Annual Report
2013
PT Bank Mandiri Persero Tbk.
4 GWM in foreign currency: 8 of DPK in foreign currency.
b. In relation to the transfer of supervisory powers over the banking sector from Bank Indonesia to the OJK,
the quarterly KPMM data should be used, as assessed by the OJK. In case of inconsistency between the results of the KPMM assessment received by Bank Indonesia from the OJK and the results of the KPMM
assessment conducted by the Bank, the results of the KPMM assessment conducted by the OJK will prevail.
c. Bank Indonesia may exempt:
1 banks conducting a merger or consolidation, with the approval of the OJK, from fulilling the
Primary GWM in Rupiah 2
banks whose operations are restricted by the OJK in relation to credit channeling and accepting deposits, at the request of the OJK, from fulilling the LDR GWM
d. Means of assessing a bank’s compliance with the regulation:
1 direct audit by Bank Indonesia;
2 joint audit by Bank Indonesia and OJK; or
3 use by Bank Indonesia of data from OJK audit.
4. 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.
1 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.
legislative and regulatory changes
Annual Report
2013
PT Bank Mandiri Persero Tbk.
legislative and regulatory changes
Changes in accounting policies
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
the divestment is aimed at adjusting the bank’s business strategy; 4
the divestment involves at least 50 of the shares held; 5
the 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; Such divestment must be realized no later than 6 months from its approval by BI.
No signiicant changes in accounting policies occurred during the course of 2013
Annual Report
2013
PT Bank Mandiri Persero Tbk.
long-term plan and strategy 2014
LONG-TERM PLAN 2010 – 2014
The irst phase of the Bank Mandiri transformations process ran from 2005 to 2009 and has brought signiicant changes to the Bank so that it is now the leading bank in Indonesia, with an excellent performance, competitiveness
level and business growth based on a foundation of strong corporate governance.
However, intense competition means that the Bank needs to further sharpen its focus in each business segment so as to emerge victorious in all segments. In addition, a various challenges facing the Bank are becoming increasingly
complex future so that it needs to be able to continue improving its performance on an ongoing basis, while at the same time providing the best quality services to all its customers. Accordingly, the Bank Mandiri transformation
process needs to continue.
As part of the Bank Mandiri further transformation process 2010-2014, it has revitalized its vision. The Bank’s 2014 long term vision is now “To be Indonesia’s most admired and progressive inancial institution.” This vision has been
spelled out in greater detail as follows: a.
Bank Mandiri is committed in building long-term relationships based on trust with both business and individual customers. Bank Mandiri serves all its customers based on international service standards
through the provision of innovative inancial solutions. Bank Mandiri wants to be known for its outstanding performance, human resources and teamwork.
b. By facilitating the growth and success for customers, Bank Mandiri also plays an active role in promoting the long-term growth of Indonesia, and consistently generates excellent returns for shareholders.
The above vision was communicated to the various Stakeholders based on the following formulations: 1.
Customers Bank Mandiri as a preferred and trustworthy inancial partner that is always ready to assist its customers. To
achieve this, the Bank will position itself as a trusted inancial advisor, a bank that can be relied on, and a bank that is available 24 hours a day.
2. Employee In the long run, Bank Mandiri is the best place for employees to get ahead and develop their careers through
innovation and solid teamwork. To achieve this, the Bank will position itself as a “Second home” for employees that allows them to develop their capabilities and build strong teamwork.
3. Investor Bank Mandiri wants to be the leading stock in Indonesia Indonesian Anchor Stock, one that is always in
demand by investors. To achieve this, the Bank will strive to produce the best possible performance on an ongoing basis.
Annual Report
2013
PT Bank Mandiri Persero Tbk.
As part of the process of further transformation on the way to achieving the Bank’s vision of being the most admired and progressive inancial institution in Indonesia, in 2014 the Bank will aim to achieve the largest market
capitalization in Indonesia and the 5th largest in ASEAN. Meanwhile, by 2020 the Bank expects to be the only Indonesian bank in the top three Southeast Asian banks in market capitalization terms. To achieve this, the Bank
Mandiri growth strategy will focus on the following three key areas: 1.
Strengthening leadership in the Wholesale Transaction Banking business. This will be achieved by ofering comprehensive inancial transaction solutions and building holistic relationships with the leading corporate
and commercial institutions in Indonesia.
2. Becoming the bank of choice for retail deposit customers. To achieve this, the Bank will provide a unique
and superior banking experience to customers “diferentiated customer experience” as well as innovative transaction solutions.
3. Becoming 1st or 2nd position in the retail inancing segment. Bank Mandiri aims to overcome the competition
in the mortgage, personal loan, and consumer card businesses. In addition, the Bank also plans to become a major player in the micro banking segment, and to see of the competition in the Islamic banking business.
These three focuses will also be supported by strengthening the organization so as to provide integrated service solutions, by improving infrastructure branch oice, IT, operations, risk management and by strengthening human
resources.
2014 STRATEGIC PLAN
The year 2014 will be a milestone in the transformation of Bank Mandiri as it marks the last year the Bank of the further transformation period, which lays the foundations for the next transformation program. Bank Mandiri’s
performance remains solid as evident from the fact that the Bank was still able to grow in the midst of the global economic crisis. Now Bank Mandiri is preparing to move up to the next level through its 2015-2020 Corporate Plan
so as to achieve its “Vision 2020” of being the best bank in ASEAN.
To that end, Bank Mandiri has developed speciic strategies aimed at achieving key targets in 2014, namely, to increase the proportion of low-cost funds to 68.9, grow retail loans by 25, maintain NPLs at below 2, boost
fee income growth to 24.1 and to maintain the CER at below 40. These key targets will be achieved through the application of the balanced scorecard approach based on four categories of strategic goals perspectives, as
explained below:
1. Financial Perspective
