;
and
5. Equality and Fairness
Equality and fairness involve equal, balanced, and just treatment in fulfilling the rights of stakeholders arising from
agreements, legal regulations, ethical values, and the standards, principles, and practices of conducting healthy
financing business.
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GCG serves as a guide employed by the Company's organs to enhance business success and accountability. Its
objective is to realize shareholder value in the long term while also considering the interests of other stakeholders. The
implementation of GCG is grounded in legal regulations and business ethics. As banks face increasingly complex risks,
the Company's need for governance practices intensifies to maintain sustainability and business success.
Further more, GCG represents a continuous effort to proportionally respond to the needs of GCG implementation,
with the goal of achieving the vision "Moving Beyond Corporate Governance to True Business Value." In other words,
the Company is committed to being a state-owned bank that takes pride in and actively participates in advancing
the progress and prosperity of the nation. To achieve this, the Company consistently manages every business activity
professionally, adhering to the principles of GCG. This initiative begins with having reliable, professional, integrity-
driven, ethical, and morally high-standard human resources.
Governance Strategy
By comprehensively applying the GCG paradigm, there will be alignment between the interests and objectives of the
Company with stakeholders. This alignment will ultimately drive the sustainability of the Company in the long term.
To consistently strengthen GCG over time, the Company has developed a Governance Roadmap that includes four
main pillars. The first pillar is the Commitment on Governance, which forms the foundation for the other three pillars:
Governance Structure, Governance Process, and Governance Outcome.
Company GCG pillars
Governance Structure Governance Process Governance Outcome
Commitment on Governance
Governance Commitment
The Company consistently strengthens its commitment to apply and uphold GCG principles in every daily business
activity, complying with all applicable regulations and laws, and always remaining open to improvements in line with
best practices to align with the Company's objectives, vision, and mission. This creates added value for shareholders
and other stakeholders.
The implementation of good corporate governance (GCG) is a crucial indicator for shareholders to assess the Company's
performance and have confidence that the Company is well-managed and capable of protecting the interests of all
shareholders. PT Bank Tabungan Negara (Persero) Tbk, as a State-Owned Enterprise (BUMN) and a public company, is
committed to continually enhancing the implementation of good corporate governance to understand the expectations
of each shareholder.
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Governance Structure [GRI 2-9, 2-10, 2-11]
The Company's governance structure follows the provisions of Law No. 40 of 2007 concerning Limited Liability
Companies. This law stipulates that "the Company's organs consist of the General Meeting of Shareholders, the Board
of Directors, and the Board of Commissioners." The establishment of these Company organs aims to ensure that
corporate governance principles can operate effectively through clear roles and responsibilities, creating a mechanism
for checks and balances. The General Meeting of Shareholders, the Board of Directors, and the Board of Commissioners
work with mutual respect for their respective tasks, responsibilities, and authorities in accordance with laws and articles
of association, thus creating effective corporate governance.
General Meeting of Shareholders
(GMS)
Sharia
Board of Board of
Supervisory
Commissioners Directors
Board
External
Audit
Secretary of
Corporate
the Board of
Secretary
Commissioners
Risk
Audit Internal Audit
Management
Committee Unit
Committee
Asset and Liability
Committee (ALCO)
Risk Risk
Monitoring Management
Committee Credit Unit
Committee
Remuneration Credit Policy
and Nomination Committee
Committee Compliance
Unit (SKK)
Information
Technology
Steering Other Work
Committee Units
Human
Capital Sharia
Committee Business Unit
(UUS)
Business
Committee
Transformation
Steering
Committee
ESG
Committee
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Sustainability Governance of Bank BTN
Principles
Sustainable Impact, Double
Sustainable Triple Bottom Stakeholder Three Lines
ESG
Development Materiality, dan
Finance Line Theory Model
Goals Value Chain
The Future of Finance
Framework
ESG
Integrated
Sustainable Climate Change People and Stakeholder ESG in the Value
Governance, Risk,
Finance and Ecosystems Community Inclusiveness Chain
Compliance
Governance
Structure
ESG
ESG Committee Enterprise and ESG Risk Management Division
Process
Framework & Strategy Reporting &
Policy & Implementation Data & Information
Development Communication
Outcome
Implementation of ESG initiatives and roadmaps, sustainability performance growth, and improvement of the
Company's ESG Rating.
General Meeting of Shareholders [GRI 2-11]
As the highest organ in the Company, the General Meeting of Shareholders (GMS) serves as a platform for shareholders
to exercise their authority, both to obtain information and provide input regarding the Company's policies. In accordance
with Law No. 40 of 2007 concerning Limited Liability Companies, it is stated that "GMS is the Company organ with
authority not delegated to the Board of Directors or the Board of Commissioners within the limits specified in this Law
and/or the Articles of Association." GMS is the highest governance body and not an executive officer in the Company.
GMS is the forum where the Board of Commissioners and the Board of Directors present reports and accountability
for the performance of their duties to shareholders. Shareholders are not involved in the operational activities of
the Company, which are the responsibility of the Board of Directors, in accordance with the Company's Articles of
Association and applicable regulations. [GRI 2-11]
The Company holds two types of GMS, namely the Annual General Meeting of Shareholders (Annual GMS) and the
Extraordinary General Meeting of Shareholders (Extraordinary GMS). The AAGMS is a mandatory event and must be held no
later than six months after the end of the fiscal year. On the other hand, the Extraordinary GMS, also known as other GMS, can
be held at any time as needed and in the Company's interest.
In the reporting year, the Company organized 1 (one) Annual General Meeting of Shareholders and 1 (one) Extraordinary
General Meeting of Shareholders, as detailed below:
AGMS Extraordinary GMS
Thursday, March 16 2023 Wednesday, January 11 2023
at 13.30 WIB - end at 14.00 WIB - end
BTN Tower BTN Tower
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Board of Commissioners
The Board of Commissioners is an organ of the Company responsible for oversight, both general and specific, in accordance
with the provisions of the Articles of Association. Additionally, the Board of Commissioners plays a role in providing advice
to the Board of Directors. The Board of Commissioners is tasked with overseeing and providing advice to the Board of
Directors for the benefit of the Company and shareholders in particular, as well as stakeholders in general.
In carrying out their oversight duties, the Board of Commissioners has the authority to form committees whose members are
drawn from the Board of Commissioners. These committees have responsibilities executed with accountability to the Board
of Commissioners. Further provisions regarding the functions of the Company's Board of Commissioners are regulated in
accordance with Law No. 40 of 2007 concerning Limited Liability Companies, Law No. 7 of 1992 concerning Banking, Minister
of SOE Regulation, OJK Regulation, Bank Indonesia Regulation, and the Company's Articles of Association.
During the year 2023, there have been changes in the composition of the members of the Board of Commissioners.
The changes in the composition of the Board of Commissioners are made based on the needs of the Company. The
composition of the Board of Commissioners is as follows:
1. January 1, 2023 – January 11, 2023
The composition of the Company's Board of Commissioners for the period of January 1, 2023 – January 11, 2023, is
as follows:
Name Position Executor Basis of Appointment Effective Date
Chandra M. Hamzah President/Independent Financial Services Extraordinary GMS on May 4, 2020
Commissioner Authority November 27, 2019
Iqbal Latanro Vice President/Independent Financial Services Annual GMS on March September 6, 2021
Commissioner Authority 10, 2021
Armand B. Arief Independent Commissioner Financial Services Extraordinary GMS on May 14, 2020
Authority November 27, 2019
Ahdi Jumhari Luddin Independent Commissioner Financial Services Extraordinary GMS on March 16, 2020
Authority November 27, 2019
Sentot A Sentausa Independent Commissioner Financial Services Annual GMS on March March 2, 2022
Authority 2, 2022
Andin Hadiyanto Commissioner Financial Services Extraordinary GMS on July 10, 2020
Authority November 27, 2019
Herry Trisaputra Zuna Commissioner Financial Services Annual GMS on March March 2, 2022
Authority 2, 2022
Himawan Arif Sugoto Commissioner Financial Services Annual GMS on March March 2, 2022
Authority 2, 2022
2. January 11, 2023 – August 12, 2023
Based on the decision of the Extraordinary General Meeting of Shareholders in 2023, Mr. Mohamad Yusuf Permana
has been appointed as a Commissioner of the Company. Therefore, the revised composition of the Members of the
Company's Board of Commissioners is as follows :
Name Position Executor Basis of Appointment Effective Date
Chandra M. Hamzah President/Independent Financial Services Extraordinary GMS on May 4, 2020
Commissioner Authority November 27, 2019
Iqbal Latanro Vice President/Independent Financial Services Annual GMS on March September 6, 2021
Commissioner Authority 10, 2021
Armand B. Arief Independent Commissioner Financial Services Extraordinary GMS on May 14, 2020
Authority November 27, 2019
Ahdi Jumhari Luddin Independent Commissioner Financial Services Extraordinary GMS on March 16, 2020
Authority November 27, 2019
Sentot A Sentausa Independent Commissioner Financial Services Annual GMS on March March 2, 2022
Authority 2, 2022
Andin Hadiyanto Commissioner Financial Services Extraordinary GMS on July 10, 2020
Authority November 27, 2019
Herry Trisaputra Zuna Commissioner Financial Services Annual GMS on March March 2, 2022
Authority 2, 2022
Himawan Arief Commissioner Financial Services Annual GMS on March March 2, 2022
Sugoto Authority 2, 2022
Mohamad Yusuf Commissioner Financial Services Extraordinary GMS on June 7, 2023
Perdana Authority January 11, 2023
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3. August 12, 2023 – December 31, 2023
On August 12, 2023, Mr. Ahdi Jumhari Luddin, an Independent Commissioner of the Company, passed away,
resulting in the automatic termination of the term of office. The confirmation of the termination will be conducted at
the upcoming GMS. In light of the aforementioned circumstances, the composition of the Members of the Company's
Board of Commissioners as of December 31, 2023, is as follows:
Name Position Executor Basis of Appointment Effective Date
Chandra M. Hamzah President/Independent Financial Services Extraordinary GMS on May 4, 2020
Commissioner Authority November 27, 2019
Iqbal Latanro Vice President/ Financial Services Annual GMS on March 10, May 4, 2020
Independent Authority 2021
Commissioner
Armand B. Arief Independent Commissioner Financial Services Extraordinary GMS on May 14, 2020
Authority November 27, 2019
Sentot A Sentausa Independent Commissioner Financial Services Annual GMS on March 2, March 2, 2022
Authority 2022
Andin Hadiyanto Commissioner Financial Services Extraordinary GMS on July 10, 2020
Authority November 27, 2019
Herry Trisaputra Zuna Commissioner Financial Services Annual GMS on March 2, March 2, 2022
Authority 2022
Himawan Arief Sugoto Commissioner Financial Services Annual GMS on March 2, March 2, 2022
Authority 2022
Mohamad Yusuf Commissioner Financial Services Extraordinary GMS on June 7, 2023
Permana Authority January 11, 2023
Board of Directors
The Board of Directors, as the organ responsible for governance, holds full responsibility for managing the Company
in line with the established interests and objectives. The duties of the Board of Directors encompass operational
management, strategy formulation, and the management and protection of the Company's assets. The Board of
Directors is also obligated to report its activities to the Board of Commissioners. All members of the Board of Directors
must have a minimum of five years of experience in operational roles and have served as executive officers in banks.
Additionally, Board members must meet the integrity, competence, and financial reputation assessment criteria set
by the Financial Services Authority. The criteria for potential Board members are stipulated in accordance with the
Guidelines and Working Procedures of the Board of Directors. The appointment process for Board members is carried
out through the GMS effective from the conclusion of the GMS. Any proposals for the replacement and/or appointment
of Board members by the Board of Commissioners to the GMS must take into account the recommendations of the
Remuneration and Nomination Committee.
The term of office for Board members is 5 (five) years and can be reappointed for one additional term. The appointment
of Board members is based on the decision of the GMS, with a term beginning on the date of appointment in the
GMS that appointed them and ending with the closure of the 5th AGMS after the appointment date. This procedure
aligns with the regulations in the applicable capital market laws. However, the GMS retains the right to dismiss Board
members before the end of their term, considering the legal provisions applicable in the capital market.
During the year 2023, changes have occurred in the composition of the Board of Directors. Changes in the composition
of the Board of Directors are made based on the needs of the Company. The composition of the Board of Directors is
as follows:
1. Board of Directors Composition, January 1, 2023 – January 11, 2023
Name Position Executor Basis of Appointment Effective Date
Haru Koesmahargyo President Director Financial Services Annual GMS on March May 19, 2021
Authority 10, 2021
Nixon L.P. Napitupulu Vice President Director Financial Services Annual GMS on March May 19, 2021
Authority 10, 2021
Hirwandi Gafar Director of Consumer Financial Services Extraordinary GMS on August 28, 2020
Affairs Authority November 27, 2019
Nofry Rony Poetra Director of Finance Financial Services Annual GMS on March August 9, 2021
Authority 10, 2021
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Name Position Executor Basis of Appointment Effective Date
Eko Waluyo Director of Human Financial Services Annual GMS on March August 9, 2021
Capital, Compliance, Authority 10, 2021
and Legal
Elisabeth Novie Riswanti Director of Assets Financial Services Extraordinary GMS on June 26, 2020
Management Authority November 27, 2019
Andi Nirwoto Director of IT and Digital Financial Services Annual GMS on March September 7, 2018
Authority 23, 2018
Jasmin Director of Distribution Financial Services Extraordinary GMS on May 4, 2020
and Funding Authority November 27, 2019
Setiyo Wibowo Director of Risk Financial Services Extraordinary GMS on July 3, 2020
Management Authority November 27, 2019
2. January 11, 2023 – March 16, 2023
In accordance with the Annual General Meeting of Shareholders held on January 16, 2023, the decisions made were
as follows:
1. Respectfully dismissing Andi Nirwoto from the position of Director of IT & Digital
2. Appointing Andi Nirwoto as the Director of IT & Digital
Thus, the composition of the Board of Directors as of January 11, 2023, is as follows:
Name Position Executor Basis of Appointment Effective Date
Haru Koesmahargyo President Director Financial Services Annual GMS on March May 19, 2021
Authority 10, 2021
Nixon L.P. Napitupulu Vice President Director Financial Services Annual GMS on March May 19, 2021
Authority 10, 2021
Hirwandi Gafar Director of Consumer Financial Services Extraordinary GMS on August 28, 2020
Affairs Authority November 27, 2019
Nofry Rony Poetra Director of Finance Financial Services Annual GMS on March August 9, 2021
Authority 10, 2021
Eko Waluyo Director of Human Financial Services Annual GMS on March August 9, 2021
Capital, Compliance, Authority 10, 2021
and Legal
Elisabeth Novie Riswanti Director of Assets Financial Services Extraordinary GMS on June 26, 2020
Management Authority November 27, 2019
Andi Nirwoto Director of IT and Digital Financial Services Extraordinary GMS on January 11, 2023
Authority March 11, 2023
Jasmin Director of Distribution Financial Services Extraordinary GMS on May 4, 2020
and Funding Authority November 27, 2019
Setiyo Wibowo Director of Risk Financial Services Extraordinary GMS on July 3, 2020
Management Authority November 27, 2019
3. Period January 11, 2023 – March 16, 2023
In accordance with the Annual General Meeting of Shareholders held on January 16, 2023, the decisions made were
as follows:
1. Respectfully dismissing Haru Koesmahargyo from the position of Chief Executive Officer
2. Reassigning Nixon L.P Napitupulu, originally the Deputy Chief Executive Officer, to the position of Chief
Executive Officer
3. Appointing Oni Febriarto Rahadjo as the Deputy Chief Executive Officer
4. Appointing Hakim Putratama as the Director of Institutional Banking
Thus, the composition of the Board of Directors as of March 16, 2023, is as follows:
Name Position Executor Basis of Appointment Effective Date
Nixon L.P. Napitupulu President Director Financial Services Annual GMS on March March 16, 2023
Authority 16, 2023
Oni Febriarto Rahardjo Vice President Director Financial Services Annual GMS on March June 7, 2023
Authority 16, 2023
Hirwandi Gafar Director of Consumer Financial Services Extraordinary GMS on August 28, 2020
Affairs Authority November 27, 2019
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Name Position Executor Basis of Appointment Effective Date
Nofry Rony Poetra Director of Finance Financial Services Annual GMS on March August 9, 2021
Authority 10, 2021
Eko Waluyo Director of Human Financial Services Annual GMS on March August 9, 2021
Capital, Compliance, Authority 10, 2021
and Legal
Elisabeth Novie Riswanti Director of Assets Financial Services Extraordinary GMS on June 26, 2020
Management Authority November 27, 2019
Andi Nirwoto Director of IT and Digital Financial Services Extraordinary GMS on January 11, 2023
Authority March 11, 2023
Jasmin Director of Distribution Financial Services Extraordinary GMS on May 4, 2020
and Funding Authority November 27, 2019
Setiyo Wibowo Director of Risk Financial Services Extraordinary GMS on July 3, 2020
Management Authority November 27, 2019
Hakim Putratama Director of Institutional Financial Services Annual GMS on Maret July 26, 2023
Banking Authority 16, 2023
Nomination Process of the Highest Governance Body [GRI 2-10]
In the nomination process of the highest governance body, the Company involves shareholders in the Annual General
Meeting of Shareholders (GMS). Each member of the Board of Commissioners and the Board of Directors is appointed
and dismissed by the GMS. In the nomination process for the Board of Commissioners and the Board of Directors, the
Company conducts transparent selection and nomination, considering recommendations from the Remuneration and
Nomination Committee. Criteria considered in evaluating candidates for the Board of Commissioners and the Board of
Directors include integrity, honesty, professionalism, leadership experience, loyalty, and the availability of time for the
Bank's progress. Aspects considered in the nomination process include criteria for diversity as well as expertise and
experience in economic, environmental, and social fields. Additionally, other criteria include the absence of financial
and family relationships with fellow members of the Board of Commissioners, members of the Board of Directors, and
Controlling Shareholders; as well as business relationships or other connections that may affect independence. [GRI 2-10]
Based on the Decision of the Board of Commissioners number 05/KOM/BTN/2023 dated December 13, 2023, regarding
the Guidelines and Working Procedures of the Board of Commissioners of PT Bank Tabungan Negara (Persero) Tbk,
the Company establishes criteria and requirements for candidates for members of the Board of Commissioners, which
include: [GRI 2-10]
1. Candidates eligible for appointment as members of the Board of Commissioners must be individuals who meet
the requirements at the time of appointment and throughout their term, in accordance with the provisions of the
Company's Articles of Association and applicable regulations;
2. Members of the Board of Commissioners must meet the assessment criteria for competence and suitability according
to the Financial Services Authority Regulation regarding the Assessment of Competence and Suitability for Main
Parties in Financial Institutions and have obtained approval from the Financial Services Authority; and
3. At least 1 (one) member of the Board of Commissioners must reside in Indonesia.
4. Members of the Board of Commissioners who have met the approval requirements of the Financial Services
Authority during their term must possess:
a. Integrity;
b. Competence; and
c. Good reputation.
5. Independent Commissioner candidates must have:
a. Adequate knowledge in the banking sector relevant to the position of an Independent Commissioner; and
b. Experience in the banking and/or financial sector.
6. Former members of the Board of Directors or Executive Officers, or individuals with connections to the Company
that may influence their ability to act independently, must undergo a minimum waiting period of 1 (one) year before
becoming an Independent Commissioner.
7. Waiting periods for:
a. Former Chief Executive Officers of the Company; and
b. Former members of the Board of Directors overseeing supervisory functions or Executive Officers performing
supervisory functions in the Company, are at least 6 (six) months before becoming an Independent Commissioner
in the Company.
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8. The Independent Commissioner shall not have financial, managerial, ownership, affiliate, and/or familial
relationships with other members of the Board of Commissioners, members of the Board of Directors, and/or
controlling shareholders, or relationships with the Company that may affect the ability to act independently.
9. The Independent Commissioner shall not have any direct or indirect business relationships related to the Company's
business activities.
10. The Independent Commissioner shall not own shares, either directly or indirectly, in the Company.
11. A Commissioner may transition to an Independent Commissioner in the Company or the Company's business group
by meeting the requirements for an Independent Commissioner.
12. A Commissioner intending to transition to an Independent Commissioner in the Company must undergo a minimum
waiting period of 1 (one) year.
13. The transition from Commissioner to Independent Commissioner requires approval from the Financial Services
Authority through an assessment of competence and suitability in accordance with the Financial Services Authority
Regulation on the assessment of competence and suitability for financial institutions.
Policy on Remuneration for the Board of Commissioners and Directors [GRI 2-19]
The determination of remuneration indicators for the Board of Commissioners and Directors follows the provisions
outlined in the Regulation of the Minister of State-Owned Enterprises Number PER-13/MBU/09/2021, the Sixth
Amendment to the Regulation of the Minister of State-Owned Enterprises No. PER-04/MBU/2014 concerning Guidelines
for Determining Income for Directors, Board of Commissioners, and Supervisory Board of State-Owned Enterprises in
establishing remuneration indicators for the Board of Commissioners and Directors. The determination of remuneration
for the Board of Commissioners and Directors is also based on their goals and performance in managing the impact of
the Company on the economy, environment, and society. [GRI 2-19]
The salary or honorarium for the Board of Commissioners and Directors is determined, among other factors, based on
the following:
1. Scale of business factor;
2. Complexity of business factor;
3. Inflation rate;
4. Company's financial condition and capability;
5. Other relevant factors and must not contradict laws and regulations; and
6. The composition of the salary or honorarium for Directors and the Board of Commissioners is determined as follows:
a. The salary of the President Director is determined using internal guidelines set by the minister;
b. The salary of the Vice President Director is 95% of the President Director's salary;
c. The salary of other members of the Board of Directors is 85% of the President Director's salary;
d. The honorarium of the President Commissioner is 45% of the President Director's salary;
e. The honorarium of the Vice President Commissioner is 42.5% of the President Director's salary; and
f. The honorarium of the Board of Commissioners is 90% of the President Commissioner's salary.
The determination of the above remuneration is also influenced by the achievement of Key Performance Indicators (KPIs).
One parameter in the KPIs for the Directors includes ESG aspects. The remuneration packages and facilities received by
the Board of Commissioners and Directors include a remuneration structure as per the table below: [GRI 2-19]
Type of Remuneration and Other Facilities Board of Commissioners Board of Directors
Remuneration
Honorarium/Salary
Routine Allowances (Clothing Allowance and Income Tax Allowance)
Holiday Allowance
Bonus
Other facilities in kind (housing, health insurance, etc.)
a. Can be owned
Post-Retirement Insurance
b. Cannot be owned
Housing Allowance - -
Health Allowance - -
Transportation Allowance
Communication Allowance - -
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Procedure for Determining Remuneration for the Board of Commissioners and Directors [GRI 2-20]
1 The Board of
Commissioners assigns
the Remuneration and
2 The Human Capital
Management Division
(HCMD) and related units
prepare proposals for the
3 The RNC compiles
recommendations for the
Board of Commissioners
Nomination Committee and Directors to be
remuneration of the Board
(RNC) to conduct a presented to the Board of
of Commissioners and
remuneration study. Commissioners.
Directors.
6 GMS grants authority
and power to the Board
5 The Board of
Commissioners submits
the remuneration
4 The Board of
of Commissioners to proposals for the Board Commissioners discusses
determine, with prior of Commissioners and the remuneration proposals
approval from the Class A Directors to the General presented by the RNC.
Dual Color shareholders. Meeting of Shareholders
(GMS).
In determining remuneration, the Company collaborates with Willis Towers Watson, responsible for benchmarking
and/or conducting a Salary Survey.
The Company may delay the payment of deferred variable remuneration (Malus) or claw back already paid variable
remuneration (Clawback) to employees classified as Material Risk Takers (MRT), considering factors such as: [GRI 2-19]
1. The extent of the Company's loss or reputational damage.
2. The involvement of the concerned employee directly or indirectly in actions or transactions.
Highest and Lowest Salary Ratio [GRI 2-21]
The Company actively strives to keep the gap in remuneration from being too high. the Company does not implement a
unconditionally variable remuneration (RBV) policy, as such a policy is applied uniformly without considering the length
of the working period. the Company's commitment is to implement a competitive, fair, and balanced remuneration
system, ensuring that each employee receives compensation in accordance with the regulations set by the Government.
the Company routinely reviews and updates remuneration policies to align them with industry developments and
business strategies. Additionally, compliance aspects with relevant banking regulations regarding remuneration are
gradually adopted.
The highest and lowest salary ratio over the past two years is as follows: [GRI 2-21]
Description 2023 Ratio 2022 Ratio
Highest and Lowest Employee Salaries 22.44 : 1 22.34:1
Highest and Lowest Director Salaries 1.18 : 1 1.18:1
Highest and Lowest Commissioner Salaries 1.11 : 1 1.11:1
Highest Director Salary to Highest Employee Salary 2.92 : 1 2.90:1
Description Unit 2023 2022
Total annual compensation for the individual with the highest
Rupiah 18,933,904,119 14,001,936,005
pay in the organization
Median total annual compensation for all employees in the
Rupiah 184,671,636 177,921,128
organization, excluding the individual with the highest pay
Increase in total annual compensation for the individual with
% 35.22
the highest pay in the organization
Increase in median total annual compensation for all
employees in the organization, excluding the individual with the % 3.79
highest pay
Annual compensation data is obtained from the Human Capital Division.
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Soft Structure GCG
In an effort to enhance the quality and scope of corporate governance implementation sustainably, the Company has
designed and implemented a soft structure of corporate governance. Soft structure refers to a set of guidelines or
written rules that regulate the relationships among organs within the Company with the aim of creating clear tasks,
responsibilities, and authorities in accordance with applicable legal regulations, GCG principles, healthy business
ethics, and best practices. the Company's soft structure consists of several rules or guidelines, including:
• Company Articles of Association;
• The working relationship between the Board of Commissioners and the Board of Directors, as approved in Joint
Decree of the Board of Commissioners No. 01/DEKOM-BTN/2021 and the Board of Directors No. 01/DIR-BTN/2021;
• Guidelines for the Management of the Whistleblowing System through Technical Instruction No. PT.7-B.2 dated
October 31, 2023;
• Specific Policy No. KK.6-E dated December 13, 2022, regarding the Guidelines for the Anti-Bribery Management
System (ISO 37001:2016);
• Technical Instruction No. PT.6-E.1 dated December 21, 2022, regarding the Implementation Procedure of the Anti-
Bribery Management System (ISO 37001:2016).
• GCG Guidelines approved in Special Policy No. KK.6-F dated August 25, 2023, regarding Good Corporate
Governance Corporate Governance Procedures;
• Decision of the Board of Commissioners No. 05/KOM/BTN/2023 dated December 13, 2023, concerning the
Guidelines and Working Procedures of the Board of Commissioners of PT Bank Tabungan Negara (Persero) Tbk;
• Guidelines and Working Procedures for the Board of Directors as outlined in Special Policy No. KK.6-G dated
September 12, 2023, regarding Guidelines and Working Procedures for the Board of Directors.
• The Implementation of Gratification Control as ratified through Special Policy No. KK.6-A dated April 25, 2022,
regarding the Gratification Control Procedure and Technical Guidelines No. PT.6-A.1 dated April 25, 2022, regarding
the Implementation Guidelines of Gratification Control;
• The Business Ethics and Conduct Guidelines (Code of Conduct) ratified through Board of Directors Regulation No.
16/PD/CMPD/2015;
• Audit Committee Charter No. 06/KOM/BTN/2023 dated December 13, 2023, regarding Guidelines and Working
Procedures for the Audit Committee;
• Remuneration and Nomination Committee Charter No. 07/KOM/BTN/2023 dated December 13, 2023, regarding
Guidelines and Working Procedures for the Remuneration and Nomination Committee of PT Bank Tabungan Negara
(Persero) Tbk;
• Risk Monitoring Committee Charter No. 08/KOM/BTN/2023 dated December 13, 2023, on Guidelines and Working
Procedures for the Risk Monitoring Committee;
• Special Policy No. KK.9-D dated March 30, 2023, on Procedures for the Governance of the Board of Directors
Committee;
• Special Policy No. KK.6-H dated October 10, 2023, regarding Conflict of Interest Handling Procedures;
• General Policy No. KU.6 dated December 5, 2022, regarding Law, Compliance, AML & CFT, and Corporate Governance;
• Special Policy No. KK.6-F dated August 28, 2023, on Corporate Governance Procedures for Good Corporate
Governance; and
• Technical Instruction No. PT.6-F.1 dated September 15, 2023, on the Assessment of Corporate Governance (Good
Corporate Governance).
Evaluation of the Performance of the Highest Governance Body [GRI 2-18]
The process of evaluating the performance of the highest governance body concerning the implementation of Good
Corporate Governance (GCG) and the management of economic, environmental, and social impacts is conducted
through a self-assessment process. The self-assessment is carried out periodically every year, specifically at the end
of June and December, and is not conducted by a third party. This process involves the Board of Commissioners, the
Board of Directors, and relevant units, considering predefined governance assessment factors to measure the level of
achievement in implementing GCG. Information on the progress of the Company's self-assessment of governance in
the last three years can be seen in the following table:
Table of Self-Assessment Results of Governance Implementation for the Years 2021—2023
2023 2022 2021
2 2 2
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The self-assessment results, with a score of 2, reflect that the Company's management has successfully implemented
governance practices at a level generally considered satisfactory. This achievement is evidenced by the adequate
adherence to governance principles. Although there are some weaknesses in the implementation of these principles,
overall, these weaknesses are deemed relatively insignificant and can be addressed through normal managerial actions
by the company. Further details regarding the criteria, assessment scores, recommendations, and company follow-up
actions based on the self-assessment results can be found in the Company's Annual Report. [GRI 2-18]
In addition to conducting GCG assessments, the company actively participates in the ranking and surveys of the
Corporate Governance Perception Index (CGPI) organized by the Indonesian Institute for Corporate Governance (IICG)
annually. CGPI is a research and ranking program that evaluates the quality of corporate governance. In 2023, the
company achieved a CGPI score of 90.02 with the title "Most Trusted Company." This result reflects the commitment
and strong implementation of corporate governance practices, demonstrating the company's reliability in governance
aspects.
In addition to GCG and CGPI assessments, the company also actively participates in other assessments through the
ASEAN Corporate Governance Scorecard (ACGS). ACGS is a parameter for measuring governance practices agreed
upon by the ASEAN Capital Market Forum (ACMF). This parameter is based on the Organization for Economic
Cooperation and Development (OECD) standards, outlined in the OECD Principles, aimed at supporting corporate
governance practices.
ACGS also aims to promote companies in ASEAN member countries as reputable assets, thus enhancing global investor
confidence in the quality of companies in the region. Each ASEAN country appoints representatives from the Domestic
Ranking Body (DRB) and Corporate Governance (CG) Expert to conduct assessments based on the ACGS parameters.
In Indonesia, the representatives of DRB and CG Expert are represented by PT RSM Indonesia.
Sustainability Governance Structure [GRI 2-9, 2-12, 2-13, 2-18]
The ESG Committee established by the Company to achieve Sustainable Development Goals and climate targets, chaired
by the CEO and composed of the Board of Directors and SEVP. The ESG Committee is responsible for formulating policies,
strategies, and targets for ESG and TJSL programs impacting the environment, social aspects, and governance. Additionally,
the ESG committee oversees ESG risks and opportunities, as well as decision-making related to the implementation of the
Company's ESG and TJSL programs through annual meetings. [2-18]
The roles and responsibilities of the ESG Committee are as follows: [GRI 2-9, 2-12, 2-13]
1. Establishing improvement measures regarding ESG and TJSL Programs covering Community Development, Micro
and Small Business Financing (PUMK/Program Pendanaan Usaha Mikro dan Kecil ), Sustainable Financial Action
Plans, and business activities in the bank's responsibility to the community for business risks arising from the bank
and reporting them to the Board of Directors;
2. Making decisions on bank strategies impacting the environment, society, and communities in ESG Programs and
Roadmaps;
3. Monitoring the implementation of monitoring of the Bank's ESG Strategy and Roadmap;
4. Providing information to Bank management on all ESG-related issues, including legislation, government programs,
international developments, future business trends, and climate change;
5. Monitoring, evaluating, and providing recommendations on ESG report outcomes, investor concerns, or other third
parties regarding ESG implementation; and
6. Making decisions regarding:
a. O bjectives and Implementation Guidelines of the CSR Program;
b. Mapping and Development of the CSR Program; and
c. E valuation of the Implementation of the CSR Program.
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Membership Structure
The ESG Committee is governed by Special Policy No. KK.9-D on Committee Governance Procedures, and its composition
within the Board of Directors is as follows:
Struckture Position
Chairperson (also serving as President Director
permanent member)
Board of Directors (also serving as Vice President Director *)
permanent member) Director in charge of Risk Management **)
Director in charge of Human Capital, Compliance & Legal
Director in charge of Asset Management
Director in charge of Finance
Board of Directors/SEVP SEVP Wholesale Banking (Permanent Member)
Director/SEVP relevant to discussion agenda (Non-permanent Member))
SEVP in charge of Compliance and Legal (Non-permanent Member)
*) Substitute Chairman I
**) Substitute Chairman II
Risk Management [GRI 2-23] [OJK E.3]
As a bank primarily focused on providing credit and housing financing, the Company possesses a portfolio of assets
predominantly composed of mortgage loans. This portfolio can be influenced by various factors, both internal and
external, such as changes in business climate, inflation, and interest rates. To mitigate the negative impacts of these
factors, risk management needs to be conducted continuously.
In this context, principles of Good Corporate Governance (GCG) serve as the primary foundation for risk management.
Through the implementation of GCG, the Company can ensure that policies and procedures adopted to manage risks
can achieve a high level of transparency, accountability, and sustainability. This involves not only making appropriate
decisions but also ensuring that the entire risk management process adheres to high standards of ethics and integrity.
Given the complexity of its operations, the Company has managed 8 (eight) types of risks, namely: (1) credit risk;
(2) liquidity risk; (3) market risk; (4) operational risk; (5) legal risk; (6) reputational risk; (7) strategic risk; and (8)
compliance risk.
In order to mitigate the negative impacts of various risks, the Company has developed risk management policy guidelines
to address potential adverse effects arising from diverse risks. In accordance with Financial Services Authority Regulation
No. 18/POJK.03/2016 concerning the Implementation of Risk Management for Commercial Banks, banks are required
to effectively implement risk management in handling risks. To effectively implement risk management, the Company
has formulated risk management policies outlined in a risk management policy and at least conducts annual reviews
and/or updates. Reviews are conducted to ensure that the risk management process is easily understood by both risk
owners and risk managers. The Company is currently aligning its internal policy structure with the transformation of
new policy and procedure architectures. Policies and procedures are adjusted according to the policy hierarchy from the
highest, which is general policy, to specific policies, and technical regulations.
Furthermore, the Company also conducts impact and risk assessments on:
1. The development of new products and activities (both fund and credit products) through the delivery of risk studies
and the materiality level of products, considering business aspects, customers, operations, information technology,
compliance, legal, and financial aspects;
2. Bank BTN's technology/applications related to data privacy and cybersecurity;
3. Responsible investments; and
4. Human resources development policies.
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STRATEGIC LIQUIDITY
RISK RISK
MARKET COMPLIANCE
8
RISK RISK
COMPANY'S TYPES
LEGAL OF RISKS OPERATIONAL
RISK RISK
CREDIT REPUTATIONAL
RISK RISK
In efforts to control risks and ensure sustainable healthy performance while achieving corporate objectives, Bank BTN
implements comprehensive risk management. The Company's risk management system is supported by four pillars of
risk management implementation, namely:
Active oversight by the Adequacy of policies,
Board of Commissioners procedures, and
and the Board of Directors establishment of limits
Scope of Risk Management
Adequacy of risk
identification, measurement,
monitoring, and control Comprehensive internal
processes, as well as risk control systems
management information
systems
Active Oversight by the Board of Commissioners and the Board of Directors
Risk management is carried out through active oversight by the Board of Commissioners, the Board of Directors, and the
Risk Management Unit depicted in the risk management organization as follows:
Board of Commissioners and Board Risk Management Unit
of Directors Structure
• Risk Management Unit, is a working unit
responsible for identifying, measuring, monitoring,
and controlling risks to assist the tasks and
responsibilities of the Board of Directors;
• Compliance Unit, is a working unit responsible
for carrying out compliance function tasks and
preventive measures to assist the tasks and
Board of
Commissioners
Board of Directors responsibilities of the Board of Directors;
1. Risk Monitoring 1. Asset and Liability Committee (ALCO) • Internal Audit Unit, is a working unit responsible
Committee 2. Information Technology Committee for ensuring internal controls to assist the tasks
2. Audit Committee 3. Risk Management Committee and responsibilities of the Board of Directors; and
3. Remuneration 4. Human Capital Committee
and Nomination 5. Credit Policy Committee
• Policy Unit, is a working unit responsible for
Committee 6. Credit Committee
7. Business Committee
managing policies and procedures to assist the
8. Transformation Committee tasks and responsibilities of the Board of Directors.
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The Board of Commissioners and the Board of Directors are assisted by several committees in carrying out banking tasks
and activities in accordance with applicable regulatory provisions. Furthermore, responsibilities are delegated to the
layers below the Board of Commissioners and the Board of Directors, namely the Risk Management Unit, Compliance
Unit, Internal Audit Unit, and Policy Unit.
Adequacy of Risk Management Policies and Procedures and Risk Limit Setting
To execute risk management effectively, adequate risk management policies and procedures are required. Currently, the
Company is undergoing a transformation of policy and procedure architecture, following the hierarchy of the ideal policy
pyramid. In line with this, the Company is currently improving the General Risk Management Policy as the highest policy
in risk management implementation. This policy framework covers all activities in the implementation of the Company's
risk management. The mapping of the general risk management policy starts from risk management strategy, the
Company's risk management, to the expected objectives, namely a good bank health level.
Output
Corporate Strategy Good Bank
Health
Level
RISK
MANAGEMENT Risk Type Management in Banks
STRATEGY
Risk Appetite/ RISK MANAGEMENT LIMITS Credit Risk Credit Risk Management
Risk Tolerance
Market Risk
Operational Risk Market and Liquidity Risk
Credit Risk Ide Management
ting nt
ific Liquidity Risk
Capitalization
por ati
Market Risk Re on Environmental Risk Strategy
Recovery & Operational Risk • Operational, Legal, Compliance, and
Resolution Plan Reputation Risk Management
Risk
(RRP) Legal Risk
Management
Reputation Risk Legal Risk • IT, Cyber, and Digital Risk
ring
Con
Process Management
asu
troll
• New Activity and Product Risk
Strategic Risk Compliance Risk Compliance Risk
Management
Me
Risk
g in
• Business Continuity Management
Management Monitoring Reputation Risk
Yield Risk Investment Risk
Organization
• Strategic Risk Management
Strategic Risk
RISK MANAGEMENT INFORMATION SYSTEM • Business
• Recovery Plan & Resolution Plan
Continuity
Internal RISK CULTURE Management Yield Risk
Control • Contingency Plan Sharia Risk Management
• Implementation of Investment Risk
RISK MANAGEMENT GUIDELINES MR in each risk
In addition to ensuring the presence of adequate risk management policies and procedures, the Company has also
implemented a series of processes in setting risk limits. This setting process is regulated and explained by adjusting to
the company's work plan and budget (RKAP) as well as the recovery plan according to applicable regulations. Here is a
brief overview of the limit-setting process:
RKAP
The Company's Work Plan and
Budget prepared for the next
01 RKAP 1 (one) year
Business as Usual
Risk Appetite (RA)
02 RISK APPETIT
Contingency Actions Risk Appetite is the level of
risk the Company is willing to
03 RISK TOLERANCE take to achieve its objectives
Recovery Plan Actions
04 RECOVERY PLAN Risk Tolerance (RT)
Recovery Plan Actions
Risk Tolerance is the maximum
05 RECOVERY PLAN level of risk set by the
Company
Recovery Plan Actions
06 RECOVERY PLAN Recovery Plan
Recovery Plan is an action
plan to address potential
financial issues
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In strengthening risk management policies and procedures, the Company also integrates risk management as one
of the pillars of the company's culture, namely governance and risk culture. This pillar plays a very important and
crucial role in strengthening to ensure that all business processes are conducted prudently and comply with applicable
standards.
Best Mortgage Bank in
Southeast Asia in 2025
4 Pillars of Culture AKHLAK BTN
Continuous Growth
and Meeting Customer Clean and Trustworthy Excellence in Continuous Learning To achieve the Company's
Expectation Performancel vision as the Best Mortgage
Bank in Southeast Asia by
2025.
Sales & Service Governance & Performance
Risk Culture Culture Learning Culture
Culture All BTNers are required to
uphold four cultural pillars in
carrying out work activities in
BTNers' 8 Main Behaviors their respective units.
1 2 3 4 5 6 7 8
Adherence to Continuous
moral values learning, Discipline, Respecting, Be responsible Proactively, Responsiveness Openness to The governance and risk
consistency, and valuing, and and always put effectively, to changes cooperation that
and business improvement,
thoroughness in being open to the company's and efficiently and providing generates added
culture pillar is essential and
ethics, fulfilling and fostering
commitments intrapreneurship completing tasks differences; interests first; meeting opportunities value. crucial to strengthen so that
with the highest customer needs; for continuous
according to to enhance self-
quality outcomes; improvement; and all business processes are
applicable competence and
regulations; that of others; conducted prudently and
compliantly.
AKHLAK: Core Values & 18 Behavioral Guidelines
Amanah Competent Harmonious Loyal Adaptive Collaborative
AKHLAK BTN
To achieve the Company's vision as the Best Mortgage Bank in Southeast Asia by 2025, all BTNers are required to
uphold four cultural pillars in carrying out work activities in their respective units. The governance and risk culture pillar
is essential and crucial to strengthen so that all business processes are conducted prudently and compliantly.
Based on the above diagram, to support Bank BTN's objectives based on the Core Values of AKHLAK dan BTNers' 8
Main Behaviors, there are four cultural pillars that serve as the main foundation of the Corporate Culture Program for
the years 2023 - 2024, with the aim of:
1. Sales & Service Culture – Continuous Growth and Meeting Customer Expectations
Achieving the end state of increasing sales of funding, lending, and digital products, as well as improving service
quality to drive Bank BTN's business and performance.
2. Risk & Governance Culture – Clean and Trustworthy
Building awareness and understanding of risks and their mitigation, and consistently and comprehensively applying
risk management principles.
3. Performance Culture – Excellence in Performance
Efforts to improve performance to achieve set goals.
4. Learning Culture – Continuous Learning
In order to maintain the adequacy of risk management policies, procedures, and risk limit setting, the Company conducts
a review of internal policies. This review aims to ensure that internal policies are always in line with the latest regulations
from regulators. The review is conducted by analyzing gaps and accommodating best practices commonly used in the
banking industry to improve the quality of risk management implementation. Reviews of internal policies are conducted
periodically, at least once a year, by the Board of Commissioners and the Board of Directors.
Risk Control System
In the effort to effectively implement risk management, the Company complements the internal control system.
This system aims to safeguard assets, ensure the availability of reliable financial and managerial reports, increase
compliance with laws and regulations, and reduce the risk of losses, deviations, and violations of prudential aspects.
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The establishment of a reliable and effective internal control system is the responsibility of all operational units and
supporting units, as well as the Internal Audit Unit. This process can be described as follows:
3 Lines of Defense BTN Lines of Defense
The concept of the 3 Lines of Defense consists of:
1st Business Function, Operational
Function, and Risk Function
BoC – Audit Committee
• Carrying out unit business activities in line with
BoD the Company's strategic objectives;
• Implementing unit business activities in
accordance with applicable policies;
• Being responsible for risks arising from business
activities; and
• Implementing effective controls and procedures
External Audit
1st Line of Defense 2nd Line of Defense 3rd Line of Defense
in accordance with policies and directives.
Reguler
• Conducive control • Developing and • Reviewing and 2nd Risk Monitoring, Compliance, and Policy
environment; monitoring company evaluating the Management Functions
• Consistent risks; overall risk
implementation • Oversight to ensure management design • Compliance Risk Management Compliance
of policies and business functions and implementation; Unit
procedures; and implement risk and • Policy Management Unit Policy Management
• Effective internal management • Ensuring that the
controls. policies and first and second
and Procedure Management
standards and lines of defense • Risk Management Risk Management
compliance operate as expected. Corporate Unit
procedures; and
• Monitoring and 3rd Internal Audit Function
reporting overall
company risks. Responsible for ensuring the following:
• 2nd Line Defense Compliance Unit works
effectively; and
Business Function Risk Management and Internal Audit • 1st Line Defense as the risk owner has
Compliance managed all risks adequately.
Risk Management Unit (RMU)
The Risk Management Unit serves as a unit directly under the responsibility of the Director overseeing the Risk
Management function. This unit leads the risk management function and operates independently from Operational
Units, which are risk-taking units, Internal Audit Units, and Compliance Units. The Company's risk governance based
on GCG principles is realized through the involvement of all organs in risk management. This can be seen from the
organizational structure of the Company's risk management.
The Risk Management Unit (RMU) at Bank BTN is led by a Division Head who reports directly to the Director of Risk
Management. Currently, the Risk Management Unit consists of 4 (four) divisions, including the Enterprise & ESG Risk
Management Division, Digital & Operations Risk Management Division, Wholesale Credit Risk Division, and Retail
Credit Risk Division.
The Enterprise & ESG Risk Management Division consists of the following departments, such as ESG Department,
Integrated Risk Management Department, Credit Portfolio Risk Management Department, Market & Liquidity
Management Department, and
Model Validation Department.
The Enterprise & ESG Risk Management Division comprises the ESG Division, Integrated Risk Management Department,
Credit Portfolio Risk Management Department, Market & Liquidity Management Department, and Model Validation.
The Digital & Operations Risk Management Division consists of the Fraud Risk Management Department, Digital Risk
Management Department, Operational Risk Management Department, Regional Operational Risk Control Department,
and Operational Risk Control Department. Meanwhile, the Wholesale Credit Risk Division and Retail Credit Risk Division
adhere to the four eyes principle and are included in the 1.5 line of model.
The Board of Commissioners, through the Risk Monitoring Committee meeting, and the Board of Directors, through
the Risk Management Committee meeting, are responsible for ensuring that risk management implementation in the
Company is adequate according to the characteristics, complexity, and risk profile faced. Both committees actively
engage in the risk management process to mitigate Company risks, adhering to the Quality of Risk Management
Implementation (QRMI) standards. These standards cover aspects of risk governance, risk management frameworks,
risk management processes, adequacy of management information systems, and adequacy of internal control systems.
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As of December 31, 2023, the Organizational Structure of the Enterprise & Risk Management Division is as follows:
Organizational Structure of Enterprise Risk Management Division
Risk Management
Director
Enterprise Risk
Management (ERMD) Regional Office
Secretary
Credit Operations
Integrated Risk Operational Risk Market & Liquidity IT Risk Model Regional Business
Portfolio Risk Risk Controller
Management Management Risk Management Management Validation Control
Management Management
Strategic Market & IT Risk, Governance, Regional Business
Credit Risk Operational Risk Operations
Risk Liquidity Risk Monitoring and Control Supervisor
Development Assessment Risk Controller
Dev Reporting
Analyst
Branch Business
Risk Operational Risk Control
Credit Risk Market & Liquidity
Culture Assessment Development Risk Assessment IT Risk Assessment
CBC Business
Control
Sharia Commercial & Market Middle
Risk SME Risk Office Regional Business
Control Officer
Consumer
Risk
Solid Line
Line of coordination
Window Unit, it is possible to fill in by meeting the specified parameters
In December 2023, the Board of Commissioners approved Phase I organizational structure changes related to
strengthening digital banking capabilities, which were implemented in January 2024. Consequently, the Risk
Management Work Unit under the Director of Risk Management is as follows:
Organizational Structure of Enterprise & ESG Risk Management Division
Risk Management
Director
Enterprise & ESG Risk
Management (ERMD)
Secretary
Environmental, Credit Portfolio Risk Market & Liquidity Risk
Integrated Risk
Social Management Management
Management Model
& Governance Validationgy
Market &
Framework & Credit Risk Liquidity Risk
Strategy Strategic Risk Dev
Development
Development
Policy & Credit Risk
Implementation Risk Culture Assessment Market & Liquidity
Risk Assessment
Data & Information Commercial &
Sharia Risk SME Risk
Market Middle
Office
Reporting &
Communication Consumer Risk
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The Enterprise & ESG Risk Management Unit is led by BOD-1 and functions as a control tower that is directive, controlling,
and supportive in the implementation of ESG principles. As a control tower, the Enterprise Risk Management Unit not
only acts as the 2nd line of supervision but also as a 1.5 line to develop strategies, initiatives, and ESG roadmaps.
The Enterprise Risk Management Unit is responsible for overseeing the implementation of the ESG roadmap and
continuously evaluating established ESG strategies. Therefore, the Enterprise Risk Management Unit plays a crucial
role in ensuring that ESG implementation is effectively and consistently integrated into every activity of the Company.
ESG Roadmap Socialization
On December 18, 2023, the Company held a National Work
Meeting to present the work plan for the year 2024. During
this occasion, the ESG Department team presented the
ESG roadmap to the Controlling Shareholders, namely the
Government of the Republic of Indonesia, as a demonstration
of the Company's readiness to conduct responsible banking
practices. This includes plans on how the Bank manages
environmental impacts, addresses social issues, and maintains
high standards of governance in banking operations.
Organizational Structure of Digital & Operations Risk Management Division
Risk Management
Director
Digital & Operations
Risk Management (DORD)
Regional Office
Secretary
Fraud Risk Digital Risk Operational Risk Regional Operational Operational Risk Regional Business
Management Management Management Risk Control Control Control
Digital Risk, Governance,
Fraud Strategy & Operational Risk
Monitoring and Operational Risk Regional Business
Prevention Development
Reporting Control Analyst Control Supervisor
Regional Operational
Risk Control Analyst
Fraud Operational, Digital Risk
Digital Risk, Governance,
Detection & Monitoring and
Assessment Branch Business
Investigation Reporting
Control
Fraud Monitoring
& Recovery CBC Business
Control
RLPC Business
Control
Regional
Business Control
Officer
In line with the IT & digital risk roadmap and the ongoing trend of increasing risks in the digital IT and operational
areas, the formation of the Digital & Operations Risk Management Division is being initiated. This division will also be
implemented in January 2024.
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Risk Management Policy and Procedures
The Company has established guidelines in the field of risk management, known as the General Risk Management
Policy (KUMR), which includes the minimum provisions required by the regulations of Bank Indonesia/Financial
Services Authority.
These risk management policy guidelines are complemented by internal policies, including Implementation Instructions
for Reporting and Assessment of the Bank's Risk Profile, Implementation of Reporting and Assessment of the Bank's
Health Level, Risk Model Validation Procedures, Implementation Guidelines for Risk Data Collection for the BTN-Loss
Event Database (BTN-LED Tool), Implementation Instructions for Liquidity Risk Measurement Processes, Implementation
Instructions for Calculating and Reporting Liquidity Adequacy Ratios (Liquidity Coverage Ratio), Implementation
Instructions for Market Risk Measurement Processes, Interest Rate Risk Management in the Banking Book, Stress Testing
Implementation Guidelines, Risk Model Validation Procedures, Liquidity Monitoring Guidelines, Risk Management
Policy Guidelines (PKMR), Risk & Control Self-Assessment, Implementation Instructions for Action Plans (Recovery
Plan), Risk Culture, Guidelines and Assessment of Branch and Sharia Branch Risk Profiles, Internal Credit Rating (ICR)
Processes, Implementation Instructions for Credit Scoring Model (CSM) Processes, Commercial Credit and Consumer
Credit Authority Limits, Implementation Instructions for Calculation of Impairment Loss Reserves (CKPN), Policy for
Debtors Affected by Covid-19, Business Continuity Management (BCM), Standard Operating Procedure (SOP) for
Business Continuity Plan (BCP), Standard Operating Disaster Recovery Plan (DRP), and Standard Operating Business
Impact Analysis (BIA).
Periodic reviews of internal policies are conducted to ensure compliance with the latest regulatory requirements by
performing gap analyses and accommodating best practices commonly used in the banking industry to enhance the
quality of risk management implementation. The continuous improvement of the risk management information system
focuses on enhancing the quality of the risk database, with the aim of gradual development and application into the
risk management information system. This ensures that risk measurement and monitoring processes can be integrated
and presented in a timely manner.
Risk Profile Assessment [GRI 2-16]
To provide a comprehensive and sustainable overview of risks, the Company routinely conducts a self-assessment
of the Bank's health level (TKB) and prepares a Risk Profile Report. The self-assessment of TKB, referring to the
regulations POJK No. 4/POJK.03/2016 and OJK SE No. 14/SEOJK.03/2017 regarding the Assessment of the Health
Level of Commercial Banks, is conducted every semester, while the Risk Profile Report is prepared every quarter. The
assessment of TKB includes the evaluation of risk profiles (comprising inherent risk and the quality of risk management
implementation), profitability aspects, governance, and capital. The risk profile assessment covers credit risk, market
risk, liquidity risk, operational risk, legal risk, strategic risk, compliance risk, and reputation risk. Specifically for the risk
profile assessment of Sharia Business Units, there are additional 2 (two) types of assessed risks, namely yield risk and
investment risk. The risk profile assessment includes evaluations of Inherent Risk and the Quality of Risk Management
Implementation in the Bank's operational activities.
In general, based on the self-assessment of the Risk Profile for Q4 2023, efforts are made to be at the Low to Moderate
level. This means that the potential losses faced by the Bank from composite inherent risks are classified as Low to
Moderate, with the overall quality of risk management implementation being Satisfactory. The details are as follows:
Risk Type Inherent Risk Rating KPMR Rating Risk Level Rating
Credit Risk Low to Moderate Satisfactory Low to Moderate
Market Risk Low to Moderate Satisfactory Low to Moderate
Liquidity Risk Low to Moderate Satisfactory Low to Moderate
Operational Risk Low to Moderate Satisfactory Low to Moderate
Legal Risk Low to Moderate Satisfactory Low to Moderate
Strategic Risk Low to Moderate Satisfactory Low to Moderate
Compliance Risk Low to Moderate Satisfactory Low to Moderate
Reputation Risk Low to Moderate Satisfactory Low to Moderate
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Implementation of Basel
In the context of risk management, particularly the implementation of Basel II and Pillar 1, which applies to all commercial
banks, the Company has fulfilled the following provisions:
Requirement Status
The bank has implemented market risk measurement using the standardized model as stipulated in OJK Regulation
No. 38/SEOJK.03/2016 dated September 15, 2016, concerning Guidelines for the Use of the Standardized Method
in Calculating the Minimum Capital Adequacy Ratio for Commercial Banks, Considering Market Risk. The portfolio
considered in determining the market risk weighted assets (KPMM) consists of the trading book portfolio for interest
rate risk, as well as the trading book and banking book portfolios for exchange rate risk. In 2023, the bank prepared
for OJK Regulation No. 23/SEOJK.03/2022 dated December 7, 2022, regarding the Calculation of Risk-Weighted
Assets for Market Risk for Commercial Banks, which will be implemented starting January 1, 2024, by conducting
trial calculations and reporting to OJK for ATMR Market positions in June 2023, September 2023, and December
2023.
Implementation of Basel II Pillar 2
Requirement Status
The bank has submitted the results of the risk management application for Interest Rate in the Banking Book (IRRBB)
and the calculation report of IRRBB to the regulator on a quarterly basis in accordance with OJK Regulation No. 12/
SEOJK.03/2018 dated August 21, 2018, regarding the Implementation of Risk Management and Measurement of the
Standardized Approach for Interest Rate Risk in The Banking Book for banks.
Implementation of Basel III
Requirement Status
Regarding the regulator's plan to implement Basel III as regulated in OJK Regulation No. 11/POJK.03/2016, the
Company has specifically maintained a Capital Adequacy Ratio (CAR) of 20.17%, above the minimum requirement
under the Basel III framework, which is 10.5%.
Implementation of PRINCIPLES OF PRUDENCE [GRI
2-23]
Know Your Customer (KYC) dan Know Your Employee (KYE)
To strengthen the implementation of prudential principles, the Company adopts the know your customer (KYC)
and know your employee (KYE) approaches in managing operational risks in banking business activities. The KYC
approach has evolved into customer due diligence (CDD), which includes identification, verification, and monitoring
activities conducted by the Company to ensure that transactions comply with the profile of prospective customers,
walk-in customers (WIC), or existing customers, in accordance with PBI No. 14/27/PBI/2012. To enhance employees'
understanding of the implementation of prudential principles, the Company provides access to online training with
CDD materials containing relevant case examples related to prudential principles.
Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT),
and Countering the Proliferation of Weapons of Mass Destruction (CPWMD)
The Company implements AML, CFT, and CPWMD programs in customer identification activities in accordance with
applicable regulations. As part of efforts to enhance the effectiveness of the AML, CFT, and CPWMD programs to meet
regulatory requirements, the Company has established a Special Working Unit (SWU) for AML, CFT, and CPWMD at
the Head Office. Furthermore, the implementation of AML, CFT, and CPWMD programs at regional offices and branch
offices is the responsibility of each Regional Office Head and Branch Manager.
In addition to implementation at the head office, the Company also ensures that the AML, CFT, and CPWMD SWU
program is implemented at regional offices and branch offices. This is intended to promote the effective implementation
of these programs and comply with regulatory requirements.
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Anti-Money Laundering and Counter-Terrorism Financing Program (AML and CTF)
Submission of Reports and Data to Regulators and/or the People's Consultative Assembly (APH) includes several
components, including:
1. Submitting Financial Transaction Reports to the Financial Transaction Reports and Analysis Center (PPATK) as
follows:
a. Cash Financial Transaction Reports (LTKT)
b. Suspicious Financial Transaction Reports (LTKM)
c. Reports on Fund Transfer Financial Transactions to and from Abroad (LTKL)
d. Integrated Service User Information System (SIPESAT)
2. Submitting Compliance Data/Information to Law Enforcement & Regulators as follows:
a. Anti-Money Laundering and Counter-Terrorism Financing Program Information System (SIGAP) to OJK
b. AML and CTF Reports through the OJK APOLO Application
c. Suspected Terrorism Financing Information System (SIPENDAR) to PPATK
d. Electronic Data Exchange (PEDAL) to the Corruption Eradication Commission (KPK)
e. Fulfilling Data Requests from Other Institutions such as the Police, National Narcotics Agency, and Prosecutor's
Office.
3. Submitting Reports related to the Implementation of Elections and Regional Elections to PPATK as follows:
a. Participating in the Collaborative Analysis Team (CAT), which is a collaboration for exchanging information
between the Public Sector, including PPATK, reporting entities, Regulatory and Supervisory Agencies (LPP), and
Law Enforcement Agencies.
b. Monitoring Special Campaign Fund Accounts (RKDK).
c. Screening the Treasurers of Political Parties, Central and Regional Boards.
d. Screening the List of Permanent Candidates (DCT) for the 2024 Elections.
e. Submitting all reports and information requests related to the implementation of the 2024 Elections and
Regional Elections.
Strategic Initiative Awareness Program
1. AML Creative Campaign 2023
a. AMOLA TikTok Competition 2023
The AMOLA TikTok Competition is a content creation competition with themes related to AML, CTF, and CWMD
through the TikTok social media platform, using the AMOLA Create Jingle from 2022. Participants in the AMOLA
TikTok Competition include representatives from each Work Unit at the Head Office, Regional Offices, and Branch
Offices.
b. AMOLA Mini-Series Tahun 2023
The AMOLA Mini-Series is a short film with themes revolving around the implementation of AML, CTF, and
CWMD programs, covering Money Laundering Typologies, Money Laundering Stages, and the Principles of
Knowing Your Customer (KYC)/Customer Due Diligence (CDD), consisting of 3 episodes. The AMOLA Mini-
Series has been widely broadcasted through various internal BTN media.
2. Internalization of AML, CTF, and CWMD Awareness 2023
a. AML, CTF, and CWMD Webinar 2023
BTN conducts an On-Boarding Session for AML, CTF, and CWMD in 2023 through a webinar featuring external
speakers (e.g., PPARK and Banking Practitioners).
b. AML, CTF, and CWMD Workshop 2023
BTN organizes an Internalization Workshop for the provisions of OJK Regulation No. 8/2023 to enhance
employee understanding and compliance related to the impact of the implementation of OJK Regulation No.
8/2023.
3. Branch Visit dan Surprise Review
Branch Visits are conducted to increase awareness at branch offices through the internalization of all branch offices,
considering the distribution of the most Suspicious Financial Transaction Reports (LTKM), including ownership of
foreigners from high-risk countries, as well as auditees from the 2022 AML and CTF thematic audits. In addition,
Surprise Reviews are conducted at visited branch offices to ensure employee understanding and evaluate the
effectiveness of Branch Visit activities.
Enhanced Due Diligence and High Risk Jurisdiction
The Company conducts Enhanced Due Diligence (EDD) and proportional and appropriate preventive measures
(countermeasures) to mitigate risks associated with business relationships, transactions, prospective customers,
Politically Exposed Persons (PEP), and/or customers originating from high-risk countries as published by the Financial
Action Task Force (FATF). In monitoring High-Risk Jurisdictions, the Company utilizes the AML, CFT, and CPWMD system
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Employee Community Excellent Service for Sustainability Development Empowerment Customers Governance accessible to all AML, CFT, and CPWMD officers on the front line (customer service). Based on the list of high-risk countries according to FATF provisions, the Company is committed to implementing countermeasures, EDD, and reporting suspicious activities in the AML, CFT, and CPWMD application for prospective customers, customers, beneficial owners, conductors, and/or Politically Exposed Persons (PEP) originating from countries/jurisdictions classified as High-Risk Jurisdictions subject to a Call for Action based on the respective category. The Company also conducts EDD on prospective customers, customers, beneficial owners, conductors, and/or Politically Exposed Persons (PEP) originating from countries/jurisdictions falling into the category of Jurisdictions with strategic deficiencies. Requirements for Environmental and Social Impact Management [GRI 2-25] [SASB FN-CB-410a.2] The Company assumes an indirect responsibility in addressing potential environmental and social impacts that may be caused by debtors. If there is non-compliance in managing environmental and social impacts, it can affect credit and reputation risks. This responsibility aligns with the bank's role in performing intermediary functions. Consistently, the Company manages environmental risks in the financing or credit disbursement processes. This approach is in line with the implementation of sustainable finance concepts and Bank Indonesia Regulation (PBI) No. 7/2/2005 on the Assessment of the Quality of Commercial Bank Assets. The regulation stipulates that the assessment of business prospects, as part of credit quality evaluation, includes an evaluation of the efforts made by debtors to maintain environmental sustainability. [FS1] The commercial credit portfolio is the primary focus for the Company's growth. In this regard, the Company has formulated specific policies and procedures for the disbursement of commercial credit, taking into account environmental and social dimensions. These actions are taken to support commercial credit disbursement while upholding the principles of banking prudence and good corporate governance. Within the Circular Letter of the Board of Directors of PT Bank Tabungan Negara (Persero) Tbk. Number: 17/DIR/ CMLD/2016, regulations related to project legality have been established, including: [FS1, FS2] [SASB FN-CB-240a.3] 1. Land/property allocation permit; 2. Approved site plan by a legitimate and authorized party; 3. Building permit; 4. Proof of ownership; 5. Copy of Land and Building Tax Payment Slip (SPPT); 6. Proof of access road ownership; 7. Certificate stating flood-free status; 8. Information from the Regional Drinking Water Company (PDAM); 9. Environmental feasibility certificate or environmental impact analysis (AMDAL) efforts. The Environmental Impact Analysis (AMDAL) is an evaluation of the potential impacts that may arise from the presence or planned business and/or activities on the surrounding environment. AMDAL is an integral part of the permitting requirements needed for the decision-making process related to the implementation of such business plans and/or activities. The preparation of AMDAL is carried out during the project planning stage anticipated to have an impact on the surrounding environment, involving abiotic, biotic, and cultural aspects. The legal basis for AMDAL in Indonesia is regulated by Government Regulation No. 27 of 2012 concerning Environmental Permits. The Company has begun implementing credit risk assessments by considering the results of AMDAL before deciding to provide credit to a project. Subsequent actions involve direct field monitoring or review by the Company to verify that potential debtors have complied with all environmental regulations. This approach is an implementation of the principle of prudence in credit risk management. [FS,1 FS2, FS5] Furthermore, the Company's efforts to preserve the environment and social aspects are reflected in provisions that align with the slogan "one house one tree." Each house built is required to have green areas and planted trees. In addition, residential areas must be equipped with public facilities (fasum) and social facilities (fasos). [FS3] PT Bank Tabungan Negara (Persero) Tbk 173
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The Company periodically conducts audits to ensure the effectiveness of these initiatives, including identifying follow-
up steps in case of violations. This audit is conducted annually by the Internal Audit Unit. During general audits at
branch offices, auditors use sampling techniques. In this context, auditors examine to evaluate compliance with
existing policies. If discrepancies are found, the audit team will investigate the causes and formulate improvement
recommendations. The audited party or branch office (auditee) is required to commit to the necessary improvements,
which will be periodically monitored. [F.10] [FS9]
Code of Ethics and Business Ethics [GRI 2-23] [GRI 2-24]
The Code of Ethics is a manifestation of the Company's commitment to implementing Good Corporate Governance
(GCG) with high standards, referring to the best practices of credible and trustworthy banking institutions. Credibility
and trust from the public, shareholders, and customers are essential factors in the development and sustainability of
the Company. All business activities conducted by the Company must comply with applicable regulations and laws
while upholding norms and ethics.
Awareness of the application of good ethics will enhance the Company's positive reputation and build an image as a
company with good social responsibility (good corporate citizen). Therefore, the Company is committed to maintaining
integrity by implementing ethical guidelines and behaviors as the basis for the attitudes and actions of all company
personnel, enabling them to work professionally and ethically, guided by fundamental principles, vision, mission,
values, and applicable internal and external regulations.
The Company establishes ethical standards and behaviors aligned with the vision, mission, and cultural values of the
Company in performing every activity. This is realized through the implementation of the Code of Conduct for Business
Ethics and Behavior of the Company, which has been ratified through Board Regulation No. 16/PD/CMPD/2015.
Behavior in line with the code of ethics and business ethics has a significant impact on reputation risk, which can further
influence the operational and credit risks of the Company.
The implementation of the Code of Ethics aims to shape ideal behavior and build a work culture based on noble values
believed by the Company's personnel. This Code of Ethics consists of four (4) chapters, briefly outlined as follows:
1. Introduction
The Code of Ethics is a codification or compilation of policies, employee regulations, and agreements that have been
jointly established between the bank and employees that will affect, shape, and set standards of behavior for both
management and employees in carrying out all business activities.
The consistent implementation of the Code of Ethics, whether in compliance or non-compliance, is one aspect of
employee performance assessment. Therefore, this Code of Ethics will always serve as a guide in the formulation
of policies, procedures, and management practices within the Company. Consistent implementation of the Code of
Ethics will demonstrate that the Company upholds noble business values and ethics in conducting its business, as
well as in upholding the principles of corporate governance.
2. Business Ethics Standards
Business ethics standards regulate ethical guidelines in various lines of business activities. The standards cover
ethics between the bank and its employees, ethics between the bank and customers, ethics between the bank and
suppliers of goods and services, ethics between the bank and competitors, ethics between the bank and business
partners, ethics between the bank and the government, ethics between the bank and the community, ethics between
the bank and mass media, as well as ethics between the bank and professional organizations.
3. Policy on Employee Behavior Standards is as follows:
• Employees must always avoid conditions, situations, or impressions of conflicts of interest and abuse of positions.
• Members of the Board of Commissioners and Directors, as well as employees of the Company, are prohibited
from giving and receiving anything for their benefit, directly or indirectly, from business partners that could
influence decisions.
• The Company's organs and employees must comply with laws and company regulations.
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4. Implementation and Enforcement
Every employee of the Company must report any deviation from the Corporate Code of Conduct to the Human
Capital Management & Culture Specialist Division. The Company will ensure the protection and confidentiality of the
reporter's identity. The Human Capital Management & Culture Specialist Division is then responsible for following
up on each report and presenting its findings to the Board of Directors and/or Commissioners within the scope of its
responsibilities. Decisions regarding coaching, disciplinary sanctions, and/or corrective actions will be made by the
Board of Directors and Commissioners. Additionally, the Company will establish procedures or prevention policies
to be implemented by direct supervisors in their respective work environments. [GRI 2-16]
Business Ethics and Conduct Guidelines (Code of Conduct) of the Company are accessible to the public through the
Company's official website. The Business Ethics Guidelines and Code of Ethics are also in line with the respect for
Human Rights as outlined in the UN Guiding Principles on Business and Human Rights (UNGP BHR) and consistently
require all actions to be applied with the principle of caution. The implementation of the Company's Code of Ethics
obliges all individuals within the Company to conduct thorough due diligence through: [GRI 2-23]
Compliance with the Code of Ethics
Statement on the Enforcement of the Code of Ethics for the Board of Directors, Board of Commissioners, and
Employees
The code of ethics applies to members of the highest governance and employees in carrying out every business activity
of the Company, including when interacting with stakeholders. The enforcement of the code of ethics for all levels of the
organization was officially ratified through Board of Directors Regulation No. 16/PD/CMPD/2015 dated December 31,
2015, concerning Business Ethics and Conduct Guidelines. The Company requires every individual within the Company
to sign the Integrity Pact to be implemented to the best of their abilities. The success of the implementation of the code
of ethics is the responsibility of all leaders in their respective work unit environments. Therefore, all unit leaders are
required to provide an understanding of the implementation of the code of ethics to employees in their respective work
units.
The implementation of the code of ethics within the Company is carried out comprehensively and includes introduction,
campaigns, implementation, reporting, and follow-up on violations of the code of ethics. [GRI 2-23]
Socialization Implementation Reporting and Follow Up
• The code of ethics is socialized and • Fulfillment and signing of the Integrity • Implementation of the Anti-Bribery
accessible to all individuals within the Pact by all employees in accordance Management System (SMAP)
Company through the Digital Room with the values of the code of ethics; ISO 37001:2016 as one form of
for E-learning Modules (DREAM). • Internalization of the code of implementation of business ethics and
Additionally, there are quizzes ethics, control of gratuities, and behavior outlined in the code of ethics;
conducted on the code of ethics to implementation of the Anti-Bribery • Implementation of the Whistleblowing
assess the level of understanding Management System (SMAP) for all System (WBS) program; and
among employees; and employees through the Digital Room • Penalties for employees who violate
• Commitment to the implementation of for E-learning Modules (DREAM); the code of ethics.
the code of ethics is also formalized in • Collaboration with the Corruption
the Integrity Pact, which is mandatory Eradication Commission (KPK)
for all members of the Board of through the Professional with Integrity
Directors, Board of Commissioners, (PROFIT) program;
and Company Employees to sign. • Implementation of the gratuity control
Furthermore, the code of ethics is program according to the established
accessible to all stakeholders of the work plan and periodic reporting of
Company through the website. its implementation to the KPK every
semester;
• Management of reports on gratuity
receipts from all work units and
reporting to the KPK as per regulations.
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The Number of Violations and Sanctions Imposed
Total Employees Total
No Sanction Category Sanction Type
2018 2019 2020 2021 2022 2023 Employees
1 Light Sanctions Light Grade A 22 23 27 14 9 11 106
Light Grade B 31 15 19 28 5 15 113
Light Grade C 24 25 47 35 6 11 148
2 Medium Sanctions Medium Grade A 18 69 62 54 8 15 226
Medium Grade B 13 53 32 21 10 12 141
Medium Grade C 9 45 31 16 9 10 120
3 Severe Sanctions Severe Grade A 2 5 10 5 3 1 26
Severe Grade B 22 40 24 19 42 43 190
Severe Grade C 0 0 6 3 3 1 13
TOTAL 141 275 258 195 95 119 1,083
Conflict of Interest [GRI 2-15]
The Company acknowledges that interactions among individuals within it and with external parties can create potential
conflicts of interest that impact decision-making processes and the implementation of those decisions. Therefore, the
Company is committed to explicitly control and manage conflicts of interest to achieve effective business management
and the goal of being free from corruption, collusion, and nepotism (CCN), as well as building harmonious relationships
with stakeholders.
In principle, all individuals within the Company must avoid decision-making situations involving conflicts of interest
and disclose any decisions that must be made in the presence of conflicts of interest. The Company has a Policy on
Transactions Involving Conflicts of Interest as regulated in the Guidelines and Rules of the Board of Directors and Board
of Commissioners.
In the event of a conflict of interest between the Company and shareholders, members of the Board of Commissioners,
members of the Board of Directors, executive officers, and/or other parties related to the Company, the members of
the Board of Commissioners, members of the Board of Directors, and executive officers are prohibited from taking
actions that may harm or reduce the Company's benefits. They are obligated to disclose such conflicts of interest in
every decision.
The Company also thoroughly documents each disclosure in accordance with applicable regulations. Disclosure
regarding conflicts of interest is recorded in meeting minutes, which must include information such as the names of
parties involved in the conflict of interest, the main issues of the conflict of interest, and the considerations in decision-
making. In principle, every individual in the Company is encouraged to avoid decision-making involving situations and
conditions of conflicts of interest. [GRI 2-15]
Violations related to conflicts of interest can be reported through the Company's WBS. As a mitigation effort for conflicts
of interest, all members of the Company are also required to sign the Integrity Pact in accordance with the values in
the Company's Code of Ethics. Disclosure of conflicts of interest, such as cross-board memberships, cross-ownership
with suppliers and other stakeholders, the presence of controlling shareholders, and relationships, transactions, and
balances with related parties, is presented in detail in the Company's Annual Report. [GRI 2-15]
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In addition, the Company adheres to Special Policy No. KK.1.A regarding the Commercial Loan Procedure for credit
disbursement to avoid conflicts of interest. The policy stipulates that the Company is prohibited from providing loans,
whether in Indonesian Rupiah or foreign currency, to::
• Nightclubs;
• Horse racing;
• Casinos;
• Turkish baths;
• Massage rooms; and
• Other businesses prohibited by the government and regulators.
The company can also provide project financing for several project categories, namely:
• Toll roads;
• Power plants;
• Airports;
• Monorails; and
• Telecommunications.
Anti-Fraud
The Company pays close attention to the level of public trust in the integrity of the Company. With a strong determination,
the Company is committed to conducting business activities with full honesty, fairness, and zero tolerance for corruption
or bribery. It is crucial for the Company to be aware that any actions violating these values will have a negative impact
on reputation, name, and business sustainability. Therefore, the Company not only considers the financial impact but
also understands the immeasurable value of maintaining trust.
The Company emphasizes that any violation of anti-corruption and anti-fraud policies is a serious matter and must be
dealt with firmly in accordance with applicable policies and regulations. Circular Letter of the Board of Directors No. 22/
DIR/IAD/2014 dated May 28, 2014, regarding the Standard Operating Procedure for Anti-Fraud Strategy, serves as a
guide in implementing anti-corruption and anti-fraud strategies. This policy is comprehensive and covers all layers of
employees, whether with permanent or contract employment status, including top management such as the Board of
Commissioners and Directors acting on behalf of the Company. The Company ensures that every step taken reflects
high integrity to create a solid foundation for sustainable relationships with stakeholders. [GRI 3-3]
Referring to Bank Indonesia Circular Letter No. 13/28/DPNP dated December 9, 2011, the Company implements the
Zero Tolerance to Fraud and Zero-Defect program referring to the Financial Services Authority Regulation No. 39/
POJK.03/2019 concerning the Implementation of Anti-Fraud Strategies for Commercial Banks. The Company has an
Anti-Fraud Team that consistently conducts socialization on the anti-fraud program to maintain BTNers' awareness of
compliance aspects. These efforts are continuously improved to ensure that every step-in mitigating fraud risks can
be effectively implemented. The Company also organizes a series of training sessions related to anti-corruption and
anti-fraud, including:
Training Name Number of Participants Training Date
Implementation of AML CFT & PPPSPM Program 2023 315 August 25, 2023
Penerapan Program AML, CFT, and CPWMD 2023 3 August 24-25, 2023
Enhancing Understanding of KPK Gratification 29 October 12-14, 2023
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Operational Risk Management
Operational Risk Tools (ORMIS)
To implement the risk management process, particularly operational risk, the Bank utilizes Operational Risk Tools
consisting of Risk and Control Self-Assessment (RCSA), Loss Event Database (LED), and Key Risk Indicator (KRI).
Risk and Control Self-Assessment (RCSA) is a process for identifying and measuring operational risks inherent in
all units of the Bank. Therefore, in completing RCSA, all units are required to identify and measure operational risks
inherent in their day-to-day activities and their impact on achieving the unit's objectives.
Loss Event Database (LED) functions as an operational risk data collection tool for recording operational risk incidents
at Branch Offices, utilizing risk event criteria based on Basel II (seven risk event types). The output from BTN LED
includes accumulated bank losses data within a month, including actual losses, near misses, and potential losses for
each risk event. The collected data is processed and analyzed to identify the operational risk exposure map, which
serves as a reference for mitigating similar incidents by improving business processes or implementing other forms of
risk mitigation.
Key Risk Indicator (KRI) is an operational risk management tool used to monitor risk trends based on indicators. KRIs can
be used to detect both predictive and lagging risks, providing input for preventive actions.
Aligned with this, the Company has a Business Control Organization responsible for the 1.5th line of defense in
implementing operational risk controls inherent in day-to-day operational activities at Branch Offices (BO), Sharia
Branch Offices (SBO), Commercial Banking Centers (CBC), and Regional Loan Processing Centers (RLPC). The Business
Control Organization consists of monoline units at the Regional level, including Regional Business Control (RBC),
Branch Business Control (BBC), Commercial Banking Centre Business Control (CBC-BC), and Regional Loan Processing
Centre Business Control (RLPC-BC).
Fraud Risk Assessment
Fraud Risk Assessment (FRA) is one of the methods employed by the Company to identify potential fraud risks, both
internal and external, in the business/service activities conducted by funding, lending, human capital, operational, IT,
and other units. The implementation of FRA aims to ensure the application of risk management by assessing employee
awareness through proactive procedures, involving the identification of potential vulnerabilities and supervision in each
unit.
The entire FRA process is carried out in accordance with Technical Instruction Number PT.8-D.2 dated May 30, 2023,
serving as the procedure to proactively detect potential fraud risks to prevent fraud and its resulting losses. The results
of this process are utilized by the Company to measure the potential impact and formulate proposed follow-up
improvement actions.
Whistleblowing System (WBS) BTN
The Company acknowledges that every employee in various divisions has the potential and associated risks related
to gratification. Therefore, the Company encourages every employee to report or file cases of gratification to the
Compliance & Governance Work Unit as a form of employee support for the anti-gratification program. The Company
routinely conducts internalization programs for the anti-fraud strategy and Whistleblowing System (WBS) through
socialization activities managed by an independent third party.
During the year 2023, there were 78 reports related to gratification received from the head office and branches.
These reports include bribery gratification, official gratification, gratification in the form of providing food before
religious holidays, and rejection of gratification. Currently, the Company has not conducted a risk assessment related
to gratification or corruption in various operational activities of the Company. However, it is not ruled out that an
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assessment will be conducted in the future, considering the Company strongly rejects various acts of gratification and
corruption. [GRI 205-1]
Number of Reports and Complaints Related to Received Gratification
2021 2022 2023
27 83 78
The Company's commitment to preventing fraud is reflected through the implementation of an anti-fraud strategy to
control any potential fraud. The anti-fraud strategy encompasses the implementation of four pillars, namely:
a. Prevention
The prevention pillar includes devices aimed at reducing the potential for fraud, such as awareness of anti-fraud
measures, vulnerability identification, and employee recognition policies.
b. Detection
The detection pillar aims to identify and discover fraud, including the Whistleblowing System (WBS) policy,
surprise audits, surveillance systems, and inherent supervision by operational responsibility (PJO). Based on the
WBS Company's data for the year 2023, there were a total of 5 complaints. The complaint methods consisted
of 1 complaint via SMS/telephone/WhatsApp and 4 complaints through email/website. Based on the number
of complaints received, 5 complaints have been processed and/or sanctions have been imposed (including
administrative sanctions). The data presented above is summarized in the following table:
Submission Method
Year SMS/Telephone/
Mail/PO BOX Email/Website
WA (WhatsApp)
2018 1 0 5
2019 5 2 3
2020 3 2 9
2021 0 2 3
2022 0 1 1
2023 0 1 4
c. Investigation, Reporting, and Sanctions
This pillar consists of systems, mechanisms, and tools designed to gather information, collect evidence, manage
reports, and impose sanctions for the fraud that has occurred. The following is the number of complaints and their
follow-ups:
Follow-up
Report has been
Report still under review Report forwarded to the
Year completed and/or has
Report resolved (not (audit process/reporting investigators (related
been followed-up with
proven) process/cross-division to general crime or
a sanction (including
process) corruption)
administrative sanctions)
2018 0 0 6 0
2019 0 1 9 0
2020 0 4 10 0
2021 0 0 5 0
2022 0 2 0 0
2023 0 0 5 0
d. Monitoring, Evaluation, and Follow-up
This pillar includes steps to monitor, evaluate fraud, and implement corrective measures. In the reporting year, the
Company recorded a total of 19 internal fraud cases, consisting of 7 cases that have been resolved and cases that
are still in the process of resolution. Furthermore, the number of cases that have been followed up through legal
proceedings is 19 cases. This figure reflects the Company's commitment to resolving these violations in accordance
with applicable laws. [SASB FN-CB-510a.1]
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Internal Fraud During 2023 [GRI 205-3]
Number of fraud committed (Internal)
Members of the Board of
Internal Fraud Permanent Employees Non-Permanent Employees
Commissioners and Directors
During 2023
Previous Year Current Year Previous Year Current Year Previous Year Current Year
(2022) (2023) (2022) (2023) (2022) (2023)
Total Reports 0 0 18 19 1 0
Resolved 0 0 10 7 1 0
In the Process of
Resolution Internally 0 0 17 2 0 0
at the Bank
Not Yet Pursued for
0 0 0 0 0 0
Resolution
Resolved Through
0 0 1 2 0 0
Legal Proceedings
Explanation:
1. The number of cases in the current year is based on the Special Audit Results Report and Initial Review Results
Report from January to December 2023;
2. The number of cases "Resolved" is cases that have received sanctions decisions from the Board of Directors until
December 2023;
3. The number of cases "In the process of resolution internally at the bank" is cases that have not received sanctions
decisions from the Board of Directors until December 2023; and
4. The number of cases "Has been pursued through legal proceedings" is cases that have been "resolved" and
received criminal sanctions decisions. The legal process is pursued by LGD.
The Company actively conducts internalization training of WBS BTN. The number and percentage of total employees
participating in WBS BTN internalization training, including the distribution of employees per work area, are as
follows: [GRI 205-2]
Passed Not Passed Did Not Access
Total
Regional Total Total Total
Participants % % %
Employees Employees Employees
Head Office 3,221 3,125 97.02% 0 0.00% 96 2.98%
Regional Office 1
(Branch & Cash 1,860 1,816 97.63% 0 0.00% 44 2.37%
Office)
Regional Office 2
(Branch & Cash 1,640 1,521 92.74% 2 0.12% 117 7.13%
Office)
Regional Office 3
(Branch & Cash 1,374 1,362 99.13% 1 0.07% 11 0.80%
Office)
Regional Office 4
(Branch & Cash 1,460 1,433 98.15% 1 0.07% 26 1.78%
Office)
Regional Office 5
(Branch & Cash 1,321 1,256 95.08% 0 0.00% 65 4.92%
Office)
Regional Office 6
(Branch & Cash 1,036 964 93.05% 2 0.19% 70 6.76%
Office)
Grand Total 11,912 11,477 96.35% 6 0.05% 429 3.60%
Explanation:
a. Out of 11,912 (96.40%) employees who participated in the internalization program, 11,477 of them were declared
passed, and 6 employees were declared not passed; and
b. A total of 429 (3.60%) employees have not participate in the internalization program.
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Employee Community Excellent Service for Sustainability Development Empowerment Customers Governance Internal Control System The implementation of the internal control system is carried out with the aim of supporting the Company's performance, enhancing value for stakeholders, reducing the risk of losses, and ensuring compliance with applicable laws and regulations. Besides being a crucial oversight component in managing the Company, the internal control system is also applied as a guide for the Company to carry out healthy and controlled operational activities. In formulating the internal control framework, the Company refers to the Committee of the Sponsoring Organizations of the Treadway Commission (COSO)-Internal Control Integrated Framework. This is done to ensure the adequacy of operational and financial controls, financial reporting, operational effectiveness and efficiency, as well as compliance with applicable laws and regulations. Through this policy, the Company's management has established continuous supervision mechanisms to safeguard and secure the Company's assets, ensure the availability of accurate reports, improve compliance with applicable regulations, enhance organizational effectiveness, increase cost efficiency, reduce the impact of financial losses, and prevent deviations, including fraud and prudential violations. Violation Reporting [GRI 2-26] The Whistleblowing System (WBS) policy implemented by the Company refers to the Financial Services Authority Regulation (POJK) No. 39/POJK.03/2019 dated December 19, 2019, concerning the Implementation of Anti-Fraud Strategies for Commercial Banks. The Company's WBS is an integral part of the internal control system to prevent deviation practices. The main goal of WBS is to detect and prevent deviations or violations early. Additionally, these steps are aimed at gradually creating an open, sincere, honest, and accountable working environment in the Company. [SASB FN-CB-510a.2] The Company implements the WBS system with the aim of ensuring that every report is received, considered, and followed up according to existing procedures. Based on these reports, the Company ensures the formulation and implementation of sanctions that can have a deterrent effect on violators, including those proven to have intended to commit fraud. The goal of the Company's WBS is to strengthen the internal control mechanism in supporting business growth through the following steps: 1. Early detection and prevention of deviations or violations; and 2. Gradually create a working climate that is open, sincere, honest, and accountable in the Company. The Company's WBS team responsible for managing each WBS report consists of: 1. Head of Internal Audit Division; 2. Deputy Head of Internal Audit Division; and 3. WBS Unit in the Fraud Investigation & Whistleblowing System (IWBS) Department at Internal Audit Division. Violation Reporting Channels The Company has also built supporting infrastructure for implementing the WBS policy. Reporters can submit their reports through the following media: Mail : PO Box 2828 JKP 10028 Website : idn.deloitte-halo.com/btnsiips Email : btnsiips@tipoffs.info SMS : +62 813 8870 1117 WhatsApp : +62 813 8870 1117 Phone : +62 21-50928882 / +62 21-50928883 PT Bank Tabungan Negara (Persero) Tbk 181
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Mechanism for Submitting Violation Reports [GRI 2-16]
The Company provides a mechanism for submitting violation reports through the Whistleblowing System (WBS) for
stakeholders by creating a complaint/reporting form that can be submitted based on identified violation indications
as follows:
1. If the reported party is a BTN employee up to 2 (two) levels below the Board of Directors and is not part of the BTN
WBS Team, the Independent WBS Manager will submit the report to the BTN WBS Team;
2. If the reported party is a member of the BTN WBS Team and/or a BTN employee 1 (one) level below the Board of
Directors and is not part of the WBS Team, the Independent WBS Manager will submit the report to the President
Director;
3. If the reported party is the Company's WBS Team, the Independent WBS Manager will submit the report to the
President Director;
4. If the reported party is a Director, the Independent WBS Manager will submit the report to the Board of
Commissioners;
5. If the reported party is a Commissioner and/or a Committee under the Board of Commissioners, the Independent
WBS Manager will submit the report to the unrelated Commissioner who is also not a member of the relevant
Committee; and
6. If the reported party is the Commissioners collectively, the Independent WBS Manager will submit the report to the
Holder of Dwiwarna Series A Shares.
The Company provides assurance of protection to Whistleblowers acting in good faith to report any violations that may
harm the Company. Assurance is provided through the following policies:
1. Providing reporting communication channels (oral, telephone, or email) that are free and confidential or providing
an independent and confidential Ombudsman. Through these communication channels, Whistleblowers will receive
information on the follow-up handling of reported allegations of violations;
2. Assurance of the confidentiality of the Whistleblower's identity unless there is a legal requirement that requires the
Whistleblower's identity to be disclosed in court; and
3. Protection from retaliatory actions by the Reported Party or the reported organization. This protection may include:
a. Physical protection, both for the Whistleblower and their family;
b. Protection of their property and their family's property from terror or retaliation they may experience;
c. Administrative protection, such as threats of delayed promotions, dismissal, workplace ostracism, inappropriate
transfers, and job security; and
d. Legal protection in the litigation process in the District Court, including its costs, and, if necessary, including
protection through the Witness and Victim Protection Agency (LPSK).
Handling Complaints
The Company has collaborated with the Corruption Eradication Commission (KPK) of the Republic of Indonesia in
handling the WBS as part of its efforts to combat corruption. This collaboration aims to improve the effectiveness and
efficiency of handling complaints, both internally and externally, with a professionally integrated, transparent, and
accountable approach. All these steps are taken with an emphasis on confidentiality, to optimize the Company's policies
and strategies in combating corruption crimes.
The WBS team follows up on each incoming report with the following mechanism:
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Flowchart 1 - If the Reported Person is a Company Employee (Two Levels Below the Board of
Directors) and Not the WBS Team
Independent WBS WBS Team Related Work Units
Reporter
Manager
2
Start
Assess and collect
information about the
complaint
1
Report of violation
3
No
Violation
Yes
4 5
Evaluation/Validation
Violation Report of Proof of Violation
6
Eligible for a No
custom audit?
Settlement of
8
complaints by
related units
Yes
7
Initiation of the Special Audit
(Investigation) / In-depth
Process by the Special Audit
Team (IAD)
Completion
Explanation:
1. The report is addressed to the Company's WBS Team if the reported person is an internal employee
up to two levels below the Board of Directors and is not part of the Company's WBS Team.
2. The Independent WBS Manager will summon parties and collect information on the report through
the seven complaint channels provided.
3. Regarding the validation results, the Company's WBS Team will take the following steps:
- If it is justifiable to carry out a special audit, further/in-depth investigations will be carried out by
the Special Audit Team (IAD);
- If it is not justifiable to carry out a special audit, then an in-depth study will be carried out by other
work units, including the KC/KCS/Division/regional office or the General Audit Team at IAD.
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Flow Chart 2 - If the Reported Person is a Company Employee one level below the
Board of Directors and not the WBS Team
Independent WBS President Director Related Work Units
Reporter
Manager
2
Start
Assess and collect
information about the
complaint
1
Report of violation
3
No
Violation
Yes
4 5
Evaluation/Validation
Violation Report of Proof of Violation
6
Eligible for a No
custom audit?
Settlement of
8
complaints by
related units
Yes
7
Initiation of the Special Audit
(Investigation) / In-depth
Process by the Special Audit
Team (IAD)
Completion
Explanation:
1. Report is addressed to the President Director if the reported person is an employee of the Company
one level below the Board of Directors through an Independent WBS manager.
2. The Independent WBS Manager will conduct investigation and collect information on the report
through the seven complaint channels provided.
3. The Independent WBS Manager will submit a complaint report to the President Director (Board of
Director/BOD)
4. If necessary, the BOD may request assistance from the Internal Audit Team to carry out an evaluation.
5. Regarding the validation results, the BOD will take the following steps:
- If it is justifiable to carry out a special audit, further/in-depth investigations will be carried out by
the Special Audit Team (IAD).
- If it is not justifiable to carry out a special audit, the handling will be adjusted according to
company regulations.
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Flowchart 3 - If the Reported Party is the WBS Team
Independent WBS President Director Related Work Units
Reporter
Manager
2
Start Assess and collect
information about the
complaint
1
Report of violation
3
No
Violation
Yes
4 5
Evaluation/Validation
Violation Report of Proof of Violation
6
Eligible for a No
custom audit?
8
Completion according
to the provisions of
the change
Yes
7
Initiation of the Special Audit
(Investigation)/CMGD/
External Auditor process
Reporting to BOD
8
and external as
needed
Completion
Explanation:
1. Report is addressed to the President Director through an Independent WBS manager if the reported is
a WBS Team Member.
2. The Independent WBS Manager will conduct investigation and collect information on the report
through the seven complaint channels provided.
3. The Independent WBS Manager will submit a complaint report to the President Director (Board of
Director/BOD)
4. If necessary, the BOD may request assistance from the Internal Audit Team to carry out an assessment.
5. Regarding the validation results, the BOD will take the following steps:
- If it is justifiable to carry out a special audit, further/in-depth investigations will be carried out by
the External Auditor Team and/or CMGD.
- If it is not justifiable to carry out a special audit, the handling will be adjusted according to company
regulations.
6. CMGD submits reports to BOD and external parties as needed.
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Flowchart 4 - If the Reported Party is a Board of Director
Independent WBS Board of Commissioners Related Work Units
Reporter
Manager
2
Start Assess and collect
information about the
complaint
1
Report of violation
3
No
Violation
Yes
4 5
Evaluation/Validation
Violation Report
of Proof of Violation
6
Eligible for a No
custom audit?
Settlement of
8
complaints by
related units
Yes
7
Initiation of the Special Audit
(Investigation)/In-Depth
Audit process by the Special
Audit Team (IAD)/External
Audit Team
Completion
Explanation:
1. Report is addressed to the Board of Commissioners if the reported person is the Board of Directors,
through the Independent WBS manager.
2. The Independent WBS Manager will conduct investigation and collect information on the report
through the seven complaint channels provided.
3. The Independent WBS Manager will submit a complaint report to the Board of Commissioners (BOC)
4. If necessary, the BOC may request assistance from the Internal Audit Team and/or External Audit to
carry out an assessment.
5. Regarding the validation results, the BOC will take the following steps:
- If it is justifiable to carry out a special audit, further/in-depth investigations will be carried out by
the Special Audit Team (IAD)/External Audit Team.
- If it is not justifiable to carry out a special audit, the handling will be adjusted according to
company regulations.
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Flowchart 5 - If the Reported Party is aBoard of Commissioner and/or a Committee
under the Board of Commissioners
Commissioners who are
Independent WBS not related to complaints Related Work Units
Reporter
Manager and are not members
of the Committee in
question
2
Start Assess and collect
information about the
complaint
1
Report of violation
3
No
Violation
Yes
4 5
Evaluation/Validation
Violation Report
of Proof of Violation
6
Eligible for a No
custom audit?
Settlement of
8
complaints by
related units
Yes
7
Initiation of the Special Audit
(Investigation)/In-Depth
Audit process by the Special
Audit Team (IAD)/External
Audit Team
Completion
Explanation:
1. Report is addressed to members of the Board of Commissioners who are not related to complaints
and are also not members of the Committee in question through the Independent WBS manager.
2. The Independent WBS Manager will conduct investigation and collect information on the report
through the seven complaint channels provided.
3. The Independent WBS Manager will submit a complaint report to the Commissioner that is not
related to the complaint and is not a member of the Committee in question.
4. If necessary, the Commissioner may request assistance from the Internal Audit Team and/or External
Audit to carry out an assessment
5. Regarding the validation results, the Commissioner who is not related to the complaint and is not a
member of the Committee in question will take the following steps:
- If it is justifiable to carry out a special audit, further/in-depth investigations will be carried out by
the Special Audit Team (IAD/External Auditor Team).
- If it is not justifiable to carry out a special audit, the handling will be adjusted according to
company regulations.
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Flowchart 6 - If the Reported Parties are Jointly Commissioners
Independent WBS Series A Dwiwarna Related Work Units
Reporter
Manager shareholders
2
Start
Assess and collect
information about the
complaint
1
Report of violation
3
No
Violation
Yes
4 5
Violation Report Evaluation/Validation
of Proof of Violation
6
Eligible for a No
custom audit?
Settlement of
8
complaints by
related units
Yes
7
Initiation of the Special Audit
(Investigation)/In-Depth
Audit process by the Special
Audit Team (IAD)/External
Audit Team
Completion
Explanation:
1. Report is addressed to Series A Dwiwarna Shareholders.
2. The Independent WBS Manager will conduct investigation and collect information on the report
through the seven complaint channels provided.
3. The Independent WBS Manager will submit a complaint report to the Series A Dwiwarna
Shareholders.
4. If necessary, the Series A Shareholders may request assistance from the Internal Audit Team and/or
External Audit to carry out an assessment.
5. Regarding the results of the validation, the Series A Dwiwarna Shareholders will take the following
steps:
- If it is justifiable to carry out a special audit, further/in-depth investigations will be carried out by
the Special Audit Team (IAD)/External Auditor Team.
- If it is not justifiable to carry out a special audit, the handling will be adjusted according to
company regulations.
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Sanction Process Flowchart - Legal Steps
Human Capital
Anti-Fraud Committee Management & Culture Legal Division
Specialist Division
Receive a Copy Initiation of Sanctions
of the Sanctions Through Legal Channels
Decision 1a
1b
Coordination with Legal Set up a Team and Legal
Div. for Legal Process Steps and Oversee the
Preparation Legal Process
2 3
Sanction Process Flow Chart for the Company
Employee Discipline &
Start IAD Directors HCMD Completion
Sanctions Committee
Issue occurring Initial Completion
at KC / regional Review
office / Division
Violation
Found
No further
investigation
required Discussion on Directors’ Execution of
Severity Level
N the issue decisions the Decision
Requires
Y further If beyond
investigation N authority
Special Recommendation
Audit Decision
Y
According to
Authority
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Independent Assurance Statement [GRI 2-5] [G.1]
INDEPENDENT ASSURANCE STATEMENT
PT Bank Tabungan Negara (Persero) Tbk
Sustainability Report 2023
Statement No: 04/IAS/CBC/II/2024
Type 2, Moderate Level
Scope of Engagement in Assurance
CBC Global Indonesia (“CBC Global Indonesia”, “us” or “we”) were commissioned
by PT Bank Tabungan Negara (Persero) Tbk (“bank BTN”) with the objective to
provide assurance of bank BTN’s 2023 Sustainability Report (the “Report”) in
relation with accordance to GRI Sustainability Reporting Standards (GRI
Standards) and the adherence to AA1000 Accountability Principles (2018) with
assurance over the Subject Matter presented in the Report, for the reporting year
ended 31st December 2023. This statement is intended to be used by
stakeholders & management of bank BTN.
The scope and limitation of our work is restricted to the following areas:
1. Subject Matter
- Economic Performance - Child Labor
- Market Presence - Procurement Practice
- Indirect Economic Impact - Diversity and Equal Opportunity
- Anti-Corruption - Non-Discrimination
- Product Portfolios - Emission, Effluents & Waste
- Employment - Freedom of Association and Collective Bargaining
- Local Communities - Forced or Compulsory Labor
- Data Privacy - Local Communities
- Marketing & Labeling - Employment & Occupational Health and Safety
- Training & Education - Social & Economic Compliance
- Material - Water & Energy
2. AA1000 Principles (2018)
Our assurance engagement was planned and performed to meet the requirements
of a Type 2 “moderate level” of assurance as defined by AA1000 Assurance
Standard (AA1000AS) v3 to evaluate the nature and extent of bank BTN’s
adherence to all four AA1000 AccountAbility Principles (2018): Inclusivity,
Materiality, Responsiveness and Impact.
We have not performed any work, and do not express any conclusions, on
any other information outside of the Subject Matter that may be published in
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the Report or on bank BTN’s website for the current reporting period or for previous
periods and assumed that the financial data and figures provided by bank BTN has
been audited by independent parties therefore, presentation of financial data and
figures in the report NOT within the scope of assurance.
Responsibilities of the Management of bank BTN
The Management of bank BTN has sole responsibility for preparing and presenting
the Subject Matter in accordance with GRI Standard and preparing the Report in
adherence to the AA1000 Principles (2018). Bank BTN’s responsibilities also
include maintaining effective internal controls over the information and data,
resulting in the preparation of the Subject Matter in a way that is free from material
misstatements.
Responsibilities, Competencies and Independency of CBC Global Indonesia
Our responsibility is to plan and perform our work to obtain assurance over whether
the Subject Matter has been prepared in accordance with the GRI Standard and to
report to bank BTN in the form of an independent assurance conclusion, based on
the work performed and the review progress. We must also express a conclusion
over whether the Report adheres to the AA1000 Principles (2018) and comment on
the nature and extent of each Principle individually. All this engagement was carried
out by an independent team of sustainability assurance professionals whose
already obtained the Certified Sustainability Report Assurer (CSRA) and any
relevant certifications.
CBC Global Indonesia is bounded by rules of conduct and professional practice
relating to independence and quality overseen by AccountAbility (www.
accountability.org/standards/licensing/ AA1000 as licensed-providers) and has
established policies and procedures that are designed to ensure that our team
maintain independence and integrity. We had no financial interest in the operation
of bank BTN other than for the assessment and assurance of this report. We don’t
accept or assume responsibility (legal or otherwise) or accept liability for or in
connection with any other purpose for which it may be used, or to any person by
whom the independent assurance opinion statement may be read.
Methodology
We conduct the following assurance procedures and activities:
• Pre-engagement to ensure the independence and impartiality of the
assurance team.
• Kick-off meeting and initial analysis of the report draft.
• Review, assess and evidence the reliability and quality of sustainability
performance and disclosed information as specified in the Report content for
the reporting period of 1st of January up to 31st of December 2023.
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• Evaluate the adherence of report content, disclosure and presentation against
the criteria of standard, principles, and indicators using references from
AA1000AS v3, AA1000AP (2018) (AccountAbility Principles), GRI Standards,
POJK51, SEOJK 16, SASB and TCFD.
• Adopt IPCC and PCAF Guidelines for calculation methodology of energy
used and emission.
• Asses indicators data and traced back data to the sources.
• Discuss and analysis data and reports with management and data contributor.
Finding and Conclusions
From the assurance program and the evidence, we have obtained, a detailed review
against the AA1000 AccountAbility Principles of Inclusivity, Materiality,
Responsiveness and Impact, the GRI Standards, POJK51, SEOJK 16, SASB, and
TCFD is set out below:
INCLUSIVITY
An assessment was made to investigate the engagement of all key stakeholders within
the company. The presentation of stakeholder’s inclusivity in the report is fairly
identified and covers all bank BTN’s inclusivity material issues. The stakeholder’s
engagement has been held through communication based on various methods and
approaches with the contributions of all key stakeholders includes their internal and
external stakeholders to develop an accountable and strategic sustainability topic.
MATERIALITY
An assessment was made to investigate the material information disclosed by the
company. The report fairly covers the organization’s material issues by using
materiality matrix and boundary mapping through the stakeholder’s inclusivity process.
The materiality topics shows in the report provide a fair and sufficient information and
aligned with risk management within the company which enables its stakeholders to
make a professional judgment about bank BTN’s performance and management.
RESPONSIVENESS
An assessment was made to investigate the transparency act of the company on
material sustainability topics and their related impacts. The report covers bank BTN’s
responsiveness issues. All the information related to the responses from management
to its stakeholder’s inputs and complaints has been included in the report and any
others company’s mechanisms transparently and appropriateness the responses to a
strategic stakeholder engagement management.
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IMPACT
The Report content discloses data and information indicating the impacts of the
Company’s decisions, activities, and services on the economy, environment, and
society. An assessment was made to investigate the practice of the company to
monitor, measure and be accountable for how their actions affect their broader
ecosystems. In overall, disclosures of impacts in the Report content are rather balance
and adequate with both metric and qualitative information. However, the Company still
needs to integrate comprehensively the identified impacts into key management
processes to conduct an impact assessment on the other stakeholders, including its
organizational strategy, governance, goals, objectives, and operations.
GRI STANDARDS PRINCIPLES
The report has followed the in accordance option of GRI Standards where all
disclosure of each material topic is presented in the report. The disclosures of
management approach for each material topic in general are fairly disclosed. The
Management has applied the principles for defining the report’s quality (balance,
comparability, accuracy, timeliness, clarity, and reliability) and the principles for
defining the report’s content (stakeholder inclusiveness, sustainability context,
materiality, and completeness) and supporting documents were adequately presented
during the assurance program.
Adherence to POJK51, SEOJK16, SASB, AND TCFD
The report has followed or complied to all POJK 51 and SEOJK16 reporting guidelines.
However, in terms of the adherence against SASB and TCFD, bank BTN still need to
develop more policies and initiatives on environment concern. The company is advised
to improve their risk and impact analysis on sustainability and also improve the
assessment on high-risk lending sectors with negative impacts towards social and
environment issues such as palm oil, mining or any other sectors.
Opinion Statement
Our professional and certified team of sustainability report assurer has assured this
report in accordance with the AA1000AP (2018), AA1000AS v3 and GRI Standards.
From the review progress, we conclude that the bank BTN’s Sustainability Report
2023 provides a fair view of the all the bank BTN’s programmes and performances
during 2023. The extent to which the GRI Standards has been applied in the Report
and conclude this report has been prepared in accordance with GRI Standards. We
conclude that the data in 2023 for all material topics performance indicators are fairly
represented and there is nothing has come to our attention that would cause us to
believe that bank BTN has not given the reliable data.
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Recommendations
There are some suggested recommendations for the management of Bank BTN:
1. Developing specific policies that regulate aspects of sustainability or
Environmental, Social, Governance (ESG), and its components, such as
credit criteria, vendor selection criteria, etc;
2. Strengthening the sustainability management information system.
Systematizing sustainability data such as energy, water, etc can facilitate and
enhance the accuracy of calculations and reporting.
For and on behalf of:
Jakarta, February 12, 2024
Novi Ratnasari SE, CSRS, CSRA
Managing Director
PT CBC Global Indonesia
The Icon Horizon Broadway Blok M.5 No.3, Tangerang, Indonesia 15345
Tel: (62)(21) 87780058
Email: services@cbcglobalindonesia.com
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GRI CONTENT INDEX
Statement of Use PT Bank Tabungan Negara (Persero) Tbk has reported in accordance with the GRI
Standards for the period 1 January until 31 December 2023.
GRI 1 Used GRI 1: Foundation 2021
Applicable GRI Sector Standard GRI G4 Financial Services
Omission No. Ref.
GRI Standard Disclosure Page Requirement Standar
Reason Explanation Sektor GRI
Omitted
General Disclosures
GRI 2: General 2-1 Organizational details 38
Disclosures 2021
2-2 Entities included in the
organization’s sustainability 28
reporting
2-3 Reporting period, frequency 28, 35,
and contact point 205
2-4 Restatement of information 28
2-5 External assurance 35, 190
2-6 Activities, value chain, and 38, 40,
other business relationship 43-49
2-7 Employees 86-88
2-8 Workers who are not
86
employees
2-9 Governance structure and 89-91,
composition 153, 162
2-10 Nomination and selection of
153, 158
the highest governance body
2-11 Chair of the highest
153, 154
governance body
2-12 Role of the highest governance
body in overseeing the 20, 162
management of impacts
2-13 Delegation of responsibility for
20, 162
managing impacts
2-14 Role of the highest governance
14-15, 35
body in sustainability reporting
2-15 Conflict of interest 176
2-16 Communication of critical 22, 170,
concerns 175, 182
2-17 Collective knowledge of the
94-96
highest governance body
2-18 Evaluation of the performance
161-162
of the highest governance body
2-19 Remuneration policies 159-160
2-20 Process to determine
160
remuneration
2-21 Annual total compensation
160-161
ratio
2-22 Statement on sustainable
8-13
development strategy
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Omission No. Ref.
GRI Standard Disclosure Page Requirement Standar
Reason Explanation Sektor GRI
Omitted
2-23 Policy commitments 9-13, 28,
41-42,
86, 163,
171, 174-
175
2-24 Embedding policy 9-13,
commitments 174
2-25 Processes to remediate
173
negative impacts
2-26 Mechanisms for seeking advice
181
and raising concerns
2-27 Compliance with laws and
71, 144
regulations
2-28 Membership associations 49
2-29 Approach to stakeholder
33-34
engagement
2-30 Collective bargaining
103
agreements
Material Topics
GRI 3: Material 3-1 Process to determine material
29-31
Topics 2021 topics
3-2 List of material topics 29-33
Economic Performance
GRI 3: Material 3-3 Management of material topics
64
Topics 2021
GRI 201: 201-1 Direct economic value
64
Economic generated and distributed
Performance
201-2 Financial implications and
2016 64, 73,
other risks and opportunities
74
due to climate change
201-3 Defined benefit plan
obligations and other 106
retirement plans
201-4 Financial assistance received
64
from government
Market Presence
GRI 3: Material 3-3 Management of material topics
103
Topics 2021
GRI 202: Market 202-1 Ratios of standard entry level
Presence wage by gender compared to 105
2016 local minimum wage
202-2 Proportion of senior
management hired from the 92
local community
Indirect Economic Impacts
GRI 3: Material 3-3 Management of material topics
115
Topics 2021
GRI 203: Indirect 203-1 Infrastructure investments and
115-117
Economic Impacts services supported
2016
203-2 Significant indirect economic
115-117
impacts
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Omission No. Ref.
GRI Standard Disclosure Page Requirement Standar
Reason Explanation Sektor GRI
Omitted
Procurement Practices
GRI 3: Material 3-3 Management of material topics
48
Topics 2021
GRI 204: 204-1 Proportion of spending on
Procurement local suppliers 48
Practices 2016
Anti-corruption
GRI 3: Material 3-3 Management of material topics
177, 178
Topics 2021
GRI 205: Anti- 205-1 Operations assessed for risks
179, 180
corruption 2016 related to corruption
205-2 Communication and training
about anti-corruption policies 180, 181
and procedures
205-3 Confirmed incidents of
180
corruption and actions taken
Materials
GRI 3: Material 3-3 Management of material topics
77, 78
Topics 2021
GRI 301: 301-1 Materials used by weight or
78
Materials volume
2016
301-2 Recycled input materials used 78
301-3 Reclaimed products and their
78
packaging materials
Energy
GRI 3: Material 3-3 Management of material topics
75
Topics 2021
GRI 302: Energy 302-1 Energy Consumption Within
77
2016 the Organization
302-2 Energy consumption outside of
77
the organization
302-3 Energy intensity 77
302-4 Reduction of energy
77
consumption
302-5 Reductions in energy
requirements of products and 77
services
Water and Effluents
GRI 3: Material 3-3 Management of material topics
79, 80
Topics 2021
GRI 303: Water 303-1 Interactions with water as a
80
and Effluents shared resource
2018
303-2 Management of water
81
discharge-related impacts
303-3 Water withdrawal 80
303-4 Water discharge 81
303-5 Water consumption 80
Emissions
GRI 3: Material 3-3 Management of material topics
71, 72
Topics 2021
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Omission No. Ref.
GRI Standard Disclosure Page Requirement Standar
Reason Explanation Sektor GRI
Omitted
GRI 305: 305-1 Direct (Scope 1) GHG
71, 72
Emissions 2016 emissions
305-2 Energy indirect (Scope 2) GHG
71, 72
emissions
305-3 Other indirect (Scope 3) GHG
71, 72
emissions
305-4 GHG emissions intensity 72
305-5 Reduction of GHG emissions 72
305-6 Emissions of ozone-depleting
72, 78
substances (ODS)
305-7 Nitrogen oxides (NOX), sulfur
oxides (SOX), and other 72
significant air emissions
Waste
GRI 3: Material 3-3 Management of material topics
77, 80
Topics 2021
GRI 306: Waste 306-1 Waste generation and
2020 significant waste-related 77, 80
impacts
306-2 Management of significant 77, 78,
waste-related impacts 80, 81
306-3 Waste generated 80, 81
306-4 Waste diverted from disposal 80, 81
306-5 Waste directed to disposal 80, 81
Environmental Compliance
GRI 3: Material 3-3 Management of material topics
71
Topics 2021
GRI 307: 307-1 Non-compliance with
Environmental environmental laws and
71
Compliance regulations
2016
Employment
GRI 3: Material 3-3 Management of material topics
92
Topics 2021
GRI 401: 401-1 New employee hires and
92, 93
Employment employee turnover
2016
401-2 Benefits provided to full-
time employees that are not
104
provided to temporary or part-
time employees
401-3 Parental leave 105
Occupational Health and Safety
GRI 3: Material 3-3 Management of material topics
107
Topics 2021
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Omission No. Ref.
GRI Standard Disclosure Page Requirement Standar
Reason Explanation Sektor GRI
Omitted
GRI 403: 403-1 Occupational health and safety
107, 109
Occupational management system
Health and
403-2 Hazard identification, risk
Safety
assessment, and incident 110
2018
investigation
403-3 Occupational health services 109
403-4 "Worker participation,
consultation, and
108, 110
communication on
occupational health and safety"
403-5 Worker training on
109, 110
occupational health and safety
403-6 Promotion of worker health 109
403-7 Prevention and mitigation of
occupational health and safety
109
impacts directly linked by
business relationships
403-8 Workers covered by an
occupational health and safety 109
management system
403-9 Work-related injuries 110
403- Work-related ill health
110
10
Training and Education
GRI 3: Material 3-3 Management of material topics
93
Topics 2021
GRI 404: Training 404-1 Average hours of training per
99
and Education year per employee
2016
404-2 Programs for upgrading
94-98,
employee skills and transition
105
assistance programs
404-3 Percentage of employees
receiving regular performance
102, 103
and career development
reviews
Diversity and Equal Opportunity
GRI 3: Material 3-3 Management of material topics 86, 88,
Topics 2021 89, 103
GRI 405: 405-1 Diversity of governance bodies
86-91
Diversity and employees
and Equal
405-2 Ratio of basic salary and
Opportunity
remuneration of women to 103
2016
men
Non-Discrimination
GRI 3: Material 3-3 Management of material topics
88, 89
Topics 2021
GRI 406: Non 406-1 Incidents of discrimination and
Discrimination corrective actions taken 88, 89
2016
Freedom of Association and Collective Bargaining
GRI 3: Material 3-3 Management of material topics
110
Topics 2021
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Omission No. Ref.
GRI Standard Disclosure Page Requirement Standar
Reason Explanation Sektor GRI
Omitted
GRI 407: 407-1 Operations and suppliers in
Freedom of which the right to freedom
Association and of association and collective 110
Collective bargaining may be at risk
Bargaining 2016
Child Labor
GRI 3: Material 3-3 Management of material topics
88, 89
Topics 2021
GRI 408: Child 408-1 Operations and suppliers at
Labor 2016 significant risk for incidents of 88, 89
child labor
Forced or Compulsory Labor
GRI 3: Material 3-3 Management of material topics
88, 89
Topics 2021
GRI 409: Forced 409-1 Operations and suppliers at
88, 89,
or Compulsory significant risk for incidents of
103
Labor 2016 forced or compulsory labor
Local Community
GRI 3: Material 3-3 Management of material topics
115
Topics 2021
GRI 413: Local 413-1 Operations with local
Communities community engagement,
115-118
2016 impact assessments, and
development programs
413-2 Operations with significant
actual and potential negative 145
impacts on local communities
Marketing and Labeling
GRI 3: Material 3-3 Management of material topics
139
Topics 2021
GRI 417: 417-1 Requirements for product
Marketing and and service information and 139
Labeling labeling
2016
417-2 Incidents of non-compliance
concerning product and service 139
information and labeling
417-3 Incidents of non-compliance
concerning marketing 139
communications
Customer Privacy
GRI 3: Material 3-3 Management of material topics
132
Topics 2021
GRI 418: 418-1 Substantiated complaints
Customer Privacy concerning breaches of
133, 138
2016 customer privacy and losses of
customer data
Socioeconomic Compliance
GRI 3: Material 3-3 Management of material topics
144
Topics 2021
GRi 419: 419-1 Non-compliance with laws and
Socioeconomic regulations in the social and
144
Compliance economic area
2016
Sector Disclosure
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Omission No. Ref.
GRI Standard Disclosure Page Requirement Standar
Reason Explanation Sektor GRI
Omitted
GRI G4 Financial FS1 Policies with certain
Services environmental and social 71, 173
components
FS2 Procedures for assessing and
screening environmental and 71, 173
social risks in business lines
FS3 Processes for monitoring
client implementation and
compliance with environmental
174
and social requirements
included in agreements or
transactions
FS4 Processes for improving staff
competency to implement
environmental and social 94
policies and procedures as
applied to lines of business
FS5 Interactions with clients/
investments/business partners 48, 71,
regarding environmental and 173
social risks and opportunities
FS6 Portfolio percentage for
business lines by specific area
122-125
size (eg micro/SME/large)
and by sector
FS7 The monetary value of
products and services
designed to provide specific
122-125
social benefits for each line
of business broken down by
purpose or objective
FS8 The monetary value of
products and services
designed to provide specific
124
environmental benefits for
each line of business broken
down by purpose or objective
FS9 Scope and frequency of audits
to assess implementation
of environmental and social 174
policies and risk assessment
procedures
FS10 Percentage and number of
companies held in the portfolio
of institutions with which
73-74
the reporting organization
interacts on environmental or
social issues
FS11 Percentage of assets that are
subject to positive and negative 73-74
environmental social issues
FS14 Initiatives to improve access
to financial services for 144
disadvantaged people
FS15 Policies for the fair design and
sale of financial products and 139
services
FS16 Initiatives to improve financial
126, 127
literacy by type or beneficiary
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Financial Service Authority (OJK) Reference [OJK G.4]
SEOJK Reference Disclosure Page
Circular No. 16/ A.1 Descriptions of Sustainability Strategy 16
SEOJK.04/2021
B.1 Economic Aspects 6, 48
B.2 Environmental Aspects 7
B.3 Social Aspects 6
C.1 Vision, Mission and Sustainability Values 41
C.2 Company's Address 38
C.3 Scale of Business 38, 40, 46
C.4 Products, Services and Business Activities Conducted 38, 43
C.5 Membership of Associations 49
C.6 Significant Changes in Organization 49
D.1 Explanations from the Board 8
E.1 Responsibility in the Implementation of Sustainable 20
Finance
E.2 Development of Finance-Related Competency 94
E.3 Risk Assessment on the Implementation of Sustainable 163
Finance
E.4 Stakeholder Relations 33
E.5 Issues Surrounding the Implementation of Sustainable 22
Finance
F.1 Activities in Building a Culture of Sustainability 77
F.2 Comparison between Production Target and Performance, 60
Portfolio, Financing Target, or Investment, Income and Profit
and Loss
F.3 Comparison between Portfolio Targets and Performance, 115
Financing Targets, or Investments in Financial Instruments
or Projects Compatible with Sustainable Finance
F.4 Environmental Cost 81
F.5 Use of Environmentally Friendly Materials 78
F.6 Amount and Intensity of Energy Used 77
F.7 Efforts and Fulfillment of Energy Efficiency and Use of 75
Renewable Energy
F.8 Water Usage 80
F.9 Amount and Intensity of Emissions Produced by Type 71
F.10 Emission Reduction Efforts and Achievements 71, 174
F.11 Equal Employment Opportunity 71, 72
F.12 Upaya dan Pencapaian Pengurangan Emisi yang Dilakukan 72
F.13 Jumlah limbah dan efluen yang dihasilkan berdasarkan 80
jenis
F.14 Mekanisme pengelolaan limbah dan efluen 80
F.15 Tumpahan yang terjadi 81
F.16 Jumlah dan materi pengaduan lingkungan hidup yang 71
diterima dan diselesaikan
F.17 Komitmen untuk memberikan layanan atas produk dan/ 139
atau jasa yang setara kepada konsumen
F.18 Kesetaraan Kesempatan Bekerja 86
F.19 Child Labor and Forced Labor 88, 89, 103
F.20 Regional Minimum Wage 105
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SEOJK Reference Disclosure Page
F.21 Decent and Safe Working Environment 107
F.22 Employee Capability Training and Development 94
F.23 Impact of Operations on Surrounding Communities 115
F.24 Public Complaints 145
F.25 Environmental Social Responsibility Activities (TJSL) 115
F.26 Innovation and Development of Sustainable Financial
140
Products/Services
F.27 Safety Evaluated Products/Services for Customers 132, 139
F.28 Impact of Product/Service 139
F.29 Number of Products Recalled 139
F.30 Customer Satisfaction Survey on Sustainable Financial
139
Products and/or Services
G.1 Written Verification from Independent Party 35, 190
G.2 Feedback Form 14, 15, 35, 205
G.3 Response towards Feedback on Previous Year's
35
Sustainability Report
G.4 List of Disclosures According to Financial Services Authority
Regulation Number 51/POJK.03/2017 concerning the
202
Implementation of Sustainable Finance for Financial
Services Institutions, Issuers, and Public Companies
Sustainability Accounting Standard
Board (SASB) Reference
Code Description Page
Keamanan Data
FN-CB-230a.1 (1) Number of data breaches (2) Percentage of personally identifiable information (3)
133
Number of accounts affected
FN-CB-230a.2 Approaches to dealing with data security risks 133
Keuangan
FN-CB-240a.1 Loan amount that is eligible for small business and community development programs 122-127
FN-CB-240a.2 Amount of eligible and non-accrual loans to promote small business and community
122-127
development
FN-CB-240a.3 Number of accounts that previously did not have a bank account or faced limited banking
173
access
FN-CB-240a.4 Number of participants in financial literacy programs 127
Inkorporasi
FN-CB-410a.1 Commercial and credit opening by industry 118, 122
FN-CB-410a.2 Approaches to including environmental, social and governance (ESS) factors in credit
173
analysis
Bisnis
FN-CB-510a.1 Total losses due to legal proceedings relating to fraud, insider trading, antitrust, anti-
competitive conduct, market manipulation, malpractice, or other related financial industry 144, 180
violations
FN-CB-510a.2 Whistleblowing policies and procedures 181
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Task Force on Climate-related Financial
Disclosures (TCFD) FRAMEWORK
Code Description Page
Governance
a Describes board oversight of climate-related risks and opportunities 20
b Describe the role of management in assessing and managing climate-related risks and
73
opportunities
Strategy
a Explain the climate-related risks and opportunities the organization has identified in the
73
shorter, medium, and longer terms
b Explain the impact of climate-related risks and opportunities on an organization's
73
business, strategy and financial planning
Risk Management
a Describe the organization's processes for identifying and assessing climate-related risks 73
b Describe organizational processes for managing climate-related risks. 49, 73
c Describe processes for identifying, assessing, and managing climate-related risks
73
integrated into the organization's overall risk management
Metrics and Targets
a Disclose metrics used by the organization to assess climate-related risks and
72
opportunities in line with their strategy and risk management processes
b Disclose Scope 1, Scope 2, and, where appropriate, Scope 3 greenhouse gases (GHG) and
71, 72
related risks
c Describe the targets used by the organization to manage climate-related risks and
72
opportunities and performance against targets
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FEEDBACK SHEET [OJK G.2]
Thank you for reading PT Bank Tabungan Negara (Persero) Tbk 2023 Sustainability Report. To realize better reporting
quality in the coming year, we expect suggestions, criticisms and suggestions from readers and users of this report. The
Company is committed to continuously improving sustainability performance and providing the best for stakeholders
Profile
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Please choose the appropriate answer by putting a √ in front of the available answers
1. Does this report describe the Company’s performance 3. Is this report easy to understand?
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2. Is this report useful for you? 4. Is this report interesting?
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Please write the answers according to your opinion:
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2. Which part of the information is not useful so it needs to be improved?
3. Is the data presented transparent, reliable, and balanced?
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PT Bank Tabungan Negara (Persero) Tbk. [GRI 2-3]
Corporate Secretary Division
BTN Tower 20th Floor
Jln. Gajah Mada No. 1
Central Jakarta, 10130
Phone : (021) 6336789 ext. 2003
Fax : (021) 6336719
Email : csd@btn.co.id
PT Bank Tabungan Negara (Persero) Tbk 205
Page 206
PT Bank Tabungan Negara (Persero) Tbk
Bank BTN Tower
Jl. Gajah Mada No. 1, Central Jakarta 10130
Tel. (+62) 6336789, 6332666
E-mail : csd@btn.co.id
www.btn.co.id
Bank BTN @BankBTN @bankbtn
Names mentioned 79 people and organisations named in the text · linked when the evidence is strong
unresolved
org
Financial Services Authority
p.11 ×8
unresolved
org
Ministry of Public Works and Public Housing.
p.13 ×3
unresolved
person
Vice President Directo
· President Director
p.15 ×2
unresolved
org
Bank BTN Sustainable Finance Pillars
p.20
unresolved
—
about greenhouse gas emission
p.31
unresolved
—
Employees, labor unions
p.32 ×4
unresolved
—
Employees and labor
p.32 ×2
unresolved
—
unions
p.32 ×2
unresolved
—
Labor union
p.32 ×2
unresolved
org
Ministry of SOE
p.34 ×2
unresolved
org
Bank BTN Syariah Business Organizations
p.34
unresolved
org
Government of the Republic of Indonesia
p.38 ×6
unresolved
org
Bank Tabungan
p.38 ×5
unresolved
org
Become Limited Corporation
p.39
unresolved
org
Series B Limited Corporation
p.39
unresolved
person
Salim
p.39
unresolved
person
Ashoya Ratam
p.43
unresolved
org
Bank Indonesia
p.43 ×6
unresolved
org
Bank Indonesia Certificate
p.43
unresolved
person
Minister of SOE No. SE-
p.48
unresolved
org
Bank Indonesia Regulation
p.48
unresolved
org
Bank Institution
p.49
unresolved
person
Muhani Salim
p.50
unresolved
org
Minister of Justice
p.50
unresolved
org
Indonesia Stock Exchange
p.51
unresolved
org
Minister of Finance. Government
p.52
unresolved
org
Bank Affairs. Tabungan
p.53
unresolved
org
Bank Tunggal
p.53
unresolved
org
Bank Koperasi Tani
p.53
unresolved
org
Bank Dagang Negara.
p.53
unresolved
org
Bank BTN's ESG
p.53
unresolved
—
Pengaw
· Direktur Utama
p.54
unresolved
org
Ministry of PUPR
p.61 ×2
unresolved
org
Bank Distributing
p.61
unresolved
org
Ministry of Agrarian and Spatial Planning
p.67
unresolved
org
Bank BTN's
p.67
unresolved
org
Directorate General of Electricity
p.71
unresolved
org
Ministry of Energy and Mineral Resources
p.71
unresolved
org
PT PLN.
p.71 ×2
unresolved
org
Ministry of State-Owned Enterprises. This
p.74
unresolved
org
Ministry of Transportation.
p.80
unresolved
org
Minister of State
p.81
unresolved
—
Andin
· Commissioner
p.90 ×2
unresolved
—
Ahdi Jumhari
· Independent
p.90
unresolved
—
Himawan
· Commissioner
p.90 ×2
unresolved
—
M. Yusuf
· Commissioner
p.90
unresolved
org
Nixon L.P.
· President
p.90 ×2
unresolved
—
Hamzah
· Independent
p.95
unresolved
—
Arief
· Commissioner
p.95
unresolved
—
Sentausa
· Commissioner
p.95
unresolved
org
ASEAN Global Leadership Program
· President Director
p.96 ×2
unresolved
—
Rahardjo
· April 12, 2023 in Jakarta
p.96
unresolved
—
Setiyo
· Director of Risk
p.96
unresolved
—
GRC Masterclass Program 2023
· September 27, 2023 in
p.96 ×5
unresolved
—
“ESG for Boards Governance of ESG”
· Jakarta
p.96
unresolved
—
Hakim
· Director of Institutional
p.96
unresolved
org
Ministry of Manpower and Transmigration
p.103
unresolved
org
Minister of Manpower Regulation
p.103
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