bank bjb’s liquidity condition.

annual report 2016 569 Growing Together with new expanding opportunities

2. Pembentukan Komite Tata Kelola Terintegrasi

Berdasarkan Surat Keputusan Dewan Komisaris nomor 05 SKDK2016 tanggal 31 Maret 2016 tentang Pembentukan Komite Tata Kelola Terintegrasi, Dewan Komisaris Bank telah menetapkan susunan keanggotaan Komite Tata Kelola Terintegrasi sebagai berikut: Ketua : Yayat Sutaryat Anggota : Klemi Subiyantoro : Rudhyanto Mooduto : Suwarta : Aldrin Herwany

3. Pembentukan Komite Manajemen Risiko Terintegrasi

Bank telah membentuk Komite Manajemen Risiko Terintegrasi, melalui Surat Keputusan Direksi nomor 1146SKDIR-MR2016 tanggal 28 Desember 2016 tentang Susunan Komite Manajemen Risiko Terintegrasi. Berdasarkan Surat Keputusan Direksi tersebut Bank selaku Entitas Utama telah menentukan susunan keanggotaan Komite sebagai berikut: Ketua merangkap anggota: • Direktur Kepatuhan dan Manajemen Risiko Sekretaris: • Pemimpin Divisi Manajemen Risiko Merangkap sebagai Anggota Tetap Anggota Tetap: • Direktur membawahi fungsi manajemen risiko masing-masing LJK dalam Konglomerasi Keuangan • Pemimpin Divisi Audit Internal • Pemimpin Divisi Kepatuhan • Pemimpin Divisi Pengendalian Keuangan • Pemimpin Divisi Manajemen Anak Perusahaan Anggota Tidak Tetap: • Pejabat Eksekutif Lembaga Jasa Keuangan dalam Konglomerasi Keuangan yang memiliki keterkaitan dengan topik pembahasan.

4. Penyusunan Pedoman Tata Kelola Terintegrasi

Sebagai Entitas Utama, Bank juga memiliki kewajiban untuk menyusun Pedoman Tata Kelola Terintegrasi. Penyusunan Pedoman Tata Kelola Terintegrasi dimaksud berpedoman kepada Peraturan Otoritas Jasa Keuangan nomor 18 POJK.032014 tentang Penerapan Tata Kelola Bagi Konglomerasi Keuangan serta ketentuan-ketentuan yang berlaku bagi masing-masing Lembaga Jasa Keuangan yang tergabung di dalam Konglomerasi Keuangan. Bank telah menetapkan pedoman tata kelola terintegrasi melalui Surat Keputusan Direksi nomor 0104SKDIR-KP2016 tanggal 15 Februari 2016 tentang Kebijakan Tata Kelola Terintegrasi Dalam Konglomerasi Keuangan PT. Bank Pembangunan

2. The Formation of Integrated Governance Committee

Based on the Board of Commissioner’s Decree number 05SKDK2016 dated 31 March 2016 regarding the Formation of Integrated Governance Committee, the Board of Commissioner has stipulated the following Integrated Governance Committee: Head :YayatSutaryat Members : KlemiSubiyantoro : RudhyantoMooduto : Suwarta : Aldrin Herwany

3. The Formation of Integrated Risk Management Committee

The Bank has formed an Integrated Risk Management Committee through Directors’ Decree number 1146 SKDIR-MR2016 dated 28 December 2016 regarding Composition of Integrated Risk Management Committee. Based on the Directors’ Decree, the Bank as the Main Entity has determined the following composition of the Committee: Head, concurrently a member: • Compliance and Risk Management Director Secretary: • Head of Risk Management Division concurrently a Permanent Member Permanent Members: • Directors in charge of each risk management functions LJK in Financial Conglomerate • Head of Internal Audit Division • Head of Compliance Division • Head of Financial Controlling Division • Head of Subsidiaries Management Non-permanent Members: • Executive Officers of Financial Service Institutions in Financial Conglomerate related to the discussed topics.

4. Preparation of Integrated Governance Guideline

As a Main Entity, the Bank also has the obligation to prepare an Integrated Governance Guideline. Preparation of Integrated Governance said Guideline is based on the Regulation of Financial Services Authority No.18 POJK.032014 regarding Governance Implementation for Financial Conglomerate and other provisions applicable to the respective Financial Services Institutions incorporated within the Financial Conglomerate. The Bank has established a guideline of integrated governance with Directors’ Decree No. 0104SKDIR-KP2016 dated 15 February 2016 on Integrated Governance Policy within Financial Conglomerate of PT Bank Pembangunan Daerah Jawa Barat dan Banten, PENERAPAN TATA KELOLA TERINTEGRASI inTegRaTeD goveRnance iMPleMenTaTion Laporan Tahunan 2016 570 Semakin Berkembang Bersama peluang Baru yang Membentang Daerah Jawa Barat dan Banten, Tbk., yang mana Kebijakan tersebut telah mendapat persetujuan Dewan Komisaris sesuai dengan Surat nomor 010DK2016 tanggal 04 Februari 2016 perihal Persetujuan Atas Kebijakan Tata Kelola Terintegrasi.

5. Penyusunan Kebijakan dan Pedoman Manajemen Risiko Terintegrasi

Salah satu upaya di dalam pelaksanaan penerapan manajemen risiko terintegrasi, bank telah menyusun Kebijakan dan Pedoman Manajemen Risiko Terintegrasi yang cakupannya disesuaikan dengan Peraturan Otoritas Jasa Keuangan nomor 17POJK.032014 tentang Penerapan Manajemen Risiko Terintegrasi bagi Konglomerasi Keuangan. Kebijakan manajemen risiko terintegrasi ditetapkan melalui Surat Keputusan Direksi nomor 0194SKDIR-MR2016 tanggal 3 Maret 2016 tentang Kebijakan Manajemen Risiko Terintegrasi dan SK Direksi Nomor 1154SKDIR- MR2016 Tanggal 27 Desember 2016 tentang Pedoman Manajemen Risiko Terintegrasi sebagai implementasi dari pilar 2 dua Penerapan Manajemen Risiko Terintegrasi sebagaimana tersebut diatas untuk kemudian dijadikan pedoman penyusunan Kebijakan Manajemen Terintegrasi di perusahaan anak dan perusahaan terelasi.

6. Penyusunan Laporan Pelaksanaan Tata Kelola Terintegrasi

Sesuai Surat Edaran Otoritas Jasa Keuangan nomor 15 SEOJK.032015 tanggal 25 Mei 2015 perihal Penerapan Tata Kelola Terintegrasi Bagi Konglomerasi Keuangan bank selaku Entitas Utama wajib menyusun dan menyampaikan Laporan Tahunan Pelaksanaan Tata Kelola Terintegrasi kepada Otoritas Jasa Keuangan paling lama 5 lima bulan sejak tahun buku berakhir, serta mempublikasikan laporan tahunan dimaksud dalam situs web Entitas Utama paling lama 5 lima bulan sejak tahun buku berakhir. Untuk itu, Bank telah menyusun laporan Pelaksanaan Tata Kelola Terintegrasi bank bjb Tahun 2015 dan telah menyampaikan laporan tersebut kepada Otoritas Jasa Keuangan serta telah mempublikasikan laporan tahunan dimaksud dalam situs web Bank. Tbk., in which the said Policy was approved by the Board of Commissioners in accordance with Letter No. 010DK2016 dated 4 February 2016 regarding Approval on Integrated Governance Policy.

5. Preparation of Policy and Guideline of Integrated Risk Management

In the efforts to implement integrated risk management, the Bank has developed Policies and Guidelines of Integrated Risk Management, in which the scope abides with the Financial Services Authority Regulation No. 17 POJK.032014 regarding Integrated Risk Management Implementation for Financial Conglomerate. The said policy was regulated with a Decree of BOD No. 0194SKDIR- MR2016 dated March 3, 2016 regarding Integrated Risk Management Policy and Decree of BOD No.1154SKDIR- MR2016 dated 27 December 2016 regarding Guidelines for Integrated Risk Management as an implementation of the second 2nd pilar of the Integrated Risk Management Implementation as stated above and the said policy is used as the guideline for preparation of Integrated Management Policy in the subsidiaries and related companies.

6. Preparation of Integrated Governance Implementation Report

In accordance with the Circular Letter of Financial Services Authority No. 15SEOJK.032015 dated 25 May 2015 regarding Integrated Governance Implementation for Financial Conglomerate, the Bank as a Main Entity shall prepare and submit an Annual Report on the Implementation of Integrated Governance to the Financial Services Authority no later than five 5 months after the end of fiscal year, and to publish the said annual report on the Main Entity’s website no later than 5 five months after the end of fiscal year. To that end, the Bank has prepared bank bjb Report on Implementation of Integrated Governance 2015, submitted the said report to Financial Services Authority, and published the said annual report on the Bank’s website. PENERAPAN TATA KELOLA TERINTEGRASI inTegRaTeD goveRnance iMPleMenTaTion annual report 2016 571 Growing Together with new expanding opportunities ASSESSMENT TATA KELOLA TERINTEGRASI Sesuai Surat Edaran Otoritas Jasa Keuangan nomor 15 SEOJK.032015 tanggal 25 Mei 2015 perihal Penerapan Tata Kelola Terintegrasi Bagi Konglomerasi Keuangan bank bjb selaku Entitas Utama melakukan penilaian sendiri self assessment atas pelaksanaan Tata Kelola Terintegrasi pada Konglomerasi Keuangan dan menyampaikan laporan penilaian pelaksanaan Tata Kelola Terintegrasi secara berkala, setiap semester untuk posisi akhir bulan Juni dan Desember. Di samping itu, bank bjb wajib menyusun dan menyampaikan Laporan Tahunan Pelaksanaan Tata Kelola Terintegrasi kepada Otoritas Jasa Keuangan paling lama 5 lima bulan sejak tahun buku berakhir, serta mempublikasikan laporan tahunan dimaksud dalam situs web Entitas Utama paling lama 5 lima bulan sejak tahun buku berakhir. HASIL ASSESSMENT TATA KELOLA TERINTEGRASI Uraian tentang hasil assessment 2016 dijelaskan sebagai berikut. Hasil Penilaian sendiri Self Assessment Pelaksanaan Tata Kelola Terintegrasi bagi Konglomerasi Keuangan self assessment result on the implementation of integrated Governance for financial conglomeration Perigkat rating Definisi Peringkat rating Definition Individual 2 Konglomerasi Keuangan dinilai telah melakukan penerapan Tata Kelola Terintegrasi yang secara umum baik. hal ini tercermin dari pemenuhan yang memadai atas penerapan prinsip Tata Kelola Terintegrasi. apabila terdapat kelemahan dalam penerapan Tata Kelola Terintegrasi, secara umum kelemahan tersebut kurang signifikan dan dapat diselesaikan dengan tindakan normal oleh entitas utama danatau LJK. Financial conglomerate is rated as has been implemented a generally good Integrated Governance. This is reflected in an adequate fulfillment of the implementetaion of the Integrated Governance principles. If there are weaknesseses in the implementation of Integrated Governance, the weaknesses are less significant and can be solved with normal action by the Main entities andor LJK. analisis Kesimpulan: Berdasarkan analisis terhadap indikator pada seluruh factor penilaian pelaksanaan Tata Kelola Terintegrasi, disimpulkan bahwa:

a. struktur Tata Kelola Terintegrasi

1. nilai – nilai yang mencerminkan kekuatan aspek struktur Tata Kelola Terintegrasi Konglomerasi Keuangan adalah : • Direksi entitas utama telah dinyatakan lulus fit and proper test yang diselenggarakan oleh otoritas Jasa Keuangan sehingga memenuhi persyaratan integritas, kompetensi dan reputasi keuangan yang harus dimiliki Direksi entitas utama. • Dewan Komisaris entitas utama telah dinyatakan lulus pada pelaksanaan fit and proper test yang diselenggarakan oleh otoritas Jasa Keuangan sehingga memenuhi persyaratan integritas, kompetensi, dan reputasi keuangan yang harus dimiliki Dewan Komisaris entitas utama. • entitas utama telah membentuk Komite Tata Kelola Terintegrasi yang diketuai oleh Dewan Komisaris Independen dan pihak independen. • entitas utama telah membentuk Satuan Kerja audit Internal, Satuan Kerja Kepatuhan dan Satuan Kerja Manajemen risiko yang mendukung penerapan Tata Kelola Terintegrasi dengan Sumber Daya Manusia yang kompeten dan dapat bekerja secara independen. • entitas utama telah menetapkan Kebijakan Tata Kelola Terintegrasi yang yang akan ditetapkan di dalam Konglomerasi Keuangan. • entitas utama telah menetapkan Kebijakan Manajemen risiko Terintegrasi dalam rangka pemenuhan kewajiban entitas utama terkait penyusunan Kebijakan, prosedur dan penetapan Limit risiko pada Konglomerasi Keuangan. • entitas utama telah menetapkan Standar operasional prosedur pelaporan Kewajiban penyediaan Modal Minimum Terintegrasi dan metodologi serta bobot profil risiko Terintegrasi Transaksi Intra-Grup. • entitas utama telah menetapkan Komite Manajemen risiko Terintegrasi yang diketuai oleh Direktur Kepatuhan dan Manajemen risiko entitas utama. THE ASSESSMENT OF INTEGRATED GOVERNANCE In accordance with the Circular Letter of Financial Services Authority No. 15SEOJK.032015 dated 25 May 2015 regarding Integrated Governance Implementation for Financial Conglomerate, bank bjb as a Main Entity has conducted self assessment on the implementation of Integrated Governance on Financial Conglomerate and submitted the report of Integrated Governance assessment regularly of half-annually for end of June and end of December position. In addition, bank bjb shall prepare and submit the Annual Report of Integrated Governance Implementation to Financial Services Authority no later than five 5 months after the fiscal year ends, and publish the said annual report on the the Main Entity’s website no later than 5 five months after the the fiscal year ends. THE ASSESSMENT RESULTS OF INTEGRATED GOVERNANCE The assessment results for 2016 were as follows. PENERAPAN TATA KELOLA TERINTEGRASI inTegRaTeD goveRnance iMPleMenTaTion 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