PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated
202
59. CUSTODIAL SERVICES AND TRUST OPERATIONS continued
Trust Operations continued As of December 31, 2015, Bank Mandiri as Trustee has 85 trustee customers with the total value of
bonds and MTN issued amounting to Rp50,760,000 and USD44,100,000 full amount and as of December 31, 2014 has 63 trustee customers with the total value of bonds and MTN issued
amounting to Rp41,227,000 and USD9,900,000 full amount unaudited. Both Bank Mandiri’s Trust operations and Custodial Services have received Quality Certification ISO
9001:2008.
Trust A trustee services including managing customer’s assets portfolio the settlor based on a written
agreement between the Bank as the Trustee and customer’s for the benefits of beneficiary. Bank Mandiri has obtained the license principle and confirmation letter for the Trustee services based
on Bank Indonesia’s Letter No.1530DPB1PB1-1 dated April 26, 2013 and No.1532DPB1PB1-1 date August 28, 2013.
Functions of independent trust service are:
a. Paying Agent which receive and transfer money andor funds, and record cash in and cash out for and on behalf of the clients the settlor.
b. Investment Agency involve in placing, converting, and administering the placement of funds for and on behalf of the clients the settlor.
The trust service provided by the Bank is also include managing customers from various segments, including Oil Gas Company, Corporate and Commercial, Non-Profit Organization customers for
activities among others Distribution of gas sales results, Sale and purchaseacquisition of companies, and pooling of funds for foreign aid.
60. CHANNELING LOANS
Channeling loans based on sources of funds and economic sectors are as follows unaudited:
December 31, December 31, 2015
2014
Government: Agriculture
415,740 518,548
Manufacturing 14,543
91,200 Electricity, gas and water
- 6,970,950
Transportation and communications -
1,371,414 Construction
- 32,149
Others -
52,848 430,283
9,037,109
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated
203
60. CHANNELING LOANS continued
Bank Mandiri has been appointed to administer the loans received by the Government of the Republic of Indonesia in various currencies from several bilateral and multilateral financial institutions to finance
the Government’s projects through State Owned Enterprises, Region Owned Enterprises and Regional Governments, such as: Asian Development Bank, Banque Français Credit National, Barclays, BNP
Paribas, BNP Paribas CAI Belgium, Calyon BNP Paribas, CDC NES, Export Finance and Insurance Corporation EFIC Australia, IDA, International Bank for Reconstruction and Development,
Japan Bank for International Cooperation, Kreditanstalt Fur Wiederaufbau, Nederland Urban Sector Loan De Nederlanse Inveseringsbank voor Ontwikkelingslanden NV, Switzerland Government, RDI -
KI, Spain, U.B Denmark, US Export Import Bank and Overseas Economic Cooperation Fund. However, based on the Regulation of the Ministry of Finance No 40PMK.052015 dated
March 6, 2015 stated starting October 1, 2015 management administration of overseas loans are governed by the Ministry of Finance, resulting all of the loans governed by the administrative bank
being taken over by the Ministry of Finance. Channeling loans are not included in the consolidated statement of financial position as the credit risk
is not borne by the Bank and its Subsidiaries. Bank Mandiri’s responsibilities under the above arrangements include, among others, collections from borrowers and payments to the Government of
principal, interest and other charges and the maintenance of loan documentation. As compensation, Bank Mandiri receives banking fee which varies from 0.05 - 0.50 from the average of outstanding
loan balance in one year.
61. RISK MANAGEMENT
Bank Mandiri segregates independent risk management function based on the requirement of Bank Indonesias regulation and international best practices. Bank Mandiri adopts the Enterprise Risk
Management ERM concept as comprehensive and integrated risk management strategy which in line with Banks business process and operational needs. ERM implementation will give value added to the
Bank and stakeholders. ERM is a risk management process embedded in the business strategies and operations that are
integrated into daily decision making processes with ERM, the Bank establishes a systematic and comprehensive risk management framework credit risk, market risk and operational risk by
connecting the capital management and business processes to risks. In addition, ERM also applies consolidated risk management to the subsidiaries, which will be implemented gradually to maximise
the effectiveness of bank’s supervision and value creation to the Bank based on Bank Indonesia Regulation No. 86PBI2006 dated January 30, 2006.
The Bank’s risk management framework is based on Bank Indonesia’s Regulation No. 58PBI2003 dated May 19, 2003 regarding Risk Management Implementation for Commercial Banks as amended
by Bank Indonesia’s Regulation No. 1125PBI2009 dated July 1, 2009 regarding The Amendment of Bank Indonesia’s Regulations No. 58PBI2003 regarding the Implementation of Risk Management for
Commercial Bank. The Bank’s risk management framework is stated in the Bank Mandiri Risk Management Policy BMRMP, which is in line with the implementation plan of Basel II Accord in
Indonesia. Risk management framework consists of several policies as the guideline to the business growth and as a business enabler to ensure the Bank conduct prudential principle by examining the
risk management performance process identification - measurement – monitoring – risk mitigation for all organisation levels.
Active supervision by the Board of Directors and the Board of Commissioners on risk management activities, directly and indirectly, are implemented through the establishment of committees at the level
of the Board of Commissioners which are Risk Monitoring Committee, Integrated Governance Committe and Audit Committee. The Executive Committee under the supervision of the Board of
Directors consists of Assets Liabilities Committee ALCO, Risk Management Committee RMC, Integrated Risk Management Committee IRC Capital Subsidiaries Committee CSC, Wholesale
Business Committee WBC, Retail Business Committee RBC, Information Technology Committee ITC, Human Capital Policy Committee HCPC, Policy Procedure Committee PPC and Credit
Committee.
