The Formation of Work Unit

Laporan Tahunan 2016 572 Semakin Berkembang Bersama peluang Baru yang Membentang Hasil Penilaian sendiri Self Assessment Pelaksanaan Tata Kelola Terintegrasi bagi Konglomerasi Keuangan self assessment result on the implementation of integrated Governance for financial conglomeration

b. Proses Tata Kelola Terintegrasi

1. nilai-nilai yang mencerminkan kekuatan aspek proses Tata Kelola Terintegrasi Konglomerasi Keuangan adalah : • Direksi entitas utama memberikan arahan terhadap penyusunan pedoman Tata Kelola Terintegrasi. • Direksi entitas utama telah menyampaikan pedoman Tata Kelola Terintegrasi lcepada Direksi anggota Konglomerasi Keuangan • Dewan Komisaris entitas utama menyelenggarakan rapat Dewan Komisaris entitas utama dalam rangka membahas pelaksanaan Tata Kelola Terintegrasi serta penyusunan pedoman Tata Kelola Terintegrasi. • Dewan Komisaris entitas utama melakukan pengawasan atas pelaksanaan tugas dan tanggung jawab Direksi entitas utama dengan memberikan masukan terhadap pedoman Tata Kelola Terintegrasi yang sedang disusun. • Komite Dewan Komisaris entitas utama menyelenggarakan rapat Komite untuk membahas pelaksanaan Tata Kelola Terintegrasi dan penyusunan pedoman Tata Kelola Terintegrasi. • pelaksanaan pemantauan fungsi kepatuhan dan penerapan manajemen risiko pada Lembaga Jasa Keuangan dalam Konglomerasi Keuangan telah dilaksanakan melalui kegiatan focus discussion grup. • pelaksanaan proses Tata Kelola Terintegrasi oleh entitas utama dan Lembaga Jasa Keuangan mengacu pada pedoman Tata Kelola Terintegrasi

c. Hasil Tata Kelola Terintegrasi

1. nilai-nilai yang mencerminkan kekuatan aspek proses Tata Kelola Terintegrasi Konglomerasi Keuangan adalah : • pedoman Tata Kelola Terintegrasi telah dilakukan penyesuaian sesuai dengan arahan Dewan Komisaris entitas utama. • Direksi entitas utama mampu menumbuhkan pemahaman terkait pelaksanaan Tata Kelola Terintegrasi kepada anggota Konglomerasi Keuangan. • Satuan Kerja Manajemen risiko Terintegrasi telah menyusun profil risiko terintegrasi serta telah mengkomunikasikan kepada seluruh anggota konglomerasi keuangan bank bjb. • Direksi anggota Konglomerasi Keuangan telah mengetahui rancangan pedoman Tata Kelola Terintegrasi dalam rangka pelaksanaan Tata Kelola Terintegrasi. analysis conclusion: Based on an analysis of indicators on all assessment factors on the implementation of Integrated Governance, it can be concluded that:

a. integrated Governance structure

1. Values that reflects the strength of Financial Conglomerate Integrated Governance structure are: • Directors of the Main entity have passed the fit and proper test conducted by the Financial Services authority, thus fulfilling the requirements of integrity, competency and financial reputation that must be owned by Directors of the Main entity. • Commissioners of the Main entity have passed the fit and proper test conducted by the Financial Services authority, thus fulfilling the requirements of integrity, competency, and financial reputation that must be owned Commissioners of the Main entity. • The Main entity has formed the Integrated Governance Committee chaired by an Independent Commissioner and independent parties. • The Main entity has formed Internal audit, unit Compliance unit, and risk Management unit that support the implementation of Integrated Governance with competent and independent human resources. • The Main entity has established Integrated Governance policy, which will be set in the Financial Conglomerate. • The Main entity has established Integrated risk Management policy in order to fulfill the Main entity’s obligations related to the preparation of policies, procedures and risk Limit on Financial Conglomerate. • The Main entity has established Standard operating procedures for reporting Integrated Capital adequacy and methodology as well as the weight of Integrated risk profile of Intra-Group Transactions. • The Main entity has formed Integrated risk Management Committee, chaired by the Director of Compliance and risk Management of Main entity.

b. integrated Governance Process

1. Values that reflects the strength of Financial Conglomerate Integrated Governance process are: • Directors of Main entity provided direction to the preparation of Integrated Governance Guidelines. • Directors of Main entity has submitted Governance Guidelines to the Directors of Financial Conglomeration members • Commissioners of Main entity held meetings in order to discuss the implementation of Integrated Governance and preparation of Integrated Governance Guidelines. • Commissioners of Main entity supervised the implementation of tasks and responsibilities of the Directors of Main entity by providing inputs to the Integrated Governance Guidelines that are being drafted. • The Committee of Main entity’s Board of Commissioners held meetings to discuss the implementation of Integrated Governance and preparation of Integrated Governance Guidelines. • The monitoring on compliance and risk management at the Financial Services Institution in the Financial Conglomeration has been carried out through focus group discussion activity. • The implementation of Integrated Governance process by Main entity and Financial Services Institution referred to the Integrated Governance Guidelines

c. integrated Governance results

1. nilai-nilai yang mencerminkan kekuatan aspek proses Tata Kelola Terintegrasi Konglomerasi Keuangan adalah : • Integrated Governance Guidelines has been adjusted in accordance with direction from the Board of Commissioners of the Main entity. • Directors of the Main entity were able to foster understanding concerning the implementation of Integrated Governance to the members of the Financial Conglomerate. • Integrated risk Management unit has developed an integrated risk profile and has communicated to all members of the financial conglomeration of bank bjb. • Directors of Financial conglomeration members have acknowledged the draft of Integrated Governance Guidelines for the implementation of Integrated Governance. PENERAPAN TATA KELOLA TERINTEGRASI inTegRaTeD goveRnance iMPleMenTaTion annual report 2016 573 Growing Together with new expanding opportunities inTeRnal auDiT uniT UNIT AUDIT INTERNAL Unit Audit Internal di Perseroan dijalankan oleh Divisi Audit Internal DAI. Divisi Audit Internal DAI merupakan bagian dari struktur pengendalian internal dan merupakan seluruh bentuk kegiatan yang berhubungan dengan audit dan pelaporan hasil audit mengenai terselenggaranya struktur pengendalian secara terkoordinasi dalam setiap tingkatan manajemen Bank. Transparansi dan kejelasan merupakan suatu hal yang sangat penting dalam pengelolaan Bank, sehingga wewenang dan independensi DAI perlu dinyatakan dalam dokumen tertulis dari Direktur Utama Bank dengan persetujuan Dewan Komisaris Bank, yang disebut dengan Piagam Audit Internal. DAI berfungsi membantu Direktur Utama dan Dewan Komisaris melalui aktivitas assurance dan consulting yang independen dan objektif, sekaligus menjadi mitra manajemen dalam mewujudkan implementasi struktur pengendalian internal, manajemen risiko, dan tata kelola di lingkungan Perseroan, serta berperan memberikan nilai tambah bagi Perseroan. VISI DAN MISI Visi audit internal Bank adalah menjadi strategic partner yang andal, independen, objektif, tanggap, dan terpercaya untuk mendukung tugas Direksi dalam usaha mencapai sasaran serta menjaga nama baik Bank. Misi audit internal Bank adalah menjalankan fungsi audit dalam mendukung tercapainya tujuan Bank yang sehat, berkembang secara wajar, dan dapat menunjang perekonomian nasional dengan meningkatkan taraf hidup masyarakat. TUGAS DAN TANGGUNG JAWAB DIVISI AUDIT INTERNAL Adapun tugas dan tanggung jawab Divisi Audit Internal adalah sebagai berikut: 1. Mendesain, mengembangkan dan menerapkan strategi Audit Internal, sesuai dengan ekspektasi manajemen dan ketentuan perundang-undangan internal maupun eksternal serta mengacu kepada best practice. 2. Merekomendasikan mekanisme dan langkah-langkah kontrol yang efektif sebagai pencegahan dan koreksi dari perkembangan yang tidak diinginkan. 3. Melakukan dan menyediakan hasil analisa, rekomendasi, nasihat dan informasi mengenai aktivitas yang sedang dikaji serta memberikan rekomendasi bagi perbaikan kebijakan, prosedur, manual, sistem dan penggunaan sumber daya. The Company’s Internal Audit Unit is carried out by the Internal Audit Division IAD. Internal Audit Division IAD is part of an internal control structure and includes all forms of activities relating to auditing and reports from the audit on the implementation of a coordinated control structure at every level of within the Bank management. Transparency and clarity is crucial in managing a Bank, as such that the authority and independency of Internal Audit Unit needs to be stated in a written document by the Bank’s President Director with approval from the Board of Commissioners, known as the Internal Audit Charter. IAD helps the President Director and Board of Commissioners with its assurance and consulting activities that are independent and objective, acts as management partner in realizing the implementation of internal control structure, risk management, and governance within the Company, and sets to contribute added values to the Company. VISION AND MISSION The vision of Internal Audit is to become a strategic partner that is reliable, independent, objective, responsive, and trusted to support the Directors’ work in order to achieve the Company’s goals and to maintain the Bank’s reputation. The Mission of internal audit is to carry out function of auditing to promote the achievement of healthy goal, develop reasonably, and be able to support national economy by improving level of people’s lives. DUTIES AND RESPONSIBILITIES OF INTERNAL AUDIT DIVISION Duties and responsibilities of Internal Audit Division are as follows: 1. To design, develop, and implement Internal Audit strategies, in accordance with management’s expectations and internal and external statutory provisions, and refer to best practice. 2. To recommend mechanism and effective control measures as a prevention and correction against undesirable developments. 3. To perform and provide the results of analysis, recommendations, advice, and information on all activities under review and provide recommendations to improve policies, procedures, manuals, systems, and the use of resources.