Annual Report
2013
PT Bank Mandiri Persero Tbk.
compliance human capital
3. Bank Indonesia Regulation Number 1512PBI2013 on Minimum Capital Requirements KPMM for
Commercial Banks
a. The required KPMM remains the same as under the previous regulation, namely 8 of RWA for Bank
with 1st rank risk proile; b.
Components and requirements for capital instruments are as follows: 1
Tier 1 : a
common equity tier 1 b
additional equity tier 2 2 Tier
2 Ratio of Tier 1 capital must be minimum of 6 of Risk Weighted Assets RWA, and ratio of common
equity tier 1 capital must be 4.5 of RWA. c.
Mandatory statutory bufer introduced as of 1 January 2016. Such bufer may take following forms: 1
Capital Conservation Bufer namely a crisis period bufer of 2.5 of RWA 2
Countercyclical Bufer namely a bufer against excessive lending growth that could potentially harm the stability of the inancial system: 0-2.5 of RWA or as speciied by BI
3 Capital Surcharge for Domestic Systematically Important Bank: 1-2.5 of RWA in accordance with
OJK regulations.
4. Bank Indonesia Regulation Number 1511PBI2013 on Prudential Principles in Equity Investments
a. A bank may only make capital investments in a company engaged in the inancial sector. The total size of
the equity portfolio is set at a maximum in accordance with the categorization of Commercial Banks by Business Operations BUKU. Banks are prohibited from making equity investments that exceed the limits
set out in BI regulations on Legal Lending Limits. Banks are required to obtain approval from BI each time they make an equity investment, including shelf
investments, except for equity investments arising from dividends. Equity investments can be made directly or through the capital markets but are conined to long-term investments only not for trading.
b. A bank is required to divest an equity investment if:
1 the investment causes or is predicted to cause a signiicant decrease in the capital of the Bank and
or a signiicant increase in the risk proile of the bank; or 2
there is recommendation from the their Subsidiaries’ authority andor an instruction from BI. c.
A bank may divest an equity stake at its own initiative upon fulilling the following requirements: 1
the equity investment has been held for at least 5 ive years; 2
it is stated in the RBB; 3
ithe divestment is aimed at adjusting the bank’s business strategy; 4
ithe divestment involves at least 50 of the shares held; 5
ithe divestment is carried out on an arm’s length basis; 6
the divestment is not aimed solely at obtaining proit and has been approved by BI; 7
Such divestment must be realized no later than 6 months from its approval by BI.
Annual Report
2013
PT Bank Mandiri Persero Tbk.
LEGAL
Along with the increasingly wide scope of Bank Mandiri’s business, the level of legal risk needs to also be taken into account and, therefore, preventive and repressive measures are required in connection with the possibility of the
occurrence of an event. Such measures are as listed below:
1. Preventive actions:
a. Legal Awareness Forum LAF
Improvement of Legal Awareness. The Bank conducts sustainable legal forums for all employees. Employees are expected to ensure that every activity is legal so as to minimize legal risks.
b. Legal Review On Site. Legal reviews of loan documents through research so as to ensure legal conformity and suiciency for
loan facilities, assessing how to improve legal formulations in loan documentation, including security documents, and the mitigation of any risks.
c. Legal Advice On Site.
Interactive discussions with participants so as to provide direct advice and assistance on legal matters in the ield or in business units.
d. Improving Competencies of Legal Oicers.
Legal competency certiication in collaboration with legal academics and practitioners, and legal profession certiication, namely the Advocate’s Professional Course provided by the Indonesian Advocates’
Association Peradi, Capital Market Legal Consultant Professional Course, provided by the Capital Markets Legal Consultants Association, CuratorBankruptcy Course provided by the Indonesia Curators and
Administrators’ Association.
d. Mandiri Legal Clinic This is a legal information service that provides legal advice and legal solutions that can be accessed by
telephone at 500140 ext. 3 or on a one-on-one basis at the Mandiri Legal Clinic, 9th Floor, Plaza Mandiri. e.
Legal Risk Statement LRS di Mandiri e_Law The Legal Risk Statement LRS application in Mandiri e_Law intranet portal consists of a compilation of
legal risks in Bank Mandiri which have been identiied and formulated by Legal Groups and Legal Oicers throughout Indonesia.
This Legal Risk Statement LRS is a reference which may be used to improve knowledge and awareness of Legal Risk in Bank Mandiri, but it is NOT a guideline or manual for the resolution of legal problems.
compliance human capital
Annual Report
2013
PT Bank Mandiri Persero Tbk.
2. Repressive Action a.
Reducing the number of outstanding legal cases In addition to preventing new cases from occurring, the Bank continuously strives to resolve litigation by,
among other things, reducing the number of outstanding legal cases
b. Out of court settlements The Bank strives to resolve disputes through out of court settlements
c. Fostering good relations
Fostering good relations with relevant authorities in an efort to accelerate dispute resolution and with customers to create win-win solutions
d. Legal action
To uphold the reputation of the Bank through strict legal eforts against those who harm the Bank in the context of loan disputes, fraud or those who act in bad faith and against the law.
2014 STRATEGY AND WORK PLAN
The following matters will be the main focuses of the Compliance Human Capital Directorate in 2014: 1. Increasing Capacity Fulillment Capability
2. Developing Detailed Design of HCMS Realignment to Support Corporate Plan 2015-2020 3. Realigning HCMS by Respective Human Capital Areas
4. Strengthening Mandiri University 5. Strengthening legal and good corporate governance
compliance human capital
Annual Report
2013
PT Bank Mandiri Persero Tbk.
During the course of 2013, Bank Mandiri added to its the long list of encouraging achievements since the beginning of the transformation process that was initiated in 2005. Such achievements are crucial bearing in mind that 2013
was important moment to the overall achievement of our targets by the end of 2014, which is the last year of the further transformation period.
Consistency and hard work in executing our strategic initiatives in 2013 were the key factors that helped maintain the Bank’s performance amid the uncertainties that prevailed in domestic economic conditions from the middle
until the end of the year. From the inancial perspective, Bank Mandiri made a breakthrough by recording total assets of Rp733.1 trillion, conirming its position as the largest bank in Indonesia. Meanwhile, net proit grew 17.4
to Rp18.2 trillion. In terms of the non-inancial aspects, Bank Mandiri became a service legend in the national banking industry by taking the title for the bank with “service excellence” for the sixth time in a row.
In line with these achievements, our subsidiaries also continued to record signiicant growth, contributing 11.2 to the Bank’s totoal net proit, with earnings before eliminations of Rp2.04 trillion. A number of subsidiaries
demonstrated an excellent performance in each business segment. AXA Mandiri Financial Services AMFS upped its growth to become the 2nd largest insurance company in Indonesia in terms of new business premiums. Bank
Syariah Mandiri BSM recorded a proit of Rp651.2 billion which makes BSM the market leader in the Islamic banking market with an asset market share of around 28. Meanwhile, Mandiri Investment Management MMI
managed to grow into the 3rd largest asset management company in Indonesia. The upward trend is certainly positive amid the challenge of maintaining both organic and inorganic growth.
The encouraging performance of Bank Mandiri has had a positive impact in the form of an appreciation in the Bank’s stock price, with Bank Mandiri’s market capitalization reaching Rp250.8 trillion at a price per share of Rp10,750. Since
its IPO to date, the Bank’s share price has increased 10-fold.
All of our signiicant achievements on both the inancial and non-inancial sides during 2013 were the result of the optimal contribution of anagement and all our employees, who have been disciplined and consistent, working
hard, working smart and worked comprehensively so as to achieve our targets and grow our business. All this makes us optimistic that we will be able to further improve our performance through more focused and in-depth
business development, especially so as to see of the competition in line with our target of increasing market share across all business segments, in addition to being the country’s bank of choice, one of which all our customers and
stakeholders can be proud.
inance strategy
“Consistency and hard work in executing strategic initiatives in 2013 was a key factor in maintaining Bank Mandiri’s performance in the
midst of the domestic economic uncertainties that prevailed from the middle to the end of the year”
Annual Report
2013
PT Bank Mandiri Persero Tbk.
FINANCE STRATEGY DIRECTORATE ACHIEVEMENTS IN 2013
The year 2013 was one of which Bank Mandiri can be proud of its achievement. The further transformation process being pursued by Bank Mandiri since 2010 recorded very encouraging progress, as relected from the Bank’s growth.
Such achievements are closely related to the role of the Finance and Strategy Directorate, which consistently strives to improve its function of applying leading-edge inance practices, promoting a performance-based culture,
providing accurate, transparent and timely inancial statement-related information, managing the Bank’s corporate image through comprehensive and compelling communication strategies, preparing macro-economic, industrial
and regional assessments and outlooks, and preparing internal policies and procedures manuals. These diverse roles are necessary to allow the Finance Strategy Director to ensure that the Bank’s Long Term Plan for 2010-2014
can be fully and successfully at all stages until the end of 2014. In greater detail, the principal achievements and work programs of the Finance Strategy Directorate during 2013 were as follows:
1. Development of Subsidiaries and Non-Organic Initiatives
