13.15 MB
Annual Report
2012
Ou
me
nt
Good
Governance
and
Innovation:
rF
oun
dat
ion f
or
y
t
i
l
i
S ust a ina b
p
o
l
ve
e
D
B R I sust ained it s not able achievement s in
2 012 , a result of it s qualit y per f or mance.
Consist ent implement at ion of Good Corporat e
Governance (GCG) has led t he Bank’s
operat ions, enabling it t o gain st akeholders’
t rust and t o increase it s corporat e value, as w ell
as t o ensure a sust ainable grow t h.
By upholding t he GCG principles, BRI is
confi dent t o reach it s t arget t o becoming t he
Indonesia’s most valuable bank.
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
1
C onsist ent implement at ion of
C orporat e G overnance has support ed
our sust ainable business performance.
In 2012, w it h consist ent implement at ion
of t he principles of Good Corporat e
Governance, alongside w it h operat ional
ef fi ciency, t he Bank had scored qualit y
asset grow t h, mirrored by a high
profi t abilit y fi gure. As such, t he Bank
had maint ained it self as one of t he
most profi t able banks in Indonesia, as
it is refl ect ed on it s - higher - t han average of Indonesia’s banking indust ry’s
profi t abilit y rat ios.
ROA
5.15%
*
*
B ank only
Op er at i n g E
xp en se t o
Op er at i n g I
n co m e
59.93%
*
2
*
B ank only
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
ROE
Net Profi t
38.66%*
Rp18.69 T
*B ank only
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
3
Loa n G r owt h
22.92%
N P L (G r os s )
1.83%
Third Part y Funds
17.15%
4
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
A consist ent applicat ions of prudent
management policies cont ribut e t o our
qualit y asset growt h.
Led by t he principles of
Good Corporat e Governance,
t he Bank had applied
prudent credit policies in
pursuing pot ent ial business
prospect s, result ing in a
qualit y asset grow t h.
This qualit y asset s grow t h
support ed by st ruct urally
healt hy t hird part y f unds, as it
is refl ect ed by t he dominance
of low cost f unds w hich
reached around 60% of t he
t ot al t hird part ies f unds.
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
5
t omer s ’
Tot a l C us
Acc ount
± 42
6
million
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
G ood C or porat e G overnance
Principles guide us in achieving our
sust ainable gr owt h.
Amid increasing compet it ions
in Indonesia’s banking indust ry,
BRI ret ains it s st rong capacit ies,
bot h in f unds raising and
loans disbursement . Those
accomplishment s are root ed f rom
t he implement at ion of Good
Corporat e Governance alt oget her
w it h cont inuous innovat ions in
product s and services, enabling
t he Bank t o maint ain and t o
develop it s loyal cust omer base.
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
7
We pr ovide comprehensive and
qualit y banking services support ed
by a widespread business net wor k.
BRI is bolst ering it s posit ion as t he biggest
commercial bank w it h diverse range of
accessible, comprehensive, and qualit y
product s and services t o cat er t he needs of
t he people, w herever t hey are.
The pract ice of Good Corporat e
Governance has cont ribut ed t o t he
development of high qualit y product s and
services. This achievement is support ed
by a w idespread business net w ork
encompassing 9,052 out let s (Head Of fi ces,
Regional Of fi ces, Branches, Sub-Branches,
BRI Unit s, Cash Of fi ces, and TerasBRI) and
59,241 e-channel net w orks (ATM , KiosK,
CDM , EDC, and e-BUZZ).
8
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
9,052
Out let s
Connect ed real-t ime online
59,241
et wor ks
e - C ha nne l n
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
9
G ood C or porat e G overnance
pr ovides t he best result s
for our gr owt h.
10
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
IT
2
1
Inf r a s t r uct ur e
Dat a Center
Disast er Recovery C
enter
N umber of
Lear ning Cent ers
7
Spread throughout Indonesia
BRI successf ully recording qualit y
grow t h and laying a st rong
f oundat ion f or sust ainable
grow t h by employing Good
Corporat e Governance, reliable
IT inf rast ruct ure, as w ell as, by
developing human resources’
compet ency and int egrit y.
Such endeavors are aimed t o
increase cust omers’ loyalt y and
t o give opt imal ret urns f or
st akeholders.
Va lue
e
it
s
o
p
m
o
C
s me nt
s
e
s
s
A
f
l
e
S
G CG
C at eg or y
VERY GOOD
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
11
Financial Highlight s
Financial Overview
Numbers from Consolidated Financial Statement
In billion Rupiah
2008
2009
2010
2011
2012
Balance Sheet
Tot al Asset s
246,077
316,947
404,286
469,899
551,337
Tot al Earning Asset s
228,781
299,063
379,696
432,647
499,042
Loan-Gross
Government Recap Bonds
Tot al Liabilit ies
161,108
16,352
223,720
208,123
15,027
252,489
13,626
294,515
8,996
362,007
4,316
289,690
367,612
420,079
486,455
Third Part y Funds
201,537
255,928
333,652
384,264
450,166
- Demand Deposit s
39,923
50,094
77,364
76,779
80,075
- Saving Deposit s
88,077
104,463
125,990
154,133
184,365
- Time Deposit s
73,538
101,371
130,298
153,353
185,726
7,599
21,284
17,297
19,361
15,784
22,357
27,257
36,673
49,820
64,882
Ot her Int erest Bearing Liabilit ies
Capit al/Equit y
Income Statement
Int erest Income:
- Wit h Government Bonds Int erest
28,097
35,334
44,615
48,164
49,610
- Wit hout Government Bonds Int erest
26,166
33,528
43,109
47,053
49,004
Net Int erest Income
- Wit h Government Bonds Int erest
19,651
23,049
32,889
34,427
36,484
- Wit hout Government Bonds Int erest
17,721
21,244
31,382
33,316
35,878
Ot her Operat ing Income
Ot her Operat ing Expenses
Provision f or impairment losses on fi nancial asset s - net
2,535
3,270
5,545
5,776
8,390
(10,997)
(11,960)
(16,114)
(17,086)
(19,491)
(2,700)
(2,844)
(5,799)
(7,917)
(5,533)
Income bef ore Tax
8,822
9,891
14,908
18,756
23,860
Net Income
5,958
7,308
11,472
15,088
18,687
18,681
Income f or t he year at t ribut able t o Equit y holders of t he Parent Ent it y
N/A
N/A
N/A
N/A
11,472
Nil
15,083
Income f or t he year at t ribut able t o Non-cont rolling int erest
5
6
Tot al Comprehensive Income f or t he year
N/A
N/A
11,559
15,296
18,681
11,559
Nil
15,288
18,652
Total Comprehensive Income for the year attributable to Equity holders of the Parent Entity
N/A
N/A
Tot al Comprehensive Income f or t he year at t ribut able t o Non-cont rolling int erest
N/A
N/A
248,50
304,75
13.18%
N/A
Earning per-share (Rp)
Financial Ratios
Capital
Capit al Adequacy Rat io (CAR)*
8
29
478,36
Bank number only
628,91
778,93
13.20%
13.76%
14.96%
16.95%
2.59%
2.19%
1.79%
1.19%
Earning Assets
Earning Asset s & Non Perf orming Asset s t o Tot al Earning Asset s and Non
Perf orming Asset
Non Perf orming Earning Asset s
2.18%
2.68%
2.24%
1.85%
1.46%
N/A
4.29%
4.58%
4.51%
3.43%
2.80%
3.52%
2.78%
2.30%
1.78%
Allow ance f or Possible Losses t o Earning Asset s
Non Perf orming Loans (NPL Gross)
Profitability
ROA
4.18%
3.73%
4.64%
4.93%
5.15%
ROE
34.50%
35.22%
43.83%
42.49%
38.66%
NIM
10.18%
9.14%
10.77%
9.58%
8.42%
BOPO (Operat ing Expenses t o Operat ing Income)
72.65%
77.66%
70.86%
66.69%
59.93%
79.93%
80.88%
75.17%
76.20%
79.85%
Liquidity
LDR
Compliance
Violat ion of Legal Lending Limit (LLL)
- Relat ed Part ies
Nil
Nil
Nil
Nil
Nil
- Third Part ies
Nil
Nil
Nil
Nil
Nil
Excess of Legal Lending Limit (LLL)
- Relat ed Part ies
Nil
Nil
Nil
Nil
Nil
- Third Part ies
Nil
Nil
Nil
Nil
Nil
St at ut ory Reserves
5.57%
5.90%
8.05%
9.33%
10.64%
Net Open Posit ion
13.55%
5.22%
4.45%
5.49%
3.00%
Not e:
The above fi nancial perf ormance fi gures represent BRI’s consolidat ed fi nancial report w it h it s subsidiaries: PT Bank BRI Syariah, PT BRI Agroniaga Tbk. and BRI Remit t ance Co. Lt d, f or
t he year 2011 and 2012, but only PT BRI Syariah f or t he year 2010. Financial rat ios are of bank only.
* M arket risks are t aken int o account st art ing 2004 and operat ional risks are t aken int o account st art ing 2010.
12
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
Tot al Asset s
Tot al Loans
(In billion Rupiah)
(In billion Rupiah)
Int erest Income and
Net Int erest Income
(In billion Rupiah)
Interest Income
Net Interest Income
49,610
551,337
2012
362,007
2012
469,899
2011
404,286
2010
316,947
2009
294,515
2011
252,489
2010
2008
36,484
48,164
2011
34,427
44,615
32,889
2010
208,123
2009
246,077
2008
2012
161,108
2009
34,334
23,049
2008
28,097
19,651
Fee Based Income
Third Part y Funds
Net Profi t
(In billion Rupiah)
(In billion Rupiah)
(In billion Rupiah)
450,166
3,928
2012
2012
3,367
2011
2009
2008
2012
384,264
2011
2,813
2010
333,652
2010
2,102
2009
1,767
2008
18,687
255,928
2008
ROE
Operat ing Expenses t o Operat ing Income
CAR
(% )
(% )
(% )
38.66
2012
42.49
43.83
2010
7,308
5,958
59.93
16.95
2012
2011
11,472
2010
2009
201,537
15,088
2011
2011
2010
2009
35.22
2009
2008
34.50
2008
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
2012
66.69
70.86
77.66
72.65
2011
2010
14.96
13.76
2009
13.20
2008
13.18
13
2 012 E vent Highlight s
January
8
18
25
BRIzzi Product Launching in Bali
Financial Lect ure:Post -Invest ment Grade What ’s Next ?
2011 Review & 2012 Out look Seminar – Through perf ormance
accelerat ion, SOEs are prepared t o f ace crisis
February
28
• Present at ion of BRI Financial Perf ormance 2011
• Signing of M oU on Land and Building Tax management bet w een
BRI and Bogor M unicipal Government
M arch
7
14
28
Adikriya Exhibit ion
Signing of M oU bet w een BRI and t he Public Housing M inist ry
BRI Annual General M eet ing of Shareholders 2012
April
26
27
Signing of M oU bet w een BRI and Telkomvision
Signing of invest ment loan bet w een BRI and
Pet rokimia Gresik
M ay
1
6
• Signing of Let t er of Int ent bet w een BRI and Banco
Nacional Comercial De Timor Lest e
• Signing of M oU bet w een BRI and Indust rial Bank of
Korea
Grand opening of BRI Priorit y Banking Services in
Regional Of fi ce of Yogyakart a
June
1
26
14
Signing of syndicat ed loan on Gempol-Pasuruan Toll Road project
BRI-SOEs CSR program “ Berbagi Kacamat a”
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
July
20
Signing of agreement on loan disbursement f or Part nership
Program bet w een BRI and PTPN IX
August
BRI CSR: Breaking of Fast (Ramadhan) w it h 3,500 orphans
10
15
BRI CSR: The visit and scholarship program t o t he
member of Paskibraka Nasional 2012
September
4
BRI CSR Scholarships Aw ards t o Universit as
Terbuka St udent s
10
BRI CSR on Smart Boat s Educat ion
program (Pengadaan Kapal Pint ar)
October
16
22-23
Visit f rom Sout h Af rica’s Chamber of Trade and Indust ry
2012 Int ernat ional M irofi nance Conf erence in Yogyakart a
November
2
4
28
BRI M obile product launching
Indocomt ech Exhibit ion (Oct ober 31 - November 4, 2012)
BRI Public Expose 2012
December
16
23
Sunday Fest ival
Family Day in celebrat ing BRI’s 117t h anniversary
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
15
Awards and Cert if icat ions
vement s
B R I’s a chie
2 ha ve
1
0
2
t
u
o
h
g
u
t hr o
d s f r om
r
a
w
a
s
u
io
r
ea r ned va
nt p a r t ies
e
d
n
e
p
e
d
n
i
,
ext er na l
Best Bank in 5 Consecutive Years
Invest or M agazine
Forbes Global 2000
One of The World’s Biggest Public
Companies
Forbes
Top 10 out of 300 banks w ith best
ROE in Asia and 10 biggest banks
in terms of Dividend Payment
Tabloid Asian
16
Best of the year 2011
for Indonesia
The Banker Aw ard 2011
Banking Service Excellence Aw ard 2012
5 th Overall Performance for
Commercial Bank
M RI & Inf obank
The M ost Valuable Brand in
Indonesia
Product Category: Banks
SWA
Banking Service Excellence Aw ard 2012
1st Best SM S Banking
M RI & Inf obank
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
7th Anniversary Indonesia Property &
Bank Aw ard 2012
The M ost Admired M ortgage Banking
Product Category: State Ow ned/
Commercial Bank w ith Very Good
performance
Propert y dan Bank M agazine
Investor Aw ards
Best Listed Company 2012
Banking Sector’s best Issuer
Invest or M agazine
25 Listed Companies in Sustainable
Responsible Investment (SRI) KEHATI Index
Indonesian Biodiversit y Foundat ion
Kesetiakaw anan Aw ard
2012 in Financial Institution
Category
M inist ry of Social Aff airs of t he
Republic of Indonesia
Social Business Innovation Aw ard
2012 for Innovations in M SM Es
empow erment
Wart a Ekonomi
Service Quality Aw ard 2012 for BRI
Prioritas
Carre
Cert ifi cat ions
ISO 9001:2008
SNI ISO 9001:2008
BRI’s Sent ra Operasi (Cent re of Operat ions Division)
has been operat ing under a Qualit y M anagement
Syst em, in line w it h t he ISO 9001:2008 f or Provision of
Payment Syst em by RTGS, Clearing and Remit t ance.
It received cert ifi cat ion f rom Lloyd’s Regist er Qualit y
Assurance on December 12 2012. The cert ifi cat e w ill
be valid unt il December 12, 2015
ISO 9001:2008
BRI’s Cont act Cent er Service (LCC) operat es under
a qualit y management syst em, in line w it h ISO
9001:2008. It received cert ifi cat ion f rom Verifi cat ion
New Zealand Limit ed on December 5, 2011 and t he
cert ifi cat e w ill remain valid unt il December 5, 2014
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
17
C ont ent s
Pag e
19558
BRuesnincaesnsa
SOtver ar vt eg is
iew
2 0 13
18
Financial Highlight s
12
Dividends and Dividend Policy
72
2012 Event Highlight s
14
Subordinat ed Bonds
73
Aw ards and Cert ifi cat ions
16
Operational Overview
74
M anagement Reports
21
Prospect s and General St rat egies
76
Report of t he President Commissioners
22
Human Resources M anagement
78
2012 Report on t he Supervisory Dut ies of
Board of Commissioners
26
M arket ing
86
Inf ormat ion Technology
Board of Commissioners
94
30
Cent er of Operat ions
Report of t he President Direct or
96
32
Board of Direct ors
Fixed Asset M anagement and Procurement of
Goods Services
98
42
Statement of Responsibility for 2012 Annual Report
44
Risk M anagement
100
Company Profile
46
M anagement Discussion and Analysis
153
Company’s General Inf ormat ion
48
General Overview
156
BRI in brief
50
Business Overview
158
M ilest one
51
M icro Business and Program
159
Vision and M ission
52
Ret ail Business
164
Corporat e Values
53
SOE’s and Corporat e Business
172
Product s and Services
54
Int ernat ional Business
175
Operat ional Area M ap/Net w ork
56
178
Organizat ional St ruct ure
60
Treasury Business and Capit al M arket
Support Services
Subsidiaries and Associat ion
62
Capit al M arket Support ing Inst it ut ions and
Prof essions
63
Financial Overview
182
Profi t and Loss St at ement
183
Financial St at ement
190
Cash Flow
198
Information for Investor
65
Financial Rat ios
199
St ocks Summary
66
200
Bonds Summary
67
Capit al Expendit ures and Commit ment s f or
Capit al Expendit ures
Ot her Financial Inf ormat ion
Share List ing Chronology
201
68
Ot her M at erial Inf ormat ion
M anagement St ock Opt ion Plan
203
69
Composit ion of Shareholders
70
Capit al M arket and Share Perf ormance
71
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
Page
Page
190
100
Fina ncia l
S t at ement
t
R is k M anag emen
Subsidiaries
Page
294
g
Whis t leblowin
S y st em
210
Responsibilit y f or t he Environment
309
PT Bank BRI Syariah
210
Responsibilit y t ow ard t he Communit y
310
PT Bank Rakyat Indonesia Agroniaga Tbk.
212
CSR Program
312
BRI Remit t ance Co.Lt d
213
Corporate Data
316
214
Profi le of Board of Commissioners
318
The Aim of Corporat e Governance
Implement at ion
216
Profi le of Board of Direct ors
322
GCG Assessment
217
GCG Implement at ion Road M ap
219
Corporat e Governance Guidelines, St ruct ure
and Policies
221
Corporate Governance
Profi le of Board of Commissioners’ Commit t ees 326
Senior Execut ives
329
Of fi ce Address
330
Out let s
331
Cont act Address
332
Financial Statement
335
General M eet ing of Shareholders
228
Relat ionship bet w een t he Commissioners and
t he Direct ors
231
Board of Commissioners
233
Board of Direct ors
St at ement of M anagement ’s Responsibilit y f or
Consolidat ed Financial Report s
336
240
Commit t ees
253
Independent Audit or’s Report
338
Corporat e Secret ary
272
Consolidat ed Financial St at ement
339
Int ernal Cont rol Syst em
276
343
Compliance Funct ion
277
Consolidat ed Comprehensive Profi t and Loss
Report
Consolidat ed Report on Changes in Equit y
IT Governance
346
281
Consolidat ed Cash fl ow Report
Int ernal Audit
349
284
Not es on Consolidat ed Financial Report
Ext ernal Audit ors
351
288
Code of Conduct s and Corporat e Cult ure
289
Appendix
Whist leblow ing Syst em
529
294
Press Release 2012
Legal Cases
529
297
Correspondence w it h Bapepam-LK and IDX
532
Bapepam-LK Ref erence
536
Corporate Social Responsibility
299
Basis and Commit ment
300
Responsibilit y t ow ard Consumers/Cust omers
302
Responsibilit y f or M anpow er, Healt h and
Saf et y at Work
306
Pag e
536
B a p ep a m
- LK R ef e
r ence
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
19
BRI’s success in maint aining
it s qualit y grow t h has assist ed
t he bank t o reach opt imum
perf ormance and creat e
a st rong f oundat ion f or
sust ainable grow t h.
Tot a l CAR
16.95% *
*B ank only
Tier1 CAR
15.86% *
*B ank only
20
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
M a na gement R epor t
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
21
R eport of The President C ommissioner
he year 2012 w as marked by a prudent
expansion, carried out in line w it h Good
Corporat e Governance principles and
support ed by t he lat est inf ormat ion t echnologybased net w ork development . All t hose at t empt s
w ere result ing in a commendable rise of net
profi t by 23.86% t o Rp18.69 t rillion, coming
f rom an increase in net int erest income and
higher loan out st anding, improvement s in loan
qualit y and operat ional ef fi ciency, and grow ing
f ee-based income cont ribut ion.
T
Assalamualaikum Wr. Wb.
We give t hanks t o Allah SWT f or His blessings, w hich enabled t he Bank t o achieve an out st anding
perf ormance in 2012.
M acroeconomic indicat ors have demonst rat ed a slow dow n in t he global economy in 2012. This
w as in line w it h t he decline of f orecast ed nat ional economic grow t h of Asia’s emerging market
as w ell as t hat of count ries in t he Euro Zone. During t he same year, Indonesia experienced
infl at ion of 4.30% , increase in composit e index of 12.94% and grow t h in Gross Domest ic
Product s (GDP) of 6.23% .
22
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
M anagement Report
Company Profile
Information for
Investors
Operational Overview
M anagement
Corporate Governance
Discussion and Analysis
Corporate Social
Responsibility
Corporate Data
B unasor S anim
President Commissioner/Independent Commissioner
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
23
The Bank’s perf ormance had increased signifi cant ly in 2012 compared t o t he previous year.
It is refl ect ed in 2012 fi nancial highlight s and fi nancial rat ios, such as, an increase of 17.33%
on t ot al asset s t o Rp551,34 t rillion, an increase of 22.92% of loan out st anding t o Rp362,01
t rillion, grow t h of t hird-part y f unds by 17.15% t o Rp450,17 t rillion, a rise in net int erest income
by 5.97% t o Rp36,48 t rillion, an increase in net profi t af t er t ax by 23,86% t o Rp18,69 t rillion
and a decline in NPL gross f rom 2.32% in 2011 t o 1.83% . In addit ion, t hanks t o an increase
of sophist icat ed inf ormat ion t echnology, t he company w elcomed 977 new out let s, composed
of 15 branches, 43 sub-branches, 125 BRI Unit s, 44 Cash of fi ces, 500 TerasBRI, and 250 M obile
TerasBRI. The Board of Commissioners w ould like t o express it s appreciat ion t o all of t he
Bank’s employees and st akeholders f or t heir hard w ork and support t hroughout 2012 t hat has
improved t he Bank’s perf ormance.
Indonesia is f orecast ed t o experience high economic grow t h in 2013 due t o t he domest ic market
pot ent ial, w hich act as a pull f act or f or invest ment , grow ing domest ic demand, availabilit y of
good public inf rast ruct ures as priorit y in government spending, and low level infl at ion. Relat ed
t o t he inf ormat ion above, t he Board of Commissioners is opt imist ic t hat t he Bank’s perf ormance
in 2013 w ill be fi ner t han 2012 result s.
The eff ort t o enhance t he Bank’s perf ormance in 2013 w ill require t he support of all st akeholders
t hroughout Indonesia. Several st rat egic init iat ives t hat have been f ormulat ed w ill need t o be
w ell implement ed and support ed by t he relevant part ies and w orking unit s. This is primarily
relat ed t o t he increased compet it ion in t he micro, small and medium segment s as w ell as nonbank fi nancial product s. Hence, t he Bank’s act ivit ies must be in accordance w it h t he f ormulat ed
st rat egies on asset s, capit al, non-organic grow t h, f ee-based income and business support . In
addit ion, t he company also requires all employees t o f ully implement t he employee’s code of
conduct s in perf orming t heir t asks.
24
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
M anagement Report
Company Profile
Information for
Investors
Operational Overview
M anagement
Corporate Governance
Discussion and Analysis
Corporate Social
Responsibility
Corporate Data
The company’s 2013 Dest inat ion St at ement is t o become “ The Bank w it h t he Best M icro, Small
and M edium segment s Grow t h in Indonesia” . This is in line w it h t he Board of Commissioners’
concern of t he business w hich becoming more compet it ive and dynamic. M oreover, t he Bank’s
st at us as a list ed company requires all employees t hroughout Indonesia t o maximize t heir
pot ent ial in carrying-out t heir t asks in order t o make t his st at ement int o realit y.
In 2013, t he Board of Commissioners w ill endeavor t o increase t he qualit y of our monit oring,
w hile also w orking in harmony w it h t he Board of Direct ors, as st ipulat ed in t he Company’s
Regulat ions and exist ing rules of law.
I pray t hat Allah SWT w ill alw ays gives His st rengt h and guidance t o us and may ease t he w ay
f or us all. Aamiin.
Wassalamualaikum Wr. Wb.
Bunasor Sanim
President Commissioner/Independent Commissioner
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
25
2 012 R eport on t he S upervisory
D ut ies of B oard of C ommissioners
Forew ords
Supervisory Recommendations
The Bank’s Board of Commissioners commit ment t o it s
dut ies on supervisory role t hroughout t he year 2012
is present ed in t he Bank’s Annual Report . From t his
report , st akeholders can ret rieve relevant inf ormat ion
on t he act ivit ies of t he Board of Commissioners in it s
supervisory role.
1. Loan/ Credit M atters
In 2012, t he Board of Commissioners’s supervisory
role w as execut ed in accordance w it h t he t ask, dut ies
and responsibilit ies of t he Board of Commissioners
as st ipulat ed in t he art icles of associat ion of t he
Bank and prevailing regulat ions; in order t o ensure
t hat t he approved Work Plan and Company Budget
are implement ed properly, t hat Good Corporat e
Governance principles and risk management are
carried out appropriat ely in all of t he organizat ion’s
unit s and t he opt imalizat ion of t he Company’s
operat ional act ivit ies in providing banking services.
The Board of Commissioners implement s act ive
supervising by periodically discussing perf ormance
achievement s and carrying out visit s t o w orking
unit s and passive supervising t hrough evaluat ion and
analyzing t he bank’s operat ions based on submit t ed
report s. In carrying out t hese supervisory t asks, it
is support ed by Commit t ees f ormed by t he board
it self . The commit t ees are t he Audit Commit t ee, t he
Risk M anagement Supervisory Commit t ee and t he
Nominat ions and Remunerat ions Commit t ee.
The 2012 Report f or t he Board of Commissioner’s
supervisory dut y present ed in t his Annual Report
out lines t he Supervisory Recommendat ions and t he
Company’s 2012 Perf ormance Achievement s.
26
The
Board
of
Commissioners
const ant ly
recommends t hat loan disbursement should be
done in accordance w it h t he prudent ial banking
principles and t hat it should be accompanied by
ef f ort s t o improve t he qualit y of int ernal cont rol
in order t o reach t he t arget ed loan qualit y by t he
end of 2012.
The Board of Commissioners support s t he Board of
Direct ors’ st rat egies and policies in loan expansion
t hrough employing t he t rickle-dow n business
st rat egy. The Board of Commissioners act ively
provides input and recommendat ions in t he
loan consult at ion f orum w hich is held bet w een
t he Direct ors and Commissioners f or loan w it h a
cert ain amount
2. Funding
The Board of Commissioners const ant ly provides
input s and recommendat ions f or t he Bank t o
increase it s low -cost f unds in order t o provide
more compet it ive int erest rat es t o cust omers,
compared t o t hose given by compet it ors. The
Bank should cont inuously pursue it s t arget
t o increase t he amount of t hird-part y f unds
t hroughout 2012 t o support it s loan expansion
t arget . The plan t o issue Global Bonds in 2013
should be carried out t hrough t horough analysis,
in accordance w it h exist ing regulat ions as w ell
as w it h t he most f avorable t erms and condit ions
t hat best benef it s t he company.
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
M anagement Report
Company Profile
Information for
Investors
Operational Overview
3. Income and Expenses
The Board of Commissioners const ant ly provides
recommendat ions f or t he Bank t o increase it s
non-int erest income t hrough act ivit ies such as
t rade fi nance, remit t ance, cash management ,
and t ransact ional account s, by capit alizing BRI’s
nat ionw ide-spread of w orking unit s. In t erms of
expenses, The Board of Commissioners const ant ly
encourages t he Bank t o improve it s ef fi ciency.
4. Capitalization
The Board of Commissioners recommends t hat
profi t s are opt imally used as t he source of t he
Bank capit al grow t h.
5. Human Resources
Human resources play a cent ral role in t he Bank.
Theref ore, t he Board of Commissioners consist ent ly
pays more at t ent ion t o t he management of
human resources. In 2012, t he Board provided
t he company’s management w it h a number of
recommendat ions regarding t he management
of human resources. These suggest ions include
accelerat ing t he employee recruit ment process in
order t o support business grow t h, improving t he
qualit y of human resources t hrough educat ion and
t raining as w ell as int ensif ying t he int ernalizat ion
and implement at ion of t he corporat e cult ure.
The Board
of
Commissioners consist ent ly
emphasizes on t he import ance of experience along
w it h compet ence and leadership qualit y of BRI’s
human resources. The Board of Commissioners
pays special at t ent ion t o t he development of new
employees’ compet ency considering t heir pot ency
as prof essional bankers in t he f ut ure.
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
M anagement
Corporate Governance
Discussion and Analysis
Corporate Social
Responsibility
Corporate Data
The Board also support s t he policy improvement
relat ed t o t he human resources and it s
implement at ion t o support t he Bank’s business
st rat egy. The Board underlines t he need t o increase
t he role of Inf ormat ion Technology t hrough
providing f acilit ies t o support t he Bank’s human
resources in carrying out t he Bank’s operat ions.
This is necessary t o increase t he product ivit y and
perf ormance of human capit al.
6. Information Technology
The Board considers Inf ormat ion Technology as
an import ant aspect in improving ef fi ciency and
service qualit y t o t he cust omers. Theref ore, it is
necessary t o emphasize t he f ocus on:
a. Improving net w ork reliabilit y t o ensure t he
service qualit y
b. Opt imizing Inf ormat ion Technology t o boost
t he Bank operat ions’ accuracy, speed and
operat ional qualit y.
7. Internal Control
The Board of Commissioners considers t hat t he
main f ocus in int ernal cont rol is on t he audit
fi ndings f rom int ernal and ext ernal audit ors, as
w ell as f ollow -ups on t hose fi ndings. Thus, it is
essent ial f or t he BRI’s management t o increase t he
monit oring of t he f ollow -ups of audit ’s fi nding
by it s w orking unit s –including t hose relat ed t o
deadlines and it s improvement ef f ort s – aside f rom
t he opt imizat ion of Risk M anagement ’s role and
f unct ions in each of BRI’s w orking unit s.
8. Equity Participation
Equit y part icipat ion in subsidiary Bank should
be t hrough comprehensive analysis as w ell as in
line w it h t he prudent ial banking principles and
t he prevailing regulat ions. The process should be
based on a st rat egy t o develop t he subsidiaries
ef f ect ively, synergist ically and mut ually benefi cial.
It is accompanied also by monit oring of t he
subsidiaries’ business plan.
27
9. Capital Expenditure
The capit al expendit ure budget should be designed
in accordance w it h t he 2012 project plans.
M oreover, t he budget f or Capit al Expendit ure
should be f ully ut ilized in order t o enhance t he
qualit y of service t o cust omers.
10. Office Netw orks
The opening of new operat ing unit should be w ell
coordinat ed among t he relevant direct orat es. This
is t o ensure t he operat ional ef fi ciency and bet t er
synchronizat ion t o support t he achievement of t he
w orking unit t arget . Such coordinat ions, includes:
a. Human Resources. This requires act ive
coordinat ion among w orking unit s in manning
analysis as w ell as det ermining and f ulfi lling
t he human resources’ f ormat ion.
b. Inf ormat ion
Technology.
This
involves
Inf ormat ion Syst em Technology Division,
Logist ics and Fixed Asset s M anagement
Division, M icro Businesses Net w ork Division,
Ret ail Business Net w ork Division and relat ed
Working Unit w orking t oget her t o provide
suf fi cient e-channels.
c. Support ing Logist ics. This involves procurement
of land, building, f acilit ies and of fi ce equipment
by Logist ic and Fixed Asset s M anagement
Division and t he relat ed Working Unit s.
11. Partnership Program and Community
Development (PKBL)
All relat ed Working Unit s should ensure t hat t he
PKBL f unds is channeled and used opt imally w hile
also adhering t o prevailing regulat ions. In addit ion,
t he record-keeping and account abilit y f or t he
disbursement and ut ilizat ion of t he associat ed
f unds, should be undert aken properly w it hin t he
generally accept ed account ing st andard.
28
The Company’s 2012 Performance
1. Financial Performance
The Bank’s f inancial perf ormance by t he end
of 2012 w as improving compared t o t he same
period in t he previous year. The improvement s
w ere including:
a. Tot al asset s of Rp551.34 t rillion, up by 17.33%
f rom Rp469.90 t rillion in December 2011.
b. Loan out st anding of Rp362.01 t rillion, an
increase of 22.92% f rom Rp294.52 t rillion in
December 2011.
c. Third part y f unds of Rp450.17 t rillion,
increasing by 17.14% f rom Rp384,26 t rillion in
December 2011.
d. Non-perf orming loan gross of 1.83% , improving
f rom 2.32% in December 2011.
e. Net int erest income of Rp36.48 t rillion, up
by 5.97% compared t o Rp34.43 t rillion in
December 2011.
f . Net income af t er t ax t ot aling up t o Rp18.69
t rillion, up by 23.86% f rom Rp15.09 t rillion in
December 2011.
The improvement s of t he fi nancial perf ormance,
refl ect ed in t he main indicat ors above, has
become t he result of t he bank in carrying out
it s w orking plans and act ivit ies as st at ed in it s
2012 is Budget Plan (RKAP), w hich comprises
quant it at ive as w ell as qualit at ive t arget s. The
Board of Commissioner’s role in it s relat ions t o
t he budget plan is t o approve and t o endorse
t he budget plan bef ore making it as t he business
guideline by all rank - and - fi le of t he bank.
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
M anagement Report
Company Profile
Information for
Investors
Operational Overview
2. Profitability
The Bank’s profi t abilit y perf ormance remained
st rong, refl ect ed by it s achievement of Rp18.69
t rillion net profi t in 2012, w here loan disbursement
and improving loan qualit y remained as t he main
drivers of t he profi t .
3. Capitalization
The Bank’s CAR st ood at 16.95% - above t he
cent ral bank’s minimum rat io of 8% . The Bank’s
capit al is dominat ed by mainly net profi t -derived
core capit al, t hus demonst rat ing a very healt hy
capit al composit ion.
M anagement
Corporate Governance
Discussion and Analysis
Corporate Social
Responsibility
Corporate Data
M r. Vincent ius Sonny Loho as commissioner and M r.
Ahmad Fuad as Independent Commissioner. We hope
t o build good cooperat ion and coordinat ion t o support
t he BRI’s sust ainable grow t h.
Finally, w e are ending t his Supervisory Report of Board
of Commissioners on business implement at ion in 2012.
Board of Commissioners
PT Bank Rakyat Indonesia (Persero) Tbk
4. Loan Quality
The Bank is maint aining it s loan qualit y. This is
demonst rat ed by it s 2012 Non Perf orming Loan
Gross, w hich st ood at 1.83% in 2012 , improving
signifi cant ly f rom 2,32% in 2011.
Changes in the M embership
of the Company’s Board of
Commissioners in 2012
We hereby convey our respect and t hanks t o M r. Agus
Suprijant o f or all his cont ribut ions and commit ment
during his t ime as a BRI commissioner. We also w elcome
M r. M ust af a Abubakar as t he new Vice Commissioner,
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
29
B oard of C ommissioners
1
30
2
3
4
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
M anagement Report
Company Profile
Information for
Investors
5
Operational Overview
6
1. Heru Lelono
Commissioner
2. Bunasor Sanim
President Commissioner/
Independent Commissioner
3. Adhyaksa Dault
M anagement
Corporate Governance
Discussion and Analysis
7
Corporate Social
Responsibility
Corporate Data
8
5. Vincentius Sonny Loho
Commissioner
6. M ustafa Abubakar
Vice President Commissioner
7. Hermanto Siregar
Commissioner
Independent Commissioner
4. Aviliani
8. Ahmad Fuad
Independent Commissioner
Independent Commissioner
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
31
R eport of t he President D irect or
he year of 2012 became a period w hen BRI
w as able t o build a solid f oundat ion f or a
sust ainable grow t h f or t he f ut ure. This w as
done w it h a prudent business grow t h along side
w it h t he development of sophist icat ed inf ormat ion
t echnology–based business net w orks.
T
Prudent loan grow t h w it h a f ocus on asset qualit y,
cust omer base expansion and opt imizing of w orking
unit net w orks produced Rp36.48 t rillion in net int erest
income and a declining NPL’s, st ood at 1.83% in 2012
f rom 2.32% in t he previous year. Wit h t he support
of t he increase in f ee based income, t he bank fi nally
gained a Rp18.69 t rillion in net profi t – increasing by
23.86% compared t o it s net profi t in 2011.
Assalamualaikum Wr. Wb.
We send our grat it ude t o Allah SWT f or his blessings w hich allow ed BRI t o t raverse 2012 w it h
good result s. The direct ors of BRI w ould like t o highlight a number of BRI’s main successes in 2012
perf ormance t o t he company’s shareholders and ot her st akeholders.
The Economy and Banking Conditions in Indonesia in 2012
Indonesia’s economic resilience remained int act amid 2012’ global economic volat ilit y. The
count ry’s economy grew by 6.23% during 2012 support ed st rongly by household consumpt ions
and invest ment s. St rong grow t h in t he household consumpt ion is in line w it h t he increase in
consumer’s confi dence level and people purchasing pow er. The high domest ic market demand,
paired w it h business communit ies opt imism, boost ed t he count ry’s high level of invest ment .
32
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
M anagement Report
Company Profile
Information for
Investors
Operational Overview
M anagement
Corporate Governance
Discussion and Analysis
Corporate Social
Responsibility
Corporate Data
S of yan B asir
President Direct or
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
33
GDP composit ion based on t o usage
D omest ic C ons umpt ion,
par t icular ly hous ehold cons umpt ion,
54.56
25.81
which ma kes up t o 5 4 .5 6 % of t he
2012
(% )
G r os s D omest ic Pr oduct , is t he
24.26
main cont r ibut or t o Indones ia ’s
33.16
8.89
economic g r owt h.
Consumpt ion
Government Spending
Invest ment
Export
Import
In 2012, infl at ion st ood at 4.30% (yoy) – remain w it hin t he cent ral bank’s designat ed infl at ion
t arget range of 4.5% ± 1% .
High import s put pressure on t he Rupiah during 2012. How ever, t he int ensit y of t his pressure
slow ly decreased nearing t he end of t he year. The Rupiah’s exchange rat e against t he US dollar
hovered bet w een Rp8,892 and Rp9,707/US Dollar during 2012.
The fi nancial syst em’s st abilit y and t he banks’ int ermediary f unct ion during 2012 w ere apparent ly
w ell-maint ained. The banking indust ry’s solid perf ormance w as refl ect ed in t he high CAR, w hich
w as recorded at 17.43% , t hus, w ell above t he minimum limit of 8% . Loan qualit y w as also
w ell-maint ained as demonst rat ed in t he gross NPL level at 1.87% - below t he maximum NPL
limit of 5% . The year-on-year loan grow t h in December 2012 w as recorded at 22.97% and w as
dominat ed by product ive loan grow t h w hich also refl ect ing Indonesia’s economic condit ion and
grow t h source.
BRI’s 2012 Business Performance
A prudent and good quality loan grow th w ith mainly focus on micro, small
and medium segments
One of BRI’s st rat egic achievement s during 2012 w as it s success in creat ing qualit y loan grow t h,
demonst rat ed t hrough t he const ant decrease of Non-Perf orming Loan levels f rom 2.32% in 2011
t o 1.83% in 2012. This is f ar below it s int ernal t arget of 3.0% maximum NPL and f ar below t he
cent ral bank’s maximum limit of 5% . BRI’s 22.92% prudent loan grow t h during 2012 show ed
t hat reducing t he NPL rat e does not have t o mean spurring grow t h t hat is not comply w it h
t he principles of prudence in banking. Thus, BRI’s 2012 port f olio is one w hich considered t o be
healt hy and have good qualit y.
34
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
M anagement Report
Company Profile
Information for
Investors
Operational Overview
M anagement
Corporate Governance
Discussion and Analysis
Corporate Social
Responsibility
Corporate Data
The ot her import ant achievement by BRI in 2012 w as t he implement at ion of it s st rat egic plan
t o remain f ocused on t he micro, small and medium segment s. This achievement is refl ect ed in
it s loan port f olio f or t hose segment s, 75% of t ot al loan disbursement w as given t o t his segment
during 2012. Based on t he company’s loan port f olio at t he end of 2012, M icro loan became t he
largest cont ribut or, reaching 30.7% of t he t ot al loan.
Business revit alizat ion conduct ed in t he M icro Business segment in 2011 has begun t o show it s
posit ive result s during 2012. This revit alizat ion – encompassing t he expansion of t he cust omer
base, t he increase of loan of fi cer capacit y, t he expansion of net w ork and product development –
w ent w ell according t o plan. BRI added 125 BRI Unit s, 500 Teras BRI and 250 mobile Teras BRI in
accordance w it h it s 2012 out let est ablishment t arget . By t aking int o account t heir perf ormance
and business pot ent ials, in 2012, 14 Sub-branch Of fi ces w ere up graded t o be branch of fi ces, 6
Cash Of fi ces up graded t o Sub-Branch Of fi ces and 26 Teras BRI t o BRI Unit s.
The net w ork expansion w as f ollow ed by t he increase in out let product ivit y in 2012, especially f or
TerasBRI, w hose product ivit y w as recorded at Rp2.99 billion per Teras f or loan and Rp1.27 billion
per Teras f or deposit s, increasing f rom it s 2011 posit ion of Rp2.21 billion per Teras f or loan and
Rp0.73 billion per Teras f or deposit .
BRI’s micro business revit alizat ion has begun t o show it s result during t he second quart er of
2012, as demonst rat ed in t he increase in t he amount s of t he account s f or bot h loans and micro
deposit s. BRI’s M icro loan account s reached 5,5 million account s, increasing f rom t he 5,29 million
account s recorded in 2011. Deposit s increased f rom 21.85 million account s in 2011 t o 24.97
million account s in 2012. The amount of account s in BRI’s micro deposit and loan demonst rat es
t hat BRI’s M icro Business w as able t o reach t he grassroot s communit ies t hroughout Indonesia.
Theref ore, it s business model has succeeded in support ing Indonesia’s fi nancial inclusion st rat egy
w it hout put t ing aside t he healt hy and sust ainable banking business principles.
Funding
In t hird-part y f unds, BRI succeeded in implement ing it s st rat egic f unding plan t o maint ain
it s f ocus on low -cost f unds. During 2012, t he t hird-part y f unds grew w it h an opt imal low cost f unds composit ion, w hich reached around 60% - in accordance w it h t he ideal f unding
composit ion t arget .
Savings show ed a more st able and relat ively higher grow t h compared t o ot her t ypes of deposit s.
During 2012, BRI’s savings grew by about 19.61% , or up t o Rp184.37 t rillion, and demand deposit s
grew by 4.29% , reaching Rp80.08 t rillion. Time deposit s grew by 21.11% , reaching Rp185.73
t rillion, t hus BRI’s low -cost f unds comprised 58.74% and high-cost f unds 41.26% . BRI’s t hird part y
f unds composit ion and cust omer st ruct ure demonst rat es a st able low -cost f und source t o support
sust ainable grow t h f or loans and ot her businesses.
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
35
Developments of e-Banking and Fee Based Income
B R I operat ional
act ivit ies are now
support ed by a t ot al
of 9,05 2 convent ional
wor king unit s equipped
wit h sophist icat ed
inf or mat ion t echnology
facilit ies as well as
5 9,2 41 e- channels.
BRI’s long-t erm plan in developing f ee-based income as an alt ernat ive source of income
aside f rom t he int erest -based income, as w ell as becoming a payment gat ew ay in Indonesia’s
fi nancial syst em, w ere implement ed t hrough it s e-banking development s by t reat ing cont inuing
development s of e-channels. In t erms of e-channel development s, BRI had 14,292 ATM s spread
t hroughout Indonesia at t he end of 2012, so t hat BRI considered as t he bank w it h t he largest ATM
net w orks among banks in Indonesia. Furt hermore, BRI’s e-channel f acilit ies are also support ed by
44,715 unit s of EDCs, phone banking, SM S banking and int ernet banking services.
Among all, t he e-banking development eff ort s in 2012 result ed in t he increase of f ee-based
income f rom an increase in e-banking t ransact ions. The rise in f ees coming f rom t ransact ions
conduct ed t hrough t he ATM s recorded t he second-highest grow t h af t er f ees coming f rom t rade
fi nance. Debit card holders - a proxy of t he cust omers w hose likely w ill use e-Banking services
int ensively - w as also increasing, show ing t he pot ent ial of increasing t ransact ion-based f ee-based
income f or BRI . All t he net w ork development s – convent ional or e-channels – are st rat egies t o
secure t he company’s t arget of becoming a nat ional payment gat ew ay in Indonesia’s inclusive
economic syst em, and has capabilit y t o support t he micro, small and medium business segment s
t hat are it s core businesses.
Profitability and Capitalization
A consist ent and an appropriat e implement at ion of st rat egy, along w it h t he hard w ork and
commit ment f rom bot h management and employees, BRI has show n encouraging result s. By
t he end of 2012, BRI booked a net profi t of Rp18.69 t rillion, increasing by 23.86 % f rom 2011’s
Rp15.09 t rillion, along w it h an 8.42% Net Int erest M argin (NIM ).
The increased in net profi t is support ed by qualit y business grow t h, along w it h it ’s abilit y t o
maint ain it s operat ional ef fi ciency, refl ect ed in it s operat ional expense t o operat ional income
rat io, recorded as 59.93 % , and Cost Ef fi ciency Rat io, w hich w as maint ained at 43.11% at t he
end of 2012.
Challenges and Solutions
In developing it s business, BRI f aces challenges such as f ulfi lling t he needs of human resources in
a t imely manner and in line w it h business development s. The implement at ion of a proper and
ef fi cient syst em t o meet t he needs of market ing of fi cers is crit ical in support ing BRI’s business
development s, especially f or it s micro business segment , w hich is reliant on t he availabilit y of
M ant ri (BRI’s micro loan of fi cer) as it s spearhead.
The principles of communit y banking, w hich is implement ed in BRI’s micro business development
are st rongly depends on t he availabilit y of “ M ant ri” , w hich is w ell-equipped w it h suf fi cient
know ledge of local cult ure and business pract ices, as w ell as high int egrit y.
BRI has added 6,727 “ M ant ri” t o it s exist ing f orces in 2012, making t he rat io of “ M ant ri” t o BRI
unit s became 3.1 per BRI unit - an increase f rom 2.01 per BRI unit in 2011. The increase in t he
rat io refl ect ed t he increase in capacit y of BRI’s micro unit s in t o expand BRI’s micro businesses
in t he f ut ure.
36
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
M anagement Report
Company Profile
Information for
Investors
Operational Overview
M anagement
Corporate Governance
Discussion and Analysis
Corporate Social
Responsibility
Corporate Data
B R I’s fee- based income increased by
16 .6 4% t o R p3 .93 t r illion.
Corporate Governance – Tow ard GCG Excellence
The implement at ion of Good Corporat e Governance (GCG) in BRI is done in several st ages,
st art ing w it h f ormulat ion, implement at ion, evaluat ion, and monit oring. The implement at ion’s
t arget is GCG excellence, w hich is a condit ion in w hich GCG is implement ed consist ent ly in all
of t he company’s organizat ion level and becomes it s breat h of lif e. The policy f ormulat ion and
t he implement at ion of GCG principles in BRI are based on prevailing regulat ions: The Indonesian
Corporat e Governance Code and BRI GCG Chart er, w hich had been revised 3 (t hree) t imes in
accordance t o recent development s.
The next st age, implement at ion, has been carried out and w ill be cont inuously improved. Several
st eps of GCG implement at ion t hat have already been done are including developing int ernal GCG
aw areness, t he development of GCG Tools, w hich include t he development of a w hist leblow ing
syst em, cust omer complaint s syst em, e-procurement implement at ion, t he f orming of an Int egrit y
Pact and t he OPRA syst em. BRI has developed t he compliance dashboard, w hich serves as an early
w arning syst em in t he implement at ion of BRI’s GCG.
The next st ages are monit oring and evaluat ion, w hich include t he implement at ion of BRI’s GCG
assessment using t he self -assessment as w ell as t hird-part y assessment met hod, evaluat ion of t he
company’s perf ormance based on det ermined assessment indicat ors, and annual evaluat ion of
BRI’s policies and syst ems.
The monit oring and evaluat ion implement at ion phase are carried out sust ainably t o reach GCG
Excellence. A number of implement at ions, including developing int ernal and ext ernal aw areness,
review s, and GCG improvement – relat ed policies, have been carried out t hroughout 2012.
N et pr of it
2 3 .86 % t o
Rp18.69 t rillion
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
37
The result of t he evaluat ion t hrough GCG Self -Assessment , in line w it h Bank Indonesia’s
regulat ions, w as “ SANGAT BAIK” or VERY GOOD. Third part y assessment w as also conduct ed
t hrough research and rat ing using t he Corporat e Governance Percept ion Index (CGPI) carried out
by The Indonesia Inst it ut e of Corporat e Governance (IICG), in cooperat ion w it h SWA M agazine,
w it h t he result st at ed BRI as a “ Trust ed Bank” .
BRI’s management and employees are consist ent in t heir GCG commit ment , in line w it h t he second
art icle on t he BRI’s mission: “ Providing excellent services t o cust omers t hrough a w idespread of
business net w ork, support ed w it h prof essional human resources and by implement ing Good
Corporat e Governance pract ices” . The BRI has chosen GCG as it s 2012 t heme, w hich is becoming
t he best bank in Indonesia w it h proper Good Corporat e Governance pract ices.
Risk M anagement
A reliable risk management is a basic requirement in a bank, i
2012
Ou
me
nt
Good
Governance
and
Innovation:
rF
oun
dat
ion f
or
y
t
i
l
i
S ust a ina b
p
o
l
ve
e
D
B R I sust ained it s not able achievement s in
2 012 , a result of it s qualit y per f or mance.
Consist ent implement at ion of Good Corporat e
Governance (GCG) has led t he Bank’s
operat ions, enabling it t o gain st akeholders’
t rust and t o increase it s corporat e value, as w ell
as t o ensure a sust ainable grow t h.
By upholding t he GCG principles, BRI is
confi dent t o reach it s t arget t o becoming t he
Indonesia’s most valuable bank.
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
1
C onsist ent implement at ion of
C orporat e G overnance has support ed
our sust ainable business performance.
In 2012, w it h consist ent implement at ion
of t he principles of Good Corporat e
Governance, alongside w it h operat ional
ef fi ciency, t he Bank had scored qualit y
asset grow t h, mirrored by a high
profi t abilit y fi gure. As such, t he Bank
had maint ained it self as one of t he
most profi t able banks in Indonesia, as
it is refl ect ed on it s - higher - t han average of Indonesia’s banking indust ry’s
profi t abilit y rat ios.
ROA
5.15%
*
*
B ank only
Op er at i n g E
xp en se t o
Op er at i n g I
n co m e
59.93%
*
2
*
B ank only
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
ROE
Net Profi t
38.66%*
Rp18.69 T
*B ank only
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
3
Loa n G r owt h
22.92%
N P L (G r os s )
1.83%
Third Part y Funds
17.15%
4
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
A consist ent applicat ions of prudent
management policies cont ribut e t o our
qualit y asset growt h.
Led by t he principles of
Good Corporat e Governance,
t he Bank had applied
prudent credit policies in
pursuing pot ent ial business
prospect s, result ing in a
qualit y asset grow t h.
This qualit y asset s grow t h
support ed by st ruct urally
healt hy t hird part y f unds, as it
is refl ect ed by t he dominance
of low cost f unds w hich
reached around 60% of t he
t ot al t hird part ies f unds.
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
5
t omer s ’
Tot a l C us
Acc ount
± 42
6
million
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
G ood C or porat e G overnance
Principles guide us in achieving our
sust ainable gr owt h.
Amid increasing compet it ions
in Indonesia’s banking indust ry,
BRI ret ains it s st rong capacit ies,
bot h in f unds raising and
loans disbursement . Those
accomplishment s are root ed f rom
t he implement at ion of Good
Corporat e Governance alt oget her
w it h cont inuous innovat ions in
product s and services, enabling
t he Bank t o maint ain and t o
develop it s loyal cust omer base.
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
7
We pr ovide comprehensive and
qualit y banking services support ed
by a widespread business net wor k.
BRI is bolst ering it s posit ion as t he biggest
commercial bank w it h diverse range of
accessible, comprehensive, and qualit y
product s and services t o cat er t he needs of
t he people, w herever t hey are.
The pract ice of Good Corporat e
Governance has cont ribut ed t o t he
development of high qualit y product s and
services. This achievement is support ed
by a w idespread business net w ork
encompassing 9,052 out let s (Head Of fi ces,
Regional Of fi ces, Branches, Sub-Branches,
BRI Unit s, Cash Of fi ces, and TerasBRI) and
59,241 e-channel net w orks (ATM , KiosK,
CDM , EDC, and e-BUZZ).
8
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
9,052
Out let s
Connect ed real-t ime online
59,241
et wor ks
e - C ha nne l n
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
9
G ood C or porat e G overnance
pr ovides t he best result s
for our gr owt h.
10
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
IT
2
1
Inf r a s t r uct ur e
Dat a Center
Disast er Recovery C
enter
N umber of
Lear ning Cent ers
7
Spread throughout Indonesia
BRI successf ully recording qualit y
grow t h and laying a st rong
f oundat ion f or sust ainable
grow t h by employing Good
Corporat e Governance, reliable
IT inf rast ruct ure, as w ell as, by
developing human resources’
compet ency and int egrit y.
Such endeavors are aimed t o
increase cust omers’ loyalt y and
t o give opt imal ret urns f or
st akeholders.
Va lue
e
it
s
o
p
m
o
C
s me nt
s
e
s
s
A
f
l
e
S
G CG
C at eg or y
VERY GOOD
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
11
Financial Highlight s
Financial Overview
Numbers from Consolidated Financial Statement
In billion Rupiah
2008
2009
2010
2011
2012
Balance Sheet
Tot al Asset s
246,077
316,947
404,286
469,899
551,337
Tot al Earning Asset s
228,781
299,063
379,696
432,647
499,042
Loan-Gross
Government Recap Bonds
Tot al Liabilit ies
161,108
16,352
223,720
208,123
15,027
252,489
13,626
294,515
8,996
362,007
4,316
289,690
367,612
420,079
486,455
Third Part y Funds
201,537
255,928
333,652
384,264
450,166
- Demand Deposit s
39,923
50,094
77,364
76,779
80,075
- Saving Deposit s
88,077
104,463
125,990
154,133
184,365
- Time Deposit s
73,538
101,371
130,298
153,353
185,726
7,599
21,284
17,297
19,361
15,784
22,357
27,257
36,673
49,820
64,882
Ot her Int erest Bearing Liabilit ies
Capit al/Equit y
Income Statement
Int erest Income:
- Wit h Government Bonds Int erest
28,097
35,334
44,615
48,164
49,610
- Wit hout Government Bonds Int erest
26,166
33,528
43,109
47,053
49,004
Net Int erest Income
- Wit h Government Bonds Int erest
19,651
23,049
32,889
34,427
36,484
- Wit hout Government Bonds Int erest
17,721
21,244
31,382
33,316
35,878
Ot her Operat ing Income
Ot her Operat ing Expenses
Provision f or impairment losses on fi nancial asset s - net
2,535
3,270
5,545
5,776
8,390
(10,997)
(11,960)
(16,114)
(17,086)
(19,491)
(2,700)
(2,844)
(5,799)
(7,917)
(5,533)
Income bef ore Tax
8,822
9,891
14,908
18,756
23,860
Net Income
5,958
7,308
11,472
15,088
18,687
18,681
Income f or t he year at t ribut able t o Equit y holders of t he Parent Ent it y
N/A
N/A
N/A
N/A
11,472
Nil
15,083
Income f or t he year at t ribut able t o Non-cont rolling int erest
5
6
Tot al Comprehensive Income f or t he year
N/A
N/A
11,559
15,296
18,681
11,559
Nil
15,288
18,652
Total Comprehensive Income for the year attributable to Equity holders of the Parent Entity
N/A
N/A
Tot al Comprehensive Income f or t he year at t ribut able t o Non-cont rolling int erest
N/A
N/A
248,50
304,75
13.18%
N/A
Earning per-share (Rp)
Financial Ratios
Capital
Capit al Adequacy Rat io (CAR)*
8
29
478,36
Bank number only
628,91
778,93
13.20%
13.76%
14.96%
16.95%
2.59%
2.19%
1.79%
1.19%
Earning Assets
Earning Asset s & Non Perf orming Asset s t o Tot al Earning Asset s and Non
Perf orming Asset
Non Perf orming Earning Asset s
2.18%
2.68%
2.24%
1.85%
1.46%
N/A
4.29%
4.58%
4.51%
3.43%
2.80%
3.52%
2.78%
2.30%
1.78%
Allow ance f or Possible Losses t o Earning Asset s
Non Perf orming Loans (NPL Gross)
Profitability
ROA
4.18%
3.73%
4.64%
4.93%
5.15%
ROE
34.50%
35.22%
43.83%
42.49%
38.66%
NIM
10.18%
9.14%
10.77%
9.58%
8.42%
BOPO (Operat ing Expenses t o Operat ing Income)
72.65%
77.66%
70.86%
66.69%
59.93%
79.93%
80.88%
75.17%
76.20%
79.85%
Liquidity
LDR
Compliance
Violat ion of Legal Lending Limit (LLL)
- Relat ed Part ies
Nil
Nil
Nil
Nil
Nil
- Third Part ies
Nil
Nil
Nil
Nil
Nil
Excess of Legal Lending Limit (LLL)
- Relat ed Part ies
Nil
Nil
Nil
Nil
Nil
- Third Part ies
Nil
Nil
Nil
Nil
Nil
St at ut ory Reserves
5.57%
5.90%
8.05%
9.33%
10.64%
Net Open Posit ion
13.55%
5.22%
4.45%
5.49%
3.00%
Not e:
The above fi nancial perf ormance fi gures represent BRI’s consolidat ed fi nancial report w it h it s subsidiaries: PT Bank BRI Syariah, PT BRI Agroniaga Tbk. and BRI Remit t ance Co. Lt d, f or
t he year 2011 and 2012, but only PT BRI Syariah f or t he year 2010. Financial rat ios are of bank only.
* M arket risks are t aken int o account st art ing 2004 and operat ional risks are t aken int o account st art ing 2010.
12
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
Tot al Asset s
Tot al Loans
(In billion Rupiah)
(In billion Rupiah)
Int erest Income and
Net Int erest Income
(In billion Rupiah)
Interest Income
Net Interest Income
49,610
551,337
2012
362,007
2012
469,899
2011
404,286
2010
316,947
2009
294,515
2011
252,489
2010
2008
36,484
48,164
2011
34,427
44,615
32,889
2010
208,123
2009
246,077
2008
2012
161,108
2009
34,334
23,049
2008
28,097
19,651
Fee Based Income
Third Part y Funds
Net Profi t
(In billion Rupiah)
(In billion Rupiah)
(In billion Rupiah)
450,166
3,928
2012
2012
3,367
2011
2009
2008
2012
384,264
2011
2,813
2010
333,652
2010
2,102
2009
1,767
2008
18,687
255,928
2008
ROE
Operat ing Expenses t o Operat ing Income
CAR
(% )
(% )
(% )
38.66
2012
42.49
43.83
2010
7,308
5,958
59.93
16.95
2012
2011
11,472
2010
2009
201,537
15,088
2011
2011
2010
2009
35.22
2009
2008
34.50
2008
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
2012
66.69
70.86
77.66
72.65
2011
2010
14.96
13.76
2009
13.20
2008
13.18
13
2 012 E vent Highlight s
January
8
18
25
BRIzzi Product Launching in Bali
Financial Lect ure:Post -Invest ment Grade What ’s Next ?
2011 Review & 2012 Out look Seminar – Through perf ormance
accelerat ion, SOEs are prepared t o f ace crisis
February
28
• Present at ion of BRI Financial Perf ormance 2011
• Signing of M oU on Land and Building Tax management bet w een
BRI and Bogor M unicipal Government
M arch
7
14
28
Adikriya Exhibit ion
Signing of M oU bet w een BRI and t he Public Housing M inist ry
BRI Annual General M eet ing of Shareholders 2012
April
26
27
Signing of M oU bet w een BRI and Telkomvision
Signing of invest ment loan bet w een BRI and
Pet rokimia Gresik
M ay
1
6
• Signing of Let t er of Int ent bet w een BRI and Banco
Nacional Comercial De Timor Lest e
• Signing of M oU bet w een BRI and Indust rial Bank of
Korea
Grand opening of BRI Priorit y Banking Services in
Regional Of fi ce of Yogyakart a
June
1
26
14
Signing of syndicat ed loan on Gempol-Pasuruan Toll Road project
BRI-SOEs CSR program “ Berbagi Kacamat a”
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
July
20
Signing of agreement on loan disbursement f or Part nership
Program bet w een BRI and PTPN IX
August
BRI CSR: Breaking of Fast (Ramadhan) w it h 3,500 orphans
10
15
BRI CSR: The visit and scholarship program t o t he
member of Paskibraka Nasional 2012
September
4
BRI CSR Scholarships Aw ards t o Universit as
Terbuka St udent s
10
BRI CSR on Smart Boat s Educat ion
program (Pengadaan Kapal Pint ar)
October
16
22-23
Visit f rom Sout h Af rica’s Chamber of Trade and Indust ry
2012 Int ernat ional M irofi nance Conf erence in Yogyakart a
November
2
4
28
BRI M obile product launching
Indocomt ech Exhibit ion (Oct ober 31 - November 4, 2012)
BRI Public Expose 2012
December
16
23
Sunday Fest ival
Family Day in celebrat ing BRI’s 117t h anniversary
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
15
Awards and Cert if icat ions
vement s
B R I’s a chie
2 ha ve
1
0
2
t
u
o
h
g
u
t hr o
d s f r om
r
a
w
a
s
u
io
r
ea r ned va
nt p a r t ies
e
d
n
e
p
e
d
n
i
,
ext er na l
Best Bank in 5 Consecutive Years
Invest or M agazine
Forbes Global 2000
One of The World’s Biggest Public
Companies
Forbes
Top 10 out of 300 banks w ith best
ROE in Asia and 10 biggest banks
in terms of Dividend Payment
Tabloid Asian
16
Best of the year 2011
for Indonesia
The Banker Aw ard 2011
Banking Service Excellence Aw ard 2012
5 th Overall Performance for
Commercial Bank
M RI & Inf obank
The M ost Valuable Brand in
Indonesia
Product Category: Banks
SWA
Banking Service Excellence Aw ard 2012
1st Best SM S Banking
M RI & Inf obank
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
7th Anniversary Indonesia Property &
Bank Aw ard 2012
The M ost Admired M ortgage Banking
Product Category: State Ow ned/
Commercial Bank w ith Very Good
performance
Propert y dan Bank M agazine
Investor Aw ards
Best Listed Company 2012
Banking Sector’s best Issuer
Invest or M agazine
25 Listed Companies in Sustainable
Responsible Investment (SRI) KEHATI Index
Indonesian Biodiversit y Foundat ion
Kesetiakaw anan Aw ard
2012 in Financial Institution
Category
M inist ry of Social Aff airs of t he
Republic of Indonesia
Social Business Innovation Aw ard
2012 for Innovations in M SM Es
empow erment
Wart a Ekonomi
Service Quality Aw ard 2012 for BRI
Prioritas
Carre
Cert ifi cat ions
ISO 9001:2008
SNI ISO 9001:2008
BRI’s Sent ra Operasi (Cent re of Operat ions Division)
has been operat ing under a Qualit y M anagement
Syst em, in line w it h t he ISO 9001:2008 f or Provision of
Payment Syst em by RTGS, Clearing and Remit t ance.
It received cert ifi cat ion f rom Lloyd’s Regist er Qualit y
Assurance on December 12 2012. The cert ifi cat e w ill
be valid unt il December 12, 2015
ISO 9001:2008
BRI’s Cont act Cent er Service (LCC) operat es under
a qualit y management syst em, in line w it h ISO
9001:2008. It received cert ifi cat ion f rom Verifi cat ion
New Zealand Limit ed on December 5, 2011 and t he
cert ifi cat e w ill remain valid unt il December 5, 2014
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
17
C ont ent s
Pag e
19558
BRuesnincaesnsa
SOtver ar vt eg is
iew
2 0 13
18
Financial Highlight s
12
Dividends and Dividend Policy
72
2012 Event Highlight s
14
Subordinat ed Bonds
73
Aw ards and Cert ifi cat ions
16
Operational Overview
74
M anagement Reports
21
Prospect s and General St rat egies
76
Report of t he President Commissioners
22
Human Resources M anagement
78
2012 Report on t he Supervisory Dut ies of
Board of Commissioners
26
M arket ing
86
Inf ormat ion Technology
Board of Commissioners
94
30
Cent er of Operat ions
Report of t he President Direct or
96
32
Board of Direct ors
Fixed Asset M anagement and Procurement of
Goods Services
98
42
Statement of Responsibility for 2012 Annual Report
44
Risk M anagement
100
Company Profile
46
M anagement Discussion and Analysis
153
Company’s General Inf ormat ion
48
General Overview
156
BRI in brief
50
Business Overview
158
M ilest one
51
M icro Business and Program
159
Vision and M ission
52
Ret ail Business
164
Corporat e Values
53
SOE’s and Corporat e Business
172
Product s and Services
54
Int ernat ional Business
175
Operat ional Area M ap/Net w ork
56
178
Organizat ional St ruct ure
60
Treasury Business and Capit al M arket
Support Services
Subsidiaries and Associat ion
62
Capit al M arket Support ing Inst it ut ions and
Prof essions
63
Financial Overview
182
Profi t and Loss St at ement
183
Financial St at ement
190
Cash Flow
198
Information for Investor
65
Financial Rat ios
199
St ocks Summary
66
200
Bonds Summary
67
Capit al Expendit ures and Commit ment s f or
Capit al Expendit ures
Ot her Financial Inf ormat ion
Share List ing Chronology
201
68
Ot her M at erial Inf ormat ion
M anagement St ock Opt ion Plan
203
69
Composit ion of Shareholders
70
Capit al M arket and Share Perf ormance
71
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
Page
Page
190
100
Fina ncia l
S t at ement
t
R is k M anag emen
Subsidiaries
Page
294
g
Whis t leblowin
S y st em
210
Responsibilit y f or t he Environment
309
PT Bank BRI Syariah
210
Responsibilit y t ow ard t he Communit y
310
PT Bank Rakyat Indonesia Agroniaga Tbk.
212
CSR Program
312
BRI Remit t ance Co.Lt d
213
Corporate Data
316
214
Profi le of Board of Commissioners
318
The Aim of Corporat e Governance
Implement at ion
216
Profi le of Board of Direct ors
322
GCG Assessment
217
GCG Implement at ion Road M ap
219
Corporat e Governance Guidelines, St ruct ure
and Policies
221
Corporate Governance
Profi le of Board of Commissioners’ Commit t ees 326
Senior Execut ives
329
Of fi ce Address
330
Out let s
331
Cont act Address
332
Financial Statement
335
General M eet ing of Shareholders
228
Relat ionship bet w een t he Commissioners and
t he Direct ors
231
Board of Commissioners
233
Board of Direct ors
St at ement of M anagement ’s Responsibilit y f or
Consolidat ed Financial Report s
336
240
Commit t ees
253
Independent Audit or’s Report
338
Corporat e Secret ary
272
Consolidat ed Financial St at ement
339
Int ernal Cont rol Syst em
276
343
Compliance Funct ion
277
Consolidat ed Comprehensive Profi t and Loss
Report
Consolidat ed Report on Changes in Equit y
IT Governance
346
281
Consolidat ed Cash fl ow Report
Int ernal Audit
349
284
Not es on Consolidat ed Financial Report
Ext ernal Audit ors
351
288
Code of Conduct s and Corporat e Cult ure
289
Appendix
Whist leblow ing Syst em
529
294
Press Release 2012
Legal Cases
529
297
Correspondence w it h Bapepam-LK and IDX
532
Bapepam-LK Ref erence
536
Corporate Social Responsibility
299
Basis and Commit ment
300
Responsibilit y t ow ard Consumers/Cust omers
302
Responsibilit y f or M anpow er, Healt h and
Saf et y at Work
306
Pag e
536
B a p ep a m
- LK R ef e
r ence
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
19
BRI’s success in maint aining
it s qualit y grow t h has assist ed
t he bank t o reach opt imum
perf ormance and creat e
a st rong f oundat ion f or
sust ainable grow t h.
Tot a l CAR
16.95% *
*B ank only
Tier1 CAR
15.86% *
*B ank only
20
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
M a na gement R epor t
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
21
R eport of The President C ommissioner
he year 2012 w as marked by a prudent
expansion, carried out in line w it h Good
Corporat e Governance principles and
support ed by t he lat est inf ormat ion t echnologybased net w ork development . All t hose at t empt s
w ere result ing in a commendable rise of net
profi t by 23.86% t o Rp18.69 t rillion, coming
f rom an increase in net int erest income and
higher loan out st anding, improvement s in loan
qualit y and operat ional ef fi ciency, and grow ing
f ee-based income cont ribut ion.
T
Assalamualaikum Wr. Wb.
We give t hanks t o Allah SWT f or His blessings, w hich enabled t he Bank t o achieve an out st anding
perf ormance in 2012.
M acroeconomic indicat ors have demonst rat ed a slow dow n in t he global economy in 2012. This
w as in line w it h t he decline of f orecast ed nat ional economic grow t h of Asia’s emerging market
as w ell as t hat of count ries in t he Euro Zone. During t he same year, Indonesia experienced
infl at ion of 4.30% , increase in composit e index of 12.94% and grow t h in Gross Domest ic
Product s (GDP) of 6.23% .
22
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
M anagement Report
Company Profile
Information for
Investors
Operational Overview
M anagement
Corporate Governance
Discussion and Analysis
Corporate Social
Responsibility
Corporate Data
B unasor S anim
President Commissioner/Independent Commissioner
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
23
The Bank’s perf ormance had increased signifi cant ly in 2012 compared t o t he previous year.
It is refl ect ed in 2012 fi nancial highlight s and fi nancial rat ios, such as, an increase of 17.33%
on t ot al asset s t o Rp551,34 t rillion, an increase of 22.92% of loan out st anding t o Rp362,01
t rillion, grow t h of t hird-part y f unds by 17.15% t o Rp450,17 t rillion, a rise in net int erest income
by 5.97% t o Rp36,48 t rillion, an increase in net profi t af t er t ax by 23,86% t o Rp18,69 t rillion
and a decline in NPL gross f rom 2.32% in 2011 t o 1.83% . In addit ion, t hanks t o an increase
of sophist icat ed inf ormat ion t echnology, t he company w elcomed 977 new out let s, composed
of 15 branches, 43 sub-branches, 125 BRI Unit s, 44 Cash of fi ces, 500 TerasBRI, and 250 M obile
TerasBRI. The Board of Commissioners w ould like t o express it s appreciat ion t o all of t he
Bank’s employees and st akeholders f or t heir hard w ork and support t hroughout 2012 t hat has
improved t he Bank’s perf ormance.
Indonesia is f orecast ed t o experience high economic grow t h in 2013 due t o t he domest ic market
pot ent ial, w hich act as a pull f act or f or invest ment , grow ing domest ic demand, availabilit y of
good public inf rast ruct ures as priorit y in government spending, and low level infl at ion. Relat ed
t o t he inf ormat ion above, t he Board of Commissioners is opt imist ic t hat t he Bank’s perf ormance
in 2013 w ill be fi ner t han 2012 result s.
The eff ort t o enhance t he Bank’s perf ormance in 2013 w ill require t he support of all st akeholders
t hroughout Indonesia. Several st rat egic init iat ives t hat have been f ormulat ed w ill need t o be
w ell implement ed and support ed by t he relevant part ies and w orking unit s. This is primarily
relat ed t o t he increased compet it ion in t he micro, small and medium segment s as w ell as nonbank fi nancial product s. Hence, t he Bank’s act ivit ies must be in accordance w it h t he f ormulat ed
st rat egies on asset s, capit al, non-organic grow t h, f ee-based income and business support . In
addit ion, t he company also requires all employees t o f ully implement t he employee’s code of
conduct s in perf orming t heir t asks.
24
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
M anagement Report
Company Profile
Information for
Investors
Operational Overview
M anagement
Corporate Governance
Discussion and Analysis
Corporate Social
Responsibility
Corporate Data
The company’s 2013 Dest inat ion St at ement is t o become “ The Bank w it h t he Best M icro, Small
and M edium segment s Grow t h in Indonesia” . This is in line w it h t he Board of Commissioners’
concern of t he business w hich becoming more compet it ive and dynamic. M oreover, t he Bank’s
st at us as a list ed company requires all employees t hroughout Indonesia t o maximize t heir
pot ent ial in carrying-out t heir t asks in order t o make t his st at ement int o realit y.
In 2013, t he Board of Commissioners w ill endeavor t o increase t he qualit y of our monit oring,
w hile also w orking in harmony w it h t he Board of Direct ors, as st ipulat ed in t he Company’s
Regulat ions and exist ing rules of law.
I pray t hat Allah SWT w ill alw ays gives His st rengt h and guidance t o us and may ease t he w ay
f or us all. Aamiin.
Wassalamualaikum Wr. Wb.
Bunasor Sanim
President Commissioner/Independent Commissioner
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
25
2 012 R eport on t he S upervisory
D ut ies of B oard of C ommissioners
Forew ords
Supervisory Recommendations
The Bank’s Board of Commissioners commit ment t o it s
dut ies on supervisory role t hroughout t he year 2012
is present ed in t he Bank’s Annual Report . From t his
report , st akeholders can ret rieve relevant inf ormat ion
on t he act ivit ies of t he Board of Commissioners in it s
supervisory role.
1. Loan/ Credit M atters
In 2012, t he Board of Commissioners’s supervisory
role w as execut ed in accordance w it h t he t ask, dut ies
and responsibilit ies of t he Board of Commissioners
as st ipulat ed in t he art icles of associat ion of t he
Bank and prevailing regulat ions; in order t o ensure
t hat t he approved Work Plan and Company Budget
are implement ed properly, t hat Good Corporat e
Governance principles and risk management are
carried out appropriat ely in all of t he organizat ion’s
unit s and t he opt imalizat ion of t he Company’s
operat ional act ivit ies in providing banking services.
The Board of Commissioners implement s act ive
supervising by periodically discussing perf ormance
achievement s and carrying out visit s t o w orking
unit s and passive supervising t hrough evaluat ion and
analyzing t he bank’s operat ions based on submit t ed
report s. In carrying out t hese supervisory t asks, it
is support ed by Commit t ees f ormed by t he board
it self . The commit t ees are t he Audit Commit t ee, t he
Risk M anagement Supervisory Commit t ee and t he
Nominat ions and Remunerat ions Commit t ee.
The 2012 Report f or t he Board of Commissioner’s
supervisory dut y present ed in t his Annual Report
out lines t he Supervisory Recommendat ions and t he
Company’s 2012 Perf ormance Achievement s.
26
The
Board
of
Commissioners
const ant ly
recommends t hat loan disbursement should be
done in accordance w it h t he prudent ial banking
principles and t hat it should be accompanied by
ef f ort s t o improve t he qualit y of int ernal cont rol
in order t o reach t he t arget ed loan qualit y by t he
end of 2012.
The Board of Commissioners support s t he Board of
Direct ors’ st rat egies and policies in loan expansion
t hrough employing t he t rickle-dow n business
st rat egy. The Board of Commissioners act ively
provides input and recommendat ions in t he
loan consult at ion f orum w hich is held bet w een
t he Direct ors and Commissioners f or loan w it h a
cert ain amount
2. Funding
The Board of Commissioners const ant ly provides
input s and recommendat ions f or t he Bank t o
increase it s low -cost f unds in order t o provide
more compet it ive int erest rat es t o cust omers,
compared t o t hose given by compet it ors. The
Bank should cont inuously pursue it s t arget
t o increase t he amount of t hird-part y f unds
t hroughout 2012 t o support it s loan expansion
t arget . The plan t o issue Global Bonds in 2013
should be carried out t hrough t horough analysis,
in accordance w it h exist ing regulat ions as w ell
as w it h t he most f avorable t erms and condit ions
t hat best benef it s t he company.
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
M anagement Report
Company Profile
Information for
Investors
Operational Overview
3. Income and Expenses
The Board of Commissioners const ant ly provides
recommendat ions f or t he Bank t o increase it s
non-int erest income t hrough act ivit ies such as
t rade fi nance, remit t ance, cash management ,
and t ransact ional account s, by capit alizing BRI’s
nat ionw ide-spread of w orking unit s. In t erms of
expenses, The Board of Commissioners const ant ly
encourages t he Bank t o improve it s ef fi ciency.
4. Capitalization
The Board of Commissioners recommends t hat
profi t s are opt imally used as t he source of t he
Bank capit al grow t h.
5. Human Resources
Human resources play a cent ral role in t he Bank.
Theref ore, t he Board of Commissioners consist ent ly
pays more at t ent ion t o t he management of
human resources. In 2012, t he Board provided
t he company’s management w it h a number of
recommendat ions regarding t he management
of human resources. These suggest ions include
accelerat ing t he employee recruit ment process in
order t o support business grow t h, improving t he
qualit y of human resources t hrough educat ion and
t raining as w ell as int ensif ying t he int ernalizat ion
and implement at ion of t he corporat e cult ure.
The Board
of
Commissioners consist ent ly
emphasizes on t he import ance of experience along
w it h compet ence and leadership qualit y of BRI’s
human resources. The Board of Commissioners
pays special at t ent ion t o t he development of new
employees’ compet ency considering t heir pot ency
as prof essional bankers in t he f ut ure.
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
M anagement
Corporate Governance
Discussion and Analysis
Corporate Social
Responsibility
Corporate Data
The Board also support s t he policy improvement
relat ed t o t he human resources and it s
implement at ion t o support t he Bank’s business
st rat egy. The Board underlines t he need t o increase
t he role of Inf ormat ion Technology t hrough
providing f acilit ies t o support t he Bank’s human
resources in carrying out t he Bank’s operat ions.
This is necessary t o increase t he product ivit y and
perf ormance of human capit al.
6. Information Technology
The Board considers Inf ormat ion Technology as
an import ant aspect in improving ef fi ciency and
service qualit y t o t he cust omers. Theref ore, it is
necessary t o emphasize t he f ocus on:
a. Improving net w ork reliabilit y t o ensure t he
service qualit y
b. Opt imizing Inf ormat ion Technology t o boost
t he Bank operat ions’ accuracy, speed and
operat ional qualit y.
7. Internal Control
The Board of Commissioners considers t hat t he
main f ocus in int ernal cont rol is on t he audit
fi ndings f rom int ernal and ext ernal audit ors, as
w ell as f ollow -ups on t hose fi ndings. Thus, it is
essent ial f or t he BRI’s management t o increase t he
monit oring of t he f ollow -ups of audit ’s fi nding
by it s w orking unit s –including t hose relat ed t o
deadlines and it s improvement ef f ort s – aside f rom
t he opt imizat ion of Risk M anagement ’s role and
f unct ions in each of BRI’s w orking unit s.
8. Equity Participation
Equit y part icipat ion in subsidiary Bank should
be t hrough comprehensive analysis as w ell as in
line w it h t he prudent ial banking principles and
t he prevailing regulat ions. The process should be
based on a st rat egy t o develop t he subsidiaries
ef f ect ively, synergist ically and mut ually benefi cial.
It is accompanied also by monit oring of t he
subsidiaries’ business plan.
27
9. Capital Expenditure
The capit al expendit ure budget should be designed
in accordance w it h t he 2012 project plans.
M oreover, t he budget f or Capit al Expendit ure
should be f ully ut ilized in order t o enhance t he
qualit y of service t o cust omers.
10. Office Netw orks
The opening of new operat ing unit should be w ell
coordinat ed among t he relevant direct orat es. This
is t o ensure t he operat ional ef fi ciency and bet t er
synchronizat ion t o support t he achievement of t he
w orking unit t arget . Such coordinat ions, includes:
a. Human Resources. This requires act ive
coordinat ion among w orking unit s in manning
analysis as w ell as det ermining and f ulfi lling
t he human resources’ f ormat ion.
b. Inf ormat ion
Technology.
This
involves
Inf ormat ion Syst em Technology Division,
Logist ics and Fixed Asset s M anagement
Division, M icro Businesses Net w ork Division,
Ret ail Business Net w ork Division and relat ed
Working Unit w orking t oget her t o provide
suf fi cient e-channels.
c. Support ing Logist ics. This involves procurement
of land, building, f acilit ies and of fi ce equipment
by Logist ic and Fixed Asset s M anagement
Division and t he relat ed Working Unit s.
11. Partnership Program and Community
Development (PKBL)
All relat ed Working Unit s should ensure t hat t he
PKBL f unds is channeled and used opt imally w hile
also adhering t o prevailing regulat ions. In addit ion,
t he record-keeping and account abilit y f or t he
disbursement and ut ilizat ion of t he associat ed
f unds, should be undert aken properly w it hin t he
generally accept ed account ing st andard.
28
The Company’s 2012 Performance
1. Financial Performance
The Bank’s f inancial perf ormance by t he end
of 2012 w as improving compared t o t he same
period in t he previous year. The improvement s
w ere including:
a. Tot al asset s of Rp551.34 t rillion, up by 17.33%
f rom Rp469.90 t rillion in December 2011.
b. Loan out st anding of Rp362.01 t rillion, an
increase of 22.92% f rom Rp294.52 t rillion in
December 2011.
c. Third part y f unds of Rp450.17 t rillion,
increasing by 17.14% f rom Rp384,26 t rillion in
December 2011.
d. Non-perf orming loan gross of 1.83% , improving
f rom 2.32% in December 2011.
e. Net int erest income of Rp36.48 t rillion, up
by 5.97% compared t o Rp34.43 t rillion in
December 2011.
f . Net income af t er t ax t ot aling up t o Rp18.69
t rillion, up by 23.86% f rom Rp15.09 t rillion in
December 2011.
The improvement s of t he fi nancial perf ormance,
refl ect ed in t he main indicat ors above, has
become t he result of t he bank in carrying out
it s w orking plans and act ivit ies as st at ed in it s
2012 is Budget Plan (RKAP), w hich comprises
quant it at ive as w ell as qualit at ive t arget s. The
Board of Commissioner’s role in it s relat ions t o
t he budget plan is t o approve and t o endorse
t he budget plan bef ore making it as t he business
guideline by all rank - and - fi le of t he bank.
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
M anagement Report
Company Profile
Information for
Investors
Operational Overview
2. Profitability
The Bank’s profi t abilit y perf ormance remained
st rong, refl ect ed by it s achievement of Rp18.69
t rillion net profi t in 2012, w here loan disbursement
and improving loan qualit y remained as t he main
drivers of t he profi t .
3. Capitalization
The Bank’s CAR st ood at 16.95% - above t he
cent ral bank’s minimum rat io of 8% . The Bank’s
capit al is dominat ed by mainly net profi t -derived
core capit al, t hus demonst rat ing a very healt hy
capit al composit ion.
M anagement
Corporate Governance
Discussion and Analysis
Corporate Social
Responsibility
Corporate Data
M r. Vincent ius Sonny Loho as commissioner and M r.
Ahmad Fuad as Independent Commissioner. We hope
t o build good cooperat ion and coordinat ion t o support
t he BRI’s sust ainable grow t h.
Finally, w e are ending t his Supervisory Report of Board
of Commissioners on business implement at ion in 2012.
Board of Commissioners
PT Bank Rakyat Indonesia (Persero) Tbk
4. Loan Quality
The Bank is maint aining it s loan qualit y. This is
demonst rat ed by it s 2012 Non Perf orming Loan
Gross, w hich st ood at 1.83% in 2012 , improving
signifi cant ly f rom 2,32% in 2011.
Changes in the M embership
of the Company’s Board of
Commissioners in 2012
We hereby convey our respect and t hanks t o M r. Agus
Suprijant o f or all his cont ribut ions and commit ment
during his t ime as a BRI commissioner. We also w elcome
M r. M ust af a Abubakar as t he new Vice Commissioner,
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
29
B oard of C ommissioners
1
30
2
3
4
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
M anagement Report
Company Profile
Information for
Investors
5
Operational Overview
6
1. Heru Lelono
Commissioner
2. Bunasor Sanim
President Commissioner/
Independent Commissioner
3. Adhyaksa Dault
M anagement
Corporate Governance
Discussion and Analysis
7
Corporate Social
Responsibility
Corporate Data
8
5. Vincentius Sonny Loho
Commissioner
6. M ustafa Abubakar
Vice President Commissioner
7. Hermanto Siregar
Commissioner
Independent Commissioner
4. Aviliani
8. Ahmad Fuad
Independent Commissioner
Independent Commissioner
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
31
R eport of t he President D irect or
he year of 2012 became a period w hen BRI
w as able t o build a solid f oundat ion f or a
sust ainable grow t h f or t he f ut ure. This w as
done w it h a prudent business grow t h along side
w it h t he development of sophist icat ed inf ormat ion
t echnology–based business net w orks.
T
Prudent loan grow t h w it h a f ocus on asset qualit y,
cust omer base expansion and opt imizing of w orking
unit net w orks produced Rp36.48 t rillion in net int erest
income and a declining NPL’s, st ood at 1.83% in 2012
f rom 2.32% in t he previous year. Wit h t he support
of t he increase in f ee based income, t he bank fi nally
gained a Rp18.69 t rillion in net profi t – increasing by
23.86% compared t o it s net profi t in 2011.
Assalamualaikum Wr. Wb.
We send our grat it ude t o Allah SWT f or his blessings w hich allow ed BRI t o t raverse 2012 w it h
good result s. The direct ors of BRI w ould like t o highlight a number of BRI’s main successes in 2012
perf ormance t o t he company’s shareholders and ot her st akeholders.
The Economy and Banking Conditions in Indonesia in 2012
Indonesia’s economic resilience remained int act amid 2012’ global economic volat ilit y. The
count ry’s economy grew by 6.23% during 2012 support ed st rongly by household consumpt ions
and invest ment s. St rong grow t h in t he household consumpt ion is in line w it h t he increase in
consumer’s confi dence level and people purchasing pow er. The high domest ic market demand,
paired w it h business communit ies opt imism, boost ed t he count ry’s high level of invest ment .
32
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
M anagement Report
Company Profile
Information for
Investors
Operational Overview
M anagement
Corporate Governance
Discussion and Analysis
Corporate Social
Responsibility
Corporate Data
S of yan B asir
President Direct or
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
33
GDP composit ion based on t o usage
D omest ic C ons umpt ion,
par t icular ly hous ehold cons umpt ion,
54.56
25.81
which ma kes up t o 5 4 .5 6 % of t he
2012
(% )
G r os s D omest ic Pr oduct , is t he
24.26
main cont r ibut or t o Indones ia ’s
33.16
8.89
economic g r owt h.
Consumpt ion
Government Spending
Invest ment
Export
Import
In 2012, infl at ion st ood at 4.30% (yoy) – remain w it hin t he cent ral bank’s designat ed infl at ion
t arget range of 4.5% ± 1% .
High import s put pressure on t he Rupiah during 2012. How ever, t he int ensit y of t his pressure
slow ly decreased nearing t he end of t he year. The Rupiah’s exchange rat e against t he US dollar
hovered bet w een Rp8,892 and Rp9,707/US Dollar during 2012.
The fi nancial syst em’s st abilit y and t he banks’ int ermediary f unct ion during 2012 w ere apparent ly
w ell-maint ained. The banking indust ry’s solid perf ormance w as refl ect ed in t he high CAR, w hich
w as recorded at 17.43% , t hus, w ell above t he minimum limit of 8% . Loan qualit y w as also
w ell-maint ained as demonst rat ed in t he gross NPL level at 1.87% - below t he maximum NPL
limit of 5% . The year-on-year loan grow t h in December 2012 w as recorded at 22.97% and w as
dominat ed by product ive loan grow t h w hich also refl ect ing Indonesia’s economic condit ion and
grow t h source.
BRI’s 2012 Business Performance
A prudent and good quality loan grow th w ith mainly focus on micro, small
and medium segments
One of BRI’s st rat egic achievement s during 2012 w as it s success in creat ing qualit y loan grow t h,
demonst rat ed t hrough t he const ant decrease of Non-Perf orming Loan levels f rom 2.32% in 2011
t o 1.83% in 2012. This is f ar below it s int ernal t arget of 3.0% maximum NPL and f ar below t he
cent ral bank’s maximum limit of 5% . BRI’s 22.92% prudent loan grow t h during 2012 show ed
t hat reducing t he NPL rat e does not have t o mean spurring grow t h t hat is not comply w it h
t he principles of prudence in banking. Thus, BRI’s 2012 port f olio is one w hich considered t o be
healt hy and have good qualit y.
34
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
M anagement Report
Company Profile
Information for
Investors
Operational Overview
M anagement
Corporate Governance
Discussion and Analysis
Corporate Social
Responsibility
Corporate Data
The ot her import ant achievement by BRI in 2012 w as t he implement at ion of it s st rat egic plan
t o remain f ocused on t he micro, small and medium segment s. This achievement is refl ect ed in
it s loan port f olio f or t hose segment s, 75% of t ot al loan disbursement w as given t o t his segment
during 2012. Based on t he company’s loan port f olio at t he end of 2012, M icro loan became t he
largest cont ribut or, reaching 30.7% of t he t ot al loan.
Business revit alizat ion conduct ed in t he M icro Business segment in 2011 has begun t o show it s
posit ive result s during 2012. This revit alizat ion – encompassing t he expansion of t he cust omer
base, t he increase of loan of fi cer capacit y, t he expansion of net w ork and product development –
w ent w ell according t o plan. BRI added 125 BRI Unit s, 500 Teras BRI and 250 mobile Teras BRI in
accordance w it h it s 2012 out let est ablishment t arget . By t aking int o account t heir perf ormance
and business pot ent ials, in 2012, 14 Sub-branch Of fi ces w ere up graded t o be branch of fi ces, 6
Cash Of fi ces up graded t o Sub-Branch Of fi ces and 26 Teras BRI t o BRI Unit s.
The net w ork expansion w as f ollow ed by t he increase in out let product ivit y in 2012, especially f or
TerasBRI, w hose product ivit y w as recorded at Rp2.99 billion per Teras f or loan and Rp1.27 billion
per Teras f or deposit s, increasing f rom it s 2011 posit ion of Rp2.21 billion per Teras f or loan and
Rp0.73 billion per Teras f or deposit .
BRI’s micro business revit alizat ion has begun t o show it s result during t he second quart er of
2012, as demonst rat ed in t he increase in t he amount s of t he account s f or bot h loans and micro
deposit s. BRI’s M icro loan account s reached 5,5 million account s, increasing f rom t he 5,29 million
account s recorded in 2011. Deposit s increased f rom 21.85 million account s in 2011 t o 24.97
million account s in 2012. The amount of account s in BRI’s micro deposit and loan demonst rat es
t hat BRI’s M icro Business w as able t o reach t he grassroot s communit ies t hroughout Indonesia.
Theref ore, it s business model has succeeded in support ing Indonesia’s fi nancial inclusion st rat egy
w it hout put t ing aside t he healt hy and sust ainable banking business principles.
Funding
In t hird-part y f unds, BRI succeeded in implement ing it s st rat egic f unding plan t o maint ain
it s f ocus on low -cost f unds. During 2012, t he t hird-part y f unds grew w it h an opt imal low cost f unds composit ion, w hich reached around 60% - in accordance w it h t he ideal f unding
composit ion t arget .
Savings show ed a more st able and relat ively higher grow t h compared t o ot her t ypes of deposit s.
During 2012, BRI’s savings grew by about 19.61% , or up t o Rp184.37 t rillion, and demand deposit s
grew by 4.29% , reaching Rp80.08 t rillion. Time deposit s grew by 21.11% , reaching Rp185.73
t rillion, t hus BRI’s low -cost f unds comprised 58.74% and high-cost f unds 41.26% . BRI’s t hird part y
f unds composit ion and cust omer st ruct ure demonst rat es a st able low -cost f und source t o support
sust ainable grow t h f or loans and ot her businesses.
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
35
Developments of e-Banking and Fee Based Income
B R I operat ional
act ivit ies are now
support ed by a t ot al
of 9,05 2 convent ional
wor king unit s equipped
wit h sophist icat ed
inf or mat ion t echnology
facilit ies as well as
5 9,2 41 e- channels.
BRI’s long-t erm plan in developing f ee-based income as an alt ernat ive source of income
aside f rom t he int erest -based income, as w ell as becoming a payment gat ew ay in Indonesia’s
fi nancial syst em, w ere implement ed t hrough it s e-banking development s by t reat ing cont inuing
development s of e-channels. In t erms of e-channel development s, BRI had 14,292 ATM s spread
t hroughout Indonesia at t he end of 2012, so t hat BRI considered as t he bank w it h t he largest ATM
net w orks among banks in Indonesia. Furt hermore, BRI’s e-channel f acilit ies are also support ed by
44,715 unit s of EDCs, phone banking, SM S banking and int ernet banking services.
Among all, t he e-banking development eff ort s in 2012 result ed in t he increase of f ee-based
income f rom an increase in e-banking t ransact ions. The rise in f ees coming f rom t ransact ions
conduct ed t hrough t he ATM s recorded t he second-highest grow t h af t er f ees coming f rom t rade
fi nance. Debit card holders - a proxy of t he cust omers w hose likely w ill use e-Banking services
int ensively - w as also increasing, show ing t he pot ent ial of increasing t ransact ion-based f ee-based
income f or BRI . All t he net w ork development s – convent ional or e-channels – are st rat egies t o
secure t he company’s t arget of becoming a nat ional payment gat ew ay in Indonesia’s inclusive
economic syst em, and has capabilit y t o support t he micro, small and medium business segment s
t hat are it s core businesses.
Profitability and Capitalization
A consist ent and an appropriat e implement at ion of st rat egy, along w it h t he hard w ork and
commit ment f rom bot h management and employees, BRI has show n encouraging result s. By
t he end of 2012, BRI booked a net profi t of Rp18.69 t rillion, increasing by 23.86 % f rom 2011’s
Rp15.09 t rillion, along w it h an 8.42% Net Int erest M argin (NIM ).
The increased in net profi t is support ed by qualit y business grow t h, along w it h it ’s abilit y t o
maint ain it s operat ional ef fi ciency, refl ect ed in it s operat ional expense t o operat ional income
rat io, recorded as 59.93 % , and Cost Ef fi ciency Rat io, w hich w as maint ained at 43.11% at t he
end of 2012.
Challenges and Solutions
In developing it s business, BRI f aces challenges such as f ulfi lling t he needs of human resources in
a t imely manner and in line w it h business development s. The implement at ion of a proper and
ef fi cient syst em t o meet t he needs of market ing of fi cers is crit ical in support ing BRI’s business
development s, especially f or it s micro business segment , w hich is reliant on t he availabilit y of
M ant ri (BRI’s micro loan of fi cer) as it s spearhead.
The principles of communit y banking, w hich is implement ed in BRI’s micro business development
are st rongly depends on t he availabilit y of “ M ant ri” , w hich is w ell-equipped w it h suf fi cient
know ledge of local cult ure and business pract ices, as w ell as high int egrit y.
BRI has added 6,727 “ M ant ri” t o it s exist ing f orces in 2012, making t he rat io of “ M ant ri” t o BRI
unit s became 3.1 per BRI unit - an increase f rom 2.01 per BRI unit in 2011. The increase in t he
rat io refl ect ed t he increase in capacit y of BRI’s micro unit s in t o expand BRI’s micro businesses
in t he f ut ure.
36
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
M anagement Report
Company Profile
Information for
Investors
Operational Overview
M anagement
Corporate Governance
Discussion and Analysis
Corporate Social
Responsibility
Corporate Data
B R I’s fee- based income increased by
16 .6 4% t o R p3 .93 t r illion.
Corporate Governance – Tow ard GCG Excellence
The implement at ion of Good Corporat e Governance (GCG) in BRI is done in several st ages,
st art ing w it h f ormulat ion, implement at ion, evaluat ion, and monit oring. The implement at ion’s
t arget is GCG excellence, w hich is a condit ion in w hich GCG is implement ed consist ent ly in all
of t he company’s organizat ion level and becomes it s breat h of lif e. The policy f ormulat ion and
t he implement at ion of GCG principles in BRI are based on prevailing regulat ions: The Indonesian
Corporat e Governance Code and BRI GCG Chart er, w hich had been revised 3 (t hree) t imes in
accordance t o recent development s.
The next st age, implement at ion, has been carried out and w ill be cont inuously improved. Several
st eps of GCG implement at ion t hat have already been done are including developing int ernal GCG
aw areness, t he development of GCG Tools, w hich include t he development of a w hist leblow ing
syst em, cust omer complaint s syst em, e-procurement implement at ion, t he f orming of an Int egrit y
Pact and t he OPRA syst em. BRI has developed t he compliance dashboard, w hich serves as an early
w arning syst em in t he implement at ion of BRI’s GCG.
The next st ages are monit oring and evaluat ion, w hich include t he implement at ion of BRI’s GCG
assessment using t he self -assessment as w ell as t hird-part y assessment met hod, evaluat ion of t he
company’s perf ormance based on det ermined assessment indicat ors, and annual evaluat ion of
BRI’s policies and syst ems.
The monit oring and evaluat ion implement at ion phase are carried out sust ainably t o reach GCG
Excellence. A number of implement at ions, including developing int ernal and ext ernal aw areness,
review s, and GCG improvement – relat ed policies, have been carried out t hroughout 2012.
N et pr of it
2 3 .86 % t o
Rp18.69 t rillion
PT Bank Rakyat Indonesia (Persero) Tbk. 2012 Annual Report
37
The result of t he evaluat ion t hrough GCG Self -Assessment , in line w it h Bank Indonesia’s
regulat ions, w as “ SANGAT BAIK” or VERY GOOD. Third part y assessment w as also conduct ed
t hrough research and rat ing using t he Corporat e Governance Percept ion Index (CGPI) carried out
by The Indonesia Inst it ut e of Corporat e Governance (IICG), in cooperat ion w it h SWA M agazine,
w it h t he result st at ed BRI as a “ Trust ed Bank” .
BRI’s management and employees are consist ent in t heir GCG commit ment , in line w it h t he second
art icle on t he BRI’s mission: “ Providing excellent services t o cust omers t hrough a w idespread of
business net w ork, support ed w it h prof essional human resources and by implement ing Good
Corporat e Governance pract ices” . The BRI has chosen GCG as it s 2012 t heme, w hich is becoming
t he best bank in Indonesia w it h proper Good Corporat e Governance pract ices.
Risk M anagement
A reliable risk management is a basic requirement in a bank, i