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Empowering the Transition to a Sustainable Future 2024 Sustainability Report
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SMBC Indonesia
Empowering Transition
to a Sustainable Future
In line with its name change, PT Bank
SMBC Indonesia Tbk (SMBC Indonesia)
is empowering the transition towards a
sustainable future in response to the global
shift towards a green economy and energy
transformation. After promoting a greener
economy in the previous year, this year, SMBC
Indonesia focuses on empowering customers
and partners to adapt to green regulations
and implement sustainability practices.
Proactively, SMBC Indonesia supports the
sustainability journey of its customers while
continuing to enhance the implementation of
sustainable finance within SMBC Indonesia.
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 1
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SMBC Indonesia
TABLE OF CONTENTS
1 Theme Explanation Sustainable and Eco-Friendly
4 Vision, Mission and Core Values
Economy
6 Sustainability Highlights 60 SMBC Indonesia’s Inclusive Finance
16 Key Sustainability Events Initiative
18 Sustainability Awards
04 61
61
Impact and Management
Customer and Stakeholder Education
62 Coordination and Collaboration
62 Performance of SMBC Indonesia
Message from the President
64 Sustainable Finance Taxonomy
Commissioner and the President
Director 64 Percentage of Green And Social
Businesses in The Portfolio
22 Message from the President
66 Business Portfolio by Sector and Size
Commissioner
01 25 Message from the President Director
67 Implementation of Environmental and
Social Policies and Procedures
67 Economic Value Generated and
Distributed
68 Challenges in The Implementation of
About SMBC Indonesia Sustainable Finance
32 General Information 68 Supply Chain
33 Business Entity 69 Tax
02 33
33
Significant Changes
Company Rating
34 Operational Areas and Service Network
Financial Services for Sustainable
36 Membership of Associations
Transformation
36 Company Scale
37 Milestones of Smbc Indonesia 72 SMBC Indonesia’s Products
74 Flagship Products
05 76
76
Expanding Access
Quality Products and Services
SMBC Indonesia and 77 Enhancing Service Quality
Sustainability Commitment
78 Customer Privacy Protection and
Information Security
41 SMBC Indonesia’s Sustainability Journey
80 Product Information and Marketing
42 Implementation of Sustainable Finance
03 43
46
SMBC Indonesia Sustainability Policy
Environmental and Social Risk
80 Customer Satisfaction Survey
Assessment Procedure
Daya: Building A Resilient, Inclusive,
47 Monitoring Process for Environmental
and Sustainable Future
and Social Compliance Implementation
47 Environmental and Social Risk 84 Social Responsibility Activities
Assessment
85 Community Empowerment Program
49 Governance
06
90 Empowerment Support through the
51 SMBC Indonesia’s Sustainability Strategy Digital Platform - Daya.id
52 Risk Management 91 Sahabat Daya
52 Metrics and Targets 92 The Daya Program Impact Assessment
54 SMBC Indonesia's Strategies and
Contributions to the SDGs
2 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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SMBC Indonesia
Unlocking Potential, 128 The Role of The Board of Commissioners
and Directors in Overseeing the
Building the Future Management of the Organization’s
Impacts
96 Five Pillars of SMBC Indonesia’s EVP
128 Independence and Membership in the
97 Highlight of the #Morethanajourney 2024 Governance Structure
07
Initiative
129 Nomination and Selection of The Board
98 Support for Diversity and Inclusion of Commissioners and Directors
99 Adoption of Digital Technology for Employee 129 The Role of Governance Structure in
Management Sustainability Reporting
99 SMBC Indonesia Personnel 129 Conflict of Interest
100 Employee Diversity and Equality 130 Policy Commitment
101 Proportion of Senior Management from the 132 Implementation of Responsible Business
Practices
Local Community
133 Whistleblowing System
101 Decent and Safe Working Environment
133 Grievance Mechanism
102 Employee Recruitment
134 Internal Control System
103 Employee Turnover
135 Prevention and Eradication of Corruption
105 Employee Rights and Fraud
107 Retirement Program 138 Communication of Critical Concerns
107 Collective Labor Agreement 138 Enhancement of The Board of
107 Child Labor and Forced Labor Commissioners and Directors’ Capacity
107 Training and Development 138 Evaluation of the Board of
Commissioners and Directors
109 Enhancing Employee Competency in
139 Remuneration of The Board of
Sustainable Finance Commissioners and Directors
112 Performance Review 139 Anti-Money Laundering and Counter-
112 Security Personnel Trained in Human Rights Terrorism Financing Policy
Policies or Procedures 140 Compliance with Laws and Regulations
112 Work-Life Balance 140 Risk Management
144 Stakeholder Engagement
Prioritizing Commitment to Climate
and the Environment About the Report
116 Energy Usage 148 Reporting Standards
117 Utilization of Renewable Energy 148 Assurance Service
118 Green Technology Asset Management 149 Determination of Material Topics
08 118
119
Emissions
Financed Emissions
10
150
152
List of Material Topics
List of Non-Material Topics
153 Materiality Level
119 Green Building
120 Paper Saving 155 Statement on GRI Standards in
Accordance Check
121 Environmental Education
156 Independent Assurance Statements
121 Water and Effluent 158 SDGs Links in GRI Standards
121 Waste Management 166 GRI Standard Index
170 GRI Standard - Financial Sector (FS)
121 Flexible Workplace Initiative
Index
122 Environmental Costs 171 SE OJK 16/2021 Index
174 SASB – Financial Sector Index
175 SUSBA Index
Sustainable Governance for 178 TCFD Index
Responsible Growth 179 Feedback Sheet
127 Governance Structure
127 General Meeting of Shareholders (GMS)
09 128
128
Board of Commissioners
Board of Directors
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 3
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SMBC Indonesia
VISION, MISSION & CORE VALUES
VISION
[GRI 2-22] [OJK C.1]
To become the first choice bank in Indonesia, which
give significant change in the life of millions of people,
mainly with the support of digital technology.
MISSION
[GRI 2-22] [OJK C.1]
TO OFFER TO PROVIDE TO CREATE TO USE
complete financial a valuable opportunity significant and technology
solution and service for the professional sustainable values innovation as the
to various segments growth of the SMBC for stakeholders, main differentiator
of retail, micro, Indonesia employees. including for to provide the
SME and corporate Indonesian society. best quality and
business in Indonesia, experience in its
and for Indonesian class to the
Nation and Country as SMBC Indonesia
a whole clients and partners.
CORE VALUES
[GRI 2-22] [OJK C.1]
INTEGRITY CUSTOMER FIRST
As a professional, always act with Always look at it from the
sincerity and with a high ethical customers’ point of view to provide
standard. additional value.
PROACTIVE & INNOVATIVE SPEED & QUALITY
Step up and relentlessly innovate. Differentiate ourselves through the
SYNERGY speed and quality of decision-
Collaborate as one team within making and service delivery.
the SMBC Indonesia financial
conglomeration.
4 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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SMBC Indonesia PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 5
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SMBC Indonesia
SUSTAINABILITY HIGHLIGHTS
ECONOMY [OJK B.1]
ECONOMIC PERFORMANCE OVERVIEW
NET OPERATING NET PROFIT*
INCOME* (Rp Trillion) [OJK B.1.c]
(Rp Trillion) [OJK B.1.b]
4.10 3.22
3.46 2.68
4.66 3.63
2024 2024
2023 2023
2022 2022
ASSET* CUSTOMERS*
(Rp Trillion) (in Million)
241.10 9.9
201.45 9.5
209.17 8.8
2024 2024
2023 2023
2022 2022
DIVIDEND PAYMENTS TAX PAYMENTS
(Rp Billion) (Rp Billion)
892
472
861
619
814
-
2024 2024
2023 2023
Note:
Consolidated financial data of SMBC Indonesia, including its three subsidiaries: PT Bank BTPN Syariah Tbk, PT Oto Multiartha (OTO), and PT Summit Oto Finance (SOF).
6 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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SMBC Indonesia
ECONOMIC PERFORMANCE RELATED TO SUSTAINABILITY
TYPES OF 2024 2023 2022
SUSTAINABLE
• 2 funding products • 2 funding products • 1 funding product
FINANCE
• 3 sustainable financing • 3 sustainable financing • 3 sustainable financing
PRODUCTS
products products products
• 1 MSME financing product • 1 MSME financing • 1 MSME financing product
• ESG Mutual Funds product • Philanthropic Mutual
• ESG Mutual Funds Funds
PERCENTAGE OF TOTAL FINANCING PORTFOLIO
FOR SUSTAINABLE BUSINESS ACTIVITIES
RELATIVE TO THE TOTAL PORTFOLIO (%)
12.42%
9.64% NOMINAL FINANCING
0.06% PORTFOLIO FOR SUSTAINABLE
BUSINESS ACTIVITIES
CATEGORY (KKUB)**
(RP BILLION)
0.08% Funding*** Financing****
(%) (%)
18,126
0.11%
2024
9.49%
13,775 12,968
2023 2022
2024 2023 2022 2024 2023 2022
FINANCING
145.94 145.17 134.60
(Rp Trillion) [OJK B.1.a]
2024 2023 2022
TOTAL NUMBER OF
187 273 316
LOCAL SUPPLIERS
2024 2023 2022
[OJK B.1.e]
Notes:
** Sustainable Business Activities Category (KKUB)
*** Percentage of total funding allocated to sustainable business activities relative to the bank’s total funding.
**** Percentage of total financing for sustainable business activities relative to the bank’s overall financing portfolio.
- Adjustment in the disclosure of information on types of sustainable finance-related product.
PT BANK SMBC INDONESIA TBK SUSTAINABILITY REPORT 2024 7
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SMBC Indonesia
SUSTAINABLE
FINANCING
2024 2,252 2024 8,361 2024 7,514
2023 115 2023 5,977 2023 7,682
2022 136 2022 5,905 2022 6,927
MICRO SMALL AND GREEN FINANCING
(Rp Billion) MEDIUM (Rp Billion) [OJK B.1.d]
ENTERPRISES
(Rp Billion)
SUSTAINABLE BUSINESS ACTIVITIES CATEGORY (KKUB)
(Rp Billion) [OJK B.1.d]
510 100 901
GREEN BUILDING GREEN TRANSPORTATION ECO-EFFICIENT PRODUCTS
294 10,612.50 1,244
ENERGY EFFICIENCY MSMEs RENEWABLE ENERGY
4,058 406
SUSTAINABLE NATURAL ENVIRONMENTALLY CONSCIOUS
RESOURCES AND LAND USE BUSINESS ACTIVITIES AND/OR
OTHER RELATED INITIATIVES.
8 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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SMBC Indonesia
SOCIAL [OJK B.3]
EMPLOYEES
NUMBER OF EMPLOYEES EMPLOYEE RECRUITMENT
(EMPLOYEES) (EMPLOYEES)
6,491 514
2024 2024
6,636 6,972 609 948
2023 2022 2023 2022
14
45 43 8.5
PERCENTAGE OF
FEMALE
TURNOVER RATE
EMPLOYEES
(%)
(%)
44 12.4
2024 2023 2022 2024 2023 2022
TRAINING AND FAMILIARIZATION
AVERAGE TRAINING NUMBER OF NUMBER OF
HOURS (HOURS/ PARTICIPANTS IN ANTI- SUSTAINABILITY
EMPLOYEES) FRAUD TRAININGS TRAININGS
35 6,162 53
49 6,359 6
39 6,495 2
2024 2024 2024
2023 2023 2023
2022 2022 2022
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 9
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SMBC Indonesia
CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES
NUMBER OF FINANCIAL LITERACY DAYA.ID WEBSITE VISITORS (VISITORS)
PARTICIPANTS (PARTICIPANTS)
8,620,804 1,994,473
2024 2024
2,705,138 558,185 2,306,562 1,684,575
2023 2022 2023 2022
TOTAL CSR FUNDS (RP BILLION) CSR BENEFICIARIES (PARTICIPANTS)
3.42 10,324,196
2024 2024
2.88* 3.47*
2023 2022 5,561,660* 2,282,332*
2023 2022
*Adjustment in data presentation from actual figures to Rp billion.
*Adjustment in data presentation from figure
FINANCIAL INCLUSION
NUMBER OF MSME CUSTOMERS NUMBER OF WOMEN CUSTOMERS
17,880 896
2024
2024
965 -
39,458 32,690 2023 2022
2023 2022
*Initiatives/programs implemented as of 2023.
TOTAL DONATIONS VIA CUSTOMER CUSTOMER COMPLAINT
JENIUS APP SATISFACTION LEVEL (%) RESOLUTION RATE
26,207 63 62,759 (99%)
- 64 63,215 (97%)
- 74 49,093 (97%)
2024 2024 2024
2023 2023 2023
2022 2022 2022
*Initiatives/programs implemented as *Derived solely from the Jenius customer
of 2023 satisfaction survey
10 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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SMBC Indonesia
ALLOCATION OF CORPORATE SOCIAL RESPONSIBILITY (CSR) FUNDS
2024 2023 2022
Regions CSR Activities Beneficiaries Beneficiaries Beneficiaries
Cost Cost Cost
(Number of (Number of (Number of
(Rp Miliar) (Rp Miliar) (Rp Miliar)
Participants) Participants) Participants)
Financial Literacy - 260 - 204 - 200
Program
Sumatera
Capacity to Grow for 98 1,256 205 2,257 146 1,648
Business Program
Personal Capacity - 110,813 - - - -
Development Program
Financial Literacy 20 1,719 - 2,064 - -
Program
Jawa
Capacity to Grow for 555 5,287 513 3,848 338 4,692
Business Program
Sustainable Living 5 70 - 90 - -
Program
Financial Literacy - 214 - - - -
Program
Kalimantan
Capacity to Grow for 123 603 64 576 67 614
Business Program
Financial Literacy - 228 - - - -
Program
Sulawesi
Capacity to Grow for 185 1,221 76 609 74 676
Business Program
Bali - Nusa Capacity to Grow for 40 515 64 528 42 517
Tenggara Business Program
Maluku - Capacity to Grow for 13 131 9 140 11 151
Papua Business Program
Personal Capacity 709 13,663 335 106,591 1,118 90,643
Development Program
Financial Literacy 519 8,498,751 731 2,699,551 543 557,696
Program
Capacity to Grow for 288 3,390 308 10,522 95 11,207
National Business Program
Sustainable Living 351 45,411 180 61,414 36 15,090
Program
Daya.id 371 1,637,184 358 2,670,821 957 1,596,543
Sahabat Daya 143 3,480 37 2,445 42 2,655
Total 3,422 10,324,196 2,879 5,561,660 3,469 2,282,332
Notes:
1. Adjustments have been made to the presentation of CSR cost data for 2023 and 2022 as follows:
- The retirement preparation program has been categorized under the Capacity to Grow for Business Program.
- The Daya program for corporate customers and the Daya program for Sinaya Priority customers have been categorized under the Financial
Literacy Program.
- The Educational Facilities Development Program has been categorized under the Personal Capacity Development Program.
2. The data presentation has been adjusted from actual figures to IDR billion.
Positive Impacts of SMBC Indonesia include economic advancement and improved welfare for the
community, support for MSMEs, job creation, financial literacy initiatives, and support for renewable
energy projects. Potential negative impacts include GHG emissions from financed projects and challenges
in waste management for clients. Therefore, SMBC Indonesia has adopted sustainable banking practices,
encouraging clients to adopt sustainable business models.
[OJK B.3]
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 11
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SMBC Indonesia
ENVIRONMENT [OJK B.2]
ENERGY USAGE
(GJ) [OJK B.2.a] 94,863.48 100,404.04 103,623.52
2024 2023 2022
ENERGY
CONSUMPTION
INTENSITY/ 14.61 15.13 14.86
EMPLOYEE
(GJ/Person) 2024 2023 2022
SCOPE 1 EMISSIONS SCOPE 2 EMISSIONS SCOPE 3 EMISSIONS
(tonCO2eq) (tonCO2eq) (tonCO2eq)
2,474.82 14,120.76 13,530.32
2,506.91 16,437.87 1,353,419.99*
2,722.30 16,526.49 228,793.46*
2024 2024 2024
2023 2023 2023
2022 2022 2022
EMISSION INTENSITY** EMISSIONS REDUCTION**
(ton CO2eq/Employee) (ton CO2eq) [OJK B.2.b]
2.32 3,894.33
2024 2024
2.85 2.76 304.00 888.18
2023 2022 2023 2022
Notes:
* Including emissions from financing
** Compared to total Scope 1 and 2 GHG emissions
12 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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SMBC Indonesia
PAPER USAGE REDUCTION IN PAPER USAGE
(reams) [OJK B.2.c]
59,361 +10,157
2024 2024
49,204 50,848 1,644 6,161
2023 2022 2023 2022
TREE PLANTING
INITIATIVE 1,500 625 -
2024 2023 2022
TOTAL USAGE OF RENEWABLE ENERGY ELECTRIC VEHICLE SOLAR PANEL
CERTIFICATES (RECs) (UNIT) INSTALLATION
10% 1* 1
of the total bank-wide
electricity costs
2024 2024 2024
*Initiatives/programs implemented as of 2023.
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 13
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SMBC Indonesia
GOVERNANCE
2024: 24
2023: 42
2022: 32 24
32
Number of
whistleblowing
reports received
(cases)
42
96.9%
99%
ASEAN CORPORATE
Percentage of GOVERNANCE SCORECARD
whistleblowing (POIN)
reports ISO/IEC
resolved (%)
98%
108.22 27001:2013
2024 SCOPE IN ACCORDANCE
points with a predicate of “Leadership in
Corporate Governance” or Level 5 (over 100)
WITH SOA: THE INFORMATION
2024 2023 2022 SECURITY MANAGEMENT
99.19 99.20 IN THE DEVELOPMENT AND
2023 2022
OPERATIONS OF JENIUS
SYSTEM
with a predicate of “Very Good” or
Level 4 (90-99.99)
14 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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SMBC Indonesia PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 15
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SMBC Indonesia
KEY SUSTAINABILITY EVENTS
APRIL 23 , 2024
Bank BTPN continues to strengthen its comprehensive and
innovative financial services with a focus on sustainability
by signing a USD 15 million sustainable credit agreement
with PT Indo-Rama Synthetics Tbk (Indorama). This
collaboration aims to support efforts to reduce emissions
and adopt environmentally friendly practices.
JANUARY 31 , 2024
Jenius from Bank BTPN has launched a new campaign,
“Think Unthinkable”, serving as both a reflection of its
identity and a reaffirmation of its spirit and delivering over
40 innovations and features in ways previously unimagined,
aimed at empowering the lives of digitally savvy individuals.
FEBRUARY 19 , 2024
JUNE 3 , 2024
Bank BTPN offers innovative ESG Deposit products for
corporate clients, reflecting its commitment to driving
meaningful change in achieving net-zero emission targets
through a variety of sustainable financial solutions. ESG Bank BTPN and SMBC have extended a USD 450 million
Deposit not only provides corporate customers with syndicated loan to PT IMG Sejahtera Langgeng (IMGSL),
financial instruments offering optimal returns but also a subsidiary of the Indomobil Group. This syndicated
supports them in realizing their sustainability initiatives. loan comprises several tranches for fund utilization,
This is achieved through strategically allocation of deposit including a green financing tranche of USD 225.8 million to
funds to initiatives, projects, and activities that contribute support the transition towards a green economy through
to sustainable development. Since its introduction to the development of an electric vehicle ecosystem.
customers in late 2023, Bank BTPN has begun receiving This initiative underscores Bank BTPN and SMBC’s
ESG Deposit placements from several prominent commitment to promoting meaningful and sustainable
corporations, including PT Mitsubishi Krama Yudha Motors growth. In this syndicate involving 32 creditors, Bank BTPN
& Manufacturing, PT Senayan Trikarya Sempana, and PT and SMBC serve as Coordinating Mandated Lead Arranger
Abadi Tambah Mulia Internasional. and Bookrunner, as well as Lead Green Loan Coordinator,
Facility Agent, Security Agent, and Account Bank.
MARCH 21 , 2024
Bank BTPN held its Annual General Meeting of Shareholders
(AGMS) which decided on a cash dividend distribution for
the fiscal year 2023 of Rp471.66 billion. This amount is
equivalent to Rp44.30 per share and represents 20% of
Bank BTPN’s net profit for the fiscal year 2023, which was
recorded at Rp2.35 trillion.
MARCH 26 , 2024
In celebration of Eid al-Fitr, Jenius by Bank BTPN launched
a survey entitled “Jenius Study: Behavior of Digital-Savvy
Communities During Ramadan and Ahead of Eid al-
Fitr 2024.” The survey, conducted from February 28 to AUGUST 27 , 2024
March 18, 2024, involved 233 respondents aged 17–40
years from various regions in Greater Jakarta and beyond
(such as Bandung, Surabaya, Sidoarjo, Semarang, Medan,
Palembang, Makassar, Manado, and Aceh). The findings Bank BTPN hosted Daya Fest 2024, themed
of the Jenius Study revealed insights into the behavior “Empowerment for the Nation,” on August 27, 2024, at
of digital-savvy communities this year, underscoring BTPN Tower in Jakarta. This event was part of Bank BTPN’s
their focus on creating a more meaningful Ramadan by ongoing commitment to creating a positive impact on the
enhancing the quality of worship, better managing holiday empowerment of Indonesian communities through the
allowances, and strengthening family bonds through micro, small, and medium enterprises (MSMEs) sector.
gatherings.
16 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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SMBC Indonesia
AUGUST 29 , 2024 DECEMBER 3 , 2024
Bank BTPN held an Extraordinary General Meeting of SMBC Indonesia officially introduced its new name to the
Shareholders (EGMS), officially approving the company’s public during a press conference held at the Fairmont Hotel
name change from PT Bank BTPN Tbk to PT Bank SMBC in Jakarta. The event featured Henoch Munandar, President
Indonesia Tbk. Director of SMBC Indonesia; Akihiro Fukutome, President and
CEO of SMBC; and Yoshihiro Hyakutome, Senior Managing
Executive Officer and Co-Head of the Global Banking Unit
at SMBC, as key speakers. By combining SMBC’s global
expertise and extensive network with the local strengths of
SMBC Indonesia, SMBC Indonesia is committed to fostering
strong collaborations, driving national economic growth,
and delivering comprehensive and innovative financial
solutions tailored to the diverse needs of customers across
all segments.
DECEMBER 10 , 2024
Through its Daya program, SMBC Indonesia held a
charity run with the theme “Berlari untuk Bumi” (Running
for the Earth). The event involved approximately 1,500
SMBC Indonesia employees across seven cities: Jakarta,
Bandung, Semarang, Yogyakarta, Surabaya, Medan, and
SEPTEMBER 4 , 2024 Makassar. This initiative also aligns with SMBC Indonesia’s
efforts to support Indonesia’s net-zero emissions target.
Participants collectively ran a total distance of 5,245
Bank BTPN commemorated National Customer Day 2024 kilometers, equivalent to the distance from Sabang
by organizing a “Retirement Week” event at its Cililitan to Merauke. For every 3.5 kilometers run, SMBC
Branch Office in Jakarta on September 4. The event Indonesia and the Bakti Lingkungan Djarum Foundation
provided an opportunity for retired customers to interact (BLDF) pledged to plant one mango tree as part of the
with one another and express themselves through various #OneActionOneTree movement. As a result, the total
activities such as singing, dancing, and visiting bazaars. distance covered was equivalent to 1,500 mango tree
Customers were also offered free health check-ups and saplings planted in the Patiayam hills area, Kudus Regency,
consultations from doctors affiliated with the Indonesian Central Java. A symbolic tree-planting ceremony was held
Medical Association (IDI). This event reaffirmed the on November 28, 2024, attended by several members of
company’s commitment to supporting retired customers in SMBC Indonesia’s board of directors.
achieving more meaningful growth in their lives.
SEPTEMBER 7 , 2024 DECEMBER 19 , 2024
Jenius from Bank BTPN, in collaboration with OneShildt, held a SMBC Indonesia signed a loan facility agreement worth
financial literacy class entitled “Dana Pendidikan Anak Ready, USD 10 million with PT Surya Utama Nuansa, one of the
Ibu Pun Jadi Happy” (Children’s Education Fund Ready, Moms largest solar energy project development companies in
Stay Happy). The session was held on September 7, 2024, as Indonesia, to support the development of solar energy
part of Jenius’ support for the Single Moms Indonesia 10th projects in Indonesia.
Anniversary celebration at the Ministry of Education, Culture,
Research, and Technology building in Jakarta. This financial
literacy class aimed to enhance the financial literacy and
education of single mothers, particularly in preparing for their
children’s education funds.
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 17
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SMBC Indonesia
SUSTAINABILITY AWARDS
The commitment and performance of SMBC Indonesia in implementing sustainable finance principles
throughout 2024 have been acknowledged and appreciated by various stakeholders through several
prestigious awards.
February 1, 2024 May 31, 2024
Award Name Award Name
7th Infobank Satisfaction, Loyalty, and Engagement 2024 HR Asia Awards 2024
Category Category
The Best Digital Bank in Satisfaction Index HR Asia Best Companies to Work for in Asia 2024
Awarding Institution Awarding Institution
Infobank HR Asia
Description Description
Appreciation to the bank that has delivered excellent services in This award is a form of appreciation to companies in Asia with
maintaining customer trust, emotional engagement, and loyalty. The outstanding performance in human resources, reflected in high
assessment is based on surveys and data analysis conducted by employee engagement and excellent work culture. This year, SMBC
Marketing Research Indonesia (MRI). Indonesia received the “HR Asia Best Companies to Work for in Asia”
award for the fourth time.
February 2, 2024
June 27, 2024
Award Name
The Asset Triple A Awards Award Name
Bisnis Indonesia Corporate Social Responsibility Award 2024
Category
Sustainable Finance Awards 2024: Category
1. Best Issuer for Sustainable Finance in Indonesia Gold Champion
2. Best Sustainability Bond in Indonesia
Topic
Awarding Institution “Digital Community Empowerment through Daya.id”
The Asset
Awarding Institution
Description Bisnis Indonesia
This award was achieved through the collaboration of SMBC
Description
Indonesia with the International Finance Corporation (IFC) in a USD
This award is a form of appreciation to companies with the best
500 million investment, comprising the issuance of social and green
Corporate Social Responsibility (CSR) programs that have made a
bonds in 2023.
significant impact on the community.
July 24, 2024
Award Name
HR Excellence Award 2024
Predikat
Very Good
Category
1. HR Digitization & People Analytics
2. Employer Branding and Talent Acquisition
3. Wellbeing Management
Awarding Institution
SWA Media Group and the Management Institute of the Faculty of
Economics & Business, University of Indonesia (LM-FEBUI)
Description
An award event that assesses the processes and practices of human
resource management across various organizations.
18 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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SMBC Indonesia
September 6, 2024
Award Name
Fortune Indonesia 100
Ranked
56 out of 100
Awarding Institution
Fortune Indonesia
Description
This award is given to companies recognized as leaders in their
industry and contributors to Indonesia’s economic development.
October 2, 2024
November 11, 2024
Award Name
Indonesia Most Powerful Women Awards 2024 Award Name
Asia Sustainability Reporting Rating (ASRRAT) 2024
Rating
Indonesia Most Powerful Women 2024 in Optimizing Financing Category
Segment Platinum Rank
Performance and Funding Resources Diversification Awarding Institution
National Center for Corporate Reporting (NCCR)
Category
Conventional Bank Description
This award is given to companies and organizations dedicated to
Awarding Institution
transparency, accountability, and efforts to measure and mitigate
HerStory
environmental and social risks through Sustainability Reporting.
Description
Award for companies that have fostered a culture of inclusion and
gender equality by supporting women to grow and innovate in the
October 30, 2024 November 29, 2024
Award Name Award Name
Global Corporate Sustainability Awards (GCSA) 2024 Infobank Top 100 CEO & The 200 Future Leaders 2024
Rating Category
Great Practice Henoch Munandar as one of the Bankers of the Year & Top 100 CEOs
Category Awarding Institution
Best Practice Award Infobank
Awarding Institution Description
Taiwan Institute for Sustainable Energy (TAISE) Appreciation for the dedication and contributions of leaders from the
banking, life insurance, general insurance, multifinance, state-owned
Description enterprises (SOEs), and financial sector supporters considered to have
Awards for companies, organizations, and individuals for their efforts delivered outstanding results for their companies.
in implementing sustainability principles in business operations. SMBC
Indonesia received this award for its community empowerment
program through the Daya.id platform, demonstrating the bank’s
commitment to sustainability, financial inclusion, and community
development.
December 4, 2024
Award Name
Investing on Climate by Editor’s Choice Award 2024
Category
Best Literacy for Climate Resilance
Awarding Institution
Editor’s Choice
Description
Awarded to companies that have made significant contributions
to advancing investments supporting environmental sustainability.
SMBC Indonesia received this award for its dedication to enhancing
public understanding of climate change mitigation measures, driving
positive change for environmental and economic sustainability.
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 19
Page 21
Sambutan
Message from the Komisaris
President
dan Direktur Utama
Commissioner
and the President Director
Message from
the President
Commissioner
and the President
Director
01
20 2024
LAPORAN
SUSTAINABILITY
KEBERLANJUTAN 2024
REPORT PT BANK SMBC INDONESIA TBK
Page 22
Sambutan
Message Komisaris
from the President
dan Direktur Utama
Commissioner
and the President Director
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY
LAPORAN KEBERLANJUTAN 2024
REPORT 21
Page 23
Message from the President Commissioner
and the President Director
CHOW YING HOONG
President Commissioner
22 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
Page 24
Message from the President Commissioner
and the President Director
Message from the
PRESIDENT COMMISSIONER
[GRI 2-22] [OJK A1] [SUSBA 1.1.1.5.]
SMBC Indonesia is committed to
actively contributing and being part
of the global solution to preserve the
sustainability of our planet.
Dear respected stakeholders, As part of our commitment to sustainability, SMBC
Indonesia has developed a Sustainable Finance Action Plan
Climate change stands as one of the most pressing
(SFAP). The SFAP aims to accelerate the implementation
challenges facing the world today. As a responsible
of sustainable finance, promote the development of eco-
financial institution, SMBC Indonesia recognizes the
friendly products, enhance financing portfolios in priority
critical nature of our role in addressing the issue of climate
sectors while internally fostering the implementation of
change. Climate change not only impacts the environment
sustainable operations. With the SFAP, we ensure that
but also poses significant social and economic risks
our sustainability strategy has a clear and measurable
that affect the lives of many. We firmly believe that our
framework aligned with our vision to support a greener
active contribution can be part of the global solution to
and more inclusive future.
safeguarding the sustainability of our planet.
SMBC Indonesia fully supports the achievement of the
In response to the challenges posed by climate change,
globally agreed Sustainable Development Goals (SDGs).
SMBC Indonesia has set ambitious targets to achieve
We believe that the banking sector plays a strategic role in
net-zero emissions (NZE) by 2030 for all our operations.
accelerating the achievement of the SDGs, particularly in
Beyond this, we are also committed to achieving NZE
the areas of poverty eradication, inequality reduction, and
across our entire loan and investment portfolio by
environmental protection. Through various initiatives, we
2050. These targets are not merely goals but serve as a
strive to create tangible positive impacts on society and
guideline for all strategic decisions taken. By integrating
the environment.
sustainability principles into our operations and financial
decisions, we aim to drive significant change within the
financial sector and the wider community.
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 23
Page 25
Message from the President Commissioner
and the President Director
One of our key initiatives in supporting sustainability is the impacts resulting from the initiatives undertaken, and
financing the environmental sector. We continue to expand strengthen stakeholder confidence in our sustainability
our portfolio of credit and financing under the Sustainable commitments. With the publication of the sustainability
Business Activities Category (KKUB) to promote more report, we hope to be more responsive to stakeholder
eco-friendly economic growth. This step aligns with our expectations and continuously enhance our efforts to
strategy to support the transition toward a low-carbon create positive impacts.
economy. We also place special emphasis on sectors with
significant potential to generate positive environmental In closing, I would like to express my deepest gratitude to
impacts, such as renewable energy, energy efficiency, all stakeholders, including employees, business partners,
and sustainable resource management. regulators, and the community, for their support
and collaboration in supporting SMBC Indonesia’s
As a manifestation of transparency and accountability, sustainability journey. I also invite all parties to further
I, as the President Commissioner, have mandated the strengthen our shared commitment to creating a more
Board of Directors of SMBC Indonesia to regularly publish sustainable future. By working together, we canrealize
a sustainability report. This report aims to communicate the SDGs by creating a greener, more inclusive, and
our progress in achieving sustainability targets, explain prosperous world for future generations.
Jakarta, March 27, 2025
CHOW YING HOONG
President Commissioner
24 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
Page 26
Message from the President Commissioner
and the President Director
HENOCH MUNANDAR
President Director
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 25
Page 27
Message from the President Commissioner
and the President Director
Message from the
PRESIDENT DIRECTOR
[SUSBA 1.1.1.6.]
SMBC Indonesia is committed to
supporting the national economy
through innovative and sustainable
financial services.
As we usher in 2024, Indonesia’s economy is The year 2024 also marks a significant milestone for our
demonstrating strong signs of recovery despite facing organization, as on December 3, 2024, PT Bank BTPN Tbk
persistent global challenges, such as geopolitical officially changed its name to PT Bank SMBC Indonesia Tbk
uncertainties and economic slowdowns in several (SMBC Indonesia), following the resolution made at the
countries. Supported by solid economic fundamentals, Extraordinary General Meeting of Shareholders (EGMS)
robust domestic consumption as the primary driver of in August 2024. Through this transformation, we are
growth, and proactive government policies, Indonesia determined to strengthen our commitment to innovation
continues to strengthen its position as one of Asia’s most by delivering trusted financial solutions.
promising economic powerhouses. In this context, SMBC
Indonesia remains committed to supporting the national Guided by the spirit of #BersamaLebihBermakna (Do
economy through innovative and sustainable financial Good, Be Great), SMBC Indonesia will combine the global
services, while capitalizing on growth opportunities arising reputation and extensive network of Sumitomo Mitsui
from these developments. Banking Corporation (SMBC) with the local strengths
of SMBC Indonesia, to collaborate in driving national
We recognize that 2024 also presents its own set economic growth, and provide innovative financial services
of challenges, from the rapid acceleration of digital that benefit the community. SMBC Indonesia will offer
transformation to the growing emphasis on sustainability comprehensive and innovative financial solutions tailored
issues. As a financial institution, SMBC Indonesia adopts to the diverse needs of customers across all segments.
an adaptive and strategic approach to continue delivering
added value to all stakeholders.
26 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
Page 28
Message from the President Commissioner
and the President Director
POLICY TO ADDRESS management practices. This approach ensures that
negative impacts on ecosystems, communities, and
SUSTAINABILITY climate change resulting from these projects are avoided,
minimized, mitigated, and/or appropriately offset.
CHALLENGES
[OJK D.1.a] [SUSBA 1.1.1.1] [SUSBA 1.1.1.2] [SUSBA 1.1.1.4] This commitment is enshrined in the Sustainability
[SUSBA 1.1.1.5] [SUSBA 1.1.1.7] Policy of SMBC Indonesia, affirming that the bank will not
provide financing to sectors listed on the Exclusion List
Climate change has emerged as one of the most and imposes specific requirements for financing certain
significant global challenges that cannot be overlooked. sectors (sectoral policies).
Its impacts are widespread, affecting various sectors and
threatening economic, social, and environmental stability. For sectors prone to causing environmental and natural
As part of the SMBC, deeply committed to sustainability, ecosystem impacts, such as land clearing, SMBC
SMBC Indonesia has set ambitious goals to achieve Indonesia has established stringent requirements. For
NZE by 2030 for all our operations. Additionally, we are instance, financing for the palm oil plantation sector is
committed to reaching NZE in our loan and investment only extended to customers possessing Roundtable on
portfolios by 2050. Sustainable Palm Oil (RSPO) sustainability certification.
Meanwhile, for the forestry sector, financing is contingent
These initiatives reflect our commitment and upon certification from the Forest Stewardship Council
responsibility as a financial institution to support the (FSC) or the Programme for the Endorsement of Forest
transition toward a low-carbon economy. We believe that Certification (PEFC), as well as compliance documentation
through collaboration with various stakeholders, we can with the No Deforestation, No Peat, No Exploitation (NDPE)
accelerate the implementation of innovative sustainability Commitment.
solutions that deliver positive impacts on society and the
environment. In any financing transaction, SMBC Indonesia proactively
conducts due diligence on prospective customers
To strategically support sustainability, SMBC Indonesia and establishes credit-related policies. In 2024, SMBC
has developed a Sustainable Finance Action Plan (SFAP). Indonesia also issued the Environmental and Social
This plan serves as a structured roadmap to ensure that Assessment Procedure. Through these provisions,
all our financial activities align with sustainability principles. SMBC Indonesia ensures that environmental and social
Through the SFAP, we can identify opportunities, risks, and impact considerations are appropriately integrated into
concrete steps necessary to support the achievement of financing decisions. The bank will take steps to encourage
the Sustainable Development Goals (SDGs). customers to incorporate appropriate environmental and
social considerations from the earliest stages. After making
This framework not only strengthens our market a decision regarding providing support or financing, SMBC
position but also enables us to create meaningful Indonesia will, if deemed necessary, conduct monitoring
impacts for the communities we serve. One of SMBC to ensure that the established environmental and social
Indonesia’s key commitments is to provide responsible considerations are effectively implemented.
financing. In conducting our banking business, SMBC
Indonesia recognizes the financial risks associated with From a social perspective, in complying with human
climate change and environmental degradation, such rights principles, regarding financing projects that
as biodiversity loss, deforestation, marine ecosystem could potentially impact Affected Communities, such
damage, flooding, and water scarcity. Furthermore, SMBC as indigenous or local communities, SMBC Indonesia
Indonesia acknowledges the potential social risks arising establishes licensing requirements equivalent to Free,
from business activities, including those related to human Prior, and Informed Consent (FPIC). [SUSBA 1.2.1.18]
rights, labor rights, and the rights of local communities.
[SUSBA 1.2.1.4] The Environmental and Social Assessment Procedure
also includes a Grievance Mechanism, which mandates
Projects financed by SMBC Indonesia will be developed in that customers are required to establish an effective
a socially responsible manner, taking into account human grievance mechanism. This mechanism is intended for
rights considerations and reflecting sound environmental
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 27
Page 29
Message from the President Commissioner
and the President Director
use by Affected Communities and Workers to receive friendly sectors, such as renewable energy and sustainable
and facilitate the resolution of concerns and complaints infrastructure, with a value of Rp7,514 billion. We also
regarding the environmental and social performance of launched an ESG deposit product, offering sustainability-
a project. based options for customers. These initiatives not only
strengthen our portfolio but also support the transition
The issuance of this Environmental and Social Assessment toward a low-carbon economy.
Procedure strengthens the bank’s existing Credit Policy
document and aligns with the environmental policies of the
SMBC Group. The implementation of these sustainability SOCIAL PERFORMANCE
commitments is rigorously overseen by the Sustainability In the social sector, SMBC Indonesia continues to
Committee. contribute to the development of MSMEs as the backbone
of the national economy. We provide access to affordable
financing and mentoring programs to assist MSMEs in
IMPLEMENTATION OF enhancing their competitiveness. SMBC Indonesia has
conducted training for 11,129 MSME actors, while also
SUSTAINABLE FINANCE empowering them through the daya.id platform, offering
[OJK D.1.b] online information and empowerment resources.
ECONOMIC PERFORMANCE SMBC Indonesia is also actively involved in improving
By maintaining a focus on operational efficiency and financial literacy among the public through seminars and
service innovation, SMBC Indonesia achieved positive training programs attended by 8,620,804 participants.
performance in the reporting year. The consolidated net These initiatives aim to assist the community in managing
profit indicated a significant increase compared to the their finances more effectively, increasing financial
previous year, reaching Rp3,216 billion or an increase of inclusion, and raising awareness about the significance of
19.9% compared to the previous year. Meanwhile, our sustainability in financial decision-making.
net interest income continued to grow consistently at
26.3%. The company’s operating income also recorded Internally, we continue to enhance the capacity of our
solid growth, increase 26.9% into Rp17,429 billion employees through comprehensive training programs,
demonstrating our resilience and competitiveness amidst attended by 6,970 employees, averaging 35 training
a competitive market dynamic. hours per employee. Investing in human resource
development remains one of our top priorities to ensure
In addition, we have further expanded green financing as that our team is well-equipped to face future challenges
part of our commitment to sustainability. Financing in eco- with greater confidence.
28 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
Page 30
Message from the President Commissioner
and the President Director
ENVIRONMENTAL PERFORMANCE We recognize that implementing sustainability initiatives
In support of environmental conservation, SMBC Indonesia is not without challenges. One of the primary challenges
has implemented the “Run for the Earth” program. The is raising awareness and participation among all
activity is converted into a tangible action in the form stakeholders regarding the significance of sustainability.
of planting 1,500 trees. This program not only creates To address this, we continuously conduct education and
a positive impact on the environment but also raises effective communication to build a deeper understanding
awareness among our employees about the significance of the impact of sustainability on the future.
of preserving nature.
Furthermore, the implementation of sustainability within
We believe that small, consistent steps can lead to portfolios and investments requires a deep understanding
significant change. Therefore, we continue to expand of how environmental and social impacts affect the
our environmental initiatives and collaborate with various long-term financial performance of SMBC Indonesia. To
stakeholders to create a broader impact. address this, SMBC Indonesia conducts a comprehensive
evaluation of the social and environmental aspects that
could potentially affect future financial performance. This
STRATEGY FOR ACHIEVING process includes an in-depth analysis of the impact on
reputation, operational risks, and various business growth
TARGETS opportunities.
[OJK D.1.c] [OJK E.5]
Another challenge lies in ensuring that all our financial
In conducting its business, SMBC Indonesia recognizes the activities align with sustainability goals without
various impacts and financial risks associated with climate compromising profitability. To this end, we develop
change, such as floods, droughts, deforestation, and innovative products and services and strengthen our ESG-
disruptions to terrestrial and marine ecosystems. These based risk management framework to ensure that we can
risks must be managed to achieve SMBC Indonesia’s meet stakeholder expectations in a balanced manner.
targets in both economic and sustainability areas.
[SUSBA 1.2.1.10]
CLOSING
To ensure the achievement of the targets outlined in the
SFAP, SMBC Indonesia adopts a measurable and data- In conclusion, I would like to express my deepest gratitude
driven approach. We regularly monitor and evaluate to all stakeholders for their support and contributions to
the implementation of our sustainability programs. SMBC Indonesia’s sustainability journey. Our success is
Additionally, we integrate Environmental, Social, and inseparable from the hard work and strong collaboration
Governance (ESG) principles into our decision-making among our employees, business partners, regulators, and
processes at both strategic and operational levels. the community.
Examples of these initiatives include: [SUSBA 1.1.1.3.]
I urge all parties to continue strengthening our shared
Collaboration with stakeholders is a key element of our commitment to creating a greener, more inclusive, and
strategy. By working closely with customers, business sustainable future. By working together, we can achieve
partners, regulators, and communities, we can identify a greater vision and deliver a positive impact for future
new opportunities, address challenges, and accelerate the generations. Thank you.
achievement of our sustainability goals.
Jakarta, March 27, 2025
HENOCH MUNANDAR
President Director
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 29
Page 31
Tentang
About SMBC Indonesia
About
02
SMBC Indonesia
As a financial institution committed to
the principles of sustainability, SMBC
Indonesia continues to grow by offering
innovative, responsible, and competitive
solutions to support economic growth
and shared prosperity.
30 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
Page 32
Tentang
About SMBC Indonesia
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 31
Page 33
About SMBC Indonesia
GENERAL INFORMATION
Company Name
[GRI 2-1]
PT Bank SMBC Indonesia Tbk
Line of Business Business permit
[GRI 2-6] [GRI 2-6] [OJK C.4]
Banking services Commercial Bank business permit
Foreign Exchange Bank business permit
Products Date of Establishment
[GRI
[GRI2-6]
2-6] [OJK
[OJK C.4]
C.4]
Funding February 5, 1958
Financing
0.11%
7.81%
1.03%
Sumitomo Mitsui Banking Corporation
PT Bank Central Asia Tbk*
91.058%
PT Bank Negara Indonesia (Persero) Tbk **
Public
* in compliance with Government Regulation No.29 of 1999
Ownership concerning the Purchase of Commercial Bank’s Shares
and converted shares due to the Merger with PT Bank
[GRI 2-1] [OJK C.3.c] Sumitomo Mitsui Indonesia
** converted shares due to Merger with PT Bank Sumitomo
Mitsui Indonesia
Legal Basis of Establishment
[GRI 2-1]
Notarial Deed No. 21 dated October 6, 1959, of Notary Noezar S.H
Notarial Deed No. 203 dated May 31, 1960, of Notary Noezar S.H
Notarial Deed No. 53 dated November 7, 1960, of Notary Noezar S.H
State Gazette No. 13, Supplement No. 5, dated February 14, 1961
Notarial Deed No. 31 dated February 16, 1985, of Notary Komar Andasasmita, S.H, as amended by Notarial
Deed no. 12 dated July 13, 1985, of Notary Dedeh Ramdah Sukarna, S.H.
32 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
Page 34
About SMBC Indonesia
Alamat Kantor Pusat
[GRI
[GRI2-1][OJK C.2]
2-1] [OJK C.2]
Menara SMBC, CBD Mega Kuningan, Jl. Dr. Ide Anak Agung Gde Agung, Kav 5.5-5.6, South Jakarta 12950, Indonesia
(62 21) 300 26 200 (62 21) 300 26 309 www.smbci.com
PT Bank SMBC Indonesia Tbk info@smbci.com
BUSINESS ENTITY SHAREHOLDING
[GRI 2-2]
All information contained in 70% 51%
this report is the property of PT Bank BTPN Syariah Tbk PT Oto Multiartha
SMBC Indonesia, including (BTPN Syariah) (OTO)
both the head office and
regional offices, and does not
involve any subsidiary entities
unless explicitly stated in a 1%
specific section. The audited 51% PT BTPN Syariah Ventura
PT Summit Oto Finance (BTPN Syariah Ventura)*
consolidated financial data (SOF)
includes three subsidiaries, *69.3% indirect ownership through
PT Bank BTPN Syariah Tbk.
excluding PT BTPN Syariah
Ventura.
SIGNIFICANT CHANGES COMPANY RATING
During the reporting year, there were AAA (Idn), Stable Outlook (Long-Term) –
significant changes within the organization, PT Fitch Ratings Indonesia
specifically the renaming of PT BANK F1+ (idn) (Short-Term) – PT Fitch Ratings
BTPN Tbk, or Bank BTPN, to “PT Bank Indonesia
SMBC Indonesia Tbk,” abbreviated as SMBC idAAA (Triple A, Stable Outlook) –
Indonesia. [GRI 2-6] [OJK C.6] PT Pemeringkat Efek Indonesia
(PEFINDO)
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 33
Page 35
About SMBC Indonesia
OPERATIONAL AREAS AND SERVICE NETWORK
[GRI
[GRI2-1]
2-1][OJK
[GRIC.3.d]
2-6] [OJK C.3.d]
Kalimantan
Barat
1 KC, 2 KCP
Kep.
Riau
1 KC,
1 KCP Jambi
1KC,
2 KCP
Riau
Bengkulu
1 KC,
1 KC,
1 KCP Kep.
2 KCP Jawa
Bangka
Belitung Barat
1 KCP 1 KC, Jawa
8 KCP Timur
Sumatera 7 KC,
Barat 36 KCP
2 KC, Sumatera
4 KCP Utara Sumatera DKI
4 KC, Selatan Bali
Banten Jakarta Di
11 KCP 1 KC, 1 KC,
1 KC, 1 KPO, Yogyakarta
5 KCP 3 KCP
8 KCP 5 KC, 1 KC, 3 KCP
13 KCP
Kalimantan
Tengah
JAWA TENGAH 1 KC, 3 KCP
Lampung
1KC, 3 KCP 1 KFO, 7 KC,
23 KCP
Description:
• KPO = Kantor Pusat Operasional (Operational Head
Office)
• KFO = Kantor Fungsional Operasional (Operational
Functional Office)
• KC = Kantor Cabang (Branch Office)
• KCP = Kantor Cabang Pembantu (Sub-Branch Office)
34 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
Page 36
About SMBC Indonesia
In all regions of Indonesia, SMBC Indonesia offers services to
individual customers, corporations, MSMEs, and other customers.
Maluku
Utara
1 KC Sulawesi
Utara
1 KC, 5 KCP
Maluku
1 KC
Sulawesi
Tenggara
1 KC, 1 KCP
Sulawesi
Tengah Papua
NTT 1 KC, 3 KCP 1 KC
1 KC, 5 KCP Sulawesi
Selatan
Gorontalo 2 KC, 16 KCP
1 KCP
Sulawesi
Barat
3 KC
Kalimantan Utara
1 KCP
Kalimantan Timur
2 KC
Kalimantan
Selatan
1 KC, 3 KCP
NTB
1 KC,
4 KCP
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 35
Page 37
About SMBC Indonesia
MEMBERSHIP OF ASSOCIATIONS
[GRI 2-28] [OJK C.5]
Organization Name Membership Status Organization Scale
Indonesian Issuer Association (AEI) Member National
Indonesian Payment System Association (ASPI) Member National
Indonesia Sustainable Finance Initiative (IKBI) Member National
Indonesian Philanthropy Association Member National
Communication Forum of Compliance Director (FKDKP) Member of Regulation & Policy Board National
Indonesia Business Coalition for Women Empowerment (IBCWE) Founder/promotor National
Indonesian Corporate Secretary Association (ICSA) Director of Compliance and Corporate National
Secretary, as a member
National Private Bank Association (PERBANAS) Member National
Indonesian Association of International Bank (PERBINA) Member National
Company Scale
[GRI 2-6] [OJK C.3]
6,491 4.10 300 213
Number of Employees Total Operating Income - Authorized Capital Issued Capital
(2024) Net* (Rp Billion) (Rp Billion)
(2024) (2024) (2024)
(Rp Trillion) [OJK B.1.b]
6,636 6,972 3.46 4.66 300 300 163 163
Total capitalization (Rp Billion) [OJK C.3.a]
110,423 40,516 42,215 202,543
Third-Party Funds Loans Received Equity Total Assets
(2024) (2024) (2024) (2024)
96,056 102,818 34,284 47,925 33,731 32,230 181,241 189,242
252 Offices 20 20 26
217 ATM Total Funding Products Total Financing Products Number of Services
(2024) (2024) (2024) (2024)
[OJK B.1.a] [OJK B.1.a] [OJK B.1.a]
266 offices 278 offices 13 11 17 17 26 29
214 ATM 212 ATM
2023 2022
Note:
* Consolidated financial data of SMBC Indonesia, including its three subsidiaries: PT Bank BTPN Syariah Tbk, PT Oto Multiartha (OTO),
and PT Summit Oto Finance (SOF).
36 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
Page 38
About SMBC Indonesia
Milestones of SMBC Indonesia
1958-1986 2005-2010
Officially commenced operations Launched micro and small enterprise
in Bandung under the name Bank (SME) operations under the name BTPN
Pegawai Pensiunan Militer (Bapemil). Mitra Usaha Rakyat.
Obtained a license to operate as a Issued its first IDR-denominated bonds,
commercial bank. rated A+ (National) by Fitch Ratings.
Bapemil changed its name to PT Bank Secured long-term IDR loan facilities
Tabungan Pensiunan Nasional. from the International Finance
Corporation (IFC), a subsidiary of the
World Bank.
2016-2020 2011-2015
Operated as a Foreign Exchange Bank. Launched Daya, a sustainable mass-
market empowerment program as
Launched the *Jenius* product.
an integral part of BTPN’s business
Established BTPN Syariah as a activities.
subsidiary.
Launched the Sinaya funding program.
Merged PT Bank Tabungan Pensiunan
Developed BTPN Syariah.
Nasional Tbk (BTPN) and PT Bank
Sumitomo Mitsui Indonesia (SMBCI). SMBC became the controlling bank
with a 40% asset share.
2021-2024
Formed a sustainability committee.
IFC and SMBC Indonesia establish a partnership in a social and
green bond agreement.
Partnered with Great Eastern General Insurance Indonesia
(GEGI) in bancassurance distribution.
Officially renamed as PT Bank SMBC Indonesia Tbk..
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 37
Page 39
SMBC Indonesia and
Sustainability Commitment
SMBC Indonesia
Sustainability
03
Commitment
SMBC Indonesia is committed to
integrating sustainability principles
into all aspects of its operations,
supporting inclusive economic growth
while creating a positive impact on the
environment and society.
38 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
Page 40
SMBC Indonesia dan
and
Sustainability
Komitmen Keberlanjutan
Commitment
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 39
Page 41
SMBC Indonesia and
Sustainability Commitment
Sustainability has become a key element in addressing sized enterprises, and facilitate innovation focused
global challenges such as climate change, social on sustainability. By integrating environmental, social,
inequality, and the need for inclusive economic and governance (ESG) principles into their business
development. As a cornerstone of the economy, the strategies, banks not only safeguard long-term assets
banking sector plays a vital role in driving the transition but also create a positive impact on society and the
toward a more sustainable future. planet as a whole.
Through responsible financing policies, banks can SMBC Indonesia ensures the effective implementation
support green projects, empower small and medium- of sustainability by adopting the following steps:
01 SUSTAINABILITY COMMITTEE
SMBC Indonesia reaffirms its commitment to sustainability and climate change management through
the establishment of the Sustainability Committee. This committee plays a key role in ensuring that
sustainability principles are comprehensively implemented in alignment with international standards
and regulatory requirements.
02 THREE LINES OF DEFENSE [SUSBA 1.4.1.4]
This approach guarantees comprehensive risk management through three layers: controls by
business units, oversight by the Compliance and Risk Management Directorate, and independent
audits to ensure adherence to sustainability policies.
03 AUDIT OF SOCIAL AND ECONOMIC ASPECTS
SMBC Indonesia conducts regular audits to assess compliance with sustainability standards, both
from social and economic aspects, ensuring that all operational activities align with the company’s
sustainability objectives.
04 PERFORMANCE MONITORING AND EVALUATION
Relevant divisions and lines of business are systematically monitored and evaluated to ensure
compliance with sustainability policies and the achievement of established targets.
40 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
Page 42
SMBC Indonesia and
Sustainability Commitment
SMBC INDONESIA’S SUSTAINABILITY JOURNEY
2024
SMBC Indonesia was selected to participate in
the Climate Risk Management and Scenario
Analysis (CRMS) pilot phase held by the OJK
Establishing the Sustainable Business
Strategy unit to monitor sustainable financial
performance.
Developing procedures for environmental and
social risk assessment.
Providing sustainability training to suppliers on
GHG emissions.
Planting 1,500 trees in collaboration with the
Djarum Environmental Care Foundation in
Kudus, Central Java
Installing solar panels at the Gunung Sahari
branch
Purchasing Renewable Energy Certificates 2023
(REC).
Publication of the SFAP 2024-2028
Incorporating the Sustainable Banking
IFC and SMBC Indonesia establish partnership
Assessment (SUSBA) standards into the
in social and green bond agreement to
Sustainability Report.
strengthen climate action and promoting
inclusive development in Indonesia with an
investment value of USD 500 million.
Calculating GHG Emissions for scope 3
financed emissions.
SUSBA assessment by WWF has begun
Preparing a green taxonomy report through
the APOLO application (for the top 450
debtors)
Issuing the Sustainability Policy.
Issuing the ESG-Based Lending Procedure.
2022 Enhanced employee capacity on sustainability
through the implementation of online training
Established a Sustainability Committee
modules.
Established a Sustainable Program Development
Launching a sustainability page on the SMBC
work unit
Indonesia website
Has a commitment to net zero emission by 2030
Providing sustainability training to suppliers on
for bank operational activities, and by 2050 as
the implementation of human rights and anti-
the target for net zero emissions in the loan and
fraud management.
investment portfolio.
Disclosure of SDGs, GRI SASB, TCFD Indices in
Conducted Green Taxonomy Reporting for the top
the Sustainability Report
350 debtors
Mangrove planting of 625 trees.
Developed the concept of diversity and inclusion
Conducted a self-assessment related to sustainable
finance (SUSBA)
Conducted a self-assessment related to sustainable
finance (SUSBA provided Sustainability training on
sustainable business opportunities to suppliers.
2021
Developing sustainability strategies, plans, and Received the Platinum Rating in The Asia
targets Sustainability Reporting Rating (ASRRAT).
Developed procedures for Sustainable
Financial Reporting.
Conducted a self-assessment of Corporate
2020 Social Responsibility (CSR) activities based on
ISO 2600
Disclosure of the GRI-Comprehensive Options
Index in the Sustainability Report
Disclosure of GRI-Financial Sector Index
Conducting Independent Assurance on the
Sustainability Report 2019
Received a Gold Rating in The Asia
Providing financing to Women-Owned MSMEs,
Sustainability Reporting Rating from the
Green Loans, and SCF Loans.
National Center for Sustainability Reporting
Signing of a cooperation agreement with IFC
Conducted a self-assessment on sustainability
to promote green financing and supply chain
aspects (GEARS - gender equality)
financing in Indonesia worth USD 150 million
Commenced calculating scope 1, scope 2, and
scope 3 (business travel) emissions.
2018 Preparation of the Sustainability Report
Disclosure of the GRI-Core Options Index in the
• Publication of the Sustainable Finance Action Sustainability Report
Plan (SFAP) 2019-2023 Bank SMBC Indonesia held its first employee
engagement survey
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 41
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SMBC Indonesia and
Sustainability Commitment
IMPLEMENTATION OF SUSTAINABLE FINANCE
SMBC Indonesia reaffirms its commitment to sustainability by developing a Sustainable Finance Action Plan (SFAP)
for the period 2024-2028, incorporating environmental, social, and governance (ESG) principles. The SFAP, prepared
by the Board of Directors and approved by the Board of Commissioners, serves as the primary guideline for all units
of SMBC Indonesia in implementing sustainable finance at all operational levels.
During the reporting period, SMBC Indonesia submitted the 2025 SFAP and the Implementation Progress Report of
the 2024 SFAP. SMBC Indonesia continues to demonstrate its commitment to implementing the SFAP through various
strategic initiatives. The achievements made in 2024 reflect the bank’s tangible efforts in supporting sustainability
principles and responsible economic growth. The following are the sustainable finance initiatives undertaken by SMBC
Indonesia in 2024.
SUSTAINABLE FINANCE
PROGRAM ACHIEVEMENT
INITIATIVE
Development of Increasing the financing portfolio through KKUB portfolio reached Rp7.5 trillion.
Sustainable Finance financial products and services that align with
Product and Portfolio the Sustainable Business Activities Category
(KKUB) by Rp7.2 trillion.
Increasing the social financing portfolio for WSME customer portfolio reached Rp3.3
Women Small Medium Entrepreneur (WSMEs) trillion, an increase of 8.34% compared to
by 8% per year. the position as of December 31, 2023.
Improving the competence of women MSME Educated 85 women MSME entrepreneurs
entrepreneurs. about digital business.
Conducting fundraising for ESG mutual funds ESG Mutual Fund portfolio reached Rp 38.7
with a target of Rp15 billion. billion, equivalent to 158% of the set target.
Internal Capacity Achieving 100% completion of online training Successfully implementing online training
Development modules on sustainability. modules on sustainability with 100%
completion.
Education and Organizing empowerment programs through The Daya Program carried out 12,158
Empowerment for the Daya Program. activities with a total of 10,324,196
External Parties beneficiaries.
Policy and SOP The annual review and updating of Review and updating of the Sustainability
Adjustments sustainability policies are 100% completed. Policy were 100% completed.
Sustainable Enhancing sustainable operations through - Reduction in fuel consumption by 1.6%
Operations the following programs: - Decrease in electricity consumption by
- Reduction in fuel consumption of 5%. 7%
- Reduction in electricity consumption of - Utilization of renewable energy:
0.5%. - Installation of solar panels.
- Utilization of renewable energy - Installation of Electric Vehicle Charging
Stations.
- Conversion of operational vehicles to
electric vehicles.
- Purchase of Renewable Energy
Certificates (RECs).
Enhancing Diversity and Inclusion Conducted sign language workshops.
42 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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SMBC Indonesia and
Sustainability Commitment
SMBC INDONESIA 1. Trade in weapons, pornography, or activities contrary
to social norms.
SUSTAINABILITY POLICY 2. Activities that significantly harm the environment or
[FS1] violate labor regulations.
[SUSBA 1.2.1.6] [SUSBA 1.2.1.12] [SUSBA 1.2.1.16]
The SMBC Indonesia Sustainability Policy, published in 3. Activities that threaten or damage the habitats of
2023, serves as the basis for the company to conduct endangered wildlife species. [SUSBA 1.2.1.4] [SUSBA
responsible business practices. This policy underscores 1.2.1.6]
SMBC Indonesia’s commitment to good governance
4. Activities that threaten or damage the conservation
in environmental and social aspects, aligning with
of Ramsar Wetlands, UNESCO World Natural Heritage
regulatory provisions, international standards, and the
Sites, and International Union for Conservation of
company’s core values.
Nature (IUCN) Category I-IV Protected Areas. [SUSBA
1.2.1.9].
In 2024, the Sustainability Policy was updated as part of
a periodic review process to reinforce SMBC Indonesia’s 5. Activities that violate or threaten the rights of local
sustainability commitments. The review and evaluation communities (Indigenous peoples).
process included internal audits to measure performance, 6. Deforestation.
stakeholder engagement to gather feedback, and 7. Human rights violations and the employment of
benchmarking against international standards. [SUSBA underage workers.
1.3.2.6]
8. Financing or investment in new or expanded coal
mining industries, particularly those involving
EXCLUSION LIST
mountain top removal (MTR), thermal coal mining*, or
SMBC Indonesia conducts thorough due diligence on
thermal coal mining projects with deadlines extending
prospective clients, considering this a material factor
beyond the fiscal year 2030 in OECD countries* and
in financing decisions. SMBC Indonesia’s Sustainability
the fiscal year 2040 in non-OECD countries. [SUSBA
Policy outlines specific business types and projects
1.2.1.3]
that are excluded (exclusion list/exclusionary principles)
as they do not meet the criteria for financing by SMBC 9. Financing or investment in coal-fired power plants
Indonesia. The company is committed to not supporting (CFPPs)*.
business activities related to the following: [SUSBA 1.1.1.7] 10. In cases involving third-party funding frameworks
[SUSBA 1.2.1.1] (e.g., IFC), the Bank will adhere to the exclusion list
applied by the respective third party.
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SMBC Indonesia and
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11. Financing or investment in wood-based biomass Note:
*Exceptions may apply to businesses contributing to the transition from fossil
power plants (WBPPs) that involve the logging of fuel-based operations.
primary forests or human rights violations in their
production processes.
12. Business activities involving the production of cluster GENERAL ENVIRONMENTAL, SOCIAL, AND
munitions and other weapons of mass destruction, GOVERNANCE (ESG) POLICY
including nuclear, biological, and chemical weapons, In providing financing support, SMBC Indonesia adheres
as well as anti-personnel mines. to the General Environmental, Social, and Governance
(ESG) Policy outlined in the Sustainability Policy, which
includes:
SMBC INDONESIA’S COMMITMENT TO
01 IMPLEMENTING SUSTAINABLE FINANCE:
Developing a Sustainable Business Activities (KUB).portfolio
Assessing the management and monitoring of environmental and social risks related to customer operations
Involving the three lines of defense
Avoiding greenwashing practices
Supporting customers in building capacity to manage environmental and social risk
Encouraging customers to adopt best practices in sustainability
Categorizing portfolios based on Sustainable Business Activity Categories (KKUB), the Indonesia Green
Taxonomy (THI), and the Indonesian Sustainable Finance Taxonomy (TKBI), and other classifications
recommended by regulators
Developing sustainability products in alignment with credible principles
Implementing capacity-building programs related to environmental and social risk
Integrating environmental and social governance into credit/investment approval mechanism
02 COMMITMENT TO COMPLIANCE:
Possessing environmental documents (e.g., AMDAL, UKL-UPL, etc.)
Demonstrating strong capacity, commitment, and track record in addressing environmental and social aspects
Promoting decarbonization initiatives for business activities, including those in sensitive sectors
Complying with labor regulations
Having a commitment to respecting human rights
03 ENVIRONMENTAL AND SOCIAL DUE DILIGENCE (ESDD)
The Bank conducts ESDD for all credit facilities extended to business sectors with potential negative
environmental and social impacts, specifically for projects with a certain limit value.
44 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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SMBC Indonesia and
Sustainability Commitment
SECTORAL POLICY
In providing credit facilities to the corporate segment, SMBC Indonesia establishes specific requirements for debtors
in specific sectors to ensure that all forms of financing support sustainable practices and comply with environmental
and social regulations and standards, both at the national and international levels. The sectors include:
Palm Oil Fisheries Biomass Energy
Tobacco Hydropower Plants Oil & Gas
Forestry
This sectoral policy must meet the following requirements to qualify for credit facilities from the Bank:
[SUSBA 1.1.2.1] [SUSBA 1.1.2.5] [SUSBA 1.2.1.5] [SUSBA 1.2.1.8] [SUSBA 1.2.1.11] [SUSBA 1.2.1.12][SUSBA 1.2.1.13]
[SUSBA 1.2.1.15] ][SUSBA 1.2.2.1] [SUSBA 1.2.2.2] [SUSBA 1.2.2.3]
Hydropower Biomass Oil &
Description Palm Oil Forestry Fisheries Tobacco
Plants Energy Gas
Possessing Environmental
Impact Assessment
(AMDAL) or Equivalent
Compliance with Labor
Regulations1)
Human Rights
Mandatory Certifications • RSPO or • FSC or • ASC,
• ISPO2) • PEFC • MSC or
• Other
Ecolabels3)
NDPE Commitment
FPIC
Note:
1)
compliance includes not employing illegal workers or child labor, and prioritizing workers’ rights as stipulated in national labor regulations and ILO Fundamental
Conventions.
2)
meeting the principles and criteria of RSPO is acceptable, with exceptions made for working capital credit facilities.
3)
exemptions apply to the micro-segment.
Sectoral policies also stipulate provisions for debtors whose primary operations are in environmentally sensitive
sectors with significant potential environmental impact (including oil and gas, mining, and energy and electricity
sectors). These debtors are expected to have mitigation plans or decarbonization action plans (GHG emission
reduction plans) integrated into their business activities to support the objectives of the Paris Agreement.
[SUSBA 1.2.1.2] [SUSBA 1.5.1.1] [SUSBA 1.5.1.2]
SMBC Indonesia is committed to ensuring that all debtors comply with applicable environmental and social
regulations. This commitment is upheld through a comprehensive and rigorous evaluation process of the entire
financing portfolio. In the reporting year, 100% of SMBC Indonesia’s portfolio underwent a review process aligned
with the best international standards. [SUSBA 1.2.2.4] [FS11]
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SMBC Indonesia and
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ENVIRONMENTAL AND explanations and/or accountability from the
Board of Directors in the event of deviations in the
SOCIAL RISK ASSESSMENT implementation of the Sustainability Policy.
PROCEDURE 3. The Board of Directors is responsible for the
[OJK E.3] [SUSBA 1.1.10] [SUSBA 1.3.1.2] [SUSBA 1.3.2.1] preparation and implementation of the Sustainability
[FS2] [FN-CB-410a.2] Policy, including provisions of green and social
financing, ensuring compliance with credit-related
SMBC Indonesia implements comprehensive regulations, and periodically reporting to the
assessment criteria for environment and social aspects Board of Commissioners on the execution of the
for debtors and business partners to ensure compliance Sustainability Policy. [SUSBA 1.4.1.1]
with sustainability principles. All assets (portfolio) of 4. SMBC Indonesia conducts checks to ensure that
SMBC Indonesia (100%) have passed environmental prospective debtors are not part of prohibited
and social screening. [FS11] business activity, meet the ESG criteria outlined
in the Sustainability Policy, and fulfill the Risk
SMBC Indonesia has established policy frameworks Acceptance Criteria.
to ensure that the evaluation conducted effectively in
making financing support decisions. SMBC Indonesia applies comprehensive evaluation on
debtors and business partners, applied universally in
accordance with the Sustainability Policy. These criteria
include the following:
01 SUSTAINABILITY POLICY
Serves as a general guideline for compliance 1. SMBC Indonesia reviews collateral provided, taking
in assessing ESG aspects. into account its condition at the time of receipt
and during re-examination. The bank ensures that
environmental risks associated with collateral do
ENVIRONMENTAL AND SOCIAL RISK
02 ASSESSMENT PROCEDURE not hinder or burden SMBC Indonesia, such as the
collateral’s value turning negative upon sale.
Provides guidelines for evaluating
environmental and social aspects in 2. SMBC Indonesia conducts regular visits to debtors
financing, based on predetermined financing for supervision and guidance. The outcomes of
thresholds. these visits are documented in call reports, covering
topics such as the overall business condition of the
borrower, including compliance with environmental
The Sustainability Policy outlines the general provisions
regulations. These interactions are managed by
for financing conducted by SMBC Indonesia, in
departments within each business line. [FS5]
alignment with the principles of the General ESG Policy
as previously explained. The approach taken is as
3. SMBC Indonesia conducts a monitoring process of the
follows:
debtor’s compliance with environmental regulations
as outlined in the Corporate Banking Standard
1. SMBC Indonesia verifies the debtor’s ownership
Operating Procedures (SOP) and its addendums. This
of business permit documents by referring to
is part of the bank’s efforts to contribute to climate
the Regulation of the Minister of Environment of
change mitigation and adaptation. [FS5]
the Republic of Indonesia No. 05 of 2012 and its
amendments (if any) concerning Environmental
4. Environmental and social risk aspects are integral
Impact Analysis (AMDAL) or Environmental
to the initial credit proposal evaluation and are
Management and Monitoring Efforts (UKL-UPL) for
monitored annually through credit reviews. Any
businesses with direct environmental impacts.
identified issues or cases during the assessment are
2. The Board of Commissioners oversees risk taken into account in the credit approval process.
management practices carried out by the Board [SUSBA 1.3.1.1]
of Directors, including approving the Sustainability
Policy, which incorporates provisions for SMBC Indonesia considers applicable climate change
environmentally and socially responsible financing. regulations, including Presidential Regulation No.
The Board of Commissioners may also request 59/2017 and OJK Regulation No. 51/2017, governing
the implementation of Sustainable Development
46 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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SMBC Indonesia and
Sustainability Commitment
Goals (SDGs) and sustainable finance. Additionally, If a prospective debtor is found to not fully comply
SMBC Indonesia ensures that debtors’ business with environmental and social (E&S) policies, SMBC
activities comply with the regulations of the Ministry Indonesia requires the debtor to develop and implement
of Environment and Forestry (KLHK) by demonstrating a performance improvement action plan within a
ownership of environmental impact assessment specified timeframe. SMBC Indonesia ensures that the
documents. [TCFD R1] plan is executed within the agreed period, either before
or after the disbursement of the loan. [SUSBA 1.3.2.2]
For the corporate segment, SMBC Indonesia takes into [SUSBA 1.3.2.5] [SUSBA 1.6.1.1]
account the results of environmental assessments and
reviews in financing decision-making. The bank may
also recommend the inclusion of clauses related to
environmental and social aspects in loan agreements
to strengthen the implementation of sustainability ENVIRONMENTAL AND
principles. [SUSBA 1.3.1.3] [SUSBA 1.3.1.5] [TCFD R3] SOCIAL RISK ASSESSMENT
In 2024, SMBC Indonesia issued the Environmental
and Social Risk Assessment Procedure document as
MONITORING PROCESS a guideline for conducting financing activities for the
development of specific new projects, or the expansion
FOR ENVIRONMENTAL or enhancement of certain existing projects, subject to
thresholds defined within the procedure.
AND SOCIAL COMPLIANCE
IMPLEMENTATION Through the implementation of this guideline, SMBC
Indonesia is committed to making its best efforts
SMBC Indonesia conducts comprehensive monitoring to to ensure that appropriate environmental and social
ensure the quality of its credit portfolio while maintaining considerations are consistently integrated into
the sustainability of its financing activities. This effort all financing decisions. Furthermore, the projects
is carried out by examining various critical aspects, financed are expected to comply with applicable laws
including: and standards in Indonesia, as well as other relevant
international standards.
1. Credit Allocation: Ensuring that financing is provided
in accordance with established internal plans and The mechanism for conducting environmental and
policies. social risk assessments is as follows: [SUSBA 1.3.1.3]
2. Debtor Business Development: Monitoring the 1. Collection of Required Information
business conditions of debtors to identify potential SMBC Indonesia requests clients to provide the
risks and growth opportunities. necessary information to conduct an Environmental
3. Compliance with ESG Regulations: Evaluating and Social Assessment (ESA). This may include
the implementation of environmental, social, an Environmental and Social Impact Assessment
and governance (ESG) principles by debtors, (ESIA), an Environmental and Social Management
in accordance with applicable standards and Plan (ESMP), or documents with a more limited
regulations. scope (such as audits, risk assessments, hazard
assessments, and relevant project-specific
SMBC Indonesia also conducts ongoing monitoring environmental permits). [SUSBA 1.2.1.11]
of prospective debtors to ensure their business
operations align with the sustainability standards These documents serve as the basis for determining
set by the institution. The financing procedures are the potential environmental and social impacts and
evaluated at least once a year to ensure the portfolio risks (including human rights and climate change
remains consistent with sustainability criteria and risks, if applicable) of the proposed project within its
supports the achievement of SMBC Indonesia’s area of influence. The impacts include impacts on the
strategic objectives. [SUSBA 1.3.2.3] [SUSBA 1.3.2.4]
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SMBC Indonesia and
Sustainability Commitment
environment, such as biodiversity loss, deforestation grievance mechanism designed for use by Affected
risks, risks of damage to the marine environment, Communities and Workers, where necessary, to
floods, and water scarcity, as well as social impacts receive and facilitate the resolution of concerns and
such as human rights risks, including labor rights complaints regarding the environmental and social
and the rights of local communities. These efforts performance of the project. [SUSBA 1.2.1.18]
must be conducted in a manner relevant to and
commensurate with the nature and scale of the 2. Environmental Screening
proposed project. SMBC Indonesia classifies projects into categories
of environmental and social risk potential based
The ESA document outlines the measures proposed on the following criteria: projects with significant
by the client or debtor to minimize, mitigate, and adverse environmental and social risk potential,
offset any adverse impacts that may arise from their projects with limited adverse environmental and
business activities. social risk potential, and projects with minimal or
no environmental and social risks and/or impacts:
For projects with the potential for significant adverse [SUSBA 1.3.1.4]
impacts on Affected Communities, the client
undertakes a Consultation and Participation process. 3. Environmental Review
This process must be free from external manipulation, SMBC Indonesia conducts a review to ensure or
interference, coercion, and intimidation. Projects confirm that the project complies with or is expected
adversely affecting indigenous communities to comply with applicable laws and standards in
require Free, Prior, and Informed Consent (FPIC) Indonesia, as well as other relevant regulations and
from the affected Indigenous Communities. standards.
Clients are required to establish an effective
48 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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SMBC Indonesia and
Sustainability Commitment
SMBC Indonesia carries out an escalation process
and seeks input from the SMBC Group, incorporating
GOVERNANCE
their considerations into the loan agreement Strong and integrated governance is the foundation of
if necessary. Subsequently, SMBC Indonesia SMBC Indonesia’s sustainability implementation. SMBC
negotiates the proposed terms the customer. Indonesia has established a dedicated governance
[SUSBA 1.3.1.45] structure to ensure responsible, transparent, and
sustainable decision-making.
4. Support Decision Making
Based on the completed assessment stages, SMBC SMBC Indonesia demonstrates a tangible commitment
Indonesia makes a support decision that reflects the to sustainability and climate change management by
findings of the ESA. If, based on the Environmental forming a Sustainability Committee. This committee is
Screening and Environmental Review, SMBC responsible for ensuring the integrated implementation
Indonesia assesses that there are no appropriate of sustainability principles in alignment with global
environmental and social considerations, then the standards and regulatory guidelines. The main tasks of
bank will encourage the customer adopt suitable the Sustainability Committee include: [TCFD G2] [SUSBA
environmental and social measures. [SUSBA 1.3.1.4] 1.4.1.2] [SUSBA 1.4.1.3] [SUSBA 1.4.2.1]
[SUSBA 1.3.1.5]
(1) Developing strategies, policies, and targets related
5. Environmental Monitoring [FS3] [SUSBA 1.3.2.5] to sustainable finance, consistently applied across
SMBC Indonesia conducts Environmental Monitoring, SMBC Indonesia;
including verifying established environmental (2) Monitoring, evaluating, and providing
requirements to ensure that customer adequately recommendations on the implementation of
fulfill the Environmental Requirements for projects sustainable finance to ensure compliance with
with significant environmental and social impacts regulations and SMBC Group directives.
over a specified period. [SUSBA 1.3.2.2]
The committee comprises members of the Board of
Environmental Monitoring for projects meeting the Directors and heads of relevant business units. Through
threshold is conducted as follows, based on the its strategic role, the Sustainability Committee serves
project category: [SUSBA 1.3.2.2] as the driving force behind SMBC Indonesia’s efforts
to achieve its sustainability vision holistically. SMBC
Indonesia’s sustainability strategy is transparently
SMBC Indonesia conducts environmental discussed during the Annual General Meeting of
monitoring based on information provided by Shareholders (AGMS), taking into account input from
the client and through independent monitoring stakeholders.
by environmental and social consultants.
Senior Management, the Sustainability Committee,
SMBC Indonesia also conducts environmental and relevant SMBC Indonesia staff are evaluated based
monitoring based on information provided by on established sustainability criteria. This evaluation
the client. ensures that every initiative and strategy aligns with
the company’s sustainability objectives. [SUSBA 1.4.2.4]
If the customer fails to comply with the environmental [SUSBA 1.4.2.5]
requirements, SMBC Indonesia will encourage
customers to comply with applicable regulations. If
customers fail to meet these requirements, SMBC
Indonesia will take necessary actions as needed.
[SUSBA 1.3.2.3]
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SMBC Indonesia and
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SMBC INDONESIA’S SUSTAINABILITY COMMITTEE
Chairman Compliance & Legal Director
Secretary Communications & Daya Head
Members Financial Director
Operation Director
Corporate Banking Japanese
Director
Head of Risk Management Head of Micro Business
Head of Wholesale & Head of Business Banking
Commercial Banking
Head of Digital Banking
Head of Retail Lending Banking
Head of Human Resources
Head of Wealth Management Business
Head of Treasury
Report
Communications & Daya Division
Daya & Sustainability Development
The Sustainability Committee is chaired by the Compliance and Legal Director. In day-to-day operations, this function
is delegated to the Communications and Daya Head, subsequently overseeing its execution by respective Line
of Business (LOB) leaders and relevant support functions. These division leaders ensure effective monitoring and
coordination across departments in implementing the Sustainable Finance Action Plan (SFAP). The Communications
and Daya Head operates under the supervision of the Compliance and Legal Director, subsequently overseeing
the overall implementation of the company’s sustainability strategy, including management by the Daya Unit &
Sustainability Development Team across all business lines. [TCFD G2]
To ensure effective implementation, the Board of Commissioners receives sustainability reports once a year, while
the Board of Directors receives reports twice a year through the Sustainability Committee. These reports are used
to conduct in-depth reviews of policies, strategies, budgets, and risk management related to climate change
issues, enabling the sustainability strategy to be continually adjusted to evolving business needs and regulatory
requirements. [GRI 2-12] [GRI 2-13] [OJK E.1] [TCFD G1]
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SMBC Indonesia and
Sustainability Commitment
SMBC INDONESIA’S SUSTAINABILITY STRATEGY
[GRI 2-22] [OJK A.1]
In formulating its business strategy, SMBC Indonesia ensures that its approach aligns with various stakeholders and
key policies influencing its operations. This includes synchronization with the SMBC Group’s targets, the priorities of
the Indonesian government, guidelines from the OJK Roadmap, as well as the expectations and needs of stakeholders.
Stakeholder
SMBC Group Targets Government Targets OJK Roadmap Expectations and Needs
As part of the Sumitomo SMBC Indonesia integrates In developing its strategy, SMBC Indonesia listens
Mitsui Banking its business strategy with SMBC Indonesia adheres to and addresses the
Corporation (SMBC) the national development to the Financial Services needs of its stakeholders,
Group, SMBC Indonesia priorities set by the Authority (OJK) Roadmap, including customers,
aligns its strategy with the Indonesian government. including strengthening employees, business
global objectives of the This includes supporting financial system stability, partners, suppliers,
group, such as supporting large-scale infrastructure digital transformation, and the community.
sustainable economic projects, expanding financial inclusion, and Through a collaborative
growth, expanding financial access, and the sustainability of the approach, the bank
market share, and encouraging investment, banking industry. This strives to deliver
promoting environmental, in accordance with other is achieved by ensuring added value through
social, and governance strategic government regulatory compliance innovative services,
(ESG) initiatives. This focus programs. and supporting innovation operational excellence,
ensures that operations in the financial services and relevant socio-
in Indonesia contribute to sector. economic contributions
the overall mission and to Indonesian society.
vision of the group.
This strategy enables SMBC Indonesia to serve as a financial market. The following is SMBC Indonesia’s
reliable partner in supporting national economic growth sustainability strategy.
while strengthening its position in the Indonesian
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SMBC Indonesia and
Sustainability Commitment
SMBC INDONESIA’S SUSTAINABILITY STRATEGY
Development of Sustainable Finance Policy and Procedure Adjustments
Products and Portfolios • Updating the Sustainability Policy
• Expanding the sustainable business 01 04 and aligning Information Technology
portfolio policies
• Enhancing the portfolio of women- • Developing a climate risk framework
owned SMEs and reporting standards
• Increasing sustainable investments
02
Education and Empowerment
Programs
Enhancing SMBC Indonesia’s social
value through the Daya program
Sustainable Operational
Implementation
• Striving to reduce electricity and fuel
Internal Capacity Building on
Sustainability
03 05 consumption
• Conducting GHG emission
Strengthening internal capacity
calculations
through mandatory sustainability
• Implementing diversity and inclusion
training
programs
RISK MANAGEMENT (1) Reviewing the obligation to conduct an
Environmental Impact Assessment (AMDAL) in
SMBC Indonesia has established a comprehensive accordance with the Regulation of the Indonesian
risk approach to identify and manage risks associated Minister of Environment No. 05 of 2012,
with climate change. Environmental considerations are
(2) Ensuring that debtors are not part of prohibited
a key factor in the credit approval process to ensure
business activities,
sustainability and compliance with regulations. This risk
(3) Assessing customer’s compliance with
identification process includes: [TCFD R1]
environmental regulations.
(4) SMBC Indonesia is in the process of formulating
regulations on climate change applicable to the
credit granting process.
METRICS AND TARGETS
[SUSBA 1.1.1.1.] [SUSBA 1.6.2.9] [TCFD M3]
As part of the SMBC Group, SMBC Indonesia is committed to supporting the achievement of net zero emission (NZE)
targets, aligning with Indonesia’s efforts to achieve net zero emission by 2060. SMBC Indonesia has established
the following targets:
Achieved NET ZERO EMISSION
2030 (NZE) by 2030 for operational
activities.
Achieve NET ZERO MISSION
2050 (NZE) by 2050 for loan and
investment portfolios.
52 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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SMBC Indonesia and
Sustainability Commitment
Additionally, the SMBC Group has developed a Roadmap for Addressing Climate Change, providing guidelines on
managing the impacts of climate change. SMBC Indonesia has set several qualitative targets to support its climate
objectives, including:
Developing due diligence processes to ensure that customer in specific sectors
comply with environmental requirements as stipulated by applicable laws and
regulations.
Setting targets for the Sustainable Business Activities Category (KKUB) portfolio,
including financing for sustainable businesses, green transportation, and various
other environmentally related financing initiatives.
SMBC Indonesia has adopted a long-term goal to achieve net-zero emissions in alignment with the Paris Agreement.
This commitment is being realized through strategic measures such as integrating sustainability into financing
policies, promoting investments in green projects, and minimizing carbon impacts in its operations. Through this
approach, SMBC Indonesia not only supports the transition to a low-carbon economy but also plays an active role
in driving positive change for the environment and society.
ROADMAP TO ADDRESS CLIMATE CHANGE
Conduct energy audits
and develop financial Cease all new financing
products that support the for coal-fired power plant
energy transition. projects.
2024 2030 2040 2050
Achieve net zero GHG Achieve net zero GHG
emissions for scope 1 and emissions for scope 3
2 (company operational (loan and investment
emissions). portfolio emissions).
MEASUREMENT to a low-carbon economy. In 2024, SMBC Indonesia
[TCFD M1] [TCFD M2] [TCFD M3] expanded its Scope 3 emissions calculations to include:
SMBC Indonesia conducts calculations of Scope 1, 2, Purchased goods and services
and 3 emissions as part of its efforts to assess risks and Capital goods
opportunities associated with climate change. These Fuel- and energy-related activities (not included in
measurements are expressed in units of Ton CO2e Scope 1 or Scope 2)
(tons of carbon dioxide equivalent) to provide a clear Waste generated in operations
overview of the company’s operational impact on the Business travel
environment. Within Scope 3, SMBC Indonesia measures Employee commuting
emissions from both non-finance (operational) and Financed emissions
finance categories. Finance emissions refer to GHG
emissions generated from the financing portfolio, Information on emissions calculations can be found
investments, and other financial services, reflecting the in ‘Prioritizing Commitment to Climate and The
institution’s responsibility in supporting the transition Environment’ section on page 119.
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 53
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SMBC Indonesia and
Sustainability Commitment
SMBC INDONESIA’S STRATEGIES AND CONTRIBUTIONS TO
THE SDGs [GRI
[GRI2-22]
2-22][OJK
[OJKA1]
A1][SUSBA
[SUSBA1.1.4]
1.1.1.4]
SMBC Indonesia is committed to supporting the achievement of the Sustainable Development Goals (SDGs) by
integrating sustainability principles into its operations and financing. Through various strategic initiatives, SMBC
Indonesia contribute to creating a positive impact on the environment, society, and the economy.
No Poverty
Supporting economic growth through financing products for the retail, micro, small and medium
enterprises (SMEs), and corporate business segments in Indonesia.
Providing employment opportunities for 6,491 employees.
Through the Daya program, offering financial literacy training for the community and business
development training for MSMEs.
Expanding market access for customers’ businesses both online through Daya.id and offline through
customer product bazaars at SMBC Indonesia offices.
Developing Environmental, Social, and Governance Mutual Funds (ESG Mutual Funds), expected to
contribute to improving overall community welfare and reducing poverty.
No Hunger
Providing financing in the agricultural sector.
GOOD HEALTH
AND WELL-BEING
Good Health and
Well-Being
Through Daya.id, offering online training and information on health and business development for
the community.
Providing elderly-friendly branch facilities.
Offering pre-retirement preparation for civil servants, police, and military retirees.
Facilitating sports activities for employees through the SMBCI Club.
54 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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SMBC Indonesia and
Sustainability Commitment
Quality
Education
Through the Daya.id program, providing various training and capacity-building initiatives for the
community.
Collaborating with the Djarum Foundation to empower the younger generation through the
development of educational facilities.
Providing growth opportunities for employees through various training programs.
Gender Equality
Serving as a founder/promoter of the Indonesia Business Coalition for Women Empowerment
(IBCWE).
Through diversity and inclusion programs, promoting equality in career development and employee
remuneration.
Creating safe employment opportunities for women, including the provision of lactation rooms.
Clean Water
and Sanitation
Providing financing for the construction of clean water pipeline networks in DKI Jakarta of Rp8.87
trillion.
AFFORDABLE AND
CLEAN ENERGY
Affordable and
Clean Energy
Offering financing facilities to corporations in the renewable energy and electricity supply sectors.
DECENT WORK AND
ECONOMIC GROWTH
Decent Work and
Economic Growth
Providing financing for the MSME segment.
Through Daya.id, organizing entrepreneurship training to support MSME growth.
Ensuring a decent and comfortable working environment for employees.
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 55
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SMBC Indonesia and
Sustainability Commitment
INDUSTRY,
INNOVATION AND
INFRASTRUCTURE
Industry, Innovation and
Infrastructure
Developing technological innovations in banking service activities.
Collaborating with the Djarum Foundation to enhance educational facilities.
Reduce
Inequalities
Providing financing for the retail, micro, and small medium enterprises (SME) segments.
Through the Daya.id program, providing financial literacy to the community.
Sustainable Cities and
Communities
Offering financing for the green property sector.
Implementing the green building concept at the SMBC Indonesia Head Office.
Preserving culture through the management of the Dago branch office, which received recognition
from UNESCO.
RESPONSIBLE
CONSUMPTION
AND PRODUCTION
Responsible Consumption
and Production
Through its digital banking product (Jenius), SMBC Indonesia support emission reduction from
customers’ travel to bank locations.
SMBC Indonesia no longer provides bottled drinking water at its head office’s meeting room.
Climate Action
Providing sustainable financial products.
Implementing energy savings and emission reductions across the entire office network of SMBC
Indonesia.
Participating in the net zero emission (NZE) transition Plan initiated by the SMBC Group.
Absorption of carbon dioxide (CO₂) through the planting of 2,125 trees since 2023.
56 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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SMBC Indonesia and
Sustainability Commitment
Life on Land
Implementing environmental and social risk assessment procedures in all business processes, as
outlined in SMBC Indonesia’s credit policy.
PEACE,
JUSTICE
AND STRONG
INSTITUTION
Peace, Justice and Strong
Institution
Building a clean and integrity-driven institution, and providing a whistleblowing system for reporting
violations.
Encouraging employee participation through labor unions and collective labor agreements.
Partnerships for
the Goals
Collaborating with various expert partners to jointly enhance community capacity in entrepreneurship
and health sectors. This is reflected in the diverse expert partnerships featured on the Daya program.
Engaging in memberships with various associations to advance performance and contribute to
Indonesia's economic growth.
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 57
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Sustainable and
Eco-Friendly Economy
Sustainable and
Eco-Friendly
04
Economy
SMBC Indonesia supports the
achievement of sustainability goals by
promoting projects that have a positive
impact on the environment and society.
58 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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Sustainable and
Eco-Friendly Economy
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 59
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Sustainable and
Eco-Friendly Economy
In 2024, Indonesia’s economic conditions demonstrate This commitment is realized through various financing
solid recovery amidst global challenges, driven by initiatives supporting the agenda of sustainable
growth in the domestic consumption sector, increased financial development in Indonesia, particularly by
commodity-based exports, and strengthened promoting an inclusive and eco-friendly economic
infrastructure investment. The government continues transition.
to push for economic transformation through
digitalization, green energy development, and In 2024, SMBC Indonesia supported several strategic
structural reforms to enhance competitiveness. projects, focusing on efforts to reduce greenhouse gas
However, global economic uncertainties, including emissions and mitigate the impacts of climate change.
energy price fluctuations and geopolitical dynamics, These initiatives include:
remain challenges that require collaboration among
various stakeholders to maintain stability and promote The disbursement of a USD 450 million syndicated
sustainable development. loan to PT IMG Sejahtera Langgeng (IMGSL) for the
development of an electric vehicle ecosystem.
SMBC Indonesia plays a strategic role in supporting the
achievement of positive macroeconomic conditions The provision of a USD 15 million sustainability-
and sustainable financial development. Through linked loan to PT Indo-Rama Synthetics Tbk
financing green infrastructure projects, investing in (Indorama) to support the company in reducing
renewable energy sectors, and collaborating with carbon emissions and adopting environmentally
MSME players, SMBC Indonesia promotes economic friendly practices.
inclusivity while integrating sustainability principles SMBC Indonesia has signed a USD 10 million loan
into its operations. SMBC Indonesia’s initiatives, rooted facility agreement with PT Surya Utama Nuansa,
in sustainable development, align with the national one of the largest solar energy project developers
agenda to create resilient, inclusive, and eco-friendly in Indonesia, to support the development of solar
economic growth. This positions the institution as a energy projects in the country.
strategic partner in strengthening Indonesia’s financial
ecosystem for the future.
In addition, throughout 2024, SMBC Indonesia
SMBC Indonesia is committed to serving as an agent continued to strengthen its initiatives to promote
of change in the environmental and social sectors by financial inclusion domestically by promoting
integrating sustainability principles into all aspects of its increased financing to women and MSME segments.
business operations. The company strives to generate The commitment to promoting financial inclusion
significant positive impacts on the environment and is also demonstrated by continuously enhancing
society while contributing to a more sustainable future. financial literacy education through the Daya program.
SMBC INDONESIA’S INCLUSIVE FINANCE INITIATIVE
INITIATIVE DESCRIPTION AND ACHIEVEMENTS OF THE INITIATIVE ACHIEVEMENTS
Increasing Financing for SMBC Indonesia is committed to expanding its financing portfolio for WSMEs. As
Women Small Medium of December 2024, the total financing portfolio for WSME reached Rp3.31 trillion,
Entrepreneurs (WSMEs) an increase of 8.34% compared to December 2023.
Enhancing the Use of SMBC Indonesia has collaborated with several domestic zakat management
Donation/Zakat Feature in institutions to facilitate public access to zakat/donation channels while promoting
the Jenius App good and transparent zakat practices. The total number of zakat transactions
through the donation feature in the Jenius app reached 26,207 transactions.
Capacity Building for Through the Daya program, SMBC Indonesia has implemented an empowerment
Entrepreneurs program for women MSME entrepreneurs, focusing on digital business skills.
The program was attended by 85 participants from women entrepreneur
communities.
Financial Literacy SMBC Indonesia is driving increased financial literacy in the community through
the Daya program. Total beneficiaries: 8,620,804.
60 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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Sustainable and
Eco-Friendly Economy
In recognition of SMBC Indonesia’s performance and contributions throughout 2024, SMBC Indonesia has successfully
earned appreciation and recognition from various stakeholders, solidified by the achievement of several prestigious
awards in sustainability.
The Asset Triple A Awards 2024 Global Corporate Sustainability Investing in Climate by Editor’s
by The Asset in the category of Awards (GCSA) 2024 by the Taiwan Choice Award 2024 in the category
Sustainable Finance Awards 2024. Institute for Sustainable Energy of Literacy for Climate Resilience by
(TAISE), achieving a Great Practice Editor’s Choice.
Rating and the Best Practice Award.
IMPACT AND for refining SMBC Indonesia’s policies and strategies to
promote more sustainable banking practices.
MANAGEMENT
[SUSBA 1.6.2.11] [SUSBA 1.1.1.2] [OJK F.23]
SMBC Indonesia recognizes that our banking activities CUSTOMER AND
have both direct and indirect impacts on the economy,
environment, and society. Through our lending STAKEHOLDER
and financial services, the Bank generates positive
impacts, such as enhanced financial access for MSMEs,
EDUCATION [FS5] [SUSBA 1.5.1.4]
driving local economic growth, creating employment
The implementation of policies and risk management
opportunities through financing productive sectors, and
related to climate, environmental, and social aspects
supporting renewable energy projects that promote the
requires a deep understanding from stakeholders.
transition to a low-carbon economy. SMBC Indonesia
Therefore, SMBC Indonesia actively conducts education
also contribute to community empowerment through
and communication initiatives to raise stakeholders’
financial literacy programs and capacity-building
awareness of these issues. The Bank utilizes both internal
initiatives for business actors.
and external communication channels, including initiatives
under the Daya program implemented through its four
However, SMBC Indonesia also acknowledges the
program pillars.
potential negative indirect impacts of financing activities.
These include indirect greenhouse gas emissions (Scope
In addition, SMBC Indonesia actively engages with
3) from projects financed in carbon-intensive sectors
customers to support sustainability agendas. One of the
such as manufacturing and energy, potential social risks
contributions includes speaking at the following seminars
from infrastructure projects affecting local communities,
and training sessions:
and challenges related to waste management and
resource utilization in customers’ operations. To manage
these impacts, SMBC Indonesia implements stringent A corporate financing masterclass training for
sustainable financing policies, conducts environmental integrated oil & gas companies, covering financing
and social risk assessments during the credit approval topics to support energy transition.
process, and actively encourages customers to adopt A corporate financing training for natural gas
more sustainable business practices through mentoring distribution companies, focusing on sustainable
programs and special incentives. finance-based financing.
SMBC Indonesia regularly monitors and evaluates these SMBC Indonesia also provided education to suppliers
indirect impacts through a comprehensive monitoring through the seminar “Protecting the Earth through
system, including assessing customers’ sustainability Carbon Emission Control,” which was attended by 145
performance, measuring the carbon footprint of our participants from 100 companies. It is expected that
portfolio, and engaging stakeholders on a regular basis. through this seminar/education, the awareness of
The findings from this monitoring serve as the basis sustainable practices of suppliers will improve.
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 61
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Sustainable and
Eco-Friendly Economy
COORDINATION AND Tangan Di Atas Community - Providing education and
mentorship for MSME entrepreneurs.
COLLABORATION
Perempuan DigDaya - Supporting women
[SUSBA 1.1.2.2]
entrepreneurs in the MSME sector.
SMBC Indonesia actively collaborates with civil society,
non-governmental organizations (NGOs), and government Through collaboration with civil society and NGOs, SMBC
agencies to understand and manage the sustainability Indonesia continue to strengthen our commitment
impacts of SMBC Indonesia’s business activities. One such to sustainability and create positive value for the
effort includes: environment, society, and the economy as a whole.
Financial Services Authority (OJK) - In providing
products and services under the Sustainable Business
Activities Category (KKUB).
PERFORMANCE OF SMBC
Ministry of Communication and Information INDONESIA
Technology - In fulfilling customer information
requirements. In 2024, SMBC Indonesia achieved an operating revenue
of Rp17,429 billion, reflecting an increase of 26.9%
Ministry of Cooperatives and Small and Medium compared to 2023. Net profit for the same period was
Enterprises – in implementing the Daya program for Rp3,216 billion, marking a 19.9% increase from the
business capacity development. previous year. The economic performance of SMBC
Indonesian Medical Association (IDI) - In delivering Indonesia is subject to an external audit team and is
services to customers. regularly reported to the Finance Director.
COMPARISON OF PRODUCTION TARGET AND PERFORMANCE, PORTFOLIO, FINANCING TARGET, OR INVESTMENT,
INCOME AND PROFIT/LOSS
[OJK F.2]
Description 2024 2023 2022
BALANCE SHEET SUMMARY (Rp Billion)
Total Assets 241,096 201,448 209,170
Productive Assets 202,950 197,326 204,170
Credit/Bank Financing 149,972 156,561 146,124
Third-Party Fund 121,318 108.199 114,867
Loans Received 52,633 34,284 48,025
Securities Issued 2,940 201 200
Total Liability 186,350 160,165 169,757
Total Equity 54,746 41,283 39,413
PROFIT AND LOSS SUMMARY (Rp Billion)
Net Interest Income 15,208 12,044 11,678
Other Operating Income 2,221 2,073 2,013
Operating Expenses )9,428( (7,607) (7,193)
Allowance for Impairment Losses )3.897( (3,050) (1,840)
Net Operating Income 4,104 3,461 4,658
Net Profit for the Current Year 3,216 2,682 3,630
Total Comprehensive Income 3,291 2,701 3,475
Bank Operating Income 17,429 14,118 13,691
Net Income of the Bank 3,216 2,682 3,630
62 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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Sustainable and
Eco-Friendly Economy
COMPARISON OF PRODUCTION TARGET AND PERFORMANCE, PORTFOLIO, FINANCING TARGET, OR INVESTMENT,
INCOME AND PROFIT/LOSS
[OJK F.2]
Description 2024 2023 2022
PERFORMANCE RATIO (Rp Billion)
Minimum Capital Sufficiency Ratio 30.02% 29.90% 27.29%
Non-Performing Earning Assets and Non-Earning Assets 1.20% 0.68% 0.68%
to Total Earning Assets and Non-Earning Assets
Non-Performing Earning Assets to Total Earning Assets 1.19% 0.68% 0.68%
Allowance for Impairment Losses on Financial Assets to 2.60% 2.46% 1.85%
Total Earning Assets
Gross NPL 2.50% 1.36% 1.43%
Net NPL 1.07% 0.40% 0.44%
Return on Asset (ROA) 1.80% 1.73% 2.36%
Return on Equity (ROE) 6.83% 6.54% 9.15%
Net Interest Margin (NIM) 7.10% 6.45% 6.32%
Efficiency Ratio (BOPO) 83.21% 83.72% 75.05%
Loan to Deposit Ratio (LDR) 147.04% 142.68% 126.66%
LIQUIDITY COVERAGE RATIO (LCR) VALUE
a. Individual LCR 221.49% 177.57% 220.55%
b. Consolidated LCR 253.71% 199.68% 229.30%
Note:
- The data in the table above represents the consolidated financial data of SMBC Indonesia, including three subsidiary entities: PT Bank BTPN
Syariah Tbk, PT Oto Multiartha (OTO), and PT Summit Oto Finance (SOF).
- Data presentation has been adjusted from Rp million to Rp billion.
ECONOMIC PERFORMANCE RELATED TO SUSTAINABILITY
Description 2024 2023 2022
ECONOMIC PERFORMANCE RELATED TO SUSTAINABILITY[OJK
[OJKB.1.d]
B.1.d]
Types of products that meet the criteria for • 2 funding • 2 funding • 1 funding
sustainable business activities products* products* product***
• 3 sustainable • 3 sustainable • 3 sustainable
financing financing financing
products** products** products**
• 1 MSME financing • 1 MSME financing • 1 MSME financing
product product product
• ESG mutual funds • ESG mutual funds • Philanthropic
mutual funds
Nominal value of products and/or services that 18,126 13,775 12,968
meet the criteria for sustainable business activities
(Rp billion)
Percentage of total portfolio of sustainable business activities to total portfolio (%)
a. Funding 0.08% 0.11% 0.06%
b. Financing 12.42% 9.49% 9.64%
INCLUSIVE FINANCIAL PERFORMANCE
Digital access development through Jenius****
Features developed 1 4 -
Number of Jenius customers 5,199,264 4,497,649 -
Number of transactions 136,048,634 113,812,489 -
Note:
* Funds came from the ESG Deposit and Green Deposit.
** Green Loan, Social Loan, and Sustainability-linked Loan.
*** In the 2023, BTPN Wow! as a branchless banking product has been replaced by Jenius, a digital-based product, enabling banking activities to
be expanded across all regions and for all segments of society.
**** With digitalization and internet technology advancement, marginalized and remote communities now have access to the required banking
services. Nevertheless, SMBC Indonesia cannot distinguish between people based on their situations and locations, as these factors have
become irrelevant with digitalization enabling outreach to people anywhere and anytime. [FS13] (Note: The GRI Financial Services Sector was
published in 2008 when digital banking was non-existent. Hence, the disclosure requirements did not encompass provisions for unlimited
digital banking).
- Adjustment in the disclosure of Information on types of sustainable finance-related product.
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 63
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Sustainable and
Eco-Friendly Economy
COMPARISON OF PRODUCTION TARGET AND PERFORMANCE, PORTFOLIO, FINANCING TARGET, OR INVESTMENT,
INCOME, AND PROFIT/LOSS
[OJK F.2]
Comparison of Financing Target Comparison of Operating Income Comparison of Profit/Loss Target
and Realization Target and Realization and Realization
Year (Rp Billion) (Rp Billion) (Rp Billion)
Target Realization Target Realization Target Realization
2024 199,125 179,405 18,456 17,429 199,125 179,405
2023 160,131 156,561 14,232 14,118 160,131 156,561
2022 145,599 146,124 13,670 13,691 145,599 146,124
Note:
- The data in the table above represents the consolidated financial data of SMBC Indonesia, including three subsidiary entities: PT Bank BTPN
Syariah Tbk, PT Oto Multiartha (OTO), and PT Summit Oto Finance (SOF).
- Data presentation has been adjusted from Rp million to Rp billion.
COMPARISON OF PORTFOLIO TARGET AND PERFORMANCE, FINANCING TARGET, OR INVESTMENT IN FINANCIAL
INSTRUMENTS OR PROJECTS ALIGNED WITH SUSTAINABLE FINANCE
[OJK F.3]
Comparison of Green and Social Portfolio Target and Realizations (in Million Rupiah)
Year Target Realization
2024 23,718 18,126
2023 14,998 13,775
2022 14,947 12,968
Note:
- Data presentation has been adjusted from Rp million to Rp billion.
SUSTAINABLE FINANCE PERCENTAGE OF GREEN
TAXONOMY AND SOCIAL BUSINESSES
SMBC Indonesia is committed to supporting IN THE PORTFOLIO
sustainable economic growth by implementing the [OJK F.26] [SUSBA 1.5.1.2]
principles of green finance. As part of this initiative,
SMBC Indonesia follows the Financial Services During the reporting period, SMBC Indonesia continued
Authority (OJK) guidelines in piloting the Indonesian to actively support environmental preservation and
Green Taxonomy (THI) reporting. Additionally, since climate change mitigation through various green
2024, SMBC Indonesia has also begun piloting the financing initiatives. A portion of the credit portfolio
Indonesian Sustainable Finance Taxonomy (TKBI), an was allocated to eco-friendly sectors, such as green
advancement of THI. As of December 2024, 29% of the transportation and resource efficiency, through
230 key debtors were classified under the green and sustainable financial products including Green Loans,
yellow/transition categories, equivalent to IDR 17.96 Social Loans, and Sustainability-Linked Loans. During
trillion based on outstanding loan balances. the reporting year, SMBC Indonesia engaged with
at least 230 selected debtors with a total financing
portfolio of IDR 46.41 trillion, equivalent to 32% of the
bank’s total financing portfolio. [FS10]
64 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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Sustainable and
Eco-Friendly Economy
SMBC INDONESIA’S SUSTAINABLE FINANCIAL PRODUCTS
Sustainable Financial SMBC Corporate Banking Sustainable Financial Products:
Products: • Green Loan
• Mutual Funds • Social Loan
• Sustainability-Linked Loan
• ESG Deposit
SMBC Wholesale Banking
• Green Deposit
• Digitalized
Banking
Services SMBC Business Banking
• MSME
Financing
SMBC Senior SMBC Mikro
In the reporting year, SMBC Indonesia disbursed financing of Rp7,514 trillion, supporting green activities, accounting
for 5.15% of the total Corporate Banking credit portfolio of Rp145,938 billion.
Additionally, financing was also directed towards MSMEs. This initiative plays a significant role in promoting regional
economic development by creating new job opportunities, thereby delivering a direct positive impact on community
welfare. Social sector financing was recorded at Rp10.613 trillion, accounting for 7.27% of the total financing disbursed
by SMBC Indonesia.
SUSTAINABLE FINANCE PROJECT PORTFOLIO (RP BILLION)
[OJK F.3] [FS7] [FS8] [SUSBA 1.6.2.1]
Proportion of Sustainable
Description 2024 Financing to Total Bank 2023 2022
Financing
Funding 91 0.08%* 110 63
Financing 18,126 12.42% 13,775 12,968
Renewable energy 1,244 0.85% 1,142 1,984
Energy efficiency 294 0.20% 397 519
Sustainable management of biological 4,058 2.78% 4,802 3,332
natural resources and land use
Green Transportation 100 0.07% 122 332
Products that can reduce resource 901 0.62% 660 -
usage and generate less pollution (eco-
efficient)
Green buildings that meet nationally, 510 0.35% 560 760
regionally, or internationally recognized
standards or certifications
Other green business activities and/or 406 0.28% - -
other activities
MSME Activities 10,613 7.27% 6,092 6,041
* Proportion to the total funding of the bank.
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 65
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Sustainable and
Eco-Friendly Economy
BUSINESS PORTFOLIO BY sources and support various aspects of the economy.
SMBC Indonesia’s financing is directed to support sectors
SECTOR AND SIZE that adhere to environmental and social standards.
[FS6] Additionally, SMBC Indonesia does not classify savings
SMBC Indonesia’s business portfolio encompasses a and current accounts based on personal or business
diverse range of sectors and business sizes, aligning accounts [FN-CB-000.A]
with the company’s efforts to diversify its funding
FINANCING BY BUSINESS SEGMENT (SECTOR) AND SIZE
[FN-CB-240a.1] [FN-CB-000.B] [SUSBA 1.6.2.1]
2024 2023 2022
Description Number of Number of Number of
Rp Billion Rp Billion Rp Billion
Customers Customers Customers
Corporate and 3,285 98,896 2,418 104,904 2,204 97,450
Commercial
Retail Lending 798,845 21,867 391,016 22,403 422,173 23,990
Micro 8,916 1,940 34,044 1,306 21,433 743
Small and Medium 8,964 14,362 5,414 13,255 4,644 11,257
Enterprises
Joint Finance 354,161 5,565 161,533 1,139 34,454 146
Jenius 5,565,263 3,198 604,181 2,049 303,867 887
Others 1,987 110 2,395 117 2,591 123
Total 6,741,421 145,938 1,201,001 145,173 791,366 134,596
During the reporting year, MSME loans that were overdue or defaulted were Rp599.45 billion, with an NPL ratio
of 5.6%. [FN-CB-240a.2]
CONVENTIONAL FINANCING BY BUSINESS SEGMENT (RP BILLION)
[FN-CB-410a.1] [SUSBA 1.6.2.1]
Description 2024 2023 2022
Household 29,137 25,789 25,244
Trading 17,297 18,890 18,208
Industry 29,558 32,871 34,577
Other services 36,814 33,503 27,501
Agriculture 3,875 3,989 5,642
Accommodation services 190 184 128
Construction 5,391 5,845 5,933
Transportation and Communication 15,588 12,925 7,472
Mining 2,404 6,029 5,460
Others 5,685 5,148 4,430
Total 145,938 145,173 134,596
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Sustainable and
Eco-Friendly Economy
IMPLEMENTATION OF and implementation of corrective measures. The
communication of audit findings ensures that any
ENVIRONMENTAL AND identified issues are addressed promptly, thereby
enhancing the integrity and overall performance of
SOCIAL POLICIES AND SMBC Indonesia.
PROCEDURES
[FS9] [SUSBA 1.4.1.1]
SMBC Indonesia has established a robust internal audit ECONOMIC VALUE
mechanism to maintain good corporate governance and
ensure compliance with applicable regulations. A key GENERATED AND
focus of this audit is the assessment of environmental
and social aspects, aiming to ensure that SMBC
DISTRIBUTED
[GRI 201-1] [OJK B.1]
Indonesia’s operations align with sustainability principles
In 2024, SMBC Indonesia achieved a net profit of
and to identify risks associated with the environmental
Rp3,216 billion, reflecting the effectiveness of its growth
and social impacts of the company’s operations.
strategies. This income has supported various initiatives
that positively impact communities while contributing
Additionally, SMBC Indonesia conducts credit reviews for
to national economic growth. The economic value
the wholesale and commercial segments through the
generated was distributed as operating expenses,
Internal Audit team, integrated into the company’s Annual
employee salaries, dividend payments, tax payments,
Audit Plan. This audit process includes an assessment of
and community development funds. In conducting
compliance with environmental and social policies.
its operations, SMBC Indonesia did not receive any
subsidies or financial assistance from the government
The results of the environmental and social audits are
[GRI 201-4]. SMBC Indonesia is classified as a Domestic
communicated transparently to management and
Systemically Important Bank (D-SIB). [FN-CB-550a.1]
relevant stakeholders, enabling the effective planning
ECONOMIC VALUE GENERATED AND DISTRIBUTED (RP BILLION)
[GRI 201-1] [OJK B.1]
Description 2024 2023 2022
Direct economic value generated
Interest and Sharia Income 23,588 18,816 15,900
Other Operating Income (Net) 1,590 1,484 1,484
Total Economic Value Generated 25,179 20,299 17,384
Direct economic value distributed
Operational Expenses 3,951 3,274 3,272
Employee Salaries and Allowances 4,850 3,756 3,403
Interest Expense and Profit Sharing of Shirkah Funds 8,380 6,772 4,221
Dividend Payments 472 619 -
Payments to Government (Income Tax and VAT) 892 861 814
CSR Fund Disbursement 3.42 2.88 3.47
Total Economic Value Distributed 17,182 15,282 11,714
Economic Value Retained 7,997 5,018 5,670
Note:
- The data in the table above represents the consolidated financial data of SMBC Indonesia, including three subsidiary entities:
PT Bank BTPN Syariah Tbk, PT Oto Multiartha (OTO), and PT Summit Oto Finance (SOF).
- Restatement of 2023 data for the economic value distributed and economic value retained.
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Sustainable and
Eco-Friendly Economy
CHALLENGES IN THE This strategic approach reflects SMBC Indonesia’s
commitment to overcoming challenges while reinforcing
IMPLEMENTATION OF its dedication to promoting the implementation of
sustainable finance.
SUSTAINABLE FINANCE
[OJK E.5]
SMBC Indonesia is committed to implementing the
principles of sustainable finance in all aspects of its SUPPLY CHAIN
operations. A range of internal and external challenges [GRI 2-6] [GRI 414-1] [GRI 414-2]
encountered in the implementation of these principles
has served as a catalyst for SMBC Indonesia to develop SMBC Indonesia’s operations are supported by a robust
innovative and adaptive strategic solutions. As a result, supply chain, comprising a network of vendors that
every step taken aligns with the company’s sustainability facilitate various aspects of the company’s business.
vision and aims to deliver long-term benefits for all SMBC Indonesia’s supply chain includes providers of
stakeholders. external workforce services, such as security personnel
and customer service representatives. All vendors within
Internal challenges, such as a lack of employee the supply chain (100%), totaling 187 vendors, have
understanding, have been addressed through intensive undergone a rigorous screening process, including
training and workshops, while the integration of an evaluation of their compliance with human rights
sustainability principles into operations has been standards. SMBC Indonesia ensures that no vendors
managed through regular system evaluations without are involved in social violations or breaches of ESG
compromising work efficiency. On the external front, standards. As part of its commitment to sustainable
SMBC Indonesia has responded to the impact of climate practices, SMBC Indonesia conducts annual training
change on debtors by conducting climate-based risk programs to assist vendors in implementing ethical,
assessments and loan restructuring. SMBC Indonesia compliant, and environmentally responsible principles in
has also addressed low awareness in the supply chain their operations. Therefore, there are no negative social
sector by providing sustainability education to vendors, impacts within SMBC Indonesia’s supply chain.
monitoring regulatory changes through a dedicated team,
and maintaining its reputation through regular audits.
68 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
Page 70
Sustainable and
Eco-Friendly Economy
In addition to its supply chain, SMBC Indonesia to responsible tax management. This approach also
collaborates with various goods and services providers, reflects the efficiency of corporate communication,
encompassing a total of 247 vendors, with procurement taking into account the context of stakeholder needs.
values of Rp1,092 billion. The vendor selection process
is conducted transparently through stages such as
purchase requisition (PR), selection evaluation, and the TAX GOVERNANCE AND RISK MANAGEMENT
issuance of a work order letter (SPK), all governed by [GRI 207-2]
high accountability principles. To enhance cost efficiency The oversight of tax strategy at SMBC Indonesia is
and reduce emissions, SMBC Indonesia prioritizes the the responsibility of the Finance Director, with the
procurement of goods and services from provinces Tax Management Division supporting its effective
where its branches operate. This approach supports implementation across all business units in accordance
the equitable distribution of the national economy and with applicable regulations. SMBC Indonesia manages
strengthens the local economy. Throughout 2024, the tax obligations through standardized operational
proportion of expenditure allocated to local vendors procedures (SOPs) that ensure compliance and tax
reached 100%. [GRI 204-1] risk control while integrating tax responsibilities into
the corporate culture through training programs and
seminars for employees.
Additionally, SMBC Indonesia conducts regular tax
TAX monitoring and evaluations through internal and external
APPROACH TO TAX audits performed by independent parties. This ensures
[GRI 207-1] adherence to regulations and sustains the company’s
SMBC Indonesia views taxes as a vital instrument reputation and accountability.
for making a tangible contribution to economic
development and public welfare. As such, SMBC SMBC Indonesia periodically conducts tax monitoring
Indonesia consistently adheres to applicable tax and evaluations involving both internal and external
regulations and ensures that tax payments are made in a audits by independent entities. These measures aim
timely, transparent, and accurate manner, in accordance to ensure that all tax-related processes comply with
with the provisions set by the national tax authorities. prevailing regulations while safeguarding the company’s
This approach reflects SMBC Indonesia’s dedication to reputation and accountability.
supporting the sustainability of the national economy,
while also delivering broader benefits to society through
the financing for public programs, infrastructure, and STAKEHOLDER ENGAGEMENT AND
social services. MANAGEMENT OF CONCERNS RELATED TO
TAX
The management of tax payments and tax strategies [GRI 207-3]
at SMBC Indonesia is overseen by the Tax Management SMBC Indonesia prioritizes a cooperative and transparent
Division. All strategies developed by this division are approach to managing its tax responsibilities. The
approved by the Finance Director and are reviewed company collaborates with tax authorities to ensure
annually to ensure alignment with evolving regulations compliance with regulations through real-time audits
and to support the company’s sustainability objectives. and structured tax risk management. Tax policies are
designed to support the company’s strategic objectives
SMBC Indonesia’s tax policy is communicated while taking into account the perspectives and input of
transparently in SMBC Indonesia’s Sustainability Report, stakeholders, including the Financial Services Authority
designed to provide comprehensive information to (OJK) and the Banking Industry Association.
stakeholders regarding SMBC Indonesia’s commitment
to tax compliance and economic contribution. This SMBC Indonesia operates exclusively within Indonesia,
policy is not available on SMBC Indonesia’s website, as and as such, tax reporting is prepared solely for activities
it is deemed sufficiently detailed in the Sustainability conducted in Indonesia.
Report, which includes information on the principles [GRI 207-4]
of tax governance, transparency, and the approach
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 69
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Financial Services for
Sustainable Transformation
Financial Services
For Sustainable
05
Transformation
SMBC Indonesia offers innovative
products and services designed to
support economic growth while
promoting sustainability for both
society and the environment.
70 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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Financial Services for
Sustainable Transformation
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 71
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Financial Services for
Sustainable Transformation
SMBC Indonesia is committed to supporting Indonesia’s benefits, such as renewable energy development and
transformation towards a green economy through sustainable resource management. [SUSBA 1.5.1.5]
various financing initiatives that promote eco-friendly [SUSBA 1.5.1.2]
projects. This commitment is demonstrated by offering
one of its flagship product innovations, the ESG Deposit, In addition, SMBC Indonesia is constantly developing
to its corporate clients. The ESG Deposit offers a financial digital services to enhance operational efficiency by
instrument with optimal returns for corporate customers, reducing emissions generated from conventional
while also enabling them to realize their sustainability banking activities. In the social aspect, SMBC Indonesia
initiatives through strategically allocated deposit supports MSMEs through financing that strengthens
products that support projects and activities contributing their competitiveness and fosters the growth of small
to sustainable development within the ESG framework. businesses as a vital pillar of the community economy.
Another flagship product is the Green Deposit. The Green This strategy underscores SMBC Indonesia’s role
Deposit is an investment product that allows customers as a financial institution committed to promoting
to contribute to funding aligned with the SDGs. Funds environmental sustainability, empowering communities,
from the Green Deposit are strategically allocated to and supporting comprehensive national economic
support projects that deliver tangible environmental growth. [OJK F.28]
Awards for Services and Products
7th INFOBANK BANK SERVICE 13TH INFOBANK
SATISFACTION, LOYALTY, EXCELLENCE MONITOR
AND ENGAGEMENT 2024
DIGITAL BRAND
2024
AWARDS -
THE 3RD BEST
CONVENTIONAL
PAYMENT PARTNER OF COMMERCIAL BANK
TOP DIGITAL
PT ASABRI (PERSERO)
COMPANY AWARD 2024 - KBMI
2024 - TOP
2024
PERFORMER PARTNER
SMBC INDONESIA’S PRODUCTS
[GRI 2-6] [OJK C.4]
Jenius
• Jenius Application • Loans (Flexi Cash) • Jenius Paylater
• Savings Accounts (Flexi Saver, • Jenius Pay • Jenius for Business
Dream Saver, and Foreign Currency) • Jenius QRIS • Bisniskit by Jenius
• Time Deposit (Maxi Saver) • Moneytory • Jenius Application for SMBCI
• Bill Payment • Sinaya Prioritas on Jenius Retail Business Lines (Jenius as
• Jenius ATM/Debit Card Application a Platform)
• Fund Transfers (RTOL, SKN, & RTGS) • Mutual Funds • Foreign Currency (FCY)
• E-Wallet Top-up • Jenius Credit Card • Insurance Products
72 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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Financial Services for
Sustainable Transformation
Retail Lending Business
A. Pension Business • Maxi Micro Loan • Digital Micro Loan
• Pension Loan 1. Current Account Loan 1. Installment Loan
• Pre-Pension Loan (PRK) • People’s Business Credit
• Active Employee Loan 2. Installment Loan (PAB) (KUR)
• Citra Pension Saving 3. Term Loan (PB) C. Joint Finance/indirect Finance
B. Mikro Business • Joint Finance
• Business Partner Saving • Channelling
Business Banking
A. Core/Generic Products • Online Customer • Checkbook Ordering
• Current Account Loan (PRK) Registration and Activation (checks & GIRO bills)
• Time Loan (PB) • TOUCHBIZ Application with • Soft Token Access for
• Term Loan (PAB) Biometric-Based Customer Transaction Authorization
B. Asset Based Financing (ABF) Verification • Current Account & Loan
C. BPR Financing • Funding Products: Current Information
D. Business Current Account Account, Business Savings, • Transaction History and
E. Partner Current Account Business Deposits Electronic Transaction
F. Employee Current Account • Fund Transfers (BIFAST, Receipts
G. TOUCHBIZ Platform: RTOL, SKN, RTGS) • Account Consolidation
• Bill Payments (e-wallet top- Reports
up, telephone, electricity) • Notifications & Reminders
• Multi-Role Access &
Approval Matrix
Treasury
• Foreign Exchange • Money Market
• Derivative • Fixed Income
Wealth Management Business
A. Wealth B. Liabilities & Sinaya Prioritas • Sinaya Current Accounts
• Mutual Funds • Sinaya Savings Accounts (Rupiah, Foreign Currency)
• Bancassurance (Rupiah, Foreign Currency, • Sinaya ATM/Debit Card
• Government Bonds Business) • Safe Deposit Boxes
• Time Deposits (Rupiah, Foreign • Sinaya Prioritas
Currency, Flexible, On Call)
Corporate/
Wholesale Banking
• Sustainability-Linked Loans
A. Hedging Products • Working Capital Loan • Other Loans
• IRS/CCS and foreign exchange • Investment Loan C. Funding Product
transactions • Project/Structured Finance • ESG Deposit
B. Loan Product • Export Credit Agency (ECA) • Green Deposit
• Bilateral and Syndicated Loans • Green/Social Loans
(IDR, USD, EUR, and JPY)
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 73
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Financial Services for
Sustainable Transformation
Custody &
Securities Services
A. Core Custody • Securities Transaction • Custody Service Fee and
• Securities Account Settlement Tax Billing
Administration • Corporate Actions and B. Fund Administration
• Securities Safekeeping Income Collection • Fund Administration
• Confirmations and Reporting • Transfer Agent
Transaction Banking &
Supply Chain
A. Cash & Digital Solution • Open API SNAP • Bank Guarantee & SBLC &
• Current and Time Deposit • Liquidity Management Counter Guarantee
Accounts (Domestic Cash Pooling, • Trade Loan & TR
• Funds Transfers (SKN/RTGS, Automated Time Deposit • Foreign Bills Bought &
BI-FAST, Payroll, Overbooking, Placement, Cross-Border Forfaiting
Telegraphic Transfer) Pooling) • Account Receivable
• Funds Receipts (SKN/RTGS, • Automated Debits Purchase
BI-FAST, Telegraphic Transfer, B. Trade • Import Avalization & LC
Check/Cash Deposit) • Import & Export Letter of Confirmation
• e-Tax Payment Credit & SKBDN • BL Endorsement &
• Virtual Accounts • Import & Export Bill Shipping Guarantee
• Internet Banking Collection C. Supply Chain
• Host-to-Host (SFTP) • Import & Export • Supply Chain Financing
Documentary Collection (Distributor Financing/
Supplier Financing)
• Lending Program
FLAGSHIP PRODUCTS
ESG DEPOSIT funds are managed transparently and accountably
ESG Deposit is an innovative sustainable financial through the portfolio approach implemented by SMBC
product designed to enable corporate clients to Indonesia.
contribute to sustainable development. This product
not only offers competitive returns but also helps Funds accumulated in the ESG Deposit will be
companies fulfill their commitments to ESG principles. allocated to green and social projects that meet the
Funds invested in the ESG Deposit will be strategically criteria outlined in the ESG Deposit framework. These
allocated to support initiatives and projects aligned projects will be managed within green loan and/or
with sustainability goals, including efforts to achieve social loan portfolios to ensure sustainable positive
net-zero emissions. impacts. Through the ESG Deposit, SMBC Indonesia
demonstrates its commitment to providing innovative
With a fixed deposit-based scheme, the ESG Deposit financial solutions that support sustainability while
offers corporate clients with flexibility in terms of delivering benefits to clients seeking responsible
investment amounts and tenors. Available in both investment opportunities. Further information on the
Rupiah and USD currencies, this product offers a broader ESG Deposit can be found on the SMBC Indonesia
range of investment options. In addition to contributing website.
to ESG objectives, clients can also ensure that their
74 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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Financial Services for
Sustainable Transformation
JENIUS
Jenius, the flagship digital banking product of SMBC Indonesia, is designed to meet the needs of digitally savvy
individuals by providing easy, intelligent, and secure access to banking services. As a comprehensive life finance
solution, the Jenius app offers a wide range of features, including transactions, savings, financial management,
loans, and investments, all available digitally and accessible anytime, anywhere.
Jenius consistently prioritizes user needs, with all product and service innovations undergoing a co-creation process
to deliver relevant experiences for its users. By offering fully digital services, Jenius supports the reduction of paper
usage and emissions, reflecting its commitment to sustainability. This is evident in the entirely online registration
process, which eliminates the need to visit a branch office or fill out lengthy forms. Additionally, Jenius customer
service is available online 24/7, including on holidays, to address user inquiries and needs related to the platform.
Additionally, Jenius provides a platform for sharing ideas, inspiration, and creativity to create better financial
services through Jenius Co.Create. All members can be part of the Jenius Co.Create community and participate
in co-creating to generate various financial service innovations. Jenius Co.Create was launched on December 14,
2017, and currently has more than 47,000 Co.Creators. Within Jenius Co.Create, members can:
SHARE IDEAS SHARE SELF- BERAGAM KONTEN
DEVELOPMENT EVENTS
Numerous features have been Jenius Co.Create has hosted On the Jenius Co.Create website,
developed through co-creation hundreds of classes and talks, members can explore a variety
with Co.Creators. Each member both offline and online, covering of content on diverse topics,
can share their ideas to drive themes such as finance, particularly finance, creativity,
broader innovation. creativity, business, technology, business, and technology. They
and sustainability. Jenius can also participate by writing
Co.Create also shares exciting stories on the blog and forum
experiences through Co.Create features.
ON. All these events are available
to join free of charge.
Co.Create Club Co.Create Business Co.Create Tech
(Personal Finance & Creative) (Small to Medium Business Owners) (Developers & Tech Enthusiasts)
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 75
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Financial Services for
Sustainable Transformation
EXPANDING ACCESS 3. Consideration of environmental issues, such as
natural resource conservation, climate change
SMBC Indonesia remains committed to expanding mitigation, and environmental risk management
the reach of its financial services as part of its (e.g., waste disposal, pollution control, and others).
efforts to support economic inclusion and enhance SMBC Indonesia establishes specific requirements
financial literacy across Indonesia. This strategy is related to environmental risks, which must be
implemented through the addition of ATMs and the included by Business Units in loan approval
development of digital systems facilitation for the procedures.
public to access financial services in a more practical 4. Consideration of social issues, such as providing
and efficient manner. credit and various training programs for MSME
communities.
In addition to focusing on service expansion, SMBC 5. Providing information based on the principle of
Indonesia also places special emphasis on addressing transparency. All products and services offered
the needs of individuals with disabilities. Several branch by SMBC Indonesia to customers are conveyed
offices have been equipped with disability-friendly through a summary of product information during
facilities, such as ramps for wheelchair users and ATMs the offering and/or credit agreement signing
with tactile markers on key buttons, including the process. The product summary provided by SMBC
number 5, enter, clear, and cancel. SMBC Indonesia’s Indonesia complies with applicable OJK regulations,
dedication to creating inclusive services ensures all particularly those related to Consumer Protection.
individuals, regardless of their limitations, can access 6. Ensuring that all products undergo thorough review:
banking services comfortably and securely. [FS14] a. Risk Management assessment, covering eight
types of risks: credit risk, market risk, liquidity
For communities in remote and underserved areas, risk, operational risk, strategic risk, compliance
SMBC Indonesia offers Jenius, a banking service risk, reputational risk, and legal risk;
accessible across Indonesia. This service caters to b. Compliance test review;
various segments of society with access to technology, c. Operational review;
particularly mobile devices that support the Jenius d. Financial review;
application. Users are required to understand and agree e. IT review;
to the product terms and conditions set forth by SMBC f. And a review of sustainability aspects.
Indonesia. [FS13] 7. Ensuring that all products have received approval
from relevant parties as stipulated in SMBC
Indonesia’s Product and Service Policy, supported
QUALITY PRODUCTS AND by standardized procedures and adequate
infrastructure, including certified Human Resources
SERVICES (HR) and a Business Continuity Plan (BCP).
8. For products requiring regulatory approval, SMBC
[OJK.F.17] [FS15]
Indonesia ensures that the products are only
SMBC Indonesia provides high-quality products and launched after obtaining the necessary regulatory
services that meet customer needs while complying approvals.
with applicable regulations. Each product is designed
with a customer-centric approach, prioritizing SMBC Indonesia consistently conducts evaluation
customer satisfaction and addressing the financial and monitoring of all (100%) products and services
needs of Indonesian society. In delivering its banking offered to ensure compliance with quality standards
products and services, SMBC Indonesia refers to the and applicable regulations. Evaluation and monitoring
Financial Services Authority Regulation (POJK) No. are carried out through the three lines of defense, each
13/POJK.03/2021 concerning the Implementation within their respective scopes. Procedures related
of Commercial Bank Products to ensure that quality to product implementation have been adequately
and compliance remain a priority in all aspects of the applied, ensuring no products have been recalled
company’s operations. In developing and launching [OJK F.27] [OJK F.29].
products, SMBC Indonesia implements a rigorous set
of criteria to ensure the highest standards of product The procedures related to product implementation
quality and operational responsibility. These criteria have been adequately implemented. However, in 2024,
include: [OJK.F.27] SMBC Indonesia recorded a total of 72 administrative
sanctions imposed by the local regulator, amounting
1. Alignment of products with SMBC Indonesia’s vision to Rp160,950,000 (one hundred sixty million nine
and mission. hundred fifty thousand rupiah). All administrative
2. Alignment of products and services to customer sanctions imposed on SMBC Indonesia have been duly
needs and capabilities. addressed. [2-27]
76 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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Financial Services for
Sustainable Transformation
ENHANCING SERVICE Supported by a Customer Relationship Management
(CRM) application, SMBC Indonesia is able to monitor
QUALITY N and address each complaint effectively.
The complaint resolution process at SMBC Indonesia
SERVICE QUALITY POLICY
is carried out in accordance with the guidelines
SMBC Indonesia is committed to a high-quality
outlined in the SLA, emphasizing prompt and accurate
service policy, placing customer satisfaction at the
responses. The SLA sets specific timelines for complaint
forefront of all operational aspects. SMBC Indonesia
resolution, reflecting SMBC Indonesia’s commitment to
implements a Service Level Agreement (SLA) as the
customer satisfaction. Verbal complaints are resolved
basic guideline for effectively addressing customer
within a maximum of 5 working days, while written
requests and complaints. The SLA establishes clear
complaints are addressed within a maximum of 10
and measurable service standards, ensuring that all
working days. Customers can submit complaints
actions taken meet customer expectations. Regular
through various communication channels, including
evaluations are conducted to guarantee consistent SLA
the SMBC Indonesia Contact Center, accessible at
implementation and to drive continuous improvement
any time, customer service email, and official social
in service quality.
media platforms such as Facebook, Instagram, and X
(formerly Twitter).
COMPLAINT HANDLING
During the reporting year, SMBC Indonesia received
SMBC Indonesia views customer complaints as a
a total of 63,673 complaints. Of these, 99% were
critical element in its efforts to enhance service quality
resolved, while 1% remain under processing.
in accordance with customer needs and expectations.
COMPLAINT HANDLING 2024
[OJK F.24]
Type of Financial Resolved In Process Unresolved Total
Transaction Number Percentage Number Percentage Number Percentage Complaints
Deposits - - - - - - -
Giro 26 93% 2 7% - - 28
Saving Account 74 100% - - - - 74
Jenius 5,455 99% 47 1% - - 5,502
Pension Saving 8 100% - - - - 8
Sinaya Saving 26 100% - - - - 26
Flexi Cash 4,677 99% 41 1% - - 4,718
Pay Later 1,813 99% 11 1% - - 1,824
Split Pay - - - - - - -
Working Capital Loan - - - - - - -
Pension Loan 281 99% 2 1% - - 283
SME Loan 61 100% - - - - 61
SME 9 100% - - - - 9
ATM 13,079 98% 265 2% - - 13,344
Credit Card 14,191 97% 375 3% - - 14,566
Internet Banking 5 100% - - - - 5
Mobile Banking 22,655 99% 168 1% - - 22,823
Remittance/Transfer 171 99% 2 1% - - 173
RTGS/SKN 22 100% - - - - 22
Bancassurance 15 100% - - - - 15
Mutual Fund 112 100% - - - - 112
Joint Finance 78 99% 1 1% - - 79
62,759 99% 914 1% - - 63,673
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 77
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Financial Services for
Sustainable Transformation
CUSTOMER PRIVACY In delivering services to customers, SMBC Indonesia
consistently regards the protection of privacy and
PROTECTION AND information security as critical aspects that must
INFORMATION SECURITY be upheld to maintain customer trust. Therefore,
SMBC Indonesia implements comprehensive privacy
[FN-CB-230a.2]
and information security measures across various
The rapid advancement of Information Technology (IT) dimensions, including human, system, process, and
has driven increased utilization of digital technology external factors. These measures are executed through
in the provision of customer services, offering the establishment of policies, frameworks, and the
greater accessibility and convenience. However, this implementation of cybersecurity and information
growing reliance on digital technology also elevates security strategies, also encompassing privacy
cybersecurity and information security risks for financial protection. The following are the policies, frameworks,
institutions. This is particularly concerning as the and strategies for cybersecurity and information
evolution of IT and digital technology is accompanied security implemented by SMBC Indonesia:
by an equally rapid rise in cybersecurity and information
security threats.
CYBERSECURITY AND INFORMATION SECURITY AWARENESS CAMPAIGNS AND/OR
01
TRAINING FOR EMPLOYEES AND THIRD PARTIES
To ensure that all parties managing Bank and/or customer information possess adequate
awareness and understanding of cybersecurity and information security, SMBC Indonesia
conducts regular awareness campaigns and/or training programs for employees and third parties
collaborating with the Bank.
02 INFORMATION SECURITY EDUCATION AND LITERACY PROGRAMS FOR CUSTOMERS
SMBC Indonesia continuously enhances customer awareness of the significance of information
security and the protection of personal data through various educational programs delivered via
email, the SMBC Indonesia’s website, and other digital platforms.
03 CYBERSECURITY AND INFORMATION RISK MANAGEMENT
The cybersecurity and information risk management process involves identifying IT and
information assets, assessing potential risks, conducting risk reviews for initiatives and applicable
regulations, and determining, measuring, and monitoring risks on an ongoing basis (risk appetite
and risk tolerance). This includes evaluating the maturity level of cybersecurity and information
security, implementing Third-Party Risk Management, and other risk management processes.
04 THIRD-PARTY RISK MANAGEMENT
SMBC Indonesia ensures the security of customer information and privacy, even when
such information is managed by third parties. The Bank reviews third-party compliance with
cybersecurity and information security standards in accordance with Bank policies and applicable
regulations. This is achieved through due diligence, periodic reviews, contract evaluations, and
the secure deletion of customer information upon termination of third-party partnerships, as
stipulated in the relevant agreements.
05 IMPLEMENTATION OF INFORMATION TECHNOLOGY SUPPORTING SECURITY MEASURES
SMBC Indonesia conducts a thorough review of its information technology systems before
implementation to ensure alignment with and support for the applicable security standards within
SMBC Indonesia.
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Financial Services for
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06 SECURITY PERIMETER IMPLEMENTATION
SMBC Indonesia establishes a security perimeter by deploying security tools such as Firewalls,
firewalls, intrusion prevention systems (IPS), privileged access management, internet proxy, data
loss prevention (DLP), user access management, and others to safeguard customer information
and privacy stored within the Bank’s systems from unauthorized access.
07 SECURITY FEATURES IMPLEMENTATION
SMBC Indonesia implements security features such as user authentication, multi-factor
authentication (MFA), biometric recognition, behavioral identification, location recognition, and
other advanced features to ensure that access to and transactions within the Bank’s systems are
restricted to authorized parties only.
08 DATA ENCRYPTION
SMBC Indonesia adheres to standard encryption protocols and guidelines for user devices.
Additionally, all sensitive Bank information, including customer data, is secured using encryption
or password protection when transmitted to or from external environments.
09 REAL-TIME SECURITY MONITORING
The Bank’s systems are continuously and real-time monitored by the cybersecurity and
information security team to detect potential threats early and respond promptly, accurately, and
effectively.
10 INCIDENT RESPONSE MANAGEMENT
SMBC Indonesia has established a robust mechanism for handling cybersecurity and information
security incidents. A dedicated cybersecurity team coordinates the response to potential
incidents, including but not limited to incident resolution and recovery, reporting to regulators
and relevant parties, root cause analysis, and the implementation of preventive measures and
necessary learning.
11 INFORMATION SECURITY CERTIFICATION AND PERIODIC AUDITS
SMBC Indonesia ensures information security certification for the Bank’s core payment systems
in compliance with applicable standards. Additionally, the Bank conducts regular cybersecurity
and information security audits, including those involving independent external parties, to ensure
regulatory compliance, identify vulnerabilities, and implement necessary improvements to
enhance the Bank’s security standards.
12 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS
SMBC Indonesia consistently ensures compliance with cybersecurity and information security
standards, as well as privacy protection, in accordance with applicable laws and regulations.
This includes, but is not limited to, consumer protection regulations, IT management provisions,
cybersecurity resilience requirements, and other data privacy and information security regulations.
During the reporting period, no incidents of customer customer data confidentiality, and there were no
data leakage, loss, or privacy breaches were detected. reports of data leaks from customers or third parties.
SMBC Indonesia also received no complaints regarding [GRI 418-1] [FN-CB-230a.1]
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 79
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Financial Services for
Sustainable Transformation
PRODUCT INFORMATION product, enabling them to make informed decisions
tailored to their needs. Additionally, providing clear
AND MARKETING descriptions is part of the Bank’s efforts to comply
with applicable regulations, maintain service integrity,
SMBC Indonesia ensures that all marketing information and build customer trust. SMBC Indonesia offers
and product labeling are conveyed accurately and comprehensive and easily accessible information
transparently. This is carried out to assist customers through various means, such as: [GRI 417-1]
in understanding the features and benefits of each
Services for customers with
special needs
08
Product explanations
Summaries of product
through personalized
and/or service information 01 07 communication channels
Comprehensive
Easy access to up-
and Easily to-date information
Terms and conditions
02 06 for customers and the
Accessible
public
Information
Use of clear and understandable Notifications regarding changes
Indonesian language 03 05 to product features or terms and
conditions
04
Use of font sizes that comply with
regulations
Furthermore, SMBC Indonesia ensures that all (100%)
digital banking products and services offered have
CUSTOMER SATISFACTION
undergone a thorough evaluation process to guarantee SURVEY
quality and compliance with applicable regulations. [OJK F.30]
This effort reflects SMBC Indonesia’s commitment
to providing transparent and accurate information SMBC Indonesia conducts an annual customer
to customers. As a result of consistently applying satisfaction survey to gather valuable feedback that
transparency principles, SMBC Indonesia has not supports the continuous improvement of service
experienced any incidents of non-compliance with quality. This survey is carried out by an independent
regulations related to labeling, product information, or party to ensure objectivity and accuracy of the results.
marketing communications during the reporting year. The methods used in this survey are the Customer
[GRI 417-2] [GRI 417-3] [OJK F.27] Satisfaction Score (CSAT) and Net Promoter Score
(NPS), designed to evaluate various aspects of the
customer experience.
80 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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Financial Services for
Sustainable Transformation
CUSTOMER SATISFACTION SCORE (CSAT)
This survey measures the level of customer satisfaction
with specific products or services and serves to help
SMBC Indonesia understand its strengths as well as
areas that require improvement.
NET PROMOTER SCORE (NPS)
This survey is conducted to assess customer loyalty
and the likelihood of customers recommending SMBC
Indonesia’s services to others.
THE RESULTS OF THE SMBC INDONESIA JENIUS CUSTOMER
SATISFACTION SURVEY
NPS
CSAT (%)
63 +28
64 +22
74 +16
2024 2024
2023 2023
2022 2022
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 81
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DAYA: Building a Resilient, Inclusive, and
Sustainable Future
Daya: Building
a Resilient,
Inclusive, and
Sustainable
Future
SMBC Indonesia is committed to
creating a positive impact through
social responsibility programs that
empower communities and promote
inclusive growth.
06
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As a pioneer in financial innovation, SMBC Indonesia introduced the Daya program as an innovative solution to address
the social and economic challenges faced by Indonesian society. Launched in 2011, Daya has become a flagship
program in driving the development of an inclusive and collaborative economic ecosystem for all layers of society
and customer segments of SMBC Indonesia.
The Daya program is designed to create an ecosystem that supports sustainable economic growth by combining
banking expertise and community-based approaches. The implementation of the Daya program aligns with the
established SFAP framework and is governed by the Sustainability Policy. Each year, SMBC Indonesia also strives to
enhance employee capacity in empowerment initiatives to ensure the program’s implementation runs smoothly and
achieves its intended targets. The Daya program focuses on four key pillars:
DAYA PILLARS
01 02 03 04
Self-Capacity Financial Capacity Sustainable
Development Literacy to Grow for Living
Business
SOCIAL RESPONSIBILITY ACTIVITIES
[OJK F.25]
SUPPORT FOR
PILLAR DESCRIPTION ACHIEVEMENTS
SDGS
Self-Capacity • 267 seminars,
Encouraging individuals to develop their skills and
Development benefiting 13,663
competencies, both technical and non-technical,
participants:
needed to face increasingly competitive market
• 3,817 learning activities,
demands, in accordance with in-demand expertise.
benefiting 110,813
The program is conducted through seminars and
students
digital educational materials.
• Fund allocation of
Rp712,794,409
Financial Literacy • 65 seminars, attended
Improving financial literacy and quality of life of
[OJK F.23] [OJK F.25] by 7,689 participants
students, MSME actors, employees, and retirees
[FS16] [FN-CB-240a.4] • 690 digital
throughout Indonesia. The program is held through
educational materials,
training, on-site and online seminars, and through
benefiting 8,620,804
various SMBC Indonesia digital channels.
individuals
• Fund allocation:
Rp547,364,110
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SUPPORT FOR
PILLAR DESCRIPTION ACHIEVEMENTS
SDGS
Capacity to Grow for Increasing financial access for people engaged in the • 82 seminars, attended
Business micro, small, and medium enterprise (MSME) sector by 11,129 participants
[OJK F.23] [OJK F.25] by providing training and mentoring to improve the • 134 business coaching
[GRI 203-2] capacity of entrepreneurs. sessions
[SUSBA 1.5.1.6] • 1,276,073 beneficiaries
from 1,496 educational
materials on business
through digital channels
• Fund allocation:
Rp1,621,873,143
Sustainable Living Improving the nation’s economy through improving • 26 seminars, attended
the quality of life of a healthy and prosperous by 27,234 participants
society, enabling the community to actualize • 4,882 online and
themselves and work productively. offline consultations
• 256,180 beneficiaries
from 665 educational
materials on digital
media
• Fund allocation:
Rp396,446,675
In 2024, the empowerment initiatives carried out by SMBC Indonesia gained recognition from several organizations
through the successful attainment of numerous awards, including:
GLOBAL CSR AND ESG BISNIS INDONESIA GLOBAL CORPORATE
PINNACLE CORPORATE SOCIAL SUSTAINABILITY
AWARDS 2024 RESPONSIBILITY AWARD 2024 AWARDS (GCSA) 2024
COMMUNITY EMPOWERMENT PROGRAM
SMBC Indonesia is committed to actively participating in promoting community welfare and empowerment through
its 4 pillars of Daya, implemented in various community empowerment programs.
SUPPORT FOR EDUCATION
SMBC Indonesia is committed to supporting the development of education as part of its efforts to cultivate exceptional
human resources capable of competing in the workforce and addressing its challenges. This commitment also aims
to foster positive contributions from SMBC Indonesia to society and sustainable development.
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01 DEVELOPMENT OF EDUCATIONAL FACILITIES [GRI 203-1]
In 2024, SMBC Indonesia provided a grant in the form of a Powder Coating machine to support
the Teaching Factory program at SMK NU Ma’arif, a vocational high school partnered with PT Bank
SMBC Indonesia Tbk, Sumitomo Mitsui Banking Corporation (SMBC), and the Djarum Foundation.
This grant reflects SMBC Indonesia’s commitment to advancing education, particularly vocational
education, to ensure its relevance to industry needs.
The Powder Coating machine, used for dry painting processes in metal fabrication, is widely
utilized in the manufacturing sector. It is expected that students will master modern painting
techniques, equipping them with competencies that align with labor market demands.
02 CREATIVE AND FINANCIALLY SAVVY TEACHER
PROGRAM
SMBC Indonesia is committed to enhancing the competencies of educators to facilitate
meaningful learning experiences for students. This includes creating educational media through
design thinking and financial literacy initiatives. The program aims to inspire teachers to develop
impactful educational tools and equip students with the skills to address real-world challenges,
including sound financial management. In collaboration with the Guru Belajar Foundation, this
program has engaged over 9,000 teachers from various regions.
03 CAPACITY BUILDING FOR THE YOUNG GENERATION
SMBC Indonesia supports the capacity building of the young generation by providing relevant
and inspiring knowledge and skills, enabling them to become high-quality and reliable talents.
This commitment is realized through scholarship programs for outstanding students from the
Bogor Agricultural University’s School of Business (SB IPB) and seminars/workshops conducted
in partnership with three universities: the Bogor Agricultural University’s School of Business,
Podomoro University, and the London School of Public Relations (LSPR). These initiatives have
involved 1,340 participants.
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SUPPORT FOR ENHANCING FINANCIAL LITERACY
[OJK F.23] [OJK F.25] [FS 16] [FN-CB-240a.4]
Financial literacy aims to deliver financial education to the public, enabling them to achieve financial freedom and
improve their quality of life. This program is expected to enhance public understanding of financial products and
services that align with their needs, thereby empowering them to manage their finances more effectively, make
informed financial decisions, and promote financial inclusion. Ultimately, this initiative seeks to contribute to their
overall well-being.
The financial literacy program is conducted by SMBC Indonesia through both offline and online platforms, as well as
via various digital channels owned by the bank. It is designed to cater to diverse groups, including students, MSME
owners, and retirees across various regions in Indonesia.
2024 2023 2022
FINANCIAL LITERACY
PARTICIPANTS (NUMBER 8,620,804 2,705,138 558,185
OF PARTICIPANTS)
01 Financial Literacy for Students: Education About the Benefits of Saving
SMBC Indonesia conducted financial literacy seminars for both high school and elementary school students,
focusing on promoting the good habit of saving. For elementary school students, on November 9, 2024, SMBC
Indonesia held a financial education event entitled “The Joy of Saving to Achieve My Dreams” at SDN 1 Parapat,
Tangerang City, attended by 112 participants. Meanwhile, for high school students, the financial education program
carried the theme “Let’s Get to Know Kakeibo – The Japanese Way of Saving.” This seminar encouraged students to
make wise financial decisions and cultivate disciplined saving habits to support the realization of their aspirations.
The program was implemented in collaboration with 5 schools and involved 1,270 participants.
02 Financial Literacy for the Elderly: Seminar on Avoiding Online Fraud
The rise in online fraud has become a pressing social issue, prompting a response from the Daya Financial Literacy
Program. Retired elderly citizens are among the groups most vulnerable to online fraud. The Daya Program
conducted a seminar entitled “Healthy and Financially Smart Retirement: Recognizing Scam Tactics and How to
Prevent Online Fraud,” aimed at retired customers across several branch offices. During the seminar, participants
were educated by financial advisors on ways to avoid online scams. Throughout 2024, three seminars were held
with a total of 265 beneficiaries.
03 Financial Literacy Program for the Community
In support of efforts to improve financial literacy within the community, SMBC Indonesia collaborated with
corporate clients to organize tailored seminars and talkshows on financial management topics relevant to
the needs of employees at beneficiary companies. In 2024, a total of 34 seminar sessions were successfully
conducted, attracting 3,567 participants.
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SUPPORT FOR MSMEs
Through the pillar of capacity to grow for business, SMBC Indonesia strives to enhance the business capacity of MSME
actors and foster MSME growth by offering various programs designed to increase their income and productivity,
including:
• Credit Solutions: SMBC Indonesia provides a range of credit products tailored to the needs and business plans of
MSMEs.
• Training and Mentorship: SMBC Indonesia conducts training programs across various fields, including financial
management, marketing management, sales management, operational management, and human resource
management, to support the growth of MSMEs.
• Promotional Platform: SMBC Indonesia offers promotional space on the Daya.id website to assist MSMEs in
marketing their products online to visitors of the platform.
• Q&A Sessions with Experts: This program provides MSME business owners with the opportunity to interact directly
with experts, such as digital marketing specialists, MSME mentors, business coaches, legal and licensing advisors,
and other trusted professionals.
WOMEN ENTREPRENEURS EMPOWERMENT PROGRAM
The Daya Program supports efforts to enhance the welfare and independence of women micro, small, and medium
enterprise (MSME) actors through the “Mentorship and Personal Success” initiative. This program is carried out
through a series of online and offline seminars focused on digital business development. In collaboration with the
women entrepreneurs’ community, Perempuan DigDaya, the Daya Program encourages women MSME actors
to learn strategies for improving marketing opportunities and promoting their products through digital channels.
Approximately 85 women MSME participants participated in this initiative.
DAYA FEST 2024: SMBC INDONESIA’S SUSTAINABLE COMMITMENT TO
COMMUNITY AND LOCAL MSME EMPOWERMENT
SMBC Indonesia is proud to once again host Daya Fest 2024 under the
theme “Empowerment for the Nation,” aimed at expanding the company’s
positive impact on the progress of MSMEs in Indonesia. The event took
place on August 27, 2024, at the Bank SMBC Tower in Jakarta.
Daya Fest is an annual event organized by Daya. One of the highlights
of Daya Fest 2024 is the Empowerment Festival, focusing on the core
pillars of SMBC Indonesia’s empowerment initiatives. This festival provides
visitors with the opportunity to learn from experts in entrepreneurship,
enabling them to unlock greater growth opportunities in the future. Among
the notable speakers are director Ernest Prakasa, discussing personal
development, and content creator Fellexandro Ruby, delivering a session
on financial literacy.
Additionally, Daya Fest featured the Selendang Mayang event, an annual bazaar that opens broader market access for
SMBC Indonesia’s fostered MSME partners. This year, Selendang Mayang showcased over 900 diverse products from
more than 100 MSME entrepreneurs, who are also SMBC Indonesia customers.
“We are delighted to once again host Daya Fest, which has been held annually since 2021. Daya Fest 2024 is here to
support MSME entrepreneurs in developing their capabilities and business networks through various strategic programs,”
said Henoch Munandar, President Director of SMBC Indonesia.
“The entire series of Daya Fest 2024 activities is tailored to address the diverse needs of our MSME partners in sustaining
their businesses and expanding public awareness of high-quality local products. Through this initiative, we hope to create
a positive impact for MSMEs and the broader community,” Henoch concluded.
Daya Fest 2024 is held in conjunction with the celebration of Indonesia’s 79th Independence Day, adding to the essence
of the event as a driver of national progress. It also underscores SMBC Indonesia’s commitment to supporting the
development of Indonesia.
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SUPPORT FOR ENHANCING COMMUNITY’S QUALITY OF LIFE
SMBC Indonesia is committed to supporting the enhancement of the community’s quality of life through various
initiatives in the following empowerment areas:
01 HEALTHCARE SERVICES FOR THE ELDERLY
This program aims to facilitate the needs of retired customers
by supporting a quality life through the provision of information
on psychological, health, and financial needs during retirement.
Activities include organizing health seminars on managing and
preventing diseases and health issues affecting the elderly,
as well as providing teleconsultation services with doctors
on weekdays. In 2024, a total of 4,882 participants accessed
these services.
Additionally, Daya supports the establishment of an online community as a platform for retired customers
to exchange information, share experiences, and build camaraderie with other retirees. This community is
also facilitated by healthcare professionals (doctors) to ensure they receive accurate health information.
02 RETIREMENT PREPAREDNESS
This Daya program aims to prepare participants, including members of the Indonesian
National Armed Forces (TNI) and the Indonesian National Police (POLRI), for retirement
through seminar content on retirement mindset, financial planning for retirement, and
post-retirement activities. It also provides training for participants wishing to become
entrepreneurs during retirement, enabling them to start businesses aligned with their
potential and interests. In 2024, 61 retirement preparation seminars were held, attended
by 8,118 participants.
03 HEALTHY LIFESTYLE SERVICES
The Daya program for Sinaya Prioritas customers is a strategic initiative by SMBC Indonesia
aimed at enhancing customer value. Activities include online seminars on current topics
that broaden perspectives on health and healthy living.
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EMPOWERMENT SUPPORT THROUGH THE platform and high-quality services. This initiative
DIGITAL PLATFORM – DAYA.ID facilitates the acquisition of essential knowledge and
[GRI 203-1] support, empowering individuals to achieve financial
To enhance digital empowerment, SMBC Indonesia well-being and an improved quality of life.
manages a website that serves as a digital platform/
channel, presenting the four pillars of the Daya To achieve these goals, Daya offers a range of services,
program. This platform provides users with access including:
to a comprehensive array of educational and self- 1. Providing tailored information on entrepreneurship,
development content, encompassing financial literacy, financial management, and healthy lifestyles.
business development, and sustainable living. The 2. Offering access to empowerment programs
content is available in various formats, including articles, available 24 hours a day, 7 days a week.
training videos, and expert consultations, which can be 3. Enhancing the competitiveness of customers’
accessed through features such as tips and insights, businesses through product and business promotion
online training, expert consultations, success stories, on the Daya.id website.
in-person training, and new business opportunities. 4. Facilitating consultations with experienced experts
The establishment of Daya.id further enhances the in business, finance, and healthy living.
accessibility of the Daya program, enabling a broader 5. Building networks among business actors to expand
audience to benefit from a user-friendly information business opportunities.
NEWS & TIPS
Providing the latest news and
practical tips for daily activities
SAHABAT DAYA SUCCESS STORIES
Volunteer program to empower the Sharing inspirational experiences
surrounding community from actors who have achieved
01
success in business or a healthy
lifestyle
09 02
ONLINE TRAINING
FINANCIAL PRODUCTS
08
NINE 03 Engaging, concise, and easy
Featuring various financial products
in the form of savings, loans, and FEATURES OF to-understand training videos on
financial, business, and healthy
investments that can be used
as needed THE DAYA.ID lifestyle topics.
WEBSITE
07 04
MARKET ACCESS ASK AN EXPERT ONLINE
Online Promoting selected customer Consultation with experienced &
products in well known online stores trusted experts in their field
06 05
FACE-TO-FACE TRAINING BUSINESS OPPORTUNITIES
Offline and online training/seminar schedules to increase Providing a wide choice of franchise business
self-capacity opportunities from partners that have been tested and
are in the low-risk category
NUMBER OF VISITS TO DAYA.ID
Website Users Registered Users
1,994,473* 2,306,562 1,684,575 170,557 136,173 107,053
2023 2022 2023 2022
2024 2024
* 2024 google analytics data
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To ensure the quality of education, Daya.id has established strategic partnerships with experienced experts in
their respective fields, including Arsanara, INTRAS (a human resources training and development company),
Wisnu Dewabroto (an expert and practitioner in the MSME sector), and Dian Savitri (a financial planning expert
and practitioner), among others. This collaboration enables Daya to provide thousands of high-quality educational
materials, empowering individuals to make more informed decisions.
3,856 234
Article Tips Success Stories
Data as of
December
31
301 9
e-Learning Module Expert Partners
SAHABAT DAYA
Sahabat Daya is a volunteer program initiated by SMBC Indonesia, designed to provide employees and the community
with opportunities to actively engage in empowerment initiatives that deliver positive impacts to communities. The
Sahabat Daya program conducted in 2024 :
Program Program Description Performance Achievements 2024
Sahabat Daya An employee volunteering program to support financial • Volunteers: 18 employees and 50 external
Financial Literacy education efforts for the community. In addition to participants
employees, customers and non-customers can also • Activities: 15 sessions
participate. • Beneficiaries: 1,718 participants
• Locations: Jakarta, Karawang, Pandeglang,
Kudus, Bogor, Tangerang
Sahabat Daya An environmental-themed program that aims to promote Volunteers: 1,526 employees from 8 branches
Run for the Earth a healthy lifestyle while raising awareness of sustainability and the head office. The planting of 1,500
and climate change issues. Employee participation will be mango trees was attributed to the participants
converted into tree planting activities to increase carbon who attended in Patiayam, Kudus, Central Java.
emission absorption.
Sahabat Daya A program that accommodates the concern and • Volunteers: 177 employees and 17 external
Freedom to empowerment spirit of employees through social and/ participants
Empower or environmental activities for the community. SMBC • Activities: 19 activities (literacy, financial
Indonesia provides empowerment funds for selected literacy, healthy lifestyle, and environmental
empowerment proposals submitted by employees. clean-up activities)
• Beneficiaries: 833 participants
• Locations: Jakarta, Medan, Salatiga, Bali,
Mataram, Bogor, Bandung, Batam
Sahabat Daya A philanthropic program that aims to assist institutions in • Volunteers: 30 employees
Donation need or support other positive initiatives in society through • Donations: 221 new books and 124 pre-
donations from employees and SMBC Indonesia. owned books
• Beneficiaries: 4 vocational schools in Kudus
and Karawang, as well as a public library in
Depok, West Java
Sahabat Daya The employee volunteering program provides an The program was conducted in collaboration
Next Generation opportunity to share knowledge and relevant skills with three universities: Sekolah Bisnis Institut
Capacity Building to inspire the younger generation in becoming highly Pertanian Bogor, Universitas Podomoro, and
competent and skilled talent. This program is conducted in London School of Public Relations (LSPR), with
collaboration with SMBC Indonesia’s partner universities. a total of 1,340 participants taking part in the
activities.
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RUN FOR THE EARTH
SMBC Indonesia is committed to fostering a greener
environment through various initiatives, including organizing
the Sahabat Daya “Run for the Earth” event. The event was
held at the Jakarta headquarters on November 24, 2024, and
at eight branch offices on December 1, 2024 (in Bandung,
Semarang, Surabaya, Yogyakarta, Medan, and Makassar).
Additionally, a virtual run was conducted from November 24
to December 1, 2024.
A total of 1,526 employees participated in the event, running a distance of 3.5 kilometers. The number of
participants in this employee volunteer program was then converted into 1,500 trees. SMBC Indonesia
partnered with the Djarum Foundation’s Environmental Conservation Program (BLDF) through the “One
Tree One Action” initiative to plant trees as part of the “Run for the Earth” program in the conservation
area of Mount Muria’s slopes.
A symbolic tree-planting ceremony took place in the Patiayam hills on November 28, 2024. The
Patiayam hills, once a lush forest, had become barren due to illegal logging by local communities. This
deforestation led to flash floods and the disappearance of several natural springs in the area. SMBC
Indonesia collaborated with the Wonorejo Farmers Group, consisting of 300 members, to plant mango
trees in the region. In addition to addressing environmental issues in the Patiayam area, this tree-
planting initiative is also part of the community’s efforts to establish Patiayam as a center for mango
production.
“Our members now understand the benefits of planting hardwood trees on the Patiayam
slopes, not only for the environment but also economically. Mango cultivation has proven
to be profitable. Therefore, we are very grateful for this assistance with mango seedlings,
as acquiring them on our own would require a significant investment,” said Mashuri,
Chairman of the Wonorejo Farmers Group.
THE DAYA PROGRAM SMBC Indonesia ensures that all Daya Programs adhere
to established standards, resulting in no public complaints
IMPACT ASSESSMENT regarding the implementation of these programs during
SMBC Indonesia is committed to ensuring that the Daya the reporting year. [GRI 413-1] [GRI 413-2] [OJK F. 24]
Program delivers significant beneficial and sustainable
impacts to the community. This commitment is During the reporting period, SMBC Indonesia conducted
realized through the implementation of comprehensive impact assessments on 7 empowerment programs held
assessment to measure the success and impact of the in 2023. The results of SROI calculations, indicating the
program. One of the approaches taken is the use of the social value generated for every Rp. 1 invested in each
Social Return on Investment (SROI) method to ensure program, are presented in the following table: [GRI 203-2]
the quality and accountability of ongoing programs.
This method enables SMBC Indonesia to quantitatively
measure the social value generated by each program.
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SROI CALCULATION RESULTS
2.70 3.58 2.26
3.20 Sahabat Daya
Regional Financial Cycling for the
Daya.id
Empowerment Literacy Earth
4.25 3.58 2.84
Sahabat Daya
Freedom to Financial Health
Empower Literacy Service
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Unlocking Potential, Building
the Future
Unlocking
Potential,
Building the
Future
SMBC Indonesia is committed to
creating an inclusive, productive work
environment that empowers the growth
of all individual potentials.
07
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Unlocking
Mengembangkan
Potential, Building
Potensi,
Membangun Masathe Depan
Future
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SMBC Indonesia’s Human Resources (HR) policies are Through the spirit of #MoreThanAJourney, SMBC
designed based on the principles of sustainability, Indonesia offers a rich and meaningful career
with a primary focus on employee well-being and experience, providing opportunities for professional
satisfaction. SMBC Indonesia firmly believes that development, global collaboration, and a work culture
employees who feel valued and supported will that supports both individual and organizational
contribute their best to the company’s success. SMBC growth. This initiative is designed as an Employee Value
Indonesia is committed to creating a work environment Proposition (EVP), inspiring employees to embark on a
that supports employee development while ensuring career journey that goes beyond just a job.
their active involvement in achieving the company’s
sustainability goals.
FIVE PILLARS OF SMBC INDONESIA’S EVP
PROVIDING OPPORTUNITIES TO MAKE A POSITIVE IMPACT AT EVERY STEP.
SMBC Indonesia offers a variety of initiatives aimed at empowering employees to make a positive
impact for SMBC Indonesia, its customers, colleagues, or the wider community.
Impactfulness
CREATING SPACE FOR PERSONAL AND PROFESSIONAL DEVELOPMENT.
Through various programs, SMBC Indonesia provides employees with space and support needed to
unlock their potential and grow into the best versions of themselves every day.
Self-Growth
PROVIDING OPPORTUNITIES TO BUILD RELATIONSHIPS
The best motivation often stems from genuine friendships and warm interpersonal communication.
SMBC Indonesia organizes activities that encourage the formation of lasting relationships beyond just
Relationship business interactions.
LEVERAGING TECHNOLOGY TO DRIVE INNOVATION AND EFFICIENCY.
As a pioneer in utilizing digital technology in banking, SMBC Indonesia encourages employees
Digitally to embrace digital advancements, enabling them to innovate and deliver value to the bank, its
Powered customers, and the wider community.
OFFERING OPPORTUNITIES TO BUILD COLLABORATIVE NETWORKS WITHOUT DISTANCE LIMITS.
As part of the SMBC group, SMBC Indonesia supports employees’ career development by providing
opportunities for international experience and networking which are valuable in today’s global
International
competitive landscape.
Network
In addition to supporting employee potential development through its five EVP pillars, SMBC Indonesia is committed
to building a culture of sustainability through various strategic initiatives, such as: [OJK F.1]
01 02 03
Communicating the company’s Conducting various training programs Upholding human rights by
sustainability values, targets, and that integrate sustainability principles implementing a whistleblowing
initiatives to all employees across all into all aspects of operations, system, employee protection
levels of the organization. including training on code of ethics, policies, and promoting non-
anti-corruption, and sustainable discrimination and equality.
economy.
04 05
Ensuring employee well-being by creating an Offering employees opportunities to contribute to
inclusive work environment and providing various creating a positive impact on the environment and
facilities to support employee productivity. society.
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Throughout 2024, SMBC Indonesia has implemented various programs and activities to realize
its EVP for employees.
Highlight of the #MoreThanAJourney 2024 Initiative
Love Yourself, Impact Others (August 22, 2024)
01 SMBC Indonesia invited Laninka Siamiyono, an inspirational difable known for
Impactfulness her role in innitiated “Lipstick for Difable” movement to empowered difable. It is
hope that her presentation will inspire employees to value themselves, fostering a
positive impact on their surroundings.
02 Learning Festival (LF) 2024 (October 24-25, 2024)
Held at the Head Office (Jakarta), Bandung, and Semarang, this year’s theme was
“Minds in Motion: Creating Values & Fostering Growth.” The LF 2024 at the Head
Self-Growth
Office was inaugurated by Mr. Henoch Munadar via video, with the attendance of the
Board of Directors (BoD), Board of Management (BoM), and Board of Commissioners
(BoC) from SMBC Indonesia, BTPNS, and OTO/SOF.
Collective Labor Agreement (CLA) Negotiations (November 12-14, 2024)
The negotiation process for the 2024-2026 CLA renewal between Management and
the Labor Union was successfully concluded on October 17-18 and November 12-
14, 2024. The discussions were conducted in a spirit of cooperation, resulting in an
agreement that accommodates the interests of both parties.
The agreement reflects a shared commitment to fostering harmonious, fair, and
03 sustainable industrial relations. It is expected that this CLA will not only enhance
employee welfare but also drive productivity and overall progress of the company.
Relationship
SMBCI Club Rebranding Kick-Off (November 22, 2024)
On November 22, 2024, the kick-off event for the rebranding of BTPN Club to SMBCI
Club was successfully held. The event was attended by 25 Champions, symbolizing
the spirit of collaboration and innovation.
This transformation marks a renewed commitment to strengthening the community
and introducing relevant and impactful initiatives. With its new identity, SMBCI Club is
ready to stride forward toward a more progressive future.
Project Clinic (May 30 - November 7, 2024)
04 Digitally
SMBC Indonesia equipped employees with the latest digital skills and competencies
through the Project Clinic. This program was designed as an intensive 2-4 day class
Powered
to enhance employees’ digital capabilities by providing hands-on experience in
addressing current digital and analytical challenges and opportunities.
Asia Talent Program (ATP) and Global Business Program (GBP) (July – October 2024)
The Asia Talent Program was organized by the Asia Growing Markets Department
05 International (AGMD), while the Global Business Program was organized by the SMBC Global –
Network Learning and Development Institute (LDI). Both programs aimed to broaden insights
and, experience, enhance decision-making skills, and strengthen global networks
for effective collaboration.
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BEST COMPANIES TO WORK HR EXCELLENCE AWARD 2024
FOR IN ASIA 2024 This award is granted to companies that demonstrate
SMBC Indonesia has been honored with exceptional human resource management processes
a prestigious award for being one of the and practices. SMBC Indonesia earned this award
best workplaces in Asia, among those through the implementation of its Employee Value
receiving the title of “Best Companies Proposition in employer branding activities, which has
to Work for in Asia 2024” by HR Asia. enhanced public awareness of SMBC Indonesia as an
This award is granted to companies employer of choice. Additionally, SMBC Indonesia has
across Asia recognized by their implemented an employee wellbeing strategy through
employees as excellent workplaces initiatives such as the SMBCI Club and Employee
with a positive work culture and high Assistance Program with the support of advanced
levels of employee satisfaction. human resource technology through the employee life
cycle, encompassing a variety of activities.
SUPPORT FOR DIVERSITY AND INCLUSION
In 2024, SMBC Indonesia focused its human resource development on enhancing Diversity and Inclusion, creating
a work environment that values differences, fosters cross-cultural collaboration, and empowers all individuals
to contribute to their fullest potential. These efforts align with SMBC Indonesia commitment to innovation and
sustainability through diverse perspectives.
To support this diversity and inclusion, SMBC Indonesia conducted the following programs in 2024:
INITIATIVE DESCRIPTION
Indonesia Sign Language Workshop In an effort to promote inclusion, SMBC Indonesia held a workshop where
01 (In Collaboration with Parakerja) participants learned basic sign language skills to bridge communication gaps and
interact with the deaf community. This program is expected to raise awareness
among SMBC Indonesia employees about inclusivity. The sign language
workshop has been conducted twice. The first batch was held on May 30, 2024,
and the second batch was held in October 2024.
Supports the Dei Events By SMBC SMBC Indonesia partnered with colleagues from BTPN Syariah to jointly
02 Asia Pacific participate in the SMBC International Women’s Day and SMBC Indonesia’s Kartini
Day events.
Representatives from SMBC Indonesia’s Human Resources team attended the
SMBC D&I event, “Inclusive Leadership Forum 2024,” hosted by Developing
Global Leaders Asia, with the theme “Empowering Inclusion in Every Step!”
Women Mentoring 2.0 This mentorship program matches female talents with experienced mentors
03 from SMBC Indonesia’s Head Office and branch offices. 30 of mentorship were
formed in 2024.
SMBC Indonesia Moms support group Initiative (September 2024) - extended
to BTPN Syariah & OTO/SOF colleagues.
Indonesia’s Father Day Photo Indonesia’s Father Day Photo Competition (December 2024).
04 Competition
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ADOPTION OF DIGITAL internal communication channel called “Portal Kita.” This
platform provides information on the company’s culture
TECHNOLOGY FOR and updates on SMBC Indonesia’s activities across all
operational areas.
EMPLOYEE MANAGEMENT
SMBC Indonesia has adopted a cloud-based Human
Resources Information System (HRIS) to enhance
efficiency and streamline employee data management.
SMBC INDONESIA
This implementation encompasses several key features, PERSONNEL
including:
Employees are the primary asset that drives the success
1. HR Core System, Employee and Manager Self-
and growth of the company. As of 2024, the number of
service
SMBC Indonesia employees was 6,491, a decrease of
2. HR Mobile Platform 2.2% from the previous year’s total of 6,636. In support
3. E-Learning System of its commitment to workforce quality, SMBC Indonesia
4. HR Communication and Collaboration Platform does not employ workers with irregular schedules
or those without a minimum guaranteed number of
5. Performance Management System
working hours. There were no significant fluctuations
in the number of employees during the reporting year.
To facilitate effective and transparent communication
[GRI 2-7] [GRI 2-8]
with employees, SMBC Indonesia has also introduced an
TOTAL NUMBER OF EMPLOYEES BY EMPLOYMENT CONTRACT (PERMANENT AND TEMPORARY) AND GENDER
[GRI 2-7] [OJK C.3.b]
2024 2023 2022
Description
Permanent Temporary Permanent Temporary Permanent Temporary
Male 3,377 193 3,500 195 3,707 268
Female 2,819 102 2,846 95 2,877 120
Subtotal 6,196 295 6,346 290 6,584 388
Total 6,491 6,636 6,972
TOTAL NUMBER OF EMPLOYEES BY EMPLOYMENT CONTRACT (PERMANENT AND TEMPORARY) AND REGION
[GRI 2-7] [OJK C.3.b]
2024 2023 2022
Description
Permanent Temporary Permanent Temporary Permanent Temporary
Greater Jakarta 3,073 200 3,032 171 2,918 223
Java (exclude Greater 1,692 41 1,778 57 1,969 69
Jakarta)
Outside Java 1,431 54 1,536 62 1,697 96
Subtotal 6,196 295 6,346 290 6,584 388
Total 6,491 6,636 6,972
Note:
The employee calculation in this section is based on data collected from the Human Resources Directorate.
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EMPLOYEE DIVERSITY of female employees was 45% of the total workforce,
while 32% of top-level management positions were held
AND EQUALITY by women. Additionally, the base salary ratio between
[GRI 405-1] [OJK F.18] [OJK C.3.b] male and female employees is 1:1, indicating no gender-
based pay disparity [GRI 405-2]. Throughout 2024,
SMBC Indonesia upholds the values of inclusivity there were no reported incidents of discrimination.
and diversity, from recruitment processes through to [GRI 406-1].
performance evaluations and career development. All
individuals, regardless of gender, ethnicity, or educational Initiatives to Promote Diversity and Inclusion:
background, are provided with equal opportunities to 1. Collaboration Program with SMBC Group:
grow and thrive within the company. SMBC Indonesia’s SMBC Group Diversity and Inclusion (D&I)
commitment to fostering diversity is reflected in the 2. Partnership Programs with the Indonesia Business
employee demographics, including individuals from a Coalition for Women Empowerment (IBCWE) and
wide range of backgrounds. Microsoft Indonesia:
Code without Barrier
SMBC Indonesia places particular emphasis on The TrailblazHER (Women Mentoring Programs)
promoting gender equality in the workplace by ensuring 3. Other Initiatives by SMBC Indonesia:
that both women and men have equal access to career Sign Language Sessions
opportunities and leadership roles. In 2024, the number Collaborative Event with Kopi Tuli (Deaf Coffee)
DIVERSITY OF GOVERNANCE BODIES AND EMPLOYEES BY GENDER
[GRI 405-1] [OJK C.3.b]
2024 2023 2022
Position
Male Female Total Male Female Total Male Female Total
Board of management 5 5 10 5 5 10 6 6 12
(50%) (50%) (50%) (50%) (50%) (50%)
Top management 128 59 187 122 56 178 120 51 171
(68%) (32%) (69%) (31%) (70%) (30%)
Senior management 453 297 750 460 283 743 447 271 718
(60%) (40%) (62%) (38%) (62%) (38%)
Management 1,774 1,209 2983 1,744 1,147 2,891 1,789 1,130 2,919
(59%) (41%) (60%) (40%) (61%) (39%)
Officer/Supervisor 753 847 1600 794 796 1,590 876 720 1,596
(47%) (53%) (50%) (50%) (55%) (45%)
Clerical 457 504 961 570 654 1,224 727 819 1,556
(48%) (52%) (47%) (53%) (47%) (53%)
Total 3,570 2,921 6491 3,695 2,941 6,636 3,975 2,997 6,972
(55%) (45%) (56%) (44%) (57%) (43%)
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DIVERSITY OF THE GOVERNANCE BODIES AND EMPLOYEES BY AGE
[GRI 405-1] [OJK C.3.b]
2024 2023 2022
Position
21-30 30-50 >50 21-30 30-50 >50 21-30 30-50 >50
Board of management - 2 8 - 3 7 - 4 8
Top management 1 119 67 - 122 56 - 121 50
Senior management 2 599 149 3 625 115 6 608 104
Management 647 2,169 167 607 2,154 130 598 2,179 142
Officer/Supervisor 220 1,341 39 259 1,305 26 283 1,287 26
Clerical 272 677 12 359 859 6 466 1,077 13
Total 1,142 4,907 442 1,228 5,068 340 1,353 5,276 343
TOTAL NUMBER OF EMPLOYEES BY EDUCATIONAL LEVEL
[GRI 405-1] [OJK C.3.b]
Educational Level 2024 2023 2022
Doctoral Degree 3 4 4
Master’s Degree 349 321 318
Bachelor’s Degree 5,379 5,467 5,692
Associate’s Degree 558 606 671
High School or Equivalent 202 238 287
Total 6,491 6,636 6,972
PROPORTION OF SENIOR DECENT AND SAFE
MANAGEMENT FROM THE WORKING ENVIRONMENT
[OJK F.21]
LOCAL COMMUNITY
[GRI 202-2]
SMBC Indonesia is committed to creating a safe and
comfortable work environment as the basis for employee
SMBC Indonesia prioritizes the recruitment of senior
productivity. Despite the Bank’s operations not carrying
management from Indonesian citizens (WNI) originating
high risks to occupational health and safety risks, the
from the areas surrounding its operational locations. In
Bank prioritizes preventive measures by implementing
the reporting year, 5 out of the total members of the
various strategies to mitigate the potential impact of
Board of Directors, equivalent to 62.5%, were Indonesian
natural disasters or other unforeseen incidents. The
citizens.
following measures are designed to ensure employees
feel protected and can work optimally in a conducive
work environment:
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1. Providing safety equipment such as fire extinguishers Regular robbery and emergency simulation
and first aid kits in various corners of the office. training is provided to employees to ensure they
2. Conducting regular occupational health and safety are prepared to respond quickly and effectively.
(K3) awareness programs for all employees. Psychological support is available for employees
3. Conducting earthquake and fire evacuation drills. or their families affected by incidents such as
4. Conducting routine inspections of electrical robbery or kidnapping.
installations and office facilities to prevent potential
hazards. 3. Support Related to the Obligation to Report Criminal
Activities
SMBC Indonesia also recognizes that employee well- In compliance with applicable laws and
being encompasses physical, mental, and emotional regulations, SMBC Indonesia has established
aspects. Therefore, SMBC Indonesia strives to foster a mechanisms for reporting criminal activities,
positive and harmonious work environment through the such as money laundering and terrorism
following initiatives: financing.
1. Providing a prayer room for employees. Protection for employees responsible for
2. Conducting regular medical check-up programs. such reporting is guaranteed through identity
3. Offering sports facilities to support employees’ confidentiality policies and legal support in the
physical health. event of threats or retaliation from reported
4. Organizing social or community activities outside parties.
working hours, such as outings or team-building Regular awareness programs and training
events, to strengthen employee relationships. on whistleblowing and criminal reporting are
conducted to ensure employees are prepared to
Regarding workplace safety, certain security aspects carry out their duties safely.
require attention, such as the threat of robbery,
retaliation for reporting crimes, or aggression from
customers and other parties. To address these concerns,
SMBC Indonesia has established policies and measures EMPLOYEE RECRUITMENT
to protect employees, their families, and community
members as follows: [G4-DMA] SMBC Indonesia seeks to attract the nation’s top
talents to contribute to the company’s progress.
1. Prevention and Handling of Aggression by Customers The recruitment process is conducted fairly and
or Other Parties transparently, avoiding any form of conflict of interest.
SMBC Indonesia provides specialized training Each prospective employee is selected based on their
to employees on conflict management and competencies, regardless of ethnic, religious, racial, or
effective communication to handle challenging gender background.
situations, including verbal or physical aggression SMBC Indonesia carries out recruitment through the
from customers or external parties. following programs:
A zero-tolerance policy against all forms of
violence or intimidation is enforced to ensure a Creative Hacknology Intensive Program (CHIP)
safe and professional work environment. CHIP is an employee development program
2. Handling Robbery and Emergency Situations designed to cultivate young talents in the field
SMBC Indonesia implements strict security of technology. In addition to receiving intensive
protocols supported by advanced technology, training, participants are placed in strategic projects
including physical security systems and 24/7 at SMBC Indonesia.
surveillance to minimize robbery risks. Leadership Acceleration Development (LEAD)
The Leadership Acceleration Development (LEAD)
program is an SMBC Indonesia initiative designed to
empower individuals with the potential to become
the future leaders of the company.
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Intern Development, Enhancement, and Acceleration Space (IDEAS)
The Intern Development, Enhancement, and Acceleration Space (IDEAS) program is an internship program at
SMBC Indonesia aimed at developing the skills and knowledge of students and fresh graduates.
EMPLOYEE RECRUITMENT BY GENDER
[GRI 401-1]
Description 2024 % 2023 % 2022 %
Male 259 50% 326 54% 535 56%
Female 255 50% 283 46% 413 44%
Total 514 100% 609 100% 948 100%
EMPLOYEE RECRUITMENT BY AGE GROUP
[GRI 401-1]
Description 2024 % 2023 % 2022 %
20-30 years old 282 55% 331 54% 525 55%
30-50 years old 217 42% 265 44% 418 44%
50 years old 15 3% 13 2% 5 1%
Total 514 100% 609 100% 948 100%
EMPLOYEE RECRUITMENT BY REGION
[GRI 401-1]
Description 2024 % 2023 % 2022 %
Greater Jakarta 363 71% 454 75% 654 69%
Java (exclude Greater Jakarta) 82 16% 87 14% 155 16%
Outside Java 69 13% 68 11% 139 15%
Total 514 100% 609 100% 948 100%
EMPLOYEE TURNOVER compared to the 12.4% rate in 2023. This decline reflects
the success of SMBC Indonesia’s human resource
management strategies in creating a work environment
The employee turnover rate is a key indicator for
that supports employee well-being and loyalty.
measuring employee satisfaction and a company’s
success in retaining its workforce. SMBC Indonesia
recorded an employee turnover rate of 8.5%, a decrease
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TERMINATION OF EMPLOYMENT
[GRI 401-1]
Description 2024 2023 2022
Retirement 140 314 193
Death 3 10 17
Dismissal 51 97 91
Resignation 378 470 711
Others 89 60 99
Total 661 951 1.111
EMPLOYEE TURNOVER BY GENDER
[GRI 401-1]
Description 2024 % 2023 % 2022 %
Male 385 58% 608 64% 665 60%
Female 276 42% 343 36% 446 40%
Total 661 100% 951 100% 1,111 100%
EMPLOYEE TURNOVER BY AGE GROUP
[GRI 401-1]
Description 2024 % 2023 % 2022 %
20-30 years old 141 21% 204 22% 288 26%
30-50 years old 420 64% 639 67% 751 68%
Above 50 years old 100 15% 108 11% 72 6%
Total 661 100% 951 100% 1.111 100%
EMPLOYEE TURNOVER BY REGION
[GRI 401-1]
Description 2024 % 2023 % 2022 %
Greater Jakarta 308 47% 406 43% 521 47%
Java (exclude Greater Jakarta) 187 28% 314 33% 272 24%
Outside Java 166 25% 231 24% 318 29%
Total 661 100% 951 100% 1.111 100%
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EMPLOYEE RIGHTS
REMUNERATION AND BENEFITS
SMBC Indonesia fosters a productive work culture by implementing fair remuneration policies based on job level,
tenure, and employee performance. All members of SMBC Indonesia are entitled to equal compensation without
discrimination based on personal background. Furthermore, SMBC Indonesia ensures there is no disparity in entry-
level remuneration ratios between male and female employees for equivalent roles and positions. SMBC Indonesia
also demonstrates its commitment to employee well-being by providing wages above the regional minimum wage
(UMR) standard, thereby creating financial security that supports personal development and maximizes employee
contributions. [GRI 202-1]
REGIONAL MINIMUM WAGE
[OJK F.20]
Region Provincial Minimum Wage in 2024 (Rp) Entry-Level Salary (Rp) Ratio
Bali 2,813,672 3,100,000 110%
Banten 2,727,812 3,260,000 120%
Bengkulu 2,507,079 2,790,000 111%
DI Yogyakarta 2,125,898 2,480,000 117%
DKI Jakarta 5,067,381 5,070,000 100%
Jambi 3,037,122 3,480,000 115%
West Java 2,057,495 2,540,000 123%
Central Java 2,036,947 2,050,000 101%
East Java 2,165,244 2,380,000 110%
South Kalimantan 3,282,812 3,380,000 103%
Lampung 2,716,497 2,720,000 100%
Maluku 2,949,953 3,640,000 123%
Papua 4,024,270 4,100,000 102%
West Sulawesi 2,914,958 2,940,000 101%
South Sulawesi 3,434,298 3,440,000 100%
ALLOWANCES PROVIDED TO FULL-TIME EMPLOYEES THAT ARE NOT AVAILABLE TO
TEMPORARY OR PART-TIME EMPLOYEES
[GRI 401-2]
Description Permanent Employee Contract Employee
Salary ✓ ✓
Holiday Allowance ✓ ✓
Life Insurance ✓ ✓
Disability Insurance ✓ ✓
Employee Health Insurance ✓ ✓
Health Insurance to Employees’ Spouse ✓ ✓
Health Insurance to Employees’ Children ✓ ✓
Pension Fund ✓ ✓
Annual Leave ✓ ✓
Maternity and Miscarriage Leave ✓ ✓
Severance Pay ✓ —
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PARENTAL LEAVE
[GRI 401-3]
SMBC Indonesia grants maternity leave to female employees and paternity leave for male employees in accordance
with Law No. 13 of 2003 on Manpower. Female employees are entitled to 3 months of paid maternity leave, while
male employees are granted 4 working days off to accompany their wives during childbirth. SMBC Indonesia’s
commitment to the well-being of female employees is further demonstrated through initiatives such as the Women
Mentoring 2.0 program, including the Mom Support Group for employees with children aged 0-6 years.
Employee entitled to Employee taking Employee returning to Employee continuing to
Gender
parental leave parental leave work after leave work 1 year after leave
Male 3,570 126 126 122
Female 2,921 148 115 112
Total 6,491 274 241 234
MOMS SUPPORT GROUP
The Mom Support Group is an initiative under the Women Mentoring Program, established as a
forum for working mothers to discuss the challenges they face and explore ways to balance their
professional responsibilities with the demands of raising young children at home. This program
was conducted from October to November 2024 and was launched with a hybrid seminar on
Parenting & Wellbeing, attended by members of the Board of Directors (BOD) and Board of
Management (BOM), 60 in-person participants, and 105 online participants from various regions.
The Mom Support Group mentoring program includes 31 working mothers currently caring for
children aged 0-6 years. These participants are employees of SMBC Indonesia from various
directorates, as well as employees of BTPN Syariah and OTO/SOF. The participants are divided
into an in-person group, consisting of employees from the head office and Jakarta area, and an
online group, comprising employees from branch offices, including those from Papua, Riau, West
Nusa Tenggara, and South Sulawesi.
Participants engaged in two group mentoring sessions facilitated by professional mentors.
Throughout the program, they had the opportunity to interact with their mentors and fellow
participants through a group chat. The program received positive feedback from participants, as
it was seen as addressing a critical need for working mothers, providing a space for them to share
experiences and insights with one another to achieve work-life integration.
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RETIREMENT PROGRAM SMBC Indonesia ensures the fulfillment of the
rights and obligations of both the company and its
[GRI 201-3] [GRI 404-2]
employees through a Collective Labor Agreement (CLA)
As a form of appreciation, SMBC Indonesia has designed collaboratively drafted by management and employee
various retirement preparation programs to ensure the representatives from the labor union. The CLA covers
financial well-being of employees during their post- various aspects of employment, including working
employment period. These programs include: hours, remuneration policies, leave entitlements, and
policies related to employment ermination.
1. Pension Security under BPJS Employment, a
mandatory government program, with employee All (100%) employees of SMBC Indonesia are covered
contributions of 1% and SMBC Indonesia by Employment Agreements, whether for a fixed term
contributions of 2%. or an indefinite period (permanent), in accordance with
2. Old Age Security under BPJS Employment, the prevailing Labor Laws and Regulations in Indonesia.
another mandatory government program, with This provision aims to foster a healthy and conducive
employee contributions of 2% and SMBC Indonesia work environment. Additionally, a Workers’ Union
contributions of 3.7%. exists as a management partner, serving as a platform
for employees to consult regarding the regulations
To prepare employees in the areas of mental and practical applicable within the company.
skills, SMBC Indonesia conducts various initiatives,
such as promoting physical and psychological health,
providing guidance on wise investment management,
and offering entrepreneurship skill development.
In 2024, SMBC Indonesia conducted 4 retirement CHILD LABOR AND
preparation programs, attended by 75 employees.
FORCED LABOR
SMBC Indonesia ensures that the working hours of its
employees comply with the prevailing legal regulations
and guarantees that it does not employ forced labor or
COLLECTIVE LABOR child labor. [GRI 408-1] [GRI 409-1] [OJK F.19]
AGREEMENT
[GRI 2-30]
SMBC Indonesia highly upholds the freedom of
employees to associate, assemble, and express their
TRAINING AND
opinions through the SMBC Indonesia Labor Union. DEVELOPMENT
During the reporting year, there was 1 (one) active
labor union operating within the office environment,
TRAINING STRATEGIES AND PROGRAMS
representing 15% of the total employees of SMBC
[GRI 404-2]
Indonesia.
In the face of increasingly intense business competition,
SMBC Indonesia focuses on leveraging the potential of
its human resources to maintain a competitive edge.
SMBC Indonesia utilizes a Human Resource Information
System (HRIS) to more accurately evaluate employee
competencies and performance. This enables the
company to design more targeted training programs for
employees, managers, and directors.
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Banking Certifications · Risk Management
· Payment Systems and Rupiah Currency Management
· Mutual Fund Selling Agent Representative (WAPERD)
· Securities Trading Intermediary Representative (WPPE-P) and Treasury
Competency · Human Resources Management
Certifications · Information Technology
· Internal Audit
E-Learning Mooc Various online courses to enhance employee competency:
(Massive Open Online · Foundations: Data, Data, Everywhere
Course) · Foundations of Project Management
· Project Initiation: Starting a Successful Project
· English for Common Interactions in the Workplace: Basic Level
· Project Execution: Running the Project
· Go: The Complete Developer's Guide (Golang)
· Rust Programming: Beginner to Advanced
· Certified in System Audit (CISA) - Updated 2024
· Microfrontends with React: A Complete Developer's Guide
· The Complete SQL Bootcamp: Go From Zero to Hero
Other Training · Sign language
· Women mentoring program
· Disability inclusion webinar
· Parenting and wellbeing seminar
· and others.
6,970
01 Number of employees
undergoing training
02 231.760
Training hours
[GRI 404-1] [OJK F.22]
03 35
Average training hours
NUMBER OF TRAINING PARTICIPANTS BY POSITION AND GENDER
[GRI 404-1]
2024 2023 2022 %
Position Level
Man Women Man Women Man Women
Top Management 139 62 126 61 120 51
Senior Management 491 313 458 282 448 271
Management 1,892 1,298 1,710 1,120 1,710 1,095
Office/Supervisor 801 906 777 787 849 697
Clerical 520 548 570 653 734 818
Subtotal 3,843 3,127 3,641 2,903 3,861 2,932
Total 6,970 6,544 6,793
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TOTAL TRAINING HOURS BY POSITION AND GENDER
[GRI 404-1]
2024 2023 2022
Position Level
Male Female Male Female Male Female
Top Management 5,921 2,667 5,612 3,192 6,036 2,488
Senior Management 20,112 13,956 19,323 13,825 20,253 12,780
Management 61,311 48,121 70,094 58,424 68,176 50,105
Office/Supervisor 23,693 29,142 33,635 49,967 27,221 28,609
Clerical 11,400 15,159 23,784 44,997 22,440 31,222
Subtotal 122,466 109,314 152,446 170,404 144,126 125,204
Total 231,760 322,849 269,330
AVERAGE TRAINING HOURS BY POSITION AND GENDER
[GRI 404-1]
2024 2023 2022
Position Level
Male Female Male Female Male Female
Top Management 43 43 44 52 50 49
Senior Management 41 45 42 49 45 47
Management 32 37 40 52 40 46
Office/Supervisor 30 32 43 63 32 41
Clerical 22 28 41 68 31 38
Sub rata-rata 33 37 42 56 37 43
Rata-rata 35 49 39
ENHANCING EMPLOYEE TRAINING ON SUSTAINABILITY
Among its initiatives, SMBC Indonesia has implemented
COMPETENCY IN a mandatory Sustainability E-Learning program for
SUSTAINABLE FINANCE all employees, including the Board of Directors. In
2024, a total of 6,252 employees participated in
[OJK E.2] [FS4] [SUSBA 1.4.2.2] [SUSBA 1.4.2.3]
the Sustainability E-Learning program, with 99.86%
As part of the company’s commitment to supporting achieving scores above 80%.
the development of a sustainability-oriented economy,
SMBC Indonesia ensures that all employees possess a
strong understanding of the principles of sustainable
finance. SMBC Indonesia provides a variety of training
programs designed to enhance employees’ ability to
6,252
identify opportunities and risks related to financing
PEOPLE PARTICIPATED IN
sustainable business activities, while also helping A SUSTAINABLE FINANCE
employees stay informed about current policies. TRAINING PROGRAM
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GREEN TAXONOMY AND ENVIRONMENTAL Management System (ESMS).” The “Sustainable Finance
AND SOCIAL RISK ASSESSMENT TRAINING & Green Taxonomy” training equipped participants
In 2024, SMBC Indonesia, in collaboration with with the skills to classify financing based on the Green
the International Finance Corporation (IFC), held Taxonomy categories issued by the Financial Services
sustainability-themed training aimed at enhancing the Authority (OJK). Meanwhile, the ESMS training, attended
company’s internal capacity in green financing. The by 86 employees, aimed to improve their capacity in
training focused on two key topics: “Sustainable Finance conducting environmental and social risk assessments
& Green Taxonomy” and “Environmental and Social for financing proposals to be extended to customers.
ENHANCING EMPLOYEE COMPETENCE IN SUSTAINABLE FINANCE
[OJK E.2] [FS4] [SUSBA 1.4.2.2] [SUSBA 1.4.2.3]
Seminar/Training Topic
Date Organizer
January 18, 2024 Financial Services Authority (OJK) FGD and Feedback Request on the 2024 Climate Risk Management
and Stress Test Guidance Concept for Banking
January 23, 2024 Indonesian Public Listed Companies Introduction to Carbon Accounting
Association (AEI)
February 2024 SMBC LDA – Sustainable Finance Workflow
February 2024 SMBC LDA - Introduction to Sustainable Finance Instruments
February 3 – March 9, Association of Chartered Certified Certificate in Sustainability for Finance (CertSF)
2024 Accountants (ACCA)
March 2024 SMBC LDA - Sustainability in Trade and Trade Finance: Integrating ESG
considerations into trade finance, supply chain financing-Maret 2024
March 6-7, 2024 Financial Services Authority (OJK) Dissemination on the Indonesian Taxonomy for Sustainable Finance
(TKBI) Phase 1
March 28, 2024 Financial Services Authority (OJK) Webinar with the topic on the Role of the Indonesian Taxonomy for
Sustainable Finance (TKBI) in Driving the Energy Transition Towards Net
Zero Emission
Otoritas Jasa Keuangan FGD “Climate Risk Management Scenario and Analysis”
March 28, 2024 Financial Services Authority (OJK) FGD “Climate Risk Management Scenario and Analysis”
April 23-24, 2024 Financial Services Authority (OJK) Dissemination on the Indonesian Taxonomy for Sustainable Finance
(TKBI) Phase 2
May 2024 SMBC Sustainable Finance for the Real Estate Sector
May 8, 2024 Climate Bonds Initiative - CBI Deep Dive in GSS Bonds Issuance Process
May 16, 2024 Financial Services Authority (OJK) “How to Prevent Greenwashing in Sustainable Finance”
May 17, 2024 Indonesian Accountants Association UnderstandingIFRS Sustainability Disclosure Standards (IFRS S1 & S2)
May 28-29, 2024 OJK – WWF Training on Financial Emissions
May 28-29, 2024 Financial Services Authority (OJK) Capacity Development: Scope 3 Greenhouse Gas Emissions
Calculation – Batch 2
June 9-20, 2024 UNDP Business and Human Rights “The Sustainability Academy: An Introduction to Net-Zero and Nature
(B+HR) Project and Supported by the Positive”
European Union (EU) and Porticus
June 25, 2024 AICPA – CIMA – IAI Building Sustainable Future: Best ESG Practices in Banking Sector
and Empowering Change Through ESG Practices for Accounting and
Finance Professional
June 27, 2024 Indonesia Stock Exchange (IDX) Setting Your Sail on the Indonesia Carbon Trading Ecosystem
July 17, 2024 Indonesia Sustainable Finance Initiative Workshop “Understanding the Next Risk Frontier for Indonesian Banks:
(IKBI) Nature-related Financial Risks.
July 4, 2024 Financial Services Authority (OJK) “How to Mitigate Transition and Physical Risks in Financial Sector”
July 17, 2024 Public Accountant Profession Implementation on Sustainability Reporting in Indonesia
Committee (KPAP)
July 19, 2024 Indonesian Accountants Association Carbon Unit Transactions
July 18, 2024 SMBC APAC Sustainability Solution Transition Finance in Asia Pacific
Group
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ENHANCING EMPLOYEE COMPETENCE IN SUSTAINABLE FINANCE
[OJK E.2] [FS4] [SUSBA 1.4.2.2] [SUSBA 1.4.2.3]
Seminar/Training Topic
Date Organizer
August 2024 SMBC LDA-Introduction to Sustainability Taxonomies
August 2024 SMBC Credit Syndication, ESG, and Agency Training
August 14, 2024 Financial Services Authority (OJK) Coaching Clinic preparation of Indonesian Taxonomy for
Sustainable Finance (TKBI) Implementation
August 22, 2024 SMBC Indonesia - Daya Hybrid Seminar “Love Your Self, Impact Others”
August 22, 2024 Financial Services Authority (OJK) Sustainable Finance Seminar: Sustainable Finance Taxonomy
August 28, 2024 KPMG Indonesia Business talk: Sustainability Reporting
September 11, 2024 Deloitte Indonesia Climate and Accounting – What do You need to know?
September 12, 2024 Deutsche Gesellschaft für Internationale Matchmaking and Consultation Clinic on Clean Energy
Zusammenarbeit - GIZ Investment for Entrepreneurs
September 12, 2024 Financial Services Authority (OJK) Seminar “Journeys Towards the Adoption of IFRS S1 and S2 in
Indonesia”
September 19, 2024 Financial Profession Development Center Understanding IFRS Sustainability Disclosure Standards S1 & S2
(PPPK), Ministry of Finance of the Republic of
Indonesia
September 23, 2024 SMBC Indonesia Climate Risk Awareness
September 26, 2024 Indonesia Stock Exchange (IDX) Webinar from IDX - The Role of Business and Legal Aspects in
Indonesia Carbon Project Development
September 26, 2024 Financial Services Authority (OJK) Webinar “Understanding the Climate Landscape for Financial
Institutions”
October - December SMBC Indonesia HR-L&D E-learning Sustainability
2024
October 2024 SMBC Indonesia Sustainability 2024
October 3, 2024 International Union for Conservation of Nature Managing ESG Impacts and Risks in Nature and Climate
(IUCN) Investment
October 17, 2024 Financial Services Authority (OJK) Webinar “Carbon Trading and Its Effect on Indonesia’s Economy”
October 21 and 23, Financial Services Authority (OJK) Capacity Development Seminar Climate Risk Integration in the
2024 Banking Risk Framework
October 22, 2024 Financial Services Authority (OJK) Pilot Project Implementation Plan: Advanced Taxonomy
October 25, 2024 SMBC Indonesia HR L&D Creating a greener future:the role of technology in climate action
October 28-30, 2024 Financial Services Authority (OJK) "Taxonomy Public Consultation for Indonesian Sustainable
Finance (TKBI) version 2"
October 31, 2024 Financial Services Authority (OJK) Preparedness for the Adoption of Sustainability Disclosure
Standards
October 31, 2024 Financial Services Authority (OJK) EV Insurance, International Best Practices for Innovation of New
Energy Products and Services
November 2024 Financial Services Authority (OJK) Blended Financing
November 11 -12, 2024 International Finance Corporation (IFC) Environment & Social Management System
November 20, 2024 SMBC Indonesia, IFC, & Trisakti University Training on the Indonesian Green Taxonomy (THI) and the
Indonesian Taxonomy for Sustainable Finance (TKBI)
December 5, 2024 Financial Services Authority (OJK) and United The Greenwashing Trap: How to Build Public Awareness
Nations Environment Programme Finance
Initiative (UNEPFI)
December 9, 2024 Bank Indonesia Use of Green Calculator
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PERFORMANCE REVIEW SECURITY PERSONNEL
[GRI 404-3]
TRAINED IN HUMAN
SMBC Indonesia maintains its competitive edge by RIGHTS POLICIES OR
enhancing the individual performance of its employees.
This strategy is implemented through regular PROCEDURES
performance reviews, aimed to identify potential and [GRI 410-1]
areas for development. Performance evaluations are
conducted objectively based on Key Performance The safety of SMBC Indonesia’s customers and
Indicators (KPIs) by the head of work unit every six employees heavily relies on the role of well-trained
months. The results of these evaluations are used and professional security personnel. Therefore, SMBC
as considerations in the process of job promotion, Indonesia’s security personnel regularly undergo
granting incentives, and developing appropriate training training on human rights policies or procedures to
programs. In the reporting year, all employees at all ensure they carry out their duties responsibly, respect
position levels (100%) received performance evaluations individual rights, and contribute to maintaining a safe
and assessments. and comfortable environment.
760 93%
HUMAN RIGHTS TRAINING OF ALL SECURITY
PARTICIPANTS PERSONNEL.
WORK-LIFE BALANCE
A healthy work-life balance can reduce the potential for stress and burnout, common issues in today’s fast-paced
work environment. When employees effectively balance work and personal life, their improved mental well-being
leads to greater job satisfaction and productivity.
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Unlocking Potential, Building
the Future
SMBC Indonesia’s Strategy for Prioritizing
Work-Life Balance
STRATEGY DESCRIPTION
SMBCI CLUB Sports Communities:
An employee forum for Futsal, Badminton, Basketball, Soccer, Strong
sports, spiritual activities, Nation, Gymnastics, Yoga, Tennis, Cycling,
hobbies, and other Running, Golf, Chess, Table Tennis, E-sports,
recreational pursuits. Billiards, Bowling, Push Ball, Swimming, Muay
Thai, Aikido, Pencak Silat.
Arts Communities:
Vocal Exercise, Dance Club, Vocal Group,
Photography
Spiritual Communities:
Islamic, Christian, and Hindu Spiritual Groups
Hobby Communities:
Diecast, Nature Lovers, Fishing, Korean
Corner, Parents Club, Blood Donation, Talking
Club
SAHABAT DAYA Learn more about Sahabat Daya in the
A platform for employees “Sustainable Daya: Building a Resilient and
to participate in social Inclusive Future” chapter on page 82.
activities for the
community.
BERANDA • Music Studio
A social space equipped • Karaoke Room
with various games for • Nonton Bareng (Watching Together)
relaxation and unwinding. Spot
WELLNESS PROGRAM 2024
SMBC Indonesia is committed to supporting the health and well-being of its employees through the Wellness Program
2024. This initiative aims to enhance employee health and wellness while fostering a healthy and productive work
environment through engaging activities that promote awareness and encourage healthy lifestyle behaviors in the
workplace. By doing so, employees can improve their performance and overall quality of life.
The Wellness Program 2024 features a variety of interactive and engaging activities, including:
Program Description
Health Talk: Embracing • A discussion that encourages employees to find happiness in their
Happiness everyday activities.
Health Points • Employees compete to collect points by participating in the SMBCI Club.
The more often they participate, the healthier they become, and the
more health points they earn.
30 Day Challenges • A 30-day challenge for employees to maintain a healthy lifestyle
and build healthy habits. Employees who successfully complete this
challenge will become a "Health Warrior."
Juice Day • A special day to promote a healthy lifestyle, including the consumption of
fresh fruit juice. SMBC Indonesia provides free fruit juice for employees.
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Prioritizing Commitment to Climate
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Prioritizing
Commitment to
Climate and the
Environment
SMBC Indonesia is actively participating
in the journey toward Indonesia’s
Net Zero Emission (NZE) target by
implementing concrete measures to
reduce carbon footprints and preserve
08
the environment for future generations.
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Prioritizing Commitment to Climate
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Prioritizing Commitment to Climate
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As a financial institution committed to sustainability,
SMBC Indonesia supports the Government’s endeavors to
ENERGY USAGE
transition to clean energy and Indonesia’s target of achieving
SMBC Indonesia’s operations require energy sources such
NZE by 2060. SMBC Indonesia conducts comprehensive
as electricity for office activities and fuel for operational
assessments of climate and environmental risks, both in
vehicles. In the reporting year, SMBC Indonesia’s energy
its operational activities and investment portfolio. Through
usage decreased by 5,540.56 GJ, or 5.52%, compared to
this approach, SMBC Indonesia formulates short- and long-
the 2023.
term strategies to mitigate the environmental impact of
its financing and investment activities, enhance energy
All of the company’s energy consumption generates GHG
efficiency, and implement various emission reduction
emissions, contributing to climate change. Therefore, SMBC
initiatives.
Indonesia is committed to reducing energy usage through
the following energy efficiency initiatives: [OJK F.7]
SMBC Indonesia incorporates its sustainability strategy into
the SFAP, based on Financial Services Authority Regulation
(POJK) No. 51 of 2017. The primary objective of the SFAP is
to support the achievement of sustainable development
goals in Indonesia by integrating environmental, social,
and governance (ESG) criteria into the company’s business
practices and financing activities.
Setting the temperature of air
conditioning (AC) units in branch
Using energy-efficient LED lighting.
offices to 24°C to conserve
electricity.
Equipping the lighting system at the
Reducing the number of operational SMBC Tower with motion sensors to
vehicles. automatically turn off lights when
rooms are unoccupied.
Providing shuttle buses for Offering comprehensive digital
employees to save fuel and reduce application services to eliminate the
carbon emissions from private need for customers to travel to SMBC
vehicle use. Indonesia branch offices.
Implementing a work-from-home
Installing solar panels to reduce the
system to reduce energy usage in
use of electricity.
the office.
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Prioritizing Commitment to Climate
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ENERGY CONSUMPTION WITHIN THE ORGANIZATION
[GRI 302-1][GRI 302-3][OJK F.6]
Description Unit 2024 2023 2022
Electricity Consumption GJ 60,909.37 66,751.76 67,077.25 1
Fuel Consumption GJ 33,954.11 33,652.28 36,546.28
Total Energy Consumption GJ 94,863.48 100,404.04 103.623,52
Number of Employees Persons 6,491 6,636 6,972
Energy Intensity per Employee GJ/employee 14.61 15.13 14.86
Notes:
1) Electricity consumption in kWh is calculated by dividing the total electricity cost (in Rupiah) by the electricity tariff per kWh.
2) Electricity consumption in kWh is converted to Gigajoules (GJ) using the conversion factors provided by The Greenhouse Gas Protocol Initiative, 2004.
3) Fuel consumption (Pertamax) in liters is calculated by dividing the total fuel purchase cost (in Rupiah) by the fuel price per liter.
4) Fuel consumption in liters is converted to Gigajoules (GJ) using the conversion factors provided by The Greenhouse Gas Protocol Initiative, 2004.
5) The denominator used in calculating energy consumption intensity is the number of employees as of December 31st.
6) The types of fuel used are Pertalite, Pertamax, Pertamax Turbo, Pertamax Dex, and Dexlite. [GRI 302-1]
7). Recalculations were carried out for energy data in 2023: energy consumption, total amount of energy consumption, and energy consumption intensity
per employee. Due to a correction in the formula for calculating fuel energy consumption in GJ.
8). SMBC Indonesia has not yet established a baseline year for energy calculations due to the ongoing process of collecting the necessary historical data
and developing a methodology that complies with applicable standards and regulations.
SMBC Indonesia does not calculate energy usage outside In a proactive step to support the clean energy transition,
the organization, as there are no significant energy- SMBC Indonesia has purchased RECs equivalent to 10% of
consuming business processes outside the organization the bank’s total operational costs (bankwide). This initiative
[GRI 302-2]. Additionally, SMBC Indonesia does not calculate is part of the company’s sustainability effort to promote the
emissions per product, as there are no specific physical use of renewable energy in Indonesia.
products involved in its operations. [GRI 302-5]
SOLAR PANEL INSTALLATION
[OJK F.7] [GRI 302-4]
In an effort to promote efficiency and reduce carbon
UTILIZATION OF emissions, since 2023, SMBC Indonesia has initiated the
installation of solar panels at its Gunung Sahari branch office
RENEWABLE ENERGY in Jakarta. This initiative is also part of SMBC Indonesia’s
commitment to advancing the use of eco-friendly energy.
SMBC Indonesia actively promotes green operations The photovoltaic technology in the solar panel components
through the use of green technologies and renewable converts energy from sunlight into electricity. Through the
energy. installation of solar panels, SMBC Indonesia has successfully
achieved electricity savings of 79.65 Joule or equivalent
RENEWABLE ENERGY CERTIFICATE to 9% of total electricity consumption compared to the
previous year at the Gunung Sahari Branch Office.
A Renewable Energy Certificate (REC) is a certificate that
represents the generation of energy from renewable
sources, such as wind, solar, hydro, or biomass. Each REC ELECTRIC VEHICLES
corresponds to 1 megawatt-hour (MWh) of electricity In 2024, as part of its support for the transition to renewable
generated from renewable sources and fed into the and eco-friendly energy in the transportation sector, SMBC
power grid. By purchasing RECs, SMBC Indonesia supports Indonesia has undertaken the initiative to install an Electric
renewable energy production, contributes to the reduction Vehicle Charging Station (EVPS) at its Diponegoro Surabaya
of greenhouse gas (GHG) emissions, and aligns with national branch office. This initiative is expected to promote the
commitments to renewable energy usage. use of electric vehicles as a green mode of transportation
in the workplace by providing convenient electric vehicle
infrastructure. Currently, SMBC Indonesia has also deployed
one electric vehicle for senior management use.
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GREEN TECHNOLOGY ASSET MANAGEMENT
As a financial institution that pioneers digital financial services, technology has become the cornerstone of SMBC Indonesia’s
banking operations. In line with its responsibility and commitment to reducing emissions from its operations, SMBC Indonesia
implements green technology asset management through the following initiatives:
01 02
Conducting studies on the operational effectiveness of Decommissioning unused servers and applications to
data centers, particularly regarding energy usage and the optimize energy efficiency.
technologies employed.
SMBC INDONESIA’S ENVIRONMENTAL PERFORMANCE IN 2024
5.52% 1,776 unit
TOTAL ENERGY SAVINGS PURCHASE OF RENEWABLE ENERGY CERTIFICATE (REC)
equivalent to 5,540.56 GJ compared equivalent to 10% of the Bank’s Total Operational Costs
to 2023. (bank-wide)
1 Unit 1 Unit 1 Station
INSTALLATION OF SOLAR PANEL UTILIZATION OF ELECTRIC INSTALLATION OF ELECTRIC
Solar panel installed at the VEHICLE VEHICLE CHARGING STATION
Gunung Sahari Branch Office, Electric Vehicle for Senior at the Diponegoro Surabaya
Jakarta Management Branch Office
20.56% 50%
GHG EMISSION REDUCTION SCOPE 3 GHG CALCULATION (FINANCED
or equivalent to 3,894.33 tons of CO2eq for EMISSIONS)
Scope 1 and 2, compared to 2023 approximately derived from 50% of the
financing portfolio.*
Note:
* The calculation of financed emissions under Scope 3 for the year 2024 is based on approximately 50% of the portfolio, an increase from 2023, which was derived
from data of only 25 debtors.
from 2.85 tons of CO2e/Employee to 2.32 tons of CO2e/
EMISSIONS Employee in 2024. In addition, this year SMBC Indonesia
SMBC Indonesia has conducted an inventory of Scope 1, expanded the components of the calculation of GHG
2, and 3 emissions. The calculation of Scope 3 emissions emissions Scope 3, including the purchase goods and
includes both non-financed or operational and financed services, capital goods, fuel & energy-related activities
emissions categories. Specifically, for Scope 3 financed excluded in Scope 1 & 2, waste generated, business travel,
emissions, the calculation is carried out as part of the Climate employee commuting, and financed emission.
Risk Stress Test (CRST) initiative. By 2025, SMBC Indonesia
aims to report 100% of Scope 3 financed emissions across The calculation of emission reductions currently only covers
its entire customer portfolio. Scope 1 and 2 emissions. This is due to a change in the
methodology for calculating Scope 3 emissions compared
In the reporting year, SMBC Indonesia recorded a reduction to the previous year. The change in methodology is due to
in Scope 1 and 2 emissions of 3,894.33 tons of CO2e, SMBC Indonesia following the OJK’s directives, involving
equivalent to 20.56% compared to 2023. The efficiency gradually expanding the portfolio included in Scope 3
of SMBC Indonesia’s emission reduction efforts is evident emissions calculations. As a result, the data cannot be
from the decline in GHG emission intensity per employee, directly compared. [GRI 305-5] [OJK F.12]
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SMBC Indonesia does not calculate Ozone Depleting or other pollutants, as banking operations do not generate
Substances (ODS) as materials containing ODS are not used significant amounts of these air pollutants. [GRI 305-6]
in the company’s operations. Additionally, SMBC Indonesia [GRI 305-7]
does not measure nitrogen oxides (NOx), sulfur oxides (SOx),
GREENHOUSE GAS EMISSIONS TON CO2e
[GRI 305-1] [GRI 305-2] [GRI 305-3] [GRI 305-4] [OJK F.11]
GHG Emission 2024 2023 2022
Scope 1 (Fuel) 2,474.82 2,506.91 2,722.30
Scope 2 (Electricity) 14,120.76 16,437.87 16,526.49
Scope 3
• Category 1. Purchase goods and services 198.64
• Category 2. Capital goods 28.88
• Category 3. Fuel & energy-related activities (not included in Scope 1 & 2) 5,120.32
• Category 5. Waste generated 30.43
• Category 6. Business travel 1,048.51 173.17 114.48
• Category 7. Employee commuting 7,103.54
• Category 15. Financed emissions - 1,353,246.16 228,678.98
Renewable Energy Certificate (REC) (1,545.12)
Total of GHG emissions
• Scope 1 and 2 16,595.58 18,944.79 19,248.79
• Scope 1 dan 2 - REC 15,050.46
• Scope 3 13,530.32 1,353,419.33 228,793.46
Number of employees 6,491 6,636 6,972
GHG emission intensity per employee (Scope 1 dan 2) 2.32 2.85 2.76
Notes::
1. Greenhouse gas (GHG) emissions from fuel consumption were calculated in accordance with the GHG Protocol for Corporate Accounting and Reporting Standards and the Guidelines for
National GHG Inventory Implementation, Book II, 2012.
2. GHG emissions from electricity consumption were calculated in accordance with the regulations of the Director General of Electricity, Ministry of Energy and Mineral Resources (ESDM), 2017.
3. GHG emissions from business travel were calculated in accordance with the International Civil Aviation Organization (ICAO) standards.
4. The denominator used to calculate GHG emission intensity is the number of employees as of 31 December 2024.
5. The calculated emissions include CO₂, CH₄, and N₂O gases, which are then converted into CO₂ equivalents.
6. REC of 1,776 MWh or equivalent to 1,545.12 tonCO2e.
7. There are recalculated and restated 2023 financed emissions in this report due to the updated methodology for OJK’s CRMS submission.
8. The scope of financed emissions calculation is 50% of SMBC Indonesia’s business loans portfolio from these sectors: Agriculture, forestry and fishing; Mining and quarrying; Electricity, gas,
steam and air conditioning supply; Construction; Transport support and warehousing; Processing industry; Wholesale and retail trade; Car and motorcycle reparation and maintenance; as
mandated by OJK’s CRMS piloting guidelines.
9. SMBC Indonesia calculated Scope 3 Category 15 (financed emissions) by referring to PCAF’s (2022) calculation methodology. SMBC Indonesia used four different types of data sources
depending on availability, which are: debtor’s emissions, debtor’s energy usage, debtor’s production, and sectoral proxies.
10. The scope of financed emissions calculation disclosed for 2022 reporting year covers emissions from 25 corporate debtors which have published their emissions data in their own
sustainability reports.
11. In 2024, SMBC Indonesia started calculating Scope 3 emissions for reporting year 2023 in additional categories, including Scope 3 Categories 1, 2, 3, 5, 6 and 7. This is done as part of
calculation improvement.
12. The scope of data used for the calculation of Scope 3 Category 5 (waste generated) only covers SMBC Indonesia’s head office due to data limitation.
13. The scope of data used for the calculation of Scope 3 Category 6 (business travel) covers airfare, train, travel bus, and hotel.
14. SMBC Indonesia calculated Scope 3 Category 7 (employee commuting) using the average distance from the sample data of HO employees to calculate travelled distance of bank-wide
employees. The mode of transportation used assumptions based on publicly available national data.
15. SMBC Indonesia is currently calculating its Scope 3 Category 15 (financed emissions) for 2024 reporting year as part of OJK’s CRMS.
16. SMBC Indonesia has not yet established a base year for emission calculations, as it is still in the process of gathering the necessary historical data and developing a methodology that
aligns with applicable standards and regulations.
FINANCED EMISSIONS calculation, SMBC Indonesia still largely relies on proxies,
meaning the reported financed emissions data cannot yet
[GRI 305-3] [SUSBA 1.6.2.3] serve as a baseline for future calculations.
As part of its commitment to climate change management,
SMBC Indonesia incorporates the calculation of carbon Debtors included in the financed emissions calculation
emissions from corporate segment debtors. These come from the following sectors: [SUSBA 1.6.2.3]
emission calculations fall under Scope 3, Category 15 of the • Agriculture, forestry, and fishing
Greenhouse Gas (GHG) Protocol, with a specific focus on • Mining and quarrying
Financed Emissions. For these calculations, SMBC Indonesia • Electricity, gas, steam, and air conditioning supply
adheres to the standards set by the Partnership for Carbon • Construction
Accounting Financials (PCAF, 2022). The data used in the • Transportation and warehousing support
calculations is derived from customers’ data from one year • Manufacturing industry
prior to the reporting year. • Wholesale and retail trade.
In the 2023 Sustainability Report, SMBC Indonesia’s Scope
3 emissions (financed emissions) as of 2022 were based
GREEN BUILDING
on data from 25 debtors available in their sustainability The SMBC Indonesia tower office building (headquarters)
reports. The reported emissions for this represents the is designed in accordance with green building principles,
position for the year 2023 amounted to 1,353,246.16 tons emphasizing an eco-friendly approach to construction,
of CO2e, derived from approximately 50% of the portfolio, focusing on energy efficiency, water conservation, and
equivalent to an outstanding value of around Rp77.98 indoor air quality. Located in the Mega Kuningan area of
trillion. These calculations were conducted to support the Jakarta, the building has achieved a Gold rating under the
implementation of the Climate Risk Management and Greenship New Building V.1.2 certification from the Green
Scenario Analysis (CRMS) pilot program in priority sectors Green Building Council Indonesia (GBCI) since 2020.
as directed by the Financial Services Authority (OJK). In this
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01 Use of glass panels to maximize natural lighting.
Provision of rainwater storage tanks for toilet flushing
02
and plant irrigation.
Implementation of motion sensors to automatically
03
turn off lights and water taps when not in use.
04 Use of energy-efficient LED lighting.
In addition to reducing the company’s carbon footprint, the application of green building concepts in this office also aims to
enhance employee comfort and well-being.
Optimal ventilation Ultraviolet germicidal Application of epoxy Placement of indoor
systems. irradiation (UVGI) floor coating, proven plants to improve air
technology to to effectively inhibit quality and create a cool,
eliminate airborne the growth of bacteria, calming atmosphere.
microorganisms, germs, and mold on
ensuring clean air floors.
quality.
PAPER SAVING in paper consumption compared to the previous year, SMBC
Indonesia continues to implement various paper reduction
[G4-EN23] [OJK F.13] initiatives and promotes digitalization to achieve a balance
SMBC Indonesia’s digital services contribute to between regulatory compliance and eco-friendly practices.
environmental preservation by reducing paper usage. This
reduction effort is achieved through the following initiatives:
1. Printing documents on both sides of the paper.
2. Reusing used paper for internal document purposes.
PAPER USAGE
3. Setting printers to black-and-white mode.
(REAMS)
4. Digitizing archives and e-statements.
5. Utilizing digital signatures to minimize the need for
document printing.
59,361 49,204 50,848
In 2024, SMBC Indonesia remains committed to efficiency 2024 2023 2022
and sustainability, including document management. In
line with directives to enhance oversight of critical physical
Note: This data includes paper consumption at both the head office
documents, the company ensures compliance and and all branch offices.
document security are maintained. Despite a 20% increase
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ENVIRONMENTAL WASTE MANAGEMENT
EDUCATION [OJK F.13] [OJK F.14]
SMBC Indonesia is committed to environmental sustainability
SMBC Indonesia regularly implements various initiatives to by implementing responsible waste management practices
enhance employee awareness of green practices. These at SMBC Tower. By providing separate bins for organic
initiatives include campaigns conducted through indoor and inorganic waste, the company ensures proper waste
media and digital platforms, as well as pamphlets, promoting segregation at the source. All collected waste is then
energy and water conservation in the use of office facilities. managed by Waste for Change, a professional vendor
specializing in sustainable waste processing. Through this
In addition, efforts to raise awareness about environmental initiative, SMBC Indonesia not only reduces its negative
management are also extended to SMBC Indonesia’s supply environmental impact but also contributes to the circular
chain. In 2024, SMBC Indonesia held a seminar for vendors economy by supporting recycling and eco-friendly waste
titled “Preserving the Earth Through Carbon Emission management practices.
Control.” This seminar educated vendors on the significance
of managing carbon emissions from their operations and the
measures they can take to mitigate them. The seminar was
attended by 145 participants representing 100 companies. FLEXIBLE WORKPLACE
[SUSBA 1.5.1.4]
INITIATIVE
SMBC Indonesia has implemented a flexible workplace
policy (hybrid work model combining office and remote
WATER AND EFFLUENT work) as part of the company’s commitment to reducing
[OJK F.8] emissions and environmental impact by minimizing
SMBC Indonesia meets its office water needs through employee travel-related emissions. Previously, Bank SMBC
groundwater sources and third-party purchases for Indonesia had implemented several initiatives, including:
purposes such as restrooms, kitchens, air conditioning, and
building maintenance. However, SMBC Indonesia does not
record water usage, as water consumption is included in the
building lease facilities.
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Prioritizing Commitment to Climate
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Flexible working Flexible work
hours. 01 02 attire.
The flexible workplace initiative ensures performance initiative, as experienced by SMBC Indonesia employees,
productivity and data security by providing several key include improved mental well-being in managing work
features, such as: responsibilities, particularly for those with children or long
1. Compiling a list of tasks to be completed by each work commutes to the office.
unit.
2. Providing accurate tools for employee check-in and
check-out.
3. Monitoring employees with access to sensitive bank ENVIRONMENTAL COSTS
data/information. [OJK F.4]
4. Implementing a system to track assigned tasks for SMBC Indonesia has carried out various environmental
employees. programs, such as reducing paper usage, conserving
5. Introducing a digital approval system to expedite energy, and other initiatives. However, SMBC Indonesia does
document authorization processes. not maintain separate records for environmental costs, as
these are already included in other expenses, such as green
The flexible workplace arrangement has been building maintenance costs, emission management costs,
implemented since 2022. The positive impacts of this and similar expenditures.
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Sustainable Governance for
Responsible Growth
Sustainable
Governance for
Responsible
Growth
Robust and integrity-driven
governance serves as the basis
for SMBC Indonesia in promoting
responsible and sustainable business
practices, while simultaneously
09
creating value for stakeholders.
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Sustainable Governance for
Responsible Growth
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Sustainable Governance for
Responsible Growth
SMBC Indonesia consistently prioritizes the implementation of Good Corporate Governance (GCG) principles as the
cornerstone of all aspects of the company’s operations. The practice of good corporate governance aims to strengthen
integrity and build trust among customers, shareholders, and all stakeholders.
The implementation of GCG at SMBC Indonesia adheres to both national and international guidelines and regulations to
ensure that all practices are conducted in accordance with the highest standards. Several regulations that serve as references
for GCG implementation at SMBC Indonesia include:
Law No. 11 of 2020 on Job Creation, amended, removed, and established new provisions in
several regulations, including:
01 a. Law No. 40 of 2007 on Limited Liability Companies.
b. Law No. 10 of 1998 as amended by Law No. 7 of 1992 on Banking.
02 Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector.
Financial Services Authority Regulation No. 17 of 2023 on the Implementation of
03 Governance for Commercial Banks.
Financial Services Authority Regulation No. 45 of 2024 on the Development and
04
Strengthening of Issuers and Public Companies.
Other Financial Services Authority Regulation, including those governing Audit
Committees, Remuneration and Nomination Committees, Board of Commissioners and
05 Directors, General Meetings of Shareholders, Internal Audit, Public Accountants, and Public
Accounting Firms, as well as Compliance Director and Corporate Secretary.
The General Guidelines for Good Corporate Governance in Indonesia from the National
06 Committee on Governance Policy (KNKG).
07 The Articles of Association of SMBC Indonesia.
08 SMBC Indonesia’s Policies and Procedures.
In general, the principles of governance implementation are encapsulated in the acronym TARIF, which stands for
transparent, accountability, responsibility, independence, and fairness. Meanwhile, in accordance with the 2021
Indonesian General Guidelines for Corporate Governance issued by the National Committee for Governance Policy
(KNKG), there are four pillars of governance, encompassing ethical behavior, transparency, accountability and
sustainability (ETAS).
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Sustainable Governance for
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GOVERNANCE STRUCTURE
[GRI 2-9]
SMBC Indonesia’s governance structure is as follows:
General Meeting of Shareholders
Board of Commissioners President Director Board of Director
Internal Audit Unit
Audit Committee Risk Management Committee
(AIU)
Asset and Liability Committee
Risk Monitoring Committee
Credit Committee
Credit Policy Committee
Remuneration and
Nomination Committee
IT Steering Committee
Integrated Governance Human Capital Committee
Committee
Information Governance Steering
Committee
Fraud Committee
Sustainability Committee
Integrated Risk Management Commitee
Corporate Secretary Compliance Risk Management
GENERAL MEETING OF SHAREHOLDERS (GMS)
The General Meeting of Shareholders (GMS) of SMBC Indonesia is the highest decision-making forum within the
company.
The GMS holds authority to, among other things, approve annual financial statements, ratify annual financial
statements, determine the allocation of net profits, appoint and dismiss members of the Board of Directors and
Board of Commissioners while establishing their remuneration or honorarium, appoint Public Accountants and Public
Accounting Firms to audit the company’s books or financial statements, approve amendments to the Company’s
Articles of Association, approve the implementation of corporate actions and/or strategic plans, approve or adopt
the Sustainable Finance Action Plan (SFAP), approve or accept the recovery plan report, and receive accountability
reports on the use of proceeds from public offerings, business plan reports, sustainable finance action plan report,
and resolution plan report. In general, the GMS encompasses authorities not delegated to the Board of Directors and/
or the Board of Commissioners. Through the GMS mechanism, shareholders have the opportunity to provide input,
express their views, and ensure that the company’s decisions align with collective interests and the principles of good
corporate governance.
With regard to business sustainability, the GMS has the authority to approve, reject, or accept the SFAP report. It may
also hold the company accountable for its sustainability initiatives. The GMS can make strategic decisions with long-
term impacts or collaborate with stakeholders to achieve sustainability goals.
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BOARD OF [GRI 2-12]
COMMISSIONERS The Board of Commissioners and Directors play a pivotal
role in developing and approving significant changes
SMBC Indonesia’s Board of Commissioners is tasked with within the company, including its vision, mission,
overseeing the policies and strategies implemented by organizational policies, and strategies, particularly those
the Board of Directors, ensuring that the decisions and related to sustainability and climate change. The Board
actions of the Board of Directors align with the Company’s of Commissioners and Directors are also responsible
Articles of Association, applicable laws and regulations, for overseeing the management of climate-related
and principles of Good Corporate Governance. The Board risks, sustainability issues, and other corporate risks.
of Commissioners also provides advice and input to the These matters are discussed in the General Meeting of
Board of Directors regarding corporate management, Shareholders (GMS), held at least once a year.
including business strategy, risk management, and other
critical decision-making processes. The Board of Directors takes into account input from both
internal and external stakeholders, such as employees,
With regard to business sustainability, the Board of customers, and government entities. This feedback is
Commissioners is responsible for monitoring and gathered through various channels, including reports,
evaluating the sustainability strategies proposed by the special meetings, as well as through the company’s
Board of Directors, overseeing the implementation of risk website and the whistleblowing system provided.
management, and ensuring the company’s compliance with
sustainability-related regulations. Additionally, the Board of Such inputs are carefully considered to evaluate the
Commissioners offers input and recommendations to the progress and relevance of the implementation of SMBC
Board of Directors on sustainability initiatives, including Indonesia’s sustainability initiatives, as outlined in SMBC
Corporate Social Responsibility. Indonesia’s SFAP.
BOARD OF DIRECTORS
SMBC Indonesia’s Board of Directors is responsible for INDEPENDENCE AND
preparing the company’s work plans, managing the MEMBERSHIP IN THE
company’s day-to-day operations and implementing the
strategic policies established by the GMS and the Board
GOVERNANCE STRUCTURE
To ensure that the Board of Directors and Board of
of Commissioners. The Board of Directors also plays a
Commissioners carry out their duties independently,
central role in ensuring that the company operates in
SMBC Indonesia ensures that the governance structure
accordance with its vision, mission, and core values, as
of the Board of Directors and Board of Commissioners
well as complying with applicable laws and regulations.
is designed with consideration for the composition of
independence and the relationships among members
With regard to business sustainability, the Board of
or with the majority/controlling shareholders, as
Directors must prepare the SFAP, implement risk
regulated by applicable provisions. This is achieved by
management to ensure the company’s sustainability,
implementing the following principles: [GRI 2-11]
including identifying and assessing sustainability-related
1. No direct or indirect business relationships related to
risks, such as environmental risks, climate change, and
the business activities of SMBC Indonesia.
reputational risks. Furthermore, the Board of Directors
2. No holding of concurrent positions in other
must develop adequate risk mitigation plans. The Board
companies as a member of the Board of Directors
is also responsible for compiling sustainability reports
or an executive officer performing supervisory
that accurately and transparently cover the Company’s
functions, except for the purpose of overseeing
performance in Environmental & Social Governance
subsidiaries.
(ESG) aspects, adhering to applicable reporting
3. No familial relationships up to the second degree
standards such as the Global Reporting Initiative (GRI) or
with fellow members of the Board of Commissioners
the Financial Services Authority (OJK).
and/or Board of Directors.
4. No joint share ownership exceeding 25% of the
THE ROLE OF THE BOARD capital in any company.
OF COMMISSIONERS 5. No involvement in decisions that would create a
conflict of interest for members of the Board of
AND DIRECTORS IN Directors or Board of Commissioners.
OVERSEEING THE Information on the members of the Board of
MANAGEMENT OF THE Commissioners and Directors can be found in the 2024
ORGANIZATION’S IMPACTS Annual Report of SMBC Indonesia on page 74-95. [GRI 2-9]
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NOMINATION AND Report, prepared and compiled by the Board of
Directors in accordance with the sustainability policies
SELECTION OF THE BOARD at SMBC Indonesia. This ensures corporate compliance
OF COMMISSIONERS AND and communicates progress to stakeholders. On the
other hand, the Board of Commissioners oversees
DIRECTORS sustainability policies, monitors performance, ensures
[GRI 2-10] corporate transparency and accountability, and
ultimately provides recommendations or advice
POLICY AND PROCEDURE to the Board of Directors regarding the company’s
The nomination and selection process for members sustainability efforts.
of the Board of Commissioners and Board of Directors
is conducted by considering recommendations from The review and preparation of the Sustainability Report
the Remuneration and Nomination Committee. Prior take into account input from stakeholders and adhere
to assuming their positions, candidates for the Board to applicable national and international standards.
of Commissioners and Directors undergo a series of Material topics related to the company’s sustainability
selection tests, including assessments of competence, performance are identified through stakeholder
integrity, and financial reputation, as well as a fit and proper surveys. The Communications & Daya Division is
test. Other sustainability criteria include competencies in responsible for reviewing, approving the report content,
economic, environmental, and social topics. The selection and conducting a final check of the sustainability report
process is carried out professionally, with consideration before its publication.
given to diversity, without discrimination based on
race, ethnicity, religion, or gender. The appointment of
members to the Board of Commissioners and Directors CONFLICT OF INTEREST
is conducted through the GMS in accordance with [GRI 2-15]
applicable regulations. [SUSBA 1.4.1.5] In maintaining the company’s integrity and prevent
conflicts of interest, SMBC Indonesia has established
Information on the nomination process for members of the preventive procedures outlined in the SMBC Indonesia
Board of Commissioners and Directors can be found in the Code of Conduct and corporate governance guidelines
2024 Annual Report of SMBC Indonesia on page 309-310. and compliance policies, stipulating the following
provisions:
1. Employees are prohibited from accepting and/
THE ROLE OF or requesting any form of gift from employees/
GOVERNANCE STRUCTURE prospective employees, customers/prospective
IN SUSTAINABILITY customers, or vendors/prospective vendors in
exchange for performance that is already part of
REPORTING their job responsibilities.
[GRI 2-14]
SMBC Indonesia’s sustainability achievements are
realized through the preparation of a Sustainability
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2. Employees are required to report to Human positions to prevent decisions that may compromise
Resources (HR) if they have a familial relationship objectivity.
with another employee/prospective employee. HR
Cross-organization shareholdings with suppliers
must document this in the respective employee’s
and other stakeholders. SMBC Indonesia’s policy
personal file as a consideration for transfer and/or
requires individuals with shareholdings in other
promotion processes.
organizations that have business relationships with
3. Employees are prohibited from entering into
the company to report and document such situations
employment agreements with other parties during
to management, which is then communicated to
working hours and/or earning additional income
stakeholders.
outside of SMBC Indonesia related to their role or
position at the company. Existence of controlling shareholders. SMBC
4. Employees are prohibited from owning or operating Indonesia openly discloses the existence of
personal businesses outside their employment controlling shareholders through official reports to
with SMBC Indonesia if such activities interfere with relevant authorities and stakeholders to maintain
or affect the professionalism and integrity of the transparency and ensure compliance with applicable
employee concerned. regulations.
5. Employees are prohibited from offering products/
Related parties, relationships, transactions, and
services/businesses outside of SMBC Indonesia’s
outstanding balances. All transactions with related
operations to SMBC Indonesia customers.
parties, including relevant relationships, are clearly
6. Employees are prohibited from processing loan
presented in the company’s financial statements.
applications or vendor selections involving family
members or relatives. Employees must notify/
In addition, conflict of interest mitigation measures, such
escalate such matters to their superiors to ensure
as the application of transparency and independence
the loan or vendor selection process is reassigned to
principles, are supported by various internal policies.
another employee.
SMBC Indonesia actively educates all employees on
7. Any lending or borrowing between employees must
the significance of avoiding conflicts of interest. This
be free from conflicts of interest.
education is conducted continuously through various
channels, including email, e-learning, the official SMBC
As part of a comprehensive effort, any unit within SMBC
Indonesia website, face-to-face dissemination, and
Indonesia that has the potential to give rise to decisions
other internal office communication media. The program
or transactions involving conflicts of interest further
is designed to enhance employees’ understanding and
regulates the following matters in their respective
awareness of the risks of conflicts of interest and their
procedures:
impact on the company. As a form of enforcement, any
1. Implementation of the “Four-Eyes Principle.”
violations of these policies will be subject to sanctions
2. Separation of functions and responsibilities that
in accordance with the level of loss or potential loss
could lead to conflicts of interest.
incurred by the company.
3. Ensuring the implementation of GCG to avoid
conflicts of interest in all SMBC Indonesia processes,
including vendor appointments, procurement of
goods and services, and hosting third-party events. POLICY COMMITMENT
4. All aspects with the potential to create conflicts [GRI 2-23] [GRI 2-24]
of interest are monitored and managed by
independent parties, both internally by internal audit SMBC Indonesia is firmly committed to a set of policies
and externally by public accountants. that serve as the cornerstone for carrying out all of
the company’s operational activities. These policies
SMBC Indonesia is committed to maintaining the are formulated based on the SMBC Indonesia Code
company’s integrity and ensuring transparent of Conduct, reflecting the company’s core values, and
management of conflicts of interest to stakeholders. serve as the basis for regulations and procedures within
The company discloses information regarding conflicts the organization.
of interest, including:
Keanggotaan lintas dewan. Perusahaan memantau The policies of SMBC Indonesia encompass a
dan mengungkapkan commitment to conducting responsible business
practices across the following aspects:
Cross-board memberships. The company monitors
1. Compliance and risk management
and discloses individuals holding cross-board
2. Conflict of interest
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3. Creating a conducive work environment
a. Fair treatment of all employees ENVIRONMENTAL POLICY COMMITMENT
b. Anti-discrimination and anti-harassment [GRI 2-23]
c. Workplace safety SMBC Indonesia is committed to implementing
d. Use of company facilities environmental policies that support sustainability and
e. Activities outside the company reduce negative impacts on the environment. This
f. Social media usage commitment is reflected in the integration of eco-
g. Communication through LInK and HELP channels friendly principles into all aspects of the company’s
h. Implementation of Know Your Employee (KYE) operations, including financing. Various environmental
4. Information management and security policies include:
5. Relationships with stakeholders 1. The requirement for an Environmental Impact
a. Relationships with customers, prospective Analysis (AMDAL) as part of the legality of business
customers, and financial service users operations for debtors in specific segments.
b. Relationships with business partners or 2. Participation in the Performance Rating Program
associates for Environmental Management (PROPER) by the
c. Relationships with regulators Ministry of Environment and Forestry (KLHK).
d. Relationships with shareholders and subsidiaries 3. For corporations in the plantation sector, it is
e. Relationships with social communities and the mandatory to possess a Plantation Business Permit
environment (IUP), Plantation Business Permit for Cultivation
f. Anti-money laundering (IUP-B), Plantation Business Permit for Processing
g. Anti-bribery and anti-corruption (IUP-P), Plantation Business Registration Certificate
h. Giving and receiving entertainment and gifts (SPUP), and Roundtable on Sustainable Palm Oil
i. Insider information and personal investment (RSPO) Certification for export-oriented palm oil
transactions industries.
j. Consumer protection 4. For corporations in forest management, the Forest
Stewardship Council (FSC) or Programme for
SMBC Indonesia is committed to upholding human the Endorsement of Forest Certification (PEFC)
rights in all its operational activities, by referring to the certification is required.
International Labour Organization (ILO) Conventions and 5. Any other requirements in accordance with
Law No. 13 of 2003 on Manpower. These policies ensure applicable laws and regulations.
the protection of employees, business partners, and
suppliers through written regulations that clearly define
the rights and responsibilities of all parties involved.
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IMPLEMENTATION OF RESPONSIBLE BUSINESS PRACTICES
[GRI 2-24]
As part of its commitment to responsible business practices, SMBC Indonesia implements various policies and
procedures to ensure that principles of sustainability, ethics, and respect for human rights are integrated across all
operational lines and business partnerships. The following are the key aspects of responsible business practices at
SMBC Indonesia:
01 POLICIES TRANSLATED INTO SOPS AND GUIDELINES
SMBC Indonesia translates its responsible business policies into Standard Operating Procedures (SOPs)
and internal guidelines governing all aspects of the company’s operations. This ensures that all business
activities align with the principles of sustainability, ethics, and compliance with applicable regulations.
02 COMMUNICATED TO INTERNAL AND EXTERNAL PARTIES
Responsible business policies are not only implemented internally but are also communicated to
external parties, including business partners, clients, and other stakeholders. This communication
process is carried out through regular meetings, clear communication materials, and transparent
sustainability reports.
03 DISSEMINATION AND TRAINING
SMBC Indonesia provides training for employees on the company’s code of conduct, data confidentiality,
and respect for human rights. This training aims to ensure that all individuals within the organization
understand and apply ethical values in all decisions and actions, thereby creating a fair and transparent
work environment.
04 ENSURING BUSINESS PARTNERS ADHERE TO THE SAME STANDARDS
SMBC Indonesia ensures that business partners, including suppliers and contractors, comply with the
same standards regarding respect for human rights, in accordance with national laws and regulations
and international guidelines such as the United Nations Guiding Principles on Business and Human Rights.
This ensures that the company’s entire supply chain operates ethically and responsibly.
IMPLEMENTING THE MODERN SLAVERY ACT AND CONDUCTING
05
BUSINESS PARTNER SCREENING [SUSBA 1.2.1.14]
SMBC Indonesia applies the principles outlined in the Modern Slavery Act to combat modern slavery and
human exploitation within its supply chain and business operations. The company conducts screenings
of business partners to ensure that they are not involved in practices such as slavery, labor exploitation,
or other human rights violations. These screenings are part of SMBC Indonesia’s efforts to ensure that all
business activities are free from any form of abuse or exploitation.
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All policies established by the Board of Directors must to fraud, including 6 reports related to employment
be adhered to by all individuals within the company, matters), while the remaining 3 reports are still in the
from senior management to employees and business process of handling and further evaluation.
partners, to uphold the integrity of SMBC Indonesia.
These policies are disseminated through various The 24 reports were received through the following
channels, including email, e-learning, and face-to- channels:
face dissemination, to build a culture aligned with the
company’s values. As a form of transparency, SMBC
Indonesia’s policy commitments are publicly accessible
on the company’s official website at www.smbci.com Email
20 reports
Whatsapp
WHISTLEBLOWING 3 reports
SYSTEM In-Person
[GRI 2-26] [FN-CB-510a.2] 1 reports
SMBC Indonesia has established a Whistleblowing
System (WBS) as a reporting mechanism accessible
to both employees and external parties. This system
allows for the reporting of suspected or actual incidents
related to fraudulent activities, legal violations, breaches
of company regulations, ethical code violations, and SUMMARY OF CUSTOMER COMPLAINTS
conflicts of interest involving SMBC Indonesia’s internal
parties. Reports made in good faith and not of a personal Number of Number of Complaint
grievance or defamatory nature contribute to a clean Complaints Complaints Resolution Rate
and transparent business environment. Received Resolved (%)
2024
The general WBS reporting mechanism includes:
1. Reporting by the Whistleblower (submission of
63,673 62,759 99%
reports/information within 24 hours of becoming
aware of the suspected/actual fraudulent activity);
2023
2. Follow-up on Reports (identification, analysis, and 64,935 64,935 100%
investigation);
3. Documentation (records of fraud indications and
2022
investigation results); and 50,521 50,521 100%
4. Confidentiality Assurance (all parties are responsible
for maintaining the confidentiality of the
whistleblower’s identity).
The Whistleblowing System is managed by the
Operational & Fraud Risk Management (OFRM) Division,
responsible for handling reports of suspected/actual GRIEVANCE MECHANISM
fraudulent activities from whistleblowers within SMBC [GRI 2-25] [FN-CB-510a.2]
Indonesia. The OFRM conducts an initial analysis In addition to providing a whistleblowing mechanism,
of fraud-related reports submitted through the SMBC Indonesia provides channels for stakeholders to
Whistleblowing channels. Valid reports are then followed raise concerns regarding the business impacts of SMBC
up for further investigation. The OFRM, in collaboration Indonesia. These channels are also open to consumers
with relevant work units, oversees the follow-up process. wishing to provide feedback or submit complaints about
SMBC Indonesia guarantees full confidentiality of products and services. Complaints can be submitted
whistleblowers’ data and ensures protection against any through the following channels:
form of pressure, intimidation, or negative consequences Customer service hotline: 1500 365 (Local) or
that may arise as a result of reporting. +6221 8060 5299 (International)
Website: https://www.smbci.com
Throughout 2024, a total of 24 reports were submitted smbcicare@smbci.com
through the WBS. Of these, 21 reports have been resolved jenius-help@smbci.com
(3 reports confirmed as fraud and 18 reports unrelated Nearest SMBC Indonesia branch
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Customer feedback and complaints are documented in the into account user feedback to ensure its relevance and
“Financial Services for Sustainable Transformation” section responsiveness. Stakeholders, including employees,
on page 70. customers, and business partners, are provided with easy
and transparent access to submit their complaints.
SMBC Indonesia guarantees the confidentiality of the
whistleblower’s identity as part of its commitment to creating MONITORING AND EVALUATION OF
a safe and transparent environment. Whistleblowers are also GRIEVANCE MECHANISM EFFECTIVENESS
protected from any form of pressure, threats, or retaliation, SMBC Indonesia conducts monitoring ofthe effectiveness
ensuring they can submit feedback or complaints with of the grievance mechanism through indicators such as
complete security and comfort. Verbal complaints shall case resolution time, user satisfaction, and the number
be resolved within a maximum of 5 working days, while of complaints resolved. The effectiveness report is
written complaints shall be addressed within a maximum of supplemented with specific examples, including cases
10 working days. During the reporting year, 63,673 reports resolved with solutions that satisfy all parties involved.
were submitted through these channels, and 99% have Feedback from stakeholders is utilized to refine this
been resolved, while the remaining are still in the process of mechanism, ensuring that all remediation processes
being resolved. contribute to enhancing sustainability and corporate
governance.
PROCESS OF MANAGING NEGATIVE
IMPACTS
The process of managing negative impacts involves
identifying these impacts through internal and external
audits, consulting with affected stakeholders, and INTERNAL CONTROL
developing an impact management plan through cross-
functional collaboration. The management steps are SYSTEM
focused on addressing direct impacts and preventing [SUSBA 1.4.14]
the recurrence of similar incidents by enhancing The internal control system plays a critical role in
governance systems and policies. ensuring that the business and operational activities
of SMBC Indonesia are conducted in accordance with
STAKEHOLDER ENGAGEMENT IN THE good governance principles and in minimizing risks
GRIEVANCE MECHANISM that could impact the company’s performance. As part
of its commitment to maintaining the integrity and
SMBC Indonesia’s grievance mechanism is designed effectiveness of risk management, SMBC Indonesia
with input from stakeholders through open dialogues, implements the Three Lines of Defense model. Each
surveys, and consultation sessions. The review process line operates independently with integrated roles and
of the mechanism is conducted periodically, taking responsibilities, as detailed below:
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1. First Line of Defense management and internal controls continue to operate
This consists of the Risk-Taking Units (RTUs), assisted in line with established standards. Internal Audit is
by the relevant Business Risk/ICR personnel, to reviewed by an independent party every three years
enforce day-to-day risk management practices in a to ensure the reliability and execution of audits in
disciplined manner. accordance with applicable regulations.
2. Second Line of Defense
The Risk Management Unit (RMU), in collaboration
with Compliance, Finance and Planning, and
Human Resources units, is responsible for defining, PREVENTION AND
refining, and ensuring the implementation of risk ERADICATION OF
management through adequate identification,
measurement, monitoring, and control processes. CORRUPTION AND FRAUD
This includes establishing appropriate policies,
Corruption is the act of abusing power or authority for
procedures, and tools, as well as coordinating and
personal gain, which harms the financial integrity and
facilitating overall risk management activities.
trust within an organization or society. Fraud, on the
other hand, refers to deliberate acts of deviation and/or
3. Third Line of Defense
negligence intended to deceive, mislead, or manipulate
Internal Audit independently conducts reviews and
SMBC Indonesia, its customers, or other parties. Such
evaluations of the governance and effectiveness
acts occur within the environment of SMBC Indonesia
of risk management implementation. In practice,
and/or utilize SMBC Indonesia’s resources, resulting
the Risk Management Unit (RMU), as the second
in losses for SMBC Indonesia, its customers, or other
line of defense, coordinates with Business Risk/
parties, while providing direct or indirect benefits to the
ICR personnel in the first line to ensure effective
perpetrators of fraud and/or other involved parties.
risk management implementation. As the third
line of defense within the Internal Control System,
SMBC Indonesia has implemented a stringent policy
Internal Audit has the function of evaluating the
to prevent fraud by establishing an Anti-Fraud Unit,
implementation of risk management and assessing
in accordance with OJK Regulation No. 12 of 2024
the effectiveness of internal controls across all
on the Implementation of Anti-Fraud Strategies for
aspects of SMBC Indonesia’s activities using a risk-
Financial Service Institutions. This unit is responsible
based approach.
for overseeing, developing, and executing frameworks,
policies, and strategies for fraud prevention and
SMBC Indonesia proactively conducts audits covering
mitigation across all aspects of SMBC Indonesia’s
sustainability topics, including ensuring that credit
business and operational activities. The implementation
extension meets established environmental and social
of the Anti-Fraud Strategy is regularly monitored by the
requirements. Additionally, audits are performed to
Board of Commissioners through the Risk Monitoring
review the implementation of sustainability policies and
Committee and by the Board of Directors through the
procedures to ensure alignment with the company’s
Risk Management Committee.
commitment to social and environmental responsibility.
[SUSBA 1.4.1.7] [SUSBA 1.4.1.8]
In its prevention efforts, SMBC Indonesia conducts
risk identification related to corruption/fraud across
Internal Audit periodically evaluates systems and
all business activities to ensure the adequacy of
procedures to ensure the protection of SMBC Indonesia’s
controls. There are 48 processes identified as high-
assets, the accuracy and reliability of accounting data,
risk, representing 7.22% of all processes within SMBC
including customer and third-party funds. Furthermore,
Indonesia. Significant risks include those associated with
the evaluation encompasses various operational
credit processes and payment transaction processes.
aspects of SMBC Indonesia, such as customer service,
[GRI 205-1]
infrastructure, human resource management, and
other activities that could lead to financial losses or
SMBC Indonesia actively raises awareness of fraud risks
reputational damage to the company.
through the signing of Anti-Fraud integrity pacts and
codes of conduct, as well as various educational initiatives.
The results of Internal Audit evaluations are
These initiatives include Anti-Fraud education through
regularly reported to the President Director, Board
e-newsletters, “Now You Know”, news sharing, desktop
of Commissioners, Audit Committee, and Directors
wallpapers, and the implementation of training and
as needed. This reporting process ensures that risk
e-learning programs.
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SMBC Indonesia’s Anti-Fraud education covers the How to prevent fraud
following topics: Examples of fraud cases
Management’s message on the significance of Expected employee behavior
integrity Sanctions for fraud perpetrators and parties involved
Definition of fraud in fraud incidents
Anti-Fraud strategies Various channels available for reporting suspected
Classification of fraud or actual fraud incidents
Background and causes of fraud
ANTI-CORRUPTION/ANTI-FRAUD COMMUNICATION AND TRAINING BY REGION
[GRI 205-2]
Organization Has Communicated Anti-Corruption/ Has Attended Anti-Corruption/Anti-Fraud
Anti-Fraud Policies and Procedures Training
Region
Percentage of Total Percentage of Total
Number of Employees Number of Employees
Employees (%) Employees (%)
Greater Jakarta 3,273 50.42% 3,053 49.55%
Java 1,733 26.70% 1,673 27.15%
Outside Java 1,485 22.88% 1,436 23.30%
TOTAL 6,491 100% 6,162 100%
ANTI-CORRUPTION/ANTI-FRAUD COMMUNICATION AND TRAINING BY EMPLOYEE CATEGORY
[GRI 205-2]
Organization Has Communicated Anti- Has Attended Anti-Corruption/Anti-Fraud
Corruption/Anti-Fraud Policies and Procedures Training
Job Level
Percentage of Total Percentage of Total
Number of Employees Number of Employees
Employees (%) Employees (%)
Board of 10 0.15% 9 0.15%
Management
Top Management 187 2.88% 178 2.89%
Senior 750 11.55% 729 11.83%
management
Management 2,983 45.96% 2,814 45.67%
Officer/Supervisor 1,600 24.65% 1,555 25.24%
Clerical 961 14.81% 877 14.23%
Total 6,491 100% 6,162 100%
Throughout 2024, SMBC Indonesia identified a total of 48 Additionally, SMBC Indonesia conducts anti-fraud
fraud incidents, resulting in losses of Rp8,647,203,609, campaigns and education for external parties to raise
representing 1.03% of SMBC Indonesia’s operational anti-fraud awareness, including reminding them of
capital expenditure as of 2024. the potential for fraud. This is achieved through the
periodic distribution of notification letters to vendors
SMBC Indonesia enforces a zero-tolerance policy collaborating with SMBC Indonesia, emphasizing the
towards fraud, consistently improving processes and implementation of Good Corporate Governance (GCG)
prioritizing corporate integrity. Any employee found to and the mechanism for reporting violations via the
have committed violations is subject to strict sanctions Whistleblowing Channel.
in accordance with applicable regulations.
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43.1%
56.9%
Business Partners Service Providers 66
Receiving Anti-
Suppliers 50
Corruption/Anti-
Fraud Communication Total 116
[GRI 205-2]
Collaboration with vendors involved in fraudulent Annually, SMBC Indonesia also requires an e-learning
practices will be permanently terminated. During the module on anti-fraud awareness as a means to raise
reporting year, SMBC Indonesia terminated or did not fraud prevention awareness among all employees. The
renew cooperation contracts with one vendor due to completion of this module is required for all employees
corruption/fraud violations. by the end of 2024.
Additionally, SMBC Indonesia conducted a sharing In line with the implementation of its anti-fraud strategy,
session on the implementation of anti-fraud strategies SMBC Indonesia continuously reviews and updates its
for one of its partners, based on a request received by Anti-Fraud Strategy Policies and Procedures, followed
SMBC Indonesia, to support the partner’s adoption of by dissemination to all employees via email and internal
anti-fraud strategies. portal publications.
To adapt to current conditions in delivering anti-fraud During the reporting period, SMBC Indonesia developed
awareness, SMBC Indonesia consistently updates its a behavioral risk policy to ensure that all SMBC Indonesia
Anti-Fraud Awareness presentation materials as needed, employees conduct their activities in accordance with
including providing examples of fraud incidents along expected and integrity-based behavior. This policy
with the associated sanctions or legal actions (if criminal supports the fulfillment of consumer protection, market
elements are involved). health, fair competition, public interest, and stakeholder
interests.
CORRUPTION/FRAUD INCIDENTS
[GRI 205-3]
Number of Cases
Internal Fraud Cases
2024 2023 2022
Total proven fraud incidents 48 71 72
Total incidents resulting in employee 30 40 46
termination/discipline
Total incidents resulting in termination of - - -
business partner contracts
Legal cases related to fraud filed by the - - -
public against the company
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COMMUNICATION OF sustainable development. Therefore, SMBC Indonesia
provides training to enhance the knowledge, skills,
CRITICAL CONCERNS and experience of the Board of Commissioners and
[GRI 2-16] Directors in the areas of economics, environment,
social responsibility, and governance. This training aims
SMBC Indonesia has established a structured to ensure that SMBC Indonesia’s governing bodies are
mechanism for reporting critical concerns to the Board equipped to make decisions that support the company’s
of Directors and the Board of Commissioners. This overall sustainability goals. Information on the training of
procedure is designed to ensure clear and efficient the Board of Commissioners and Directors can be found
communication through written reports, Board of in the 2024 Annual Report of SMBC Indonesia on page
Commissioners meetings, Board of Directors meetings, 300-301.
and joint meetings of the Board of Commissioners and
the Board of Directors. Concerns classified as critical
include strategic, operational, and compliance risks, as
well as potential losses that could significantly impact EVALUATION OF
business sustainability.
THE BOARD OF
Reports on critical concerns can be submitted by various
parties, such as internal work units (both divisions and COMMISSIONERS AND
departments) through presentations or memorandums,
received by the Corporate Secretary for further
DIRECTORS
[GRI 2-18]
identification and subsequent forwarding to the Board of
SMBC Indonesia conducts periodic evaluations of
Commissioners and the Board of Directors. Information
the performance of the Board of Commissioners and
on these concerns is reported as a priority for further
Directors to ensure effective corporate management
review. During the reporting period, there were no critical
and oversight, as well as to generate positive impacts
concerns identified.
on the economy, environment, and society. This
evaluation is carried out annually through a self-
assessment mechanism based on predefined key
ENHANCEMENT performance indicators (KPIs), serving as benchmarks
for performance success.
OF THE BOARD OF
Based on the evaluation results, all strategies established
COMMISSIONERS AND at the beginning of the year have been successfully
achieved in accordance with the set targets. There have
DIRECTORS’ CAPACITY been no changes to the senior management structure,
[GRI 2-17] [OJK E.2] [SUSBA 1.4.2.3] as the evaluation demonstrates that the Board of
Strategic decisions made by the Board of Commissioners and Directors have fulfilled their duties
Commissioners and Directors have a significant impact and responsibilities in accordance with the established
on the company’s direction, including in the realm of key performance indicators (KPIs).
138 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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REMUNERATION to conduct remuneration surveys within the industry.
The results of these surveys serve as a reference for
OF THE BOARD OF determining the amount of remuneration, enabling
the formulation of a fair and competitive remuneration
COMMISSIONERS AND strategy while considering individual performance.
Through this approach, the remuneration policy not only
DIRECTORS supports the achievement of the company’s objectives
but also aligns with best practices in the banking industry.
REMUNERATION POLICY
[GRI 2-19] ANNUAL TOTAL COMPENSATION RATIO
The remuneration policy for the Board of Commissioners [GRI 2-21]
and Directors of SMBC Indonesia is designed by SMBC Indonesia is committed to providing fair and
considering their respective responsibilities and scope competitive remuneration to all employees, including
of work. A fair remuneration policy aims to motivate the Board of Directors and the Board of Commissioners.
all parties to maintain and enhance the company’s This commitment is reflected in the compensation ratio,
reputation. The remuneration for the Board of prioritizing principles of fairness and equity. However, SMBC
Commissioners and Directors is determined by the Indonesia does not disclose the annual total compensation
General Meeting of Shareholders (GMS) and is based on ratio, as it is considered confidential company information.
the principle of meritocracy, meaning it is aligned with
individual performance and achievements. Remuneration The policy governing the classification of information as
is granted by taking into account the company’s profits confidential at SMBC Indonesia is outlined in the Company’s
for the relevant fiscal year, as well as the principles of Code of Conduct and Confidentiality Policy. This policy
fairness in comparison to internal peer groups and includes guidelines for the protection of strategic data, such
standards within the banking industry. as information related to annual total compensation. The
policy aims to safeguard information that could potentially
Furthermore, the remuneration policy for members of the impact the company’s competitiveness, regulatory
Board of Commissioners and Directors of SMBC Indonesia compliance, and employee privacy. As a result, the annual
is designed to support the achievement of the company’s total compensation ratio is not disclosed in the sustainability
strategic objectives, including the management of report, in line with the company’s policy on protecting
impacts on the economy, environment, and society. The confidential information.
remuneration structure incorporates key performance
indicators (KPIs) that encompass sustainability
aspects, such as resource efficiency, achievement of
emission reduction targets, positive social impact, and
contributions to inclusive economic growth. Thus, this ANTI-MONEY
policy ensures that the incentives provided are not only
aligned with financial performance but also support the LAUNDERING AND
attainment of sustainable governance and corporate
social responsibility, in line with environmental, social, and
COUNTER-TERRORISM
governance (ESG) principles. [SUSBA 1.4.1.6] FINANCING POLICY
Amid the rapid advancement of financial technology,
Details regarding the remuneration of the Board of the banking industry faces risks associated with the
Commissioners and Directors can be accessed in the potential misuse of its systems for money laundering
2024 SMBC Indonesia Annual Report on page 311-314. and terrorism financing. The variety of available
transaction methods and digital channels facilitates
PROCESS FOR IMPLEMENTING REMUNERATION the flow of funds that are difficult to trace, enabling
[GRI 2-20] individuals or groups to exploit the financial system for
The remuneration policy at SMBC Indonesia falls under criminal activities.
the purview of the Remuneration and Nomination
Committee (RNC), which provides recommendations To address these challenges, SMBC Indonesia has
to the Board of Commissioners regarding remuneration developed an Anti-Money Laundering, Counter
policies for both the Board of Commissioners and the Board Financing of Terrorism, and Counter-Proliferation
of Directors. These recommendations are subsequently Financing of Weapons of Mass Destruction (AML, CFT,
presented at the General Meeting of Shareholders (GMS) and CPF) program. This program is designed to identify
for approval. In determining the remuneration policy, and prevent suspicious activities through strategic
SMBC Indonesia takes into account various factors, measures that enhance oversight and security across all
including company profitability, financial stability, and aspects of operations, including:
competitive standards within the banking industry.
1. The active role of the Board of Commissioners and
To ensure that the remuneration policy remains relevant Directors in regularly discussing the implementation
and competitive, SMBC Indonesia collaborates with of SMBC Indonesia’s AML, CTF, and FPWMD program,
independent (independent from the organization, as well as relevant issues.
governing boards, and senior executives). consultants
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2. Periodically improving SMBC Indonesia’s AML, CTF, 1. Credit Risk
and FPWMD programs in response to developments 2. Market Risk
in local regulations, parent company policies, and 3. Liquidity Risk
the operational and business development of SMBC 4. Operational Risk
Indonesia. 5. Legal Risk
6. Strategic Risk
3. Coordinating with regulators on the implementation
7. Compliance Risk
of SMBC Indonesia’s AML, CTF, and FPWMD programs.
8. Reputational Risk
4. Continuously evaluating the effectiveness and
implementation of the AML, CTF, and FPWMD The risk management policies of SMBC Indonesia
programs through periodic reviews, monitoring, are established by the Board of Commissioners and
analysis, and reporting of financial transactions. the Board of Directors. Implementation is carried out
through various strategic steps aimed at ensuring the
5. Developing and optimizing SMBC Indonesia’s
successful execution of these policies, including:
AML, CTF, and FPWMD system to support the
1. Active oversight by the Board of Commissioners and
implementation of identification, analysis, transaction
Directors.
monitoring, and AML, CTF, and FPWMD reporting
2. Adequacy of risk management policies and
processes.
procedures, as well as the establishment of risk
6. Raising awareness of the risks of money laundering, limits.
terrorism financing, and proliferation financing of 3. Adequacy of risk identification, measurement,
weapons of mass destruction among all employees monitoring, and control processes, along with risk
through a series of training and dissemination management information systems.
programs related to AML, CTF, and FPWMD 4. Adequacy of a comprehensive internal control
regulations. system and other related processes.
7. Participating in regulatory dissemination activities,
CYBERSECURITY RISK MANAGEMENT
coordination meetings, and studies (Financial Integrity
[GRI 418-1]
Rating/FIR by PPATK) organized by regulators.
The rapid advancement of technology, the increased
adoption of digital-based technologies and solutions
by SMBC Indonesia, and the evolving landscape of
cybersecurity threats have heightened the potential for
COMPLIANCE WITH LAWS cybersecurity risks that could disrupt the company’s
operations and harm its customers. To address these
AND REGULATIONS challenges, SMBC Indonesia continues to strengthen
SMBC Indonesia consistently maintains strict adherence its governance and cybersecurity risk management
to all applicable regulations and standards. As a result, processes through the establishment and development
throughout the reporting year, there were no legal or of its Cybersecurity Risk Management Policy 0.0. This
financial claims related to fraud, insider trading, anti- policy governs various aspects of the cybersecurity risk
competitive practices, monopolistic behavior, market management implementation process, including:
manipulation, or any other violations. 1. General Provisions on Cybersecurity Risk
[GRI 206-1] [GRI 2-27] [FN-CB-510a.1] Management
2. Roles and Responsibilities of the Board of Directors
and Board of Commissioners regarding active
oversight of cybersecurity resilience, as well as the
roles and responsibilities of other management
RISK MANAGEMENT levels, work units, and all employees of SMBC
[OJK E.3] Indonesia.
SMBC Indonesia’s risk management system is designed 3. SMBC Indonesia’s Cybersecurity Risk Management
to support operational sustainability, maintain financial Framework.
stability, and protect all stakeholders through a 4. Stages of Cybersecurity Risk Management
comprehensive approach. This includes measures to Implementation (along with general provisions):
identify, assess, manage, and monitor various types of a. Identification Stage (including governance)
risks that could impact SMBC Indonesia’s performance. b. Protection Stage
SMBC Indonesia classifies the key risks that may affect c. Detection Stage
its operations and reputation, including: d. Response and Reporting Stage
e. Recovery Stage
5. Evaluation
6. Information Retention Period Table
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SMBC Indonesia has also established an independent In line with the development of a climate risk
Cybersecurity Risk Management Unit, separate from management framework, SMBC Indonesia strives to
operational and business functions. This unit reports integrate climate factors through: [TCFD S2]
directly to the head of the Risk Management Unit and - Sustainable Policies by continuously increasing
is responsible for ensuring the effective implementation financing for the green sector while reducing
of governance, cybersecurity resilience management, exposure to high-risk industries.
and cyber threat mitigation. The unit is tasked with - Transparency and Reporting on performance,
developing cybersecurity governance processes, including the identification of climate risks through
overseeing cybersecurity implementation, enhancing the implementation of CRMS and the calculation of
cybersecurity resilience, and ensuring the protection of both operational and financed emissions.
privacy (particularly customer personal information and - Sustainability Education for employees, customers,
other sensitive data). and suppliers, as well as environmental campaigns
through internal and external media.
Additionally, SMBC Indonesia has an Internal Audit Unit - Environmental Management through energy
serving as the third line of defense. This unit is responsible efficiency, digital banking, eco-friendly
for evaluating the implementation of governance transportation, and flexible work policies.
processes, as well as the management and application
of cybersecurity resilience. Cybersecurity evaluations In 2024, SMBC Indonesia was selected to participate
are conducted periodically and continuously through in the pilot phase of the Climate Risk Management
internal cybersecurity audits and external audits by and Scenario Analysis (CRMS) initiative held by the
independent parties to ensure compliance with national Financial Services Authority (OJK). SMBC Indonesia
and global security standards. External audits also has begun identifying climate-related risks, including
include international standard-based certifications both transition risks and physical risks, within priority
for cybersecurity and information security for SMBC sectors for productive credit. This effort serves as a
Indonesia’s core payment systems. basis for implementing the Climate Risk Management
and Scenario Analysis (CRMS) framework across 50%
As part of its commitment to enhancing cybersecurity, of its portfolio.
SMBC Indonesia regularly and continuously conducts
training and education programs for employees, The Climate Risk Management and Scenario Analysis
customers, and third parties collaborating with the (CRMS) process adheres to the OJK’s guideline
company. Employees receive periodic cybersecurity scenarios, utilizing methodologies from the Network
awareness training and campaigns via email, e-learning, for Greening the Financial System (NGFS), including
phishing simulations, in-person training, and other the Net Zero 2050, Delayed Transition, and Current
methods to ensure they are well-equipped to Policies scenarios, with short-term (2024–2026) and
understand cyber threats and the necessary preventive long-term (2030, 2040, and 2050) time horizons. The
measures to safeguard SMBC Indonesia’s systems and analysis covers 50% of priority sectors, including Mining
information. and Quarrying, Electricity, Gas, Steam/Hot Water and
Air Conditioning Supply, Construction, Transportation
Meanwhile, customers are provided with cybersecurity and Warehousing, Agriculture, Forestry, and Fisheries,
literacy and awareness campaigns through the Manufacturing, as well as the addition of Wholesale and
company’s website, email, text messages, and Retail Trade sectors. [TCFD S1] [TCFD S3] [SUSBA 1.6.2.7]
other channels, such as guidelines for secure online [SUSBA 1.6.2.8]
transactions. For third parties, training is conducted
regularly through due diligence assessments and other Based on the outcomes of the Climate Risk Management
cybersecurity training programs. These efforts are and Scenario Analysis (CRMS), SMBC Indonesia will
expected to create a comprehensive cybersecurity develop a climate risk management framework to be
culture across SMBC Indonesia’s ecosystem. integrated into its existing risk management practices.
This framework will address governance, strategy,
CLIMATE RISK MANAGEMENT AND SCENARIO risk management, as well as metrics and targets. By
ANALYSIS (CRMS) [FN-CB-550A.2] [SUSBA 1.6.1.3] 2025, SMBC Indonesia plans to expand the CRMS pilot
The increasing intensity of climate change presents program to cover 100% of its portfolio, encompassing
significant environmental challenges across various both productive and consumer credit. [TCFD R2]
sectors, including the banking industry. Climate change [TCFD R3] [SUSBA 1.6.1.2] [FN-CB-550a.2] However.
affects not only the operations of financial institutions SMBC Indonesia has not yet calculated the associated
but also their risk assessment and governance costs or established specific climate-related scenarios.
frameworks. [GRI 201-2]
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THE POTENTIAL RISKS AND OPPORTUNITIES THAT WILL BE CONSIDERED IN THE
IMPLEMENTATION AND INTEGRATION OF CLIMATE-RELATED RISK MANAGEMENT:
[TCFD S1]
FINANCIAL RISKS DUE TO ASSET LOSSES RELATED TO NATURAL DISASTERS
01 OCCURRING AT THE DEBTOR’S LOCATIONS.
Natural disasters, such as floods or earthquakes, can directly damage debtor assets, thereby
affecting their ability to repay debts. These physical risks require responsive risk management
strategies to unforeseen events.
02 CHANGES IN CUSTOMER BEHAVIOR
In the near term, changes in customer behavior toward digital services, green investment
preferences, or sensitivity to bank products related to environmental issues may impact the
customer base and revenue streams.
REGULATORY CHANGES DEMANDING STRICTER COMPLIANCE WITH
03 ENVIRONMENTAL STANDARDS
Changes in regulations, such as increased Environmental, Social, and Governance (ESG)
standards, could increase compliance costs and necessitate adjustments to business processes
in the coming years.
REPUTATIONAL RISKS ASSOCIATED WITH FINANCING IN ENVIRONMENTALLY AND
04 SOCIALLY SENSITIVE SECTORS
In the medium term, public opinion and stakeholder pressure may affect the bank’s reputation,
particularly if it is involved in financing controversial projects in sectors sensitive to social and
environmental issues.
CHALLENGES IN CREDIT RISK MANAGEMENT RELATED TO FINANCING PROJECTS
05 WITH POTENTIAL HARM TO NATURAL ECOSYSTEMS
In the long term, projects with significant environmental impacts may pose substantial credit
risks, particularly in the face of tightening regulations or irreversible ecosystem damage.
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THERE ARE CLIMATE-RELATED OPPORTUNITIES THAT CAN BE CONSIDERED:
[TCFD S1]
01 FUNDING OPPORTUNITIES FOR RENEWABLE ENERGY PROJECTS
With the growing demand for financing in energy efficiency and renewable energy projects, such
as solar panels, wind power plants, and bioenergy, banks have the opportunity to expand their
portfolios with green financing solutions.
02 GREEN FINANCIAL PRODUCT OFFERINGS
In the near future, the launch of green bonds or ESG-oriented financial instruments could attract
environmentally conscious investors and customers. These products may support initiatives such
as green transportation, green building construction, sustainable land management, and more.
03 ENHANCED COLLABORATION WITH SUSTAINABILITY-FOCUSED COMPANIES
Banks can establish strategic partnerships with corporations committed to sustainability, supporting
their transition to a low-carbon economy while expanding their client base.
04 FINANCING GREEN INFRASTRUCTURE PROJECTS
The demand for financing green infrastructure projects, such as electric-based public
transportation or efficient clean water management systems, is expected to grow in line with
government policies and sustainable urbanization trends.
TRANSFORMATION TOWARD SUSTAINABILITY-DRIVEN FINANCE IN THE GLOBAL
05 MARKET
In the long term, SMBC Indonesia can strengthen its position as a regional leader in green financing
by developing an integrated sustainability-based financial ecosystem, including dedicated ESG
digital platforms.
INCREASING PORTFOLIO DIVERSIFICATION INTO ECO-FRIENDLY TECHNOLOGY
06 INNOVATION SECTORS
Investments in green technology sectors such as energy storage, electric vehicles, and
sustainable agriculture present significant profit opportunities amid the global shift toward a low-
carbon economy.
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STAKEHOLDER ENGAGEMENT
[GRI 2-29] [OJK E.4] [SUSBA 1.1.2.1] [SUSBA 1.1.2.2] [SUSBA 1.1.2.3] [SUSBA 1.1.2.4]
SMBC Indonesia consistently builds and maintains strong relationships with its stakeholders through transparent
and responsive communication
Stakeholder Basis of Topics Engagement Methods Governance
Determination & Frequency Management
Function
Shareholder & • Dependence • Organizational governance • Provide SMBC Indonesia’s • Corporate
Investor • Influence • Economic performance performance information Secretary
through GMS, quarterly reports, • Investor Relation
• Responsibility • Sustainable finance and annual reports.
• Direct communication and
analysis to ensure delivery of
material information.
• Meetings as needed, at least
once a year.
Customer • Dependence • Customer protection • Provide products and services • Line of Business
• Responsibility • Business continuity in accordance with applicable • Compliance
regulations.
• Influence • Sustainable business • Corporate
• Provide timely, adequate, Communication
• Geographic • Net Zero Emission (NZE) clear, and accurate information
Proximity about products and services. • Daya &
Sustainability
• Develop excellent service for
customer satisfaction.
• Implement Daya Program.
• Advertisements and
promotional media as needed.
• Conduct sustainable finance
seminars for customers.
• Meetings at each customer
visit or at least once a year.
Employee • Dependence • Labor relations • Manage SMBC Indonesia’s • Human Resources
• Responsibility • Working conditions and people objectively,
protection transparently, fairly, and
• Influence equally.
• Attention • Competency development
• Build a conducive work
• Geographic • Career development and environment for optimal
Proximity self-actualization productivity.
• Sustainable finance • Career development through
• Sustainability talent management system
and assessment center.
• Conduct sustainability
education and seminars for
employees.
• Meetings at every internal
activity.
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Sustainable Governance for
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Stakeholder Basis of Topics Engagement Methods Governance
Determination & Frequency Management
Function
Community & • Dependence • Education and culture • Intensify involvement in • Human Resources
NGOs • Responsibility • Technology and community activities with • Daya &
infrastructure access programs covering education, Sustainability
• Influence empowerment, culture and
• Geographic • Welfare and income religion, humanity, and the
Proximity • Sustainable finance environment.
• Sustainability • Implement Daya Program.
• Environment • Conduct sustainable finance
seminars.
• Meetings as needed, at least
once a year.
Supply Chain/ • Dependence • Sustainable relationships • Clear terms of cooperation. • Procurement
Vendor • Responsibility • Economy • Transparent performance • Daya &
• Conflicting Interests • Justice assessment. Sustainability
• Influence • Sustainable finance • Regular assessments.
• Sustainability • Meetings as needed.
• Human rights • Conduct sustainability and
human rights seminars for
Partners and Suppliers.
• Meetings as needed, at least
once a year.
Government & • Dependence • Compliance with laws and • Improve the latest Good • Compliance
Regulators • Responsibility regulations Corporate Governance (GCG) • Corporate
• Commitment to banking Manual. Secretary
• Disagreement
regulations • Implement GCG principles in all • • Risk
• Influence work units.
• Clear, accurate, Management
• Geographic comprehensive, and • Periodic meetings to discuss
Proximity timely communication and the health level of SMBC
reporting, Indonesia.
• Sustainable finance • Conduct seminars and FGDs
related to sustainable finance
policies.
• Meetings as needed, at least
once a year.
Community • Dependence • Business development • Direct visits. • Line of Business
Leaders/Local • Responsibility • Regional progress • Formal meetings and • Customer Service
Officials deliberations.
• Disagreement • Corporate
• Influence • Development Planning Communication
(Musrenbang).
• Geographic
Proximity • Periodic meetings as needed.
• Implement Daya program.
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About
About
Tentang
The
theLaporan
Report
ABOUT THE
REPORT
SMBC Indonesia is committed to
publishing sustainability reports
in a transparent and accountable
manner as a demonstration of our
responsibility to stakeholders and our
10
tangible contribution to sustainable
development.
146 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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About
About
Tentang
The
theLaporan
Report
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 147
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About the Report
SMBC Indonesia is committed to publishing a sustainability report annually as a demonstration of its commitment
to sustainability and compliance with regulatory requirements. This report is SMBC Indonesia’s sixth sustainability
report, covering the period from January 1, 2024, to December 31, 2024. There are several restatements from the
previous report, as specifically indicated in certain sections or explained in the corresponding table narrative.
[GRI 2-3] [GRI 2-4]
REPORTING STANDARDS
This report has been prepared in accordance with various national and international standards, including:
The Global Reporting Initiative (GRI) Standards, with the “in
01 accordance”
02 The GRI Sector Standards for Financial Services
Circular Letter No. 16/SEOJK.04/2021 issued by the Financial
03 Services Authority (OJK) on the Form and Content of Annual
The Sustainability Accounting Standards Board (SASB)
04 Standards
05 Sustainable Banking Assessment (SUSBA)
06 Task Force on Climate-Related Financial Disclosures (TCFD)
The GRI, OJK, SASB, SUSBA, and TCFD index lists are presented on page 167-180. [OJK G.4]
ASSURANCE SERVICE
[GRI 2-5] [OJK G.1] [SUSBA 1.6.2.10]
SMBC Indonesia employs assurance services to provide stakeholders with confidence that the information
presented in the sustainability report maintains a high degree of reliability and credibility. The selection of the
assurance service provider is conducted independently, ensuring impartiality and the absence of any conflicts of
interest. The primary focus of this process is to emphasize the quality of evaluation, thereby assuring stakeholders
that the sustainability report is both reliable and transparent.
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About the Report
Following a thorough assessment, PT SUCOFINDO has been appointed as the assurer for the SMBC Indonesia
Sustainability Report 2024. SMBC Indonesia has no other working relationship with PT SUCOFINDO, other than
the relationship and assignment in the process of examining this report. In carrying out its assurance work, PT
SUCOFINDO uses the AA 1000 Assurance Standard V3 and IISAE3000 ‘Assurance Engagements other than Audits
or Reviews of Historical Financial Information’ issued by the International Auditing and Accounting Standards Board
of the International Federation of Accountants (IFAC). The specific sustainability performance information assessed,
along with the Independent Assurance Report on this sustainability report, are presented on page 156.
DETERMINATION OF MATERIAL TOPICS
[GRI 3-1]
Material topics are key issues or subjects that have the most significant impact on the company’s sustainability
performance in the economic, environmental, and social areas. Material topics are determined based on the 2021
GRI Topic Standards, taking into consideration the financial sector standards. However, as there is no 2021 Financial
Sector Standard available, the GRI G4 Financial Sector Standard continues to be used.
The determination of material topics in this report was conducted through the following steps:
Understanding the business context of SMBC Indonesia
Identifying existing and potential impacts.
Assessing the significance of the impacts. SMBC Indonesia engaged stakeholders through a materiality
survey to determine these topics, in addition to considering topics relevant to the Financial Sector.
Subsequently, SMBC Indonesia prioritized the most significant impacts based on the outcomes of steps 2
and 3 above for reporting purposes. In determining the material topics, SMBC Indonesia also collaborated
with an external expert, the National Center for Corporate Reporting (NCCR), assisting in monitoring the
bank’s impacts in the economic, environmental, and social areas.
SMBC Indonesia maintained the same material topics as the previous year, despite variations in the level of
materiality for these topics compared to the prior year. The following is a flowchart outlining the process for
determining material topics:
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About the Report
LIST OF MATERIAL TOPICS
[GRI 3-2] [GRI 3-3]
Material reasons Why
Topics Topics are Material
Economic performance has a significant impact on increasing national, regional, and stakeholder economic
improvement.
Market presence has a significant impact on human resources, both in the welfare and career of
employees.
Indirect economic impacts has a significant impact on increasing regional economies and community empowerment.
Procurement practices has a significant impact on the development of the local economy.
Anti corruption has a significant and major impact on the trust of shareholders, the public, and other
stakeholders.
Anti-competitive behavior has a significant and major impact on the trust of shareholders, the public, and other
stakeholders.
Tax has a significant and major impact on the trust of the public and other stakeholders, as
well as compliance with the government.
Energy has a significant impact on the sustainability of the earth and environmental preservation,
in addition to economic savings for SMBC Indonesia.
Emissions has a significant impact on the sustainability of the earth and environmental preservation,
in addition to economic savings for SMBC Indonesia.
Employment has a significant impact on the comfort and performance of employees.
Education and training has a significant impact on the comfort and performance of employees as well as the
capacity/expertise of employees.
Diversity and equality has a significant impact on the comfort and performance of employees as well as respect
for human rights.
Non-discrimination has a significant impact on the comfort and performance of employees as well as respect
for human rights.
Marketing and labeling has a significant impact on product improvement and customer trust.
Child labor has a significant impact on the government, a material topic for the OJK.
Forced or compulsory labor has a significant impact on the government, a material topic for the OJK.
Customer privacy has a significant impact on improving services and customer trust.
Security practices has a significant impact on improving services and customer trust.
Local communities has a significant impact on improving community welfare and developing products for
marginalized communities.
Supplier social assessment has a significant impact on the enforcement and application of the concept of
sustainability by the Company's business relations/vendors.
Marketing and labeling has a significant impact on improving services and customer trust.
Customer privacy has a significant impact on improving services and customer trust.
Socio-economic has a significant impact on the enforcement and application of the concept of
compliance sustainability by the Company's business relations/vendors.
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About the Report
LIST OF MATERIAL TOPICS - SPECIFIC SECTORS
[GRI 3-2] [GRI 3-3]
Material Reasons Why
Topic Topics are Material
Policies with specific environmental Has a significant impact on the implementation of sustainable finance
and social components applied to
business lines
Procedures for examining and filtering Has a significant impact on the enforcement and implementation of sustainability
environmental and social risks in concepts by the Company's business relations/vendors, and public trust in the
business lines Company.
Processes for monitoring client Has a significant impact on the enforcement and implementation of sustainability
implementation and compliance concepts by the Company's business relations/vendors.
with environmental and social
requirements
Processes for increasing staff Has a significant impact on employee comfort, performance, and the
competency in implementing implementation of sustainable finance.
environmental and social policies
Interaction with clients/investors/ Has a significant impact on the enforcement and implementation of sustainability
business partners regarding concepts by the Company's business relations/vendors.
environmental and social risks and
opportunities
Percentage of portfolio for business Has a significant impact on the implementation of sustainable finance.
lines by region, by size (e.G., Micro/
sme/large), and by sector
Monetary value of products and Has a significant impact on the implementation of sustainable finance.
services designed to provide specific
social benefits for each business line
Monetary value of products and Has a significant impact on the implementation of sustainable finance.
services designed to provide specific
environmental benefits for each
business line
Scope and frequency of audits and Has a significant impact on the implementation of sustainable finance.
risk assessment procedures
Percentage and number of Has a significant impact on the enforcement and implementation of sustainability
companies in the institution's portfolio concepts by the Company's business relations/vendors.
with which the reporting organization
interacts
Percentage of assets in which Has a significant impact on the implementation of sustainable finance.
environmental or social screening is
performed positively and negatively
Initiatives to improve access to Has a significant impact on the community and the well-being of persons with
financial services for persons with disabilities.
disabilities
Policies for the fair design and sale of Has a significant impact on the community.
products and services
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 151
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About the Report
There are several topics that are not deemed material in this report. However, this does not imply that SMBC Indonesia
considers these topics to lack a significant role in supporting sustainability or the Bank’s sustainability agenda. In the
future, the Bank will continue to enhance its efforts and initiatives to expand the sustainability impact of its operations
and business activities.
LIST OF NON-MATERIAL TOPICS
[GRI 3-2] [GRI 3-3]
Non-material
Reasons
Topics
Material SMBC Indonesia does not use specific materials in its business operations.
Water and effluent SMBC Indonesia does not generate effluents. Domestic wastewater is managed by
the building's facilities management.
Biodiversity SMBC Indonesia does not operate adjacent to protected areas or areas with high
biodiversity.
Waste SMBC Indonesia does not generate significant amounts of hazardous or non-
hazardous waste. Most operational waste consists of domestic waste.
Environmental compliance SMBC Indonesia's business is not directly related to the environment.
Supplier environmental SMBC Indonesia's suppliers are not directly related to the environment.
assessment
Labor-management relations SMBC Indonesia complies with all applicable laws and regulations in Indonesia,
including those related to labor-management relations.
Occupational health and safety SMBC Indonesia's operations do not involve heavy equipment or specific hazardous
situations.
Freedom of association and SMBC Indonesia complies with all applicable labor laws and regulations. There are no
collective bargaining areas within SMBC Indonesia where freedom of association is restricted or threatened.
Rights of indigenous peoples SMBC Indonesia's work areas are not adjacent to indigenous communities.
Human rights assessment SMBC Indonesia complies with all applicable labor laws and regulations, and no SMBC
Indonesia operations face threats in the area of human rights implementation.
Public policy SMBC Indonesia is not involved in political activities.
Customer health and safety SMBC Indonesia's products and services are not physical products that could
endanger customers.
LIST OF NON-MATERIAL TOPICS - SPECIFIC SECTORS
[GRI 3-2] [GRI 3-3]
Non-Material
Reasons
Topics
Voting policies applied to environmental or social issues for shares SMBC Indonesia does not implement decision-
where the reporting organization has the right to vote or provide making based on voting.
voting advice
Access points in areas with low population or disadvantaged SMBC Indonesia provides digital banking, so banking
economic conditions services can be accessed by anyone and anywhere.
152 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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About the Report
MATERIALITY LEVEL
The following graph offers an overview of the materiality level of the topics/issues reported. This graph is based on the
results of a materiality assessment survey conducted through questionnaires distributed to stakeholders.
LOW MEDIUM HIGH
Internal Stakeholder
Economic
Training and Performance
Anti-corruption Education
Indirect Economic Energy
Impacts
HIGH
Security Practices
Customer
Privacy
Marketing and
Labeling
Child Labor
External Stakeholder
Market Presence Emissions
MEDIUM
Employment
Diversity and Equal
Opportunity
Non-discrimination
Supplier Social Local Communities
Assessment
LOW
Procurement
Practices
Tax
Forced or
Compulsory Labor
SMBC Indonesia is consistently committed to enhancing the quality of the Sustainability Reports we present. As
such, we invite all readers to participate by providing feedback to contribute to the advancement and improvement
of our future reports. Regarding the 2022 Sustainability Report, we did not receive any feedback on the published
report. [OJK G.3] Suggestions and comments can be submitted by filling out the feedback form or contacting SMBC
Indonesia through the following channels: [GRI 2-3] [OJK G.2]
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 153
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About the Report
COMMUNICATIONS & DAYA DIVISION
PT Bank SMBC Indonesia Tbk
Menara SMBC, CBD Mega Kuningan
Jl. Dr. Ide Anak Agung Gde Agung
Kav. 5.5-5.6 Jakarta Selatan - 12950 - Indonesia
Tel. : (62-21) 300 26 200
Fax. : (62-21) 300 26 309
Website : www.smbci.com
Email : corporate.communications@smbci.com
Linkedin : PT Bank SMBC Indonesia Tbk
154 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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About the Report
IAC0412503SN
Laporan Kesesuaian dengan Standar GRI dan
SEOJK 16/OJK.04/2021
Statement of GRI Standards and SEOJK 16/OJK.04/2021
in Accordance Check
National Center for Corporate The National Center for Corporate
Reporting (NCCR) telah Reporting has conducted a
melakukan pengecekan kesesuaian GRI Standards and SEOJK 16/
dengan Standar GRI dan SEOJK OJK.04/2021 in Accordance Check
16 OJK.04/2021 atas Laporan on PT Bank SMBC Indonesia Tbk
Keberlanjutan PT Bank SMBC Sustainability Report 2024 (“Report”).
Indonesia Tbk 2024 (“Laporan”). The check communicates the extent to
Pengecekan dilakukan untuk which the GRI Standards and SEOJK
memberikan gambaran tentang 16/OJK.04/2021 have been applied
sejauh mana Standar GRI dan in the Report. The check does not
SEOJK 16/OJK.04/2021 telah provide an opinion on the sustainability
diterapkan dalam Laporan tersebut. performance of the reporter or the
Pengecekan ini bukan merupakan quality of the information provided in
opini atas kinerja keberlanjutan the Report.
maupun kualitas informasi yang
dimuat dalam Laporan tersebut.
Kami menyimpulkan bahwa Laporan We conclude that this report has
ini telah disusun sesuai dengan been prepared in accordance with
Standar GRI dan SEOJK 16/ GRI Standards and SEOJK 16/
OJK.04/2021. OJK.04/2021.
Jakarta, 24 Maret 2025 Jakarta, March 24, 2025
National Center for Corporate Reporting
GRI Standards Aligning Service
Andrew K. Twohig, BCom, BA (Hons), MA, CSRA
Director
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 155
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About the Report
VERIFIKASI PIHAK INDEPENDEN
Independent Assurance Statement
No. 0431/KSP-III/2025
To the management and stakeholders of PT Bank SMBC performance, specifically as described in the agreed scope, and
Indonesia Tbk, expressing our opinion on the conclusions reached.
We were engaged by PT Bank SMBC Indonesia Tbk (‘SMBC Methodology
INDONESIA’) to provide assurance regarding its Sustainability In order to assess the veracity of certain assertions and specified
Report 2024 (‘the Report’). The assurance engagement was data sets included within the Report, as well as the systems
conducted by our assurance team, which possesses extensive and processes used to manage and report them, the following
relevant professional and technical competencies and experience. methods were employed during the engagement process:
The team comprised certified sustainability reporting specialists
and certified sustainability reporting assurers to ensure a high Reviews were conducted on the Report, internal policies,
level of competency in executing the engagement. documentation, management and information systems, and
included interviews with relevant staff in sustainability-related
Independence management and reporting. This also involved following data
We carried out all assurance undertakings with independence trails to the initial aggregated source and checking data samples
and autonomy, having not been involved in the preparation in greater depth.
of any key part of the Report, nor did we provide any services
to SMBC INDONESIA during 2024 that could conflict with the Scope of Assurance
independence of the assurance engagement. We provided a Type 2 assurance engagement under AA1000AS
v3. This involved:
Assurance Standards, Levels, and Criteria 1) Assessment of SMBC INDONESIA’ adherence to the AA1000AP
Our work was carried out in accordance with AA1000 Assurance (2018); and
Standards v3 (AA1000AS v3) issued by AccountAbility and 2) Assessment of the accuracy and quality of the specified
International Standard on Assurance Engagements ISAE 3000 sustainability performance information contained within the
(Revised), ‘Assurance Engagements other than Audits or Reviews Report, in relation to the agreed scope of GRI Standards:
of Historical Financial Information,’ issued by the International 203-1. Infrastructure investments and services supported
Auditing and Assurance Standards Board. 203-2. Significant indirect economic impacts
302-1. Energy consumption within the organization
By designing our evidence-gathering procedures to obtain a 302-3. Energy intensity
moderate level of assurance as set out in AA1000AS v3, readers 305-1. Direct (Scope 1) GHG emissions
of the report can be confident that all risks or errors have been 305-2. Energy indirect (Scope 2) GHG emissions
reduced to a very low level, although not necessarily to zero. 305-3. Other indirect (Scope 3) GHG emissions
Moreover, SMBC INDONESIA’s adherence to the AccountAbility 305-4. GHG emissions intensity
Principles (AP) was evaluated in accordance with the criteria of 413-1. Operations with local community engagement, impact
AA1000AP (2018) on Inclusivity, Materiality, Responsiveness, and assessments, and development programs
Impact. In addition, the Report, within the agreed scope, has been 413-2. Operations with significant actual and potential
assessed according to the GRI Standards criteria. negative impacts on local communities
Limitations Conclusions
Our scope of work was limited to a review of the accuracy and Conclusions in regard to adherence to the AA1000AP (2018) of
reliability of specified data and interviews with data providers, Inclusivity, Materiality, Responsiveness, and Impact include the
persons in charge of data collection and processing, as well following findings:
as persons in charge of sustainability performance-related
information. Inclusivity
SMBC INDONESIA has shown dedication to fostering an inclusive
Responsibility workplace through its efforts to advance diversity, equity,
SMBC INDONESIA is responsible for the preparation of the report and fairness. The evaluation indicates that the company has
and all information and claims therein, which include establishing implemented well-defined policies and procedures tailored to
sustainability management targets, performance management, accommodate the varied needs and backgrounds of stakeholders.
data collection, and other performance actions. Additionally, SMBC INDONESIA has established effective
communication channels and feedback mechanisms to gather
In performing this engagement, meanwhile, our responsibility to input from stakeholders.
the management of SMBC INDONESIA is solely for the purpose of
verifying the statements it has made in relation to its sustainability
156 2024 SUSTAINABILITY REPORT PT BANK SMBC INDONESIA TBK
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About the Report
To further strengthen its inclusivity commitments, SMBC measurement and transparent reporting of social performance
INDONESIA should consider developing targeted strategies indicators, aiming to mitigate adverse effects while enhancing
to attract and retain a diverse workforce. This could involve positive outcomes for communities and stakeholders.
reinforcing inclusive practices and revising current policies
to better address inclusivity gaps and mitigate risks of bias or To amplify its impact, SMBC INDONESIA is recommended to
discrimination. It is also recommended that SMBC INDONESIA extend its sustainability initiatives to its supply chain partners.
deepen stakeholder engagement and trust, which will contribute Strategic collaboration could drive reductions in carbon
to enhanced business resilience and long-term sustainability. emissions, waste production, and ecosystem harm, aligning
with broader environmental stewardship goals. Strengthening
Materiality supply chain sustainability would further solidify the company’s
Our assessment indicates that SMBC INDONESIA has demonstrated leadership in responsible business practices and contribute to
a sound understanding of material factors influencing both its systemic environmental improvements.
stakeholders and business operations. The organization has
successfully pinpointed core material issues pertinent to its Conclusion on the accuracy and quality of the specified
activities and integrated these into its sustainability reporting sustainability performance.
framework.
Based on our limited assurance engagement, nothing has come
To advance its adherence to materiality principles, we recommend to our attention that causes us to believe the data of the Report, in
that SMBC INDONESIA conduct periodic assessments to relation to the agreed scope, has been materially misstated.
systematically identify and prioritize sustainability-related factors
that directly inform and strengthen strategic decision-making All key assurance findings are included herein, while detailed
processes. This proactive approach will ensure alignment with observations and follow-up recommendations have been
evolving stakeholder expectations and enhance the robustness submitted to SMBC INDONESIA management in a separate report.
of its sustainability initiatives.
Responsiveness Jakarta, February 28th , 2025
SMBC INDONESIA has demonstrated a robust commitment to
PT Sucofindo
stakeholder engagement by addressing concerns transparently
Engagement Leader
through established structured mechanisms and ensuring
timely follow-up. The evaluation revealed that the company’s
proactive engagement with stakeholders and local communities
has fostered meaningful relationships and cultivated a culture of
mutual trust and collaborative partnership.
Syaeful Bahrie
Certified Assurance Practitioner No. 10024117
However, SMBC INDONESIA is encouraged to further refine its
Certified Sustainability Reporting Assurer No. A-PK213-2501-008
responsiveness framework by prioritizing deeper collaboration
with stakeholders. This includes integrating more inclusive
Sucofindo is an independent and state-owned companybased
dialogue platforms, aligning engagement strategies with
in Indonesia that offers a wide range of inspection, testing of
evolving stakeholder expectations, and adopting best practices
industrial products, marine survey, quality assurance and quality
for conflict resolution. Strengthening these efforts will reinforce
control, certification of management system such as ISO 9001,
accountability, enhance stakeholder confidence, and ensure
ISO 14001, and OHSAS 18001, as well as certification of various
long-term resilience in addressing sustainability challenges.
product standards. Sucofindo is member of IDSurvey Holding
Company.
Impact
SMBC INDONESIA has shown a proactive approach to addressing Sucofindo is known for its high level of professionalism and
stakeholder priorities and fostering meaningful engagement competence, and its services are recognized not just in Indonesia,
with local communities. These efforts have enabled the company but also internationally. Sucofindo has a variety of technologies
to sustain a favorable reputation and cultivate trust-based and equipment that helps them provide expertise and support
relationships with stakeholders. SMBC INDONESIA prioritizes the their client’s business objectives. Over the years, Sucofindo has
gained a reputation for its reliability, integrity, and consistency
with delivering quality services.
PT BANK SMBC INDONESIA TBK 2024 SUSTAINABILITY REPORT 157
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SMBC Indonesia
SDGs Links in GRI Standards
GRI Standard
SDG’s Business Theme Disclosure Title Disclosure Page
Relevance
Income, salary and GRI 202: Market 202-1 Ratios of standard entry 105
benefits Presence (2016) level wage by gender
compared to local
minimum wage
Economic GRI 203: Indirect 203-2 Significant indirect 85, 92
Development Economic Impacts economic impacts
No Poverty
in areas of high (2016)
poverty
End poverty in all its GRI 207: Tax (2019) 207-1 Approach to tax 69
forms everywhere
207-2 Tax governance, control, 69
and risk management
207-3 Stakeholder engagement 69
and management of
concerns related to tax
207-4 Country-by-country 69
reporting
Operations that GRI 413: Local 413-2 Operations with significant 92
have an impact on Communities (2016) actual and potential
community negative impacts on local
communities
Economic GRI 201: Economic 201-1 Direct economic value 67, 141
Performance Performance (2016 generated and distributed
Economic GRI 203: Indirect 203-2 Significant indirect 85, 92
Development Economic Impacts economic impacts
in areas of high (2016)
poverty
No Hunger
Operations that GRI 413: Local 413-2 Operations with significant 92
End hunger, have an impact on Communities (2016) actual and potential
achieve food community negative impacts on local
security and communities
improved nutrition
and promote
sustainable
agriculture
Economic GRI 203: Indirect 203-2 Significant indirect 92
development in Economic Impacts economic impacts
areas of the highest (2016)
poverty
Air Quality GRI 305: Emission 305-1 Direct (Scope 1) GHG 119
(2016) emissions
Good Health and
Well-Being 305-2 Energy indirect (Scope 2) 119
GHG emissions
Ensure healthy
lives and promote 305-3 Other indirect (Scope 3) 119
wellbeing for all at GHG emissions
all ages 305-6 Emissions of ozone 119
depleting substances
(ODS)
305-7 Nitrogen oxides (NOx), 119
sulfur oxides (SOx),
and other significant air
emissions
Well-being GRI 401: 401-2 Benefits provided to 105
Employement fulltime employees
(2016) that are not provided to
temporary or part-time
employees
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SMBC Indonesia
GRI Standard
SDG’s Business Theme Disclosure Title Disclosure Page
Relevance
Training and GRI 404: Training and 404-1 Average hours of training 108, 109
education Education (2016) per year per employee
404-2 Programs for upgrading 107
employee skills and
transition assistance
programs
Quality Education
Ensure inclusive
and equitable
quality education
and promote
lifelong learning
opportunities for all
Equal opportunity GRI 2: General 2-9 Governance structure and 127, 128
Disclosure (2021) composition
2-10 Nomination and selection 129
of the highest governance
body
Gender Equality Gender equality GRI 202: Market 202-1 Ratios of standard entry 105
Presence (2016) level wage by gender
Achieve gender compared to local
equality and minimum wage
empower all
women and girls GRI 203: Indirect 203-1 Infrastructure investments 86, 90
Economic Impacts and services supported
(2016)
GRI 401: 401-1 New employee hires and 103, 104
Employment (2016) employee turnover
401-2 Benefits provided to 105
fulltime employees
that are not provided to
temporary or part-time
employees
401-3 Parental leave 106
GRI 404: Education 404-3 Percentage of employees 112
and Training (2016) receiving regular
performance and career
development reviews
GRI 405-1: 405-1 Diversity of governance 100, 101
Diversity and Equal bodies and employees
Opportunity (2016)
405-2 Ratio of basic salary and 100
remuneration of women
to men
Anti- discrimination GRI 406: 406-1 Incidents of discrimination 100
NonDiscrimination and corrective actions
(2016) taken
Social impact of GRI 414: Supplier 414-1 New suppliers that were 68
suppliers Social Assessment screened using social
(2016) criteria
414-2 Negative social impacts 68
in the supply chain and
actions taken
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SMBC Indonesia
GRI Standard
SDG’s Business Theme Disclosure Title Disclosure Page
Relevance
Clean Water and
Sanitation
Ensure availability
and sustainable
management
of water and
sanitation for all
Energy Efficiency GRI 302: Energy 302-1 Energy consumption 117
(2016) within the organization
302-2 Energy consumption 117
outside of the
organization
Affordable and 302-3 Energy intensity 117
Clean Energy
302-4 Reduction of energy 117
Ensure access to consumption
affordable, reliable, 302-5 Reductions in energy 117
sustainable and requirements of products
modern energy and services
for all
Work opportunity GRI 102: General 2-7 Employees 99
Disclosure (2021)
2-8 Workers who are not 99
employees
Economic GRI 201: Economic 201-1 Direct economic value 67, 141
improvement Performance (2016) generated and distributed
Decent Work and
Economic Growth
Income, wages, and GRI 202: Market 202-1 Ratios of standard entry 105
Promote sustained, benefits Presence (2016) level wage by gender
inclusive and compared to local
sustainable minimum wage
economic growth, 202-2 Proportion of senior 101
full and productive management hired from
employment and the local community
decent work for all
GRI 203: Indirect 203-2 Significant indirect 85, 92
Economic Impacts economic impacts
(2016)
GRI 204: 204-1 Proportion of spending on 69
Procurement local suppliers
Practices (2016)
GRI 302: Energy 302-1 Energy consumption 117
(2016) within the organization
302-2 Energy consumption 117
outside of the
organization
302-3 Energy intensity 117
302-4 Reduction of energy 117
consumption
302-5 Reductions in energy 117
requirements of products
and services
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SMBC Indonesia
GRI Standard
SDG’s Business Theme Disclosure Title Disclosure Page
Relevance
GRI 401: 401-1 New employee hires and 103, 104
Employment (2016) employee turnover
401-2 Benefits provided to 105
fulltime employees
that are not provided to
temporary or part-time
employees
401-3 Parental leave 106
Training and GRI 404: Training and 404-1 Average hours of training 108, 109
Education Education (2016) per year per employee
404-2 Programs for upgrading 107
employee skills and
transition assistance
programs
404-3 Percentage of employees 112
receiving regular
performance and career
development reviews
GRI 405: Diversity 405-1 Diversity of governance 100, 101
and Equal bodies and employees
Opportunity (2016)
405-2 Ratio of basic salary and 100
remuneration of women
to men.
GRI 406: Non- 406-1 Incidents of discrimination 100
discrimination (2016) and corrective actions
taken
GRI 408: Child Labor 408-1 Operations and suppliers 107
(2016) at significant risk for
incidents of child labor
GRI 409: Forced or 409-1 Operations and suppliers 107
Compulsory Labor at significant risk for
(2016) incidents of forced or
compulsory labor
GRI 414: Supplier 414-1 New suppliers that were 68
Social Assessment screened using social
(2016) criteria
414-2 Negative social impacts 68
in the supply chain and
actions taken
Economic GRI 201: Economic 201-1 Direct economic value 67, 141
Performance Performance generated and distributed
Economic GRI 203: Indirect 203-1 Indirect economic impact 86, 90
Development Economic Impacts
in areas of high
Industry, Innovation
poverty
and Infrastructure
Build resilient
infrastructure,
promote inclusive
and sustainable
industrialization and
foster innovation
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SMBC Indonesia
GRI Standard
SDG’s Business Theme Disclosure Title Disclosure Page
Relevance
Employment GRI 102: General 2-7 Employees 99
Opportunities Disclosure (2021)
2-8 Workers who are not 99
employees
Economic GRI: Tax (2019) 207-1 Approach to tax 69
Development
Reduced in areas of high 207-2 Tax governance, control, 69
Inequalities poverty and risk management
207-3 Stakeholder engagement 69
Reduce inequality
and management of
within and among
concerns related to tax
countries
207-4 Country-by-country 69
reporting
GRI 401: 401-1 New employee hires and 103, 104
Employment (2016) employee turnover
GRI 404: Training and 404-1 Average hours of training 108, 109
Education (2016) per year per employee
404-3 Percentage of employees 112
receiving regular
performance and career
development reviews
GRI 405: Diversity 405-2 Ratio of 100
and Equal
Opportunity
Infrastructure GRI 203: Indirect 203-1 Indirect economic impact 86, 90
Investments Economic Impacts
(2016)
Sustainable Cities
and Communities
Make cities and
human settlements
inclusive, safe,
resilient and
sustainable
Energy Utilization GRI 302: Energy 302-1 Energy consumption 117
(2016) within the organization
302-3 Energy intensity 117
302-4 Reduction of energy 117
consumption
Responsible
Consumption and 302-5 Reductions in energy 117
Production requirements of products
and services
Ensure sustainable Air Quality GRI 305: Emission 305-1 Direct (Scope 1) GHG 119
consumption and (2016) emissions
production patterns
305-2 Energy indirect (Scope 2) 119
GHG emissions
305-3 Other indirect (Scope 3) 119
GHG emissions
305-6 Emissions of ozone 119
depleting substances
(ODS)
305-7 Nitrogen oxides (NOx), 119
sulfur oxides (SOx),
and other significant air
emissions
Information and GRI 417: Marketing 417-1 Requirements for product 80
Labeling of products and Labeling (2016) and service information
and services and labeling
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SMBC Indonesia
GRI Standard
SDG’s Business Theme Disclosure Title Disclosure Page
Relevance
Economic Impact GRI 201: Economic 201-1 Direct economic value 67, 141
Performance (2016) generated and distributed
Energy use GRI 302: Energy 302-1 Energy consumption 117
(2016) within the organization
302-2 Energy consumption 117
Climate Action outside of the
organization
Take urgent action
to combat climate 302-3 Energy intensity 117
change and its 302-4 Reduction of energy 117
impacts consumption
302-5 Reductions in energy 117
requirements of products
and services
Air Quality GRI 305: Emissions 305-1 Direct (Scope 1) GHG 119
(2016) emissions
305-2 Energy indirect (Scope 2) 119
GHG emissions
305-3 Other indirect (Scope 3) 119
GHG emissions
305-4 GHG emissions intensity 119
305-5 Reduction of GHG 118
emissions
Air Quality GRI 305: Emissions 305-1 Direct (Scope 1) GHG 119
(2016) emissions
305-2 Energy indirect (Scope 2) 119
GHG emissions
305-3 Other indirect (Scope 3) 119
Live Below Water GHG emissions
Conserve and 305-4 GHG emissions intensity 119
sustainably use the 305-5 Reduction of GHG 118
oceans, seas and emissions
marine resources
for sustainable 305-7 Nitrogen oxides (NOx), 119
development sulfur oxides (SOx),
and other significant air
emissions
Air Quality GRI 305: Emissions 305-1 Direct (Scope 1) GHG 119
(2016) emissions
305-2 Energy indirect (Scope 2) 119
GHG emissions
Life on Land 305-3 Other indirect (Scope 3) 119
GHG emissions
Protect, restore 305-4 GHG emissions intensity 119
and promote
sustainable use 305-5 Reduction of GHG 118
of terrestrial emissions
ecosystems,
305-7 Nitrogen oxides (NOx), 119
sustainably
sulfur oxides (SOx),
manage
and other significant air
forests, combat
emissions
desertification, and
halt and reverse
land degradation
and halt
biodiversity loss
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SMBC Indonesia
GRI Standard
SDG’s Business Theme Disclosure Title Disclosure Page
Relevance
Governance GRI 102: General 2-9 Governance structure and 127, 128
Disclosure (2021) composition
2-10 Nomination and selection 129
of the highest governance
body
Peace, Justice and 2-11 Chair of the highest 128
Strong Institutions governance body
Promote peaceful 2-15 Conflicts of interest 129
and inclusive 2-17 Collective knowledge of 138
communities the highest governance
for sustainable body
development,
provide access to 2-19 Remuneration policies 139
justice for all, and
2-22 Statement on sustainable 4, 23, 51,
build effective,
development strategy 54
accountable and
inclusive institutions 2-23 Policy commitments 130, 131
at all levels
2-24 Embedding policy 130, 132
commitments
2-25 Process to remediate 133
negative impacts
2-26 Mechanisms for seeking 133
advice and raising
concerns
2-27 Compliance with laws and 76, 140
regulations
Anti-corruption GRI 205: Anti- 205-1 Operations assessed for 135
corruption (2016) risks related to corruption
205-2 Communication 136, 137
and training about
anticorruption policies and
procedures
205-3 Confirmed incidents of 137
corruption and actions
taken
GRI 206: Anti- 206-1 Legal actions for 140
Competitive anticompetitive behavior,
Behavior (2016) anti-trust, and monopoly
practices
GRI 408: Child Labor 408-1 Operations and suppliers 107
(2016) at significant risk for
incidents of child labor
GRI 410: Security 410-1 Security personnel trained 112
Practices (2016) in human rights policies or
procedures
GRI 414: Supplier 414-1 New suppliers that were 68
Social Assessment screened using social
(2016) criteria
414-2 Negative social impacts 68
in the supply chain and
actions taken
GRI 417: Marketing 417-2 Incidents of 80
and Labeling (2016) noncompliance
concerning product and
service information and
labeling
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SMBC Indonesia
GRI Standard
SDG’s Business Theme Disclosure Title Disclosure Page
Relevance
417-3 Incidents of non- 80
compliance
concerning marketing
communications
GRI 418: Customer 418-1 Substantiated complaints 79, 140
Privacy (2016) concerning breaches of
customer privacy and
losses of customer data
Tax GRI: Tax (2019) 207-1 Approach to tax 69
207-2 Tax governance, control, 69
and risk management
207-3 Stakeholder engagement 69
and management of
Partnership for the concerns related to tax
Goals
207-4 Country-by-country 69
Strengthen reporting
the means of
implementation
and revitalize the
global partnership
for sustainable
development
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GRI Content Index
Statement of use SMBC Indonesia has reported in accordance with GRI Standards for the period of January 1, 2024, to December
31, 2024.
GRI 1 used GRI 1: Foundation 2021
Applicable GRI Sector GRI G4 Financial Services Sector Disclosure
Standard
Disclosure
Standard GRI No. Page
Title
GRI 2 THE ORGANIZATION AND ITS REPORTING PRACTICES
General
Disclosure 2021 2-1 Organizational details 32, 33, 34
2-2 Entities included in the organization’s sustainability reporting 33
2-3 Reporting period, frequency and contact point 148
2-4 Restatements of information 148
2-5 External assurance 148
ACTIVITIES AND WORKERS
2-6 Activities, value chain and other business relationships 32, 33, 36, 68,
72
2-7 Employees 99
2-8 Workers who are not employees 99
GOVERNANCE
2-9 Governance structure and composition 127, 128
2-10 Nomination and selection of the highest governance body 129
2-11 Chair of the highest governance body 128
2-12 Role of the highest governance body in overseeing the management of impacts 128
2-13 Delegation of responsibility for managing impacts 50
2-14 Role of the highest governance body in sustainability reporting 129
2-15 Conflicts of interest 129
2-16 Communication of critical concerns 138
2-17 Collective knowledge of the highest governance body 138
2-18 Evaluation of the performance of the highest governance body 138
2-19 Remuneration policies 139
2-20 Process to determine remuneration 139
2-21 Annual total compensation ratio 139
STRATEGY, POLICIES AND PRACTICES
2-22 Statement on sustainable development strategy 4, 23, 51, 54
2-23 Policy commitments 130, 131
2-24 Embedding policy commitments 130, 132
2-25 Processes to remediate negative impacts 133
2-26 Mechanisms for seeking advice and raising concerns 133
2-27 Compliance with laws and regulations 76, 140
2-28 Membership associations 36
STAKEHOLDER ENGAGEMENT
2-29 Approach to stakeholder engagement 144
2-30 Collective bargaining agreements 107
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Disclosure
Standard GRI No. Page
Title
GRI 3: Material MATERIAL TOPICS
Topics 2021
3-1 Process to determine material topics 76
3-2 List of material topics 150, 151, 152
3-3 Management of material topics 150, 151, 152
SPECIFIC TOPIC DISCLOSURE
GRI 3: Material ECONOMIC PERFORMANCE
Topics 2021
3-3 Management of material topics 150, 151, 152
GRI 201: 201-1 Direct economic value generated and distributed 67, 141
Economic
Performance
2016 201-2 Financial implications and other risks and opportunities due to climate change 72
201-3 Defined benefit plan obligations and other retirement plans 107
201-4 Financial assistance received from government 67
GRI 3: Material MARKET PRESENCE
Topics 2021
3-3 Management of material topics 150, 151, 152
GRI 202: 202-1 Ratios of standard entry level wage by gender compared to local minimum wage 105
Market Presence
2016 202-2 Proportion of senior management hired from the local community 101
GRI 3: Material INDIRECT ECONOMIC IMPACT
Topics 2021
3-3 Management of material topics 150, 151, 152
GRI 203: 203-1 Infrastructure investments and services supported 86, 90
Indirect
Economic Impact 203-2 Significant indirect economic impacts 85, 92
2016
GRI 3: Material PROCUREMENT PRACTICES
Topics 2021
3-3 Management of material topics 150, 151, 152
GRI 204: 204-1 Proportion of spending on local suppliers 69
Procurement
Practices 2016
GRI 3: Material ANTI-CORRUPTION
Topics 2021
3-3 Management of material topics 150, 151, 152
GRI 205: 205-1 Operations assessed for risks related to corruption 135
Anti-corruption
2016 205-2 Communication and training about anti-corruption policies and procedures 136, 137
205-3 Confirmed incidents of corruption and actions taken 137
GRI 3: Material ANTI-COMPETITIVE BEHAVIOR
Topics 2021
3-3 Management of material topics 150, 151, 152
GRI 206: Anti- 206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices 140
Competitive
Behavior
GRI 3: Material TAX
Topics 2021
3-3 Management of material topics 150, 151, 152
GRI 207: Tax 207-1 Approach to tax 69
2019
207-2 Tax governance, control, and risk management 69
207-3 Stakeholder engagement and management of concerns related to tax 69
207-4 Country-by-country reporting 69
GRI 3: Material ENERGY
Topics 2021
3-3 Management of material topics 150, 151, 152
GRI 302: 302-1 Energy consumption within the organization 117
Energy 2016
302-2 Energy consumption outside of the organization 117
302-3 Energy intensity 117
302-4 Reduction of energy consumptio 117
302-5 Reductions in energy requirements of products and services 117
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Disclosure
Standard GRI No. Page
Title
GRI 3: Material EMISSIONS
Topics 2021
3-3 Management of material topics 150, 151, 152
GRI 305: 305-1 Direct (Scope 1) GHG emissions 119
Emissions 2016
305-2 Energy indirect (Scope 2) GHG emissions 119
305-3 Other indirect (Scope 3) GHG emissions 119
305-4 GHG emissions intensity 119
305-5 Reduction of GHG emissions 118
305-6 Emissions of ozone-depleting substances (ODS) 119
305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions 119
GRI 3: Material EMPLOYMENT
Topics 2021
3-3 Management of material topics 150, 151, 152
GRI 401: 401-1 New employee hires and employee turnover 103, 104
Employment
2016 401-2 Benefits provided to full-time employees that are not provided to temporary or 105
part-time employees
401-3 Parental leave 106
GRI 3: Material TRAINING AND EDUCATION
Topics 2021
3-3 Management of material topics 150, 151, 152
GRI 404: 404-1 Average hours of training per year per employee 108, 109
Training and
Education 2016 404-2 Programs for upgrading employee skills and transition assistance programs 107
404-3 Percentage of employees receiving regular performance and career development 112
reviews
GRI 3: Material DIVERSITY AND EQUAL OPPORTUNITY
Topics 2021
3-3 Management of material topics 150, 151, 152
GRI 405: 405-1 Diversity of governance bodies and employees 100, 101
Diversity
and Equal 405-2 Ratio of basic salary and remuneration of women to men 100
Opportunity
2016
GRI 3: Material NON-DISCRIMINATION
Topics 2021
3-3 Management of material topics 150, 151, 152
GRI 406: Non- 406-1 Incidents of discrimination and corrective actions taken 100
Discrimination
2016
GRI 3: Material CHILD LABOR
Topics 2021
3-3 Management of material topics 150, 151, 152
GRI 408: Child 408-1 Operations and suppliers at significant risk for incidents of child labor 107
Labor 2016
GRI 3: Material FORCED OR COMPULSORY LABOR
Topics 2021
3-3 Management of material topics 150, 151, 152
GRI 409: Forced 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory 107
or Compulsory labor
Labor 2016
GRI 3: Material SECURITY PRACTICES
Topics 2021
3-3 Management of material topics 150, 151, 152
GRI 410: 410-1 Security personnel trained in human rights policies or procedures 112
Security
Practices 2016
GRI 3: Material LOCAL COMMUNITIES
Topics 2016
3-3 Manajemen Topik MaterialManagement of material topics 150, 151, 152
GRI 413: 413-1 Operations with local community engagement, impact as-sessments, and 92
Local development programs
Communities
2016 413-2 Operations with significant actual and potential negative im-pacts on local 92
communities.
GRI 3: Material SUPPLIER SOCIAL ASSESSMENT
Topics 2016
3-3 Management of material topics 150, 151, 152
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Disclosure
Standard GRI No. Page
Title
GRI 414: 414-1 New suppliers that were screened using social criteria 68
Supplier Social
Assessment 414-2 Negative social impacts in the supply chain and actions taken 68
2016
GRI 3: Material MARKETING AND LABELING
Topics 2021
3-3 Management of material topics 150, 151, 152
GRI 417: 417-1 Requirements for product and service information and labeling 80
Marketing and
Labeling 2016 417- 2 Incidents of non-compliance concerning product and service information and 80
labeling
417-3 Incidents of non-compliance concerning marketing communications 80
GRI 3:Material CUSTOMER PRIVACY
Topics 2016
3-3 Management of material topics 150, 151, 152
GRI 418: 418-1 Substantiated complaints concerning breaches of customer privacy and losses of 79, 140
Customer customer data
Privacy 2016
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GRI Standard - Financial Sector (FS) Disclosure
FINANCIAL SECTOR DISCLOSURE Page
PRODUCT PORTFOLIO
FS1 Policies with specific environmental and social components applied to business lines 76, 171
FS2 Procedures for assessing and screening environmental and social risks in business lines 46
Processes for monitoring clients’ implementation of and compliance with environmental and 49
FS3
social requirements
Process(es) for improving staff competency to implement the environmental and social 109, 110
FS4
policies and procedures as applied to business lines
Interactions with clients/ investees/business partners regarding environmental and social 46, 61
FS5
risks and opportunities
Percentage of the portfolio for business lines by specific region, Size (e.g. micro/SME/large) 66
FS6
and by sector
Monetary value of products and services designed to deliver a specific social benefit for 65
FS7
each business line
Monetary value of products and services designed to deliver a specific environmental 68
FS8
benefit for each business line
AUDIT
FS9 Coverage and frequency of audits and risk assessment procedures 67
ACTIVE OWNERSHIP
Percentage and number of companies held in the institution’s portfolio with which the 64
FS10
reporting organization has interacted on environmental or social issue
FS11 Percentage of assets subject to positive and negative environmental or social screening 45, 46
LOCAL COMMUNITY
FS13 Access points in low-populated or economically disadvantaged areas 63, 76
FS14 Initiatives to improve access to financial services for people with disabilities 76
PRODUCT RESPONSIBILITY
FS15 Policies for the fair design and sale of financial products and services 76
FS16 Initiatives to enhance financial literacy by type of beneficiary 84
OCCUPATIONAL HEALTH AND SAFETY
G4-DMA Occupational Health and Safety 102
EFFLUENTS AND WASTE
G4-EN23 Total weight of waste by type and disposal method 120
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SE OJK Index No.16/2021
List of Disclosure ini Accordance with POJK Number 51/POJK.03/2017 regarding the implementation of
Sustainable Finance for Financial Service Institutions, Issures, and Public Companies
Index
Index Name Page
Number
Sustainability Strategy
A.1 Sustainability Strategy Statement 51
Sustainability Performance Highlights
B.1 Economic Performance Overview 6, 67
B.1.a Quantity of sold production or service 7, 36
B.1.b Income or sales 6, 36
B.1.c Net profit or loss 6
B.1.d Eco-friendly product 8, 63
B.1.e Involving local parties related to the Sustainable Finance business process 7
B.2 Environmental Performance Overview 12
B.2.a Energy usage 12
B.2.b Result of the emissions reduction 12
B.2.c Waste and effluent reduction 13
Social Performance Overview which describe the positive and negative impacts of the 9, 11
B.3 implementation of Sustainable Finance on society and the environment.
Company Profile
C.1 Vision, mission, and sustainability values 4
C.2 Company address 33
C.3 Scale of organisation 36
C.3.a Total assets or asset capitalisation and total liabilities 36
C.3.b Number of employees by gender, position, age, education, and status 99, 100, 101
C.3.c Percentage of share ownership 32
C.3.d Operational area 34
C.4 Products, services, and business activities undertaken 32, 72
C.5 Membership in the association 36
C.6 Significant change in organisation 33
Report of the Board of Directors
D.1.a Policies to respond to challenges in fulfilling the sustainability strategy 27
D.1.b Sustainable finance implementation 28
D.1.c Target achievement strategy 29
Sustainability Governance
E.1 Person in charge of sustainable finance implementation 50
109, 110, 111,
E.2 Competency development related to sustainable finance 138
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Index
Index Name Page
Number
E.3 Risk assessment on the sustainable finance implementation 46, 140
E.4 Relations with stakeholders 144
E.5 Issues against the sustainable finance implementation 29, 68
Sustainability Performance
F.1 Activities to build a culture of sustainability 96
Economic Performance
Comparison of production targets and performance, portfolios, financing targets, or 62, 64
F.2 Investments, income and profit and loss
Comparison of portfolio targets and performance, financing targets, or investments in financial 64, 65
F.3 Instruments or projects that are in compliance with sustainability
F.4 Environmental Costs 122
Energy Aspect
F.6 Amount and intensity of used energy 117
F.7 Attempts and achievement of energy efficiency and use of renewable energy 116, 117
Water Aspect
F.8 Water usage 121
Emission Aspect
F.11 Amount and intensity of resulting emissions by type 119
F.12 Emission reduction efforts and achievements conducted 118
Waste and Effluent Aspect
F.13 Amount of waste and effluent generated by type 120, 121
F.14 Waste and effluent management mechanisms 121
Social Performance
Commitment of financial services institutions, issuers, or public companies to provide equal 76
F.17 Services for products and/or services to customers
Employment Aspect
F.18 Equal opportunity to work 100
F.19 Child labour and forced labour 107
F.20 Regional minimum wage 105
F.21 Decent and safe work environment 101
F.22 Training and capacity building for employees 108
Community Aspect
F.23 Impact of operations on the surrounding communities 61, 84, 85, 87
F.24 Public complaints 77, 92
F.25 Environmental social responsibility (CSR) activities 84, 85, 87
Responsibility for Sustainable Product/Service Development
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Index
Index Name Page
Number
F.26 Sustainable financial product/service innovation and development 64
F.27 Products/services safety that have been evaluated for customers 76, 80
F.28 Impacts of product/service 72
F.29 Number of product recalls 76
F.30 Customer satisfaction survey of sustainable financial products and/or services 80
Others
G.1 Written verification from an independent party, if available 148
G.2 Feedback sheet 153, 181
G.3 Responses to the preceding year’s report feedback 153
G.4 List of disclosure in accordance with POJK No. 51/2017 148
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SASB – Financial Sector Index
Data Security Page
FN-CB-230a.1 1) Number of data breaches, (2) percentage involving personally identifiable 79
information (PII), (3) number of account holders affected
FN-CB-230a.2 Description of approach to identifying and addressing data security risks 78
Financial Inclusion & Capacity Building
FN-CB-240a.1 (1) Number and (2) amount of loans outstanding qualified to programs designed to 66
promote small business and community development
FN-CB-240a.2 (1) Number and (2) amount of past due and non-accrual loans qualified to programs 66
designed to promote small business and community development
FN-CB-240a.4 Number of participants in financial literacy initiatives for unbanked, underbanked, or 84,87
underserved customers
Incorporation of Environmental, Social, and Governance Factors in Credit Analysis
FN-CB-410a.1 Commercial and industrial credit exposure, by industry 66
FN-CB-410a.2 Description of approach to incorporation of environmental, social, and governance 46
(ESG) factors in credit analysis
Business Ethics
FN-CB-510a.1 Total amount of monetary losses as a result of legal proceedings associated with 140
fraud, insider trading, anti-trust, anti-competitive behavior, market manipulation,
malpractice, orother related financial industry laws or regulations
FN-CB-510a.2 Description of whistleblower policies and procedures 133
Systemic Risk Management
FN-CB-550a.1 Global Systemically Important Bank (G-SIB) score, by category 67
FN-CB-550a.2 Description of approach to incorporation of results of mandatory and voluntary 141
stress tests into capital adequacy planning, long-term corporate strategy, and other
business activities
Activity Metric
FN-CB-000.A (1) Number and (2) value of checking and savings accounts by segment: (a) personal 86
and (b) small business
FN-CB-000.B (1) Number and (2) value of loans by segment: (a) personal, (b) small business, and (c) 66
corporate
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SUSBA Index
Criteria Page
1) Purpose - Sustainability strategy
1.1.1.1 Is there a clear reference to sustainability in the bank’s strategy and long-term vision? 26, 52
1.1.1.2 Does the bank clearly recognize that its E&S footprint includes the indirect effects arising from 26, 51
its business activities (e.g. financing, underwriting, advising) and portfolio?
1.1.1.3 Does the leadership statement make reference to the integration of E&S factors in the bank’s 28
business strategy?
1.1.1.4 Is there a clear reference to sustainable development goals (SDGs) in the bank’s strategy or 26, 54
vision?
1.1.1.5 Does the bank explicitly acknowledge the societal and economic risks associated with climate 23, 26
change?
1.1.1.6 Does the bank explicitly acknowledge the societal and economic risks associated with 25, 28
environmental degradation?
1.1.1.7 Has the bank identified responsible financing/lending and/or other key E&S issues as material? 26, 43
2) Purpose - Stakeholder engagement and participation in sustainable finance initiatives
1.1.2.1 Does the bank disclose the types of stakeholders it engages with on E&S issues? 45, 144
1.1.2.2 Does the bank engage with civil society and/or non-governmental organisations to understand 62, 144
the E&S impacts of its business activities?
1.1.2.3 Does the bank disclose the frequency and mode of communication with stakeholders 144
engaged on E&S issues?
1.1.2.4 Does the bank engage with regulators and policy makers on E&S integration and/or 144
sustainable finance topics?
1.1.2.5 Does the bank participate in relevant commitment-based sustainable finance initiatives such 45
as RSPO, PRB, EP, SBTi, or SBEFP?
3) Policies – Public statements on specific E&S issues
1.2.1.1 Does the bank have exclusionary principles covering activities the bank will not support, taking 45, 144
into account E&S considerations?
1.2.1.2 Does the bank require clients highly exposed to climate-related risks to develop a mitigation 62, 144
plan and ultimately align their activities to the objectives of the Paris Agreement?
1.2.1.3 Does the bank prohibit the financing of new coal-fired power plant projects? 144
1.2.1.4 Does the bank acknowledge nature-related financial risks such as biodiversity loss and/or 144
deforestation risks in its clients’ activities?
1.2.1.5 Does the bank require clients in sectors highly exposed to deforestation (e.g. soft commodities, 45
infrastructure, extractives industry) to adopt “no deforestation” commitments in both their own
operations and supply chains, in accordance with the High Conservation Value or High Carbon
Stock approaches?
1.2.1.16 Does the bank have policies and procedures in place in order to seek to identify exposure to 143
illicit activity involving wildlife and environmental crimes?
1.2.1.6 Does the bank require clients in sectors highly exposed to conversion of natural ecosystems 43
(e.g. soft commodities, infrastructure, extractives industry) to adopt “no conversion”
commitments in both their own operations and supply chains, in accordance with the principles
of the Accountability Framework Initiative?
1.2.1.8 Does the bank require clients in marine-related industries to obtain certification from or 45
otherwise support relevant multistakeholder sustainability standards (e.g. ASC, MSC, SuRe) to
ensure the sustainable use of oceans, seas and marine resources?
1.2.1.9 Does the bank have a commitment not to provide financial products and services to projects 43
or companies located in, or having negative impacts on, key biodiversity and protected areas,
including UNESCO World Heritage Sites, IUCN Category I-IV Protected Areas and Wetlands of
International Importance designated under the Ramsar Convention on Wetlands?
1.2.1.10 Does the bank recognize water risks (flooding, scarcity, and pollution) as risks in its clients’ 28
activities?
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Criteria Page
1.2.1.11 Does the bank require clients in high-risk sectors and geographies to perform water risk 45, 47
assessments and commit to water stewardship?
1.2.1.12 Does the bank recognize human rights risks, including those related to local communities, in its 43, 45
clients’ activities?
1.2.1.13 Does the bank require clients to commit to respecting human rights, in line with the UN Guiding 45
Principles on Business and Human Rights?
1.2.1.14 Does the bank recognize labour rights violations as a risk across all sectors? 132
1.2.1.15 Does the bank require clients to adhere to international labour standards equivalent to the ILO 45
Fundamental Conventions?
1.2.1.18 Does the bank require clients to obtain FPIC from communities affected by their projects and 26, 48
have a grievance mechanism to address any concerns? [NEW 2023 INDICATOR]
4) Policies – Public statements on specific sectors
1.2.2.1 Does the bank have sector policies for environmentally or socially sensitive industries, e.g. agri 45
commodities, energy, oil & gas, mining, seafood, infrastructure?
1.2.2.2 Does the bank disclose its policies for environmentally or socially sensitive sectors? 45
1.2.2.3 Do the bank’s sector-specific E&S policies include minimum requirements or recommendations 45
based on internationally recognized standards for best E&S practices (e.g. IFC Performance
Standards, RSPO, FSC, etc.)?
1.2.2.4 Does the bank periodically review its E&S policies or stated that last date of review was within 45
the past 2 years?
5) Processes - Assessing E&S risks in client & transaction approvals
1.3.1.1 Does the bank use standardized frameworks for E&S due diligence (e.g. tools, checklists, 46
questionnaires, external data providers) when reviewing clients or transactions subject to its
policies?
1.3.1.2 Does the bank assess its clients’ capacity, commitment, and track record as part of its E&S due 46
diligence process?
1.3.1.3 As part of the approval process does the bank classify its clients and transactions based on 47
E&S risk assessment?
1.3.1.4 Is there an escalation mechanism for more complex or controversial cases? 48, 49
1.3.1.5 Do the E&S risk assessment outcomes influence transaction and client acceptance decisions? 49
6) Processes - Client monitoring and engagement
1.3.2.1 Does the bank seek the inclusion of clauses (e.g. covenants, representations & warranties) 46
related to E&S issues in the loan documentation for bilateral and syndicated credit facilities?
1.3.2.2 Does the bank require clients that are not fully compliant with its E&S policies to develop and 47, 49
implement time-bound action plans?
1.3.2.3 Does the bank monitor its clients’ compliance with the agreed E&S action plans? 47, 49
1.3.2.4 Does the bank perform periodic review or state how frequent it reviews its clients’ profiles on 47
E&S?
1.3.2.5 Does the bank disclose the process to address non-compliance of existing clients with the 47, 49
bank’s policies or with pre-agreed E&S action plans?
1.3.2.6 Does the bank periodically review its internal E&S procedures or stated that the last date of 43
review was within the past 2 years?
7) People - Responsibilities for E&S
1.4.1.1 Is senior management responsible for the implementation of the bank’s ESG strategy? 46, 67
1.4.1.2 Do senior management’s responsibilities include management of climate change risks and 49
opportunities relevant to the bank’s activities?
1.4.1.3 Does the bank describe the roles and responsibilities of the various departments, committees 49
or teams involved in developing and implementing its E&S policies?
1.4.1.4 Has the bank put in place an internal control system with three lines of defence to manage E&S 40
issues?
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Criteria Page
1.4.1.5 Do the terms of reference of the Nominating committee include sustainability-related criteria 129
for the appointment of new Board members?
1.4.1.6 Do the terms of reference of the Remuneration committee include sustainability-related 139
criteria for the assessment of performance and remuneration levels for senior management?
1.4.1.7 Do the terms of reference of the Audit committee require sustainability-related matters to be 135
included in internal control and audit processes?
1.4.1.8 Does the bank implement periodic audits to assess implementation of E&S policies and 135
procedures?
8) People - Staff E&S training and performance evaluation
1.4.2.1 Does the bank have a dedicated ESG team to implement E&S policies and procedures? 49
1.4.2.2 Does the bank train its staff on E&S policies and implementation processes? 109, 110, 111
1.4.2.3 Does the bank provide specific training for its senior management, covering sustainability 109, 110, 111,
issues? 138
1.4.2.4 Are sustainability-related criteria part of the staff appraisal process and/or integrated into their 154
KPIs?
1.4.2.5 Are sustainability-related criteria part of the senior management appraisal process and/or 154
integrated into their KPIs?
9) Products - E&S integration in products and services
1.5.1.1 Does the bank proactively identify clients in environmentally or socially sensitive sectors to 45
support them in reducing negative or enhancing positive impacts?
1.5.1.2 Does the bank offer specific financial products and services (e.g. green bonds, sustainability- 45, 64, 72
linked loans, impact financing) that support the mitigation of E&S issues, e.g. climate change,
water scarcity and pollution, deforestation?
1.5.1.4 Does the bank hold client outreach activities to raise awareness and share on good E&S 61, 121
practices (e.g. through workshops, seminars)?
1.5.1.5 Has the bank published frameworks for its sustainable financial products & services, e.g. a 72
green bond framework, which are aligned with credible international standards?
1.5.1.6 Does the bank provide solutions and capacity building programs for SMEs to help transition to 85
[NEW 2023 more sustainable practices including retail clients? [NEW 2023 INDICATOR]
INDICATOR]
10) Portfolio - E&S risk assessment and mitigation at portfolio level
1.6.1.1 Does the bank periodically review its portfolio exposure to nature-related risks (e.g. 47
deforestation, water scarcity)?
1.6.1.2 Does the bank periodically review its portfolio exposure to climate-related physical and/or 141
transition risks, using scenario analysis, and disclose the results and methodology used?
1.6.1.3 Does the bank have a strategy to manage and mitigate climate-related risks across its 141
portfolio?
11) Portfolio -Disclosure of E&S risk exposure and targets
1.6.2.1 Does the bank disclose its credit exposure by industry sector? 65, 66
1.6.2.3 Does the bank disclose the GHG emissions or carbon intensity of the main carbon-intensive 119
sectors in its portfolio (eg. agriculture, mining & metals, energy, etc.)?
1.6.2.7 Does the bank have science-based targets in place to reduce nature-related negative impacts 141
or increase positive impacts associated with its business activities, beyond direct impacts from
its own operations, and disclose progress of achieving these targets?
1.6.2.8 Has the bank set science-based targets to align its portfolio with the objectives of the Paris 141
Agreement, and disclosed progress of achieving these targets?
1.6.2.9 Has the bank committed to achieve net-zero greenhouse gas emissions in its lending portfolio 52
by 2050, with defined interim milestones, and disclosed progress of achieving these targets?
1.6.2.10 Does the bank conduct external assurance of its ESG-related disclosures? 148
1.6.2.11 Does the bank disclose the positive and negative impacts associated with its business 61
activities, beyond direct impacts from its own operations?
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TCFD Index
No. TCFD Disclosure SR Section Sub Title Page
Governance Governance TCFD Recommendation
on Governance
G1 Describe the board’s oversight of climate-related risks 50
and opportunities.
G2 Describe management’s role in assessing and managing 49, 50
climate-related risks and opportunities.
Strategy Risk TCFD Recommendation
management on Strategy
S1 Describe the climate-related risks and opportunities the 141, 142, 143
company has identified over the short, medium, and
long term.
S2 Describe the impact of climate-related risks and 141
opportunities on the company’s businesses, strategy,
and financial planning.
S3 Describe the resilience of the company’s strategy, taking 141
into consideration different climate-related scenarios,
including a 2°C or lower scenario.
Risk Management Risk TCFD Recommendation
management on Risk Management
R1 Describe the company’s processes for identifying and 47, 52
assessing climate-related risks.
R2 Describe the company’s processes for managing 141
climate-related risks.
R3 Describe how processes for identifying, assessing, and 47, 141
managing climate-related risks are integrated into the
company’s overall risk management.
Metrics and Targets Environment TCFD Recommendation
on Metric
M1 Disclose the metrics used by the company to assess 53
climate-related risks and opportunities in line with its
strategy and risk management process.
M2 Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 53
greenhouse gas (GHG) emissions, and the related risks.
M3 Describe the targets used by the company to manage 52, 53
climate-related risks and opportunities and performance
against targets.
178 LAPORAN KEBERLANJUTAN 2024 PT BANK SMBC INDONESIA TBK
Page 180
SMBC Indonesia
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PT BANK SMBC INDONESIA TBK LAPORAN KEBERLANJUTAN 2024 179
Names mentioned 49 people and organisations named in the text · linked when the evidence is strong
unresolved
org
PT IMG Sejahtera Langgeng
p.17 ×2
unresolved
org
PT Mitsubishi Krama Yudha Motors
p.17
unresolved
org
PT Senayan Trikarya Sempana
p.17
unresolved
org
Indonesia Tbk.
p.18
unresolved
org
PT Surya Utama Nuansa
p.18 ×2
unresolved
person
Pun Jadi Happy
p.18
unresolved
org
Ministry of Education
p.18
unresolved
person
Message
· Komisaris
p.22
unresolved
org
Banking Corporation
p.27
unresolved
org
Sumitomo Mitsui Banking Corporation
p.33 ×2
unresolved
org
PT Bank Sumitomo Mitsui Indonesia Legal Basis
p.33
unresolved
person
Notary Komar Andasasmita
p.33
unresolved
person
Notary Dedeh Ramdah Sukarna
p.33
unresolved
person
Dr. Ide Anak Agung Gde Agung
p.34
unresolved
org
PT Oto Multiartha SMBC Indonesia
p.34
unresolved
org
PT BTPN Syariah Ventura
p.34
unresolved
org
PT BTPN Syariah Ventura. SIGNIFICANT CHANGES
p.34
unresolved
org
PT Fitch Ratings Indonesia
p.34
unresolved
org
Fitch Ratings BTPN Tbk
p.34 ×2
unresolved
org
Indonesia SMBC Indonesia Tbk
p.34
unresolved
org
PT Pemeringkat Efek Indonesia
p.34
unresolved
—
FKDKP
· Director
p.37
unresolved
org
Bank Tabungan Pensiunan Developed BTPN Syariah. Nasional Tbk
p.38 ×2
unresolved
org
PT Bank Sumitomo Mitsui Indonesia
p.38
unresolved
org
Minister of Environment
p.47 ×2
unresolved
org
Financial Services Authority
p.63 ×15
unresolved
org
Ministry of Communication and Information
p.63
unresolved
org
Ministry of Cooperatives and Small and Medium
p.63
unresolved
org
Bank SMBC Tower
p.89
unresolved
person
Henoch Munadar
p.98
unresolved
org
Ministry of Finance
p.112
unresolved
org
Indonesia Stock Exchange
p.112
unresolved
org
Bank Indonesia
p.112
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