Changes in the Composition of the Board of Commissioners and the Board of The Appointment of Public Accountant

32 2013 Annual Report BNI The loan growth was also accompanied by improvements in the quality of productive assets as reflected in a lower NPL Gross ratio of 2.2 at the end of 2013 from 2.8 in December 2012. Despite delivering improvements in asset quality, more efforts to strengthen loan structure and improve productive asset quality are needed to continue to deliver lower NPL and write-offs in the future. At the end of 2013, third party deposits reached Rp291.9 trillion, growing by 13.3 from a year ago. This increase was supported by 20.2 growth in current accounts, 11.7 growth in savings accounts and 9.1 growth in time deposits. Since growth in the savings account and time deposits were still below the defined target, a more optimum strategy and efforts are necessary to increase funding growth. Liquidity was well maintained within the range set by Bank Indonesia, with Loan to Deposit Ratio LDR of 85.3 in 2013, an increase compared with 77.5 a year earlier as a result of higher loan growth compared to growth in third party deposits. As such, efforts to maintain balanced third party funds and loan growth are important to ensure a healthy and ideal level of liquidity. The Bank was able to manage its capital well in accordance with its business characteristics, scale of business, and business complexity. In 2013, Capital Adequacy Ratio CAR was recorded at 15.1, well above the minimum level stipulated by Bank Indonesia. The lower CAR in 2013 was a result of higher loan growth, so we need to address the Bank’s long term capital management. In general, the Bank has managed its risk management well and adequately. The possibility of loss from risks attached to the Bank’s business is considered low and the quality of risk management implementation was considered adequate, despite some minor shortcomings that need to be addressed. Given the market volatility arising from the global economic condition, the Bank needs to improve its risk management capabilities, in particular those related to market and credit risks. In addition to reporting the results of monitoring the Company’s performance in 2013, the Board of Commissioners deemed it necessary to submit to the stakeholders a report on the following matters:

1. Changes in the Composition of the Board of Commissioners and the Board of

Directors On March 28, 2013, the AGMS for the year 2012 decided changes in the Board of Commissioners and Board of Directors. The AGMS approved the resignation of Bapak Bagus Rumbogo as member of the Board of Commissioners effective on that day and appointed Bapak A. Pandu Djajanto as a new member of the Board effective on October 25, 2013 after obtaining approval from Bank Indonesia in the Fit and Proper Test as well as after fulfilling the prevailing regulations. The AGMS for the year 2012 also decided to appoint Bapak Sutirta Budiman as a new Director. However, based on Letter No. 1546GBIDPIPConfidential from Bank Indonesia dated September 4, 2013, the appointee has not fulfilled the criteria for Directors appointment.

2. The Appointment of Public Accountant

One of the resolutions adopted in the GMS on March 28, 2013 was to grant the Board of Commissioners the authority to appoint a public accountant firm KAP to perform the audit on the Consolidated Financial Statements of the Bank and the Annual Report of the Partnership and Community Development Program PKBL for the financial year ended December 31, 2013, and to decide the compensation and other terms according to the prevailing regulations. Board of Commissioners Supervisory Report 33 2013 Annual Report BNI After considering the recommendation from the Audit Committee and the Public Accountant Procurement Team, the Board of Commissioners appointed KAP Tanudiredja, Wibisana Rekan PwC Indonesia to conduct the audit of the Consolidated Financial Statements of BNI, Financial Statements of Partnership Program and Community Development Program, Financial Statement and Investment Portfolio Report of DPLK, Custodian Department Operation, Performance Evaluation and Bank Indonesia Scripless Securities Settlement System BI S4 for the financial year ended December 31, 2013. The appointment of KAP has been done in accordance of the procedure and prevailing laws.

3. Loan Disbursement