Structures, Membership, Duties and Responsibilities of the Committees.

LAPORAN TAHUNAN 2014 8 ANNUAL REPORT Fungsi dari masing-masing komite itu dapat dideskripsikan sebagai berikut:  Komite Audit bertugas untuk membantu Dewan Komisaris dalam proses audit laporan keuangan, internal control dan audit, dan pemilihan dan penunjukkan eksternal audit bank.  Komite Risk Monitoring bertugas untuk mengawasi dan memastikan profil manajemen risiko bank apakah sudah cukup memadai, sistematis, efisien, efektif dan memaksimalkan nilai terhadap kinerja bank, dan juga apakah sudah sejalan dengan rencana strategis bank dan kebijakan manajemen risiko secara keseluruhan.  Komite Nominasi dan Remunerasi bertugas untuk memilih dan menunjuk orang yang tepat untuk posisi pekerjaan yang ditentukan dan juga untuk mengevaluasi kinerja secara individu, dan kebijakan penggajian dan paket benefit yang diterima oleh level eksekutif dan staffnya. Kinerja semua komite diatas telah diterapkan dengan baik di Kantor Pusat. Sedangkan penerapan strategi dan rencana bisnis Bangkok Bank Indonesia diatur oleh komite sebagai berikut: a. Komite Manajemen Untuk memastikan efisiensi kinerja bank yang mencakup penelahaan secara periodik, pengarahan operasional bank, kebijakan, strategi, ALMA dan juga masalah kepegawaian serta bagian umum yang akan dibicarakan di dalam komite. Komite Manajemen diketuai oleh General Manager selaku Pimpinan Cabang dan dibantu oleh : - 3 Deputy General Manager - Kepala Unit Treasury - Kepala Unit Operation - Kepala Unit Compliance - Kepala Unit Risk Management - Kepala Unit Internal Audit - Kepala Unit Marketing - Kepala Unit BudgetPlanning Pertemuan rutin Komite Manajemen dilakukan minimal 1 satu kali dalam satu bulan, dan hasil pertemuan dicatat dalam notulen yang diedarkan kepada anggota komite dan disampaikan kepada IBG Kantor Pusat. The function of each committee can be described as follows:  The objectives of the Audit Committee are to assist the Board of Commissioners with regard to process audit of financial reports, internal control and internal audit and to select and appoint the bank’s external auditors.  The objective of Risk Monitoring Committee is to oversee and ensure that bank’s management risk profile is adequate, systematic, efficient, and effective and maximizes value to the bank and is also to be in-line with the bank’s strategic plan and overall risk management policy.  The objective of Nomination and Remuneration Committee is to select and nominate suitable persons for appointment job position as well as to evaluate individual performance and policy of remuneration or benefit package for executive level and its staffs. All performance of committees above has already been properly implemented in Head Office. However, in implementing the strategic and business plan of the bank, Bangkok Bank Indonesia is managed under following committees: a. Management Committee To ensure proper and efficient running of the entire operation covering periodical review and directions of bank operation, policy, and strategy, ALMA as well as personnel and general affairs matters. Management Committee is chaired by the General Manager and assisted by: - 3 Deputy General Manager - Head of Treasury - Head of Operation - Head of Compliance - Head of Risk Management - Head of Internal Audit - Head of Marketing - Head of Budget Planning Management Committee conducted regular meetings at least 1 one time in a month and the results are recorded in the minutes of the meeting which is circulated to committee members and submitted to Headquarters IBG. LAPORAN TAHUNAN 2014 9 ANNUAL REPORT b. Komite Kredit Komite ini bertanggung jawab untuk mengakses dan mempertimbangkan semua portfolio bank, yang tercakup di dalamnya nasabah kredit lancar maupun pinjaman kredit bermasalah. Komite kredit akan bertemu secara periodik untuk menelaah dan mendiskusikan aktivitas dari aplikasi kredit yang masuk, suku bunga kredit, dan strategi marketingnya. Fungsi dari Komite Kredit adalah bertanggung jawab untuk menyetujui atau menolak, merekomendasi aplikasi kredit berdasarkan kewenangan kantor cabang. Pertemuan rutin Komite kredit diadakan setiap 2 minggu sekali atau disesuaikan dengan kebutuhan dan hasil pertemuan dicatat dalam notulen yang diedarkan kepada anggota komite dan disampaikan kepada IBG Kantor Pusat. Komite Kredit diketuai oleh General Manager selaku Pimpinan Cabang dan Deputy General Manager bidang Operation selaku wakil, yang dibantu oleh : - Deputy General Manager bidang Marketing - Deputy General Manager bidang Risk Management Unit and Credit Acceptance Unit non-voting - Kepala Unit Marketing - Kepala Unit Treasury - Kepala Unit Operation - Kepala Unit Compliance non-voting - Kepala Unit Risk Management non- voting - Kepala Unit Internal Audit non-voting - Kepala Unit Credit Acceptance Unit non-voting c. Komite Manajemen Risiko Komite ini bertanggung jawab untuk mengawasi penerapan kerangka kerja dan strategi majemen risiko, komposisi risiko dari setiap tipe risiko itu dan juga memeriksa secara periodik prosedur dari manajemen risiko. Bangkok Bank Indonesia menggunakan peringkat kredit yang handal sebelum menyetujui semua kredit baru ataupun perpanjangan fasilitas kredit. Penilaian ini menjadi alat yang penting bagi manajemen risiko kredit dan digunakan sebagai standar b. Loan Committee This committee is responsible to assess and consider all banks’ portfolio, which include active and non-performing loan accounts. The Loan Committee will meet periodically to review and discuss the following activities of loan application, loan pricing and marketing strategies. The Loan Committee responsibility and function is to approve or reject, recommend or decline credit application according to branch authorization. The routine meetings are held in every two weeks or more often to match with the requirement and the results recorded in the minutes of the meeting circulated to committee members and submitted to Headquarters IBG. Credit Committee is chaired by the General Manager as Branch Manager and Deputy General Manager of Operation. Members of Credit Committee are : - Deputy General Manager of Marketing - Deputy General Manager of Risk Management Unit and Credit Acceptance Unit non-voting - Head of Marketing - Head of Treasury - Head of Operation - Head of Compliance non-voting - Head of Risk Management non-voting - Head of Internal Audit non-voting - Head of Credit Acceptance Unit non- voting c. Risk Management Committee This committee is responsible to monitor the implementation of risk management framework and strategy, composition of risk for each type of risks as well as periodically review on risk management procedure. Bangkok Bank Indonesia requires a valid credit rating prior approval of any new or renewed credit facility. Rating is one of the most important tools of credit risk management and used in the underwriting standards as well as in pricing guidelines. LAPORAN TAHUNAN 2014 10 ANNUAL REPORT underwritting dan juga panduan penetapan harga. Komite Manajemen Risiko diketuai oleh Deputy General Manager bidang Manajemen Risiko, dengan dibantu oleh Head of Compliance sedangkan General Manager diundang dan hadir dalam pertemuan rutin Komite Manajemen Risiko, anggota dari Komite Manajemen Risiko : - 3 Deputy General Manager - Kepala Unit Treasury - Kepala Unit Operation - Kepala Unit Risk Management - Kepala Unit Internal Audit - Kepala Unit Marketing Pertemuan rutin Komite Manajemen Risiko dilakukan minimal 1 satu kali dalam tiga bulan, dan hasil pertemuan dicatat dalam notulen yang diedarkan kepada anggota komite dan disampaikan kepada IBG Kantor Pusat. d. Komite Aset dan Liabilitas ALCO Komite ini bertanggungjawab untuk mengatur kinerja dari aset – aset dan liabilitas yang dimiliki oleh Bank ALMA. Dalam melaksanakan tanggungjawab tersebut, Komite ALCO melakukan langkah-langkah sebagai berikut : a. Memformulasikan dan memantau penerapan strategi ALMA sesuai dengan rencana bisnis Bank. b. Memantau penetapan strategi harga untuk memastikan hasil optimum, mengurangi biaya penggunaan dana, dan menjaga keseimbangan neraca keuangan Bank. c. Mengevaluasi posisi risiko suku bunga bank dimana harus konsisten dengan manajemen risiko suku bunga d. Berkoordinasi dengan Departemen Treasuri Kantor Pusat dan Overseas Treasury Center OTC dalam melakukan manajemen aset dan liabilitas Bank. Komite ALCO diketuai oleh General Manager selaku Pimpinan Cabang dan dibantu oleh : - 3 Deputy General Manager - Kepala Unit Treasury - Kepala Unit Operation - Kepala Unit Compliance - Kepala Unit Risk Management - Kepala Unit Internal Audit - Kepala Unit Marketing - Kepala Unit BudgetPlanning The Risk Management Committee is chaired by the Deputy General Manager of Risk Management, and assisted by Head of Compliance Unit, meanwhile General Manager is invited in the Risk Management Committee meeting. Members of the Risk Management Committee: - 3 Deputy General Manager - Head of Treasury - Head of Operation - Head of Risk Management - Head of Internal Audit - Head of Marketing Regular meetings of the Risk Management Committee conducted a minimum of 1 one time in 3 month and the results are recorded in the minutes of the meeting circulated to committee members and submitted to Headquarters IBG. d. Asset and Liability Committee ALCO This committee is responsible for managing the performance of assets - assets and liabilities held by the Bank ALMA . In carrying out these responsibilities, ALCO Committee perform the following steps : a. m Formulating and monitoring the implementation of the strategy ALMA accordance with the Banks business plan. b. Monitor price -setting strategies to ensure optimum results , reduce the financing cost , and maintaining the balance of the Bank s balance sheet c. Evaluate the banks interest rate risk position which must be consistent with the interest rate risk management d. c Coordinate with Treasury Department Headquarters and Overseas Treasury Center OTC in managing the assets and liabilities of the Bank. ALCO Committee is chaired by the General Manager. Members of ALCO are : - 3 Deputy General Manager - Head of Treasury - Head of Operation - Head of Compliance - Head of Risk Management - Head of Internal Audit - Head of Marketing - Head of Budget Planning LAPORAN TAHUNAN 2014 11 ANNUAL REPORT Pertemuan rutin ALCO dilakukan minimal 1 satu kali dalam satu bulan, dan hasil pertemuan dicatat dalam notulen yang diedarkan kepada anggota komite dan disampaikan kepada IBG Kantor Pusat. e. Komite Kredit Bermasalah Komite Kredit Bermasalah NPL Committee bertanggungjawab untuk membahas pinjaman nasabah kepada Bank yang memiliki kualitaskategori Kurang Lancar 2 hingga Macet 5. Komite Kredit Bermasalah diketuai oleh General Manager selaku Pimpinan Cabang yang dibantu oleh : - 3 Deputy General Manager - Kepala Unit Operation - Kepala Unit Compliance - Kepala Unit Marketing - Kepala Unit Internal Audit Pertemuan rutin dilakukan minimal 1 satu kali dalam satu bulan, dan hasil pertemuan dicatat dalam notulen yang diedarkan kepada anggota komite dan disampaikan kepada IBG Kantor Pusat. f. Komite Teknologi Informasi Komite ini bertanggungjawab menyampaikan rekomendasi penggunaan sistem IT kepada manajemen guna mendukung pertumbuhan bisnis dan efisiensi operasi Bank dalam strategi jangka pendek dan menengah. Komite Teknologi Informasi diketuai oleh Deputy General Manager bidang Operation dan Overseas Support Center OSC selaku penasehat IT, anggota komite adalah : - Kepala Unit Operation - Kepala Unit Compliance - Kepala Unit SupportService - Kepala Unit Internal AuditControl - Staff EDP Pertemuan rutin dilakukan minimal 1 satu kali dalam satu tahun, dan hasil pertemuan dicatat dalam notulen yang diedarkan kepada anggota komite. Regular meetings of ALCO performed at least 1 one time in a month , and the results are recorded in the minutes of the meeting circulated to committee members and submitted to Headquarters IBG. e. Non-Performing Loans Committee NPL Committee NPL Committee is responsible for the customer to discuss the bank loan that has a quality Sub- category 2 to Loss 5. NPL Committee is chaired by General Manager as Branch Manager. Mmebers of NPL Committee are : - 3 Deputy General Manager - Head of Operation - Head of Compliance - Head of Marketing - Head of Internal Audit Regular meetings conducted at least 1 one time in a month, and the results are recorded in the minutes of the meeting are circulated to committee members and submitted to Headquarters IBG. f. Information Technology Steering Committee This committee is responsible for providing recommendations to the management of the use of IT systems to support business growth and operating efficiencies in the Banks short-term and medium-term strategy. Information Technology Steering Committee, chaired by the Deputy General Manager of Operations and Overseas Support Center OSC as an IT advisor, committee members are: - Head of Operation - Head of Compliance - Head of SupportService - Head of Internal AuditControl - Staff EDP Regular meetings conducted at least 1 one times a year, and the results are recorded in the minutes of the meeting are circulated to committee members. LAPORAN TAHUNAN 2014 12 ANNUAL REPORT Adapun frekuensi rapat yang telah dilakukan oleh masing-masing Komite selama tahun 2014 adalah sebagai berikut :

1.3. Kinerja dari Departemen Kepatuhan, Internal Audit dan Eksternal Audit

Unit Kepatuhan dibentuk untuk membantu manajemen dalam pengawasan internal operasional dan juga kepatuhan pada peraturan dari otoritas lokal. Unit kepatuhan bertangung jawab dalam mengkoordinasi unit operasional dan mengumpulkan informasi guna tersedianya informasi dalam pengkinian panduan kerja. Unit kepatuhan harus bekerja secara independen dan berdampingan dengan manajemen dan staf di berbagai bisnis unit. Peraturan Bank Indonesia dan peraturan perundangan yang berlaku telah disosialisaikan kepada unit terkait dan dibahas dalam rapat komite manajemen terutama yang memiliki dampak terhadap kegiatan operational ,bisnis dan stategi bank. Memastikan komitmen bank yang dibuat kepada Bank Indonesia telah dipenuhi secara tepat waktu. Satuan Kerja Kepatuhan telah melaporkan pelaksanaan tugas dan tanggung jawabnya kepada manajemen bank secara triwulanan. Satuan Kerja Kepatuhan juga memastikan bahwa tindakan yang memadai telah dilaksanakan guna mencegah terjadinya risiko kepatuhan yang mungkin terjadi dan mendorong terciptanya budaya kepatuhan dalam bank.. Satuan Kerja Kepatuhan dan petugas UKK juga mengkontrol pelaksanaan Prinsip Mengenal Nasabah KYC dan aktifitas anti pencucian uang Anti Money Laundering sesuai dengan ketentuan yang berlaku. Dalam upaya meningkatkan Komite Frekuensi Komite Manajemen 12x Komite Kredit 36x Komite Manajemen Risiko 4x Komite Aset dan Liabilitas 12x Komite Kredit Bermasalah 7x Komite Teknologi Informasi 2x The frequency of meetings has been done by each committee during 2014 are as follows:

1.3 Performance of Compliance functions, internal audit and external audit.

Compliance unit has been established to assist the management in overseeing its internal operation so as to be in compliance with the regulation of authorities. The compliance unit has the responsibility in coordinating with operation units and colleting the information for the availability and updating of work guidelines. The compliance function shall have independence and work closely with management and staff in various business units. BI regulations and prevailing laws have been socialized to the relevant units and also been discussed in the Management Committee meeting, especially for regulations which have significant impact to the operations, business and strategy of the bank. Ensuring the bank’s commitments made to Bank Indonesia has been rectified in timely manner. Compliance unit also ensures that appropriate action has been taken to prevent the potential compliance risks which may occur and promote the compliance culture within the bank. Compliance unit has set up proper monitoring procedure in preventing compliance failure in submitting BI reporting requirement by each responsible unit and escalated the monitoring result in monthly Management Meeting. Compliance unit has reported their activity and responsibility to Branch Manager on quarterly Committee Frequency Management Committee 12x Loan Committee 36x Risk Management Committee 4x Asset and Liability Committee 12x Non Performing Loan Committee 7x Information Technology Steering Committee 2x LAPORAN TAHUNAN 2014 13 ANNUAL REPORT pemahaman atas penerapan KYC dan AML, Satuan Kerja Kepatuhan akan terus melakukan sosialisasi kepada unit bisnis terkait untuk meyakinkan efektifitas tugasnya. Kewajiban penerapan FATCA telah diimplementasikan dengan mengidentifikasi nasabah peroranganorganisasi sebagai warga negara Amerika non-warga negara Amerika lewat analisa atas dokumen self declaration dan self certification, juga melalui pencarian secara elektronis untuk indikasi indicia. Hingga saat ini, Bangkok Bank Indonesia tidak memiliki nasabah warga negara Amerika. Karena BBL Indonesia mengikuti metode IGA 1. sehingga BBL Indonesia tidak wajib menyampaikan laporan 8966 warga negara Amerika yang memiliki rekening di BBL, laporan 1042 pelaporan pendapatan yang menjadi subyek pemotongan pajak selama tahun pelaporan dan laporan 1042 pelaporan jumlah pajak yang dipotong. Internal audit bank SKAI telah menyusun rencana audit operasional dan setiap tahun memeriksa semua unit bisnis berdasarkan jadwal rencana auditnya. Untuk tahun 2014 SKAI telah melakukan fungsi kerjanya dengan independen dan objektif. Pada saat melakukan fungsi kerjanya, SKAI telah mengevaluasi efisiensi dan keefektifan internal kontrol bank dan kepatuhan pada perundangan-undangan yang berlaku dan peraturan Bank Indonesia. Semua hasil temuan audit telah dilaporkan ke manajemen kantor cabang dan divisi internal audit kontrol Kantor Pusat dan informasi rekomendasi audit akan disebarkan ke unit bisnis yang bersangkutan untuk dilakukan tindakan perbaikan selanjutnya. Internal Audit SKAI juga mengawasi dan mengikuti kemajuan perkembangan dan perbaikan yang dibuat oleh unit bisnis yang terlibat. Internal Audit SKAI juga akan melakukan pemeriksaan tahunan mengenai kecukupan keamanan audit dan pengawasan internal dari BI-RTGS dan Sistem Kliring Nasional Bank Indonesia SKNBI apakah telah mematuhi peraturan yang berlaku. basis. Compliance unit and AML UKK officer are also in control of Know Your Customer and Anti-Money Laundering implementation pursuant to regulation. In the effort to better understanding for implementation of KYC and AML, the compliance unit would continuously perform socialization to relevant business unit ensuring effectiveness of duty. FATCA requirement has been implemented by identifying customers individualentity as USP NUSP through analyzing self declaration and self certification, also through indicia electronic search. Currently, BBL Indonesia does not have US customers recorded. Since BBL Indonesia following IGA1 method, so that BBL Indonesia does not have to fulfil reporting obligation for from 8966US specified persons who hold an account at BBL, form 1042 to report income type payments that are subject to withholding tax during the reportable year and form 1042 report the annual withholding amount. Banks’ Internal audit SKAI has already arranged the operational audit plan and has annually reviewed to all business units according to its audit-planning schedule. For year 2014, the bank’s SKAI has performed its function independently and objectively. In performing its audit function, SKAI has conducted and evaluated toward the efficiency and effectiveness of the bank’s internal control and compliance to the prevailing laws and Bank Indonesia regulations. All audit findings have been reported to branch management and internal audit control and division – Head Office and disseminate its audit recommendation to the business unit concerned for further action to be taken. Internal audit SKAI has also monitored and followed up the progress development and improvement made by business units involved. Internal audit SKAI has also performed annual review on the adequacy of security audit and internal review for BI-RTGS and National Clearing System SKNBI in order to be in compliance with the regulation.